EIT ICT Labs Strategic Innovation Agenda 2013 v1eirict.win.tue.nl/docs/EIT-ICT-LABS-2014/EIT ICT... · economic impact and for bringing added value to people in Europe and beyond

EIT ICT Labs Strategic Innovation Agenda 2013 Version 1.0 16.4.2013

EIT ICT Labs SIA 2013 P a g e | 2 Version 1.0 16/04/2013

Table of Contents Foreword ........................................................................................................................... 4

1 Executive Summary ...................................................................................................... 5

2 Multi-‐annual KIC Strategy ............................................................................................ 6 2.1 Vision, Strategy, Key Goals ................................................................................................................................. 6 2.2 Integration of KIC Knowledge Triangle Actors .......................................................................................... 8 2.2.1 Governance and Management ....................................................................................................................... 8 2.2.2 Nodes and Co-location Centres ................................................................................................................... 10 2.2.3 Operational Principles ................................................................................................................................... 11 2.2.4 Core Processes .................................................................................................................................................... 12

2.3 Progress Towards KIC Sustainability .......................................................................................................... 13 2.4 Implementation of Intellectual Property Rights within the KIC ...................................................... 13 2.5 Implementation of KIC Communication, Dissemination and Outreach Activities ................... 14 2.5.1 Marketing and Communications ............................................................................................................... 14 2.5.2 Outreach ............................................................................................................................................................... 14

2.6 Partnerships ........................................................................................................................................................... 14 2.7 EIT ICT Labs in Horizon 2020 ......................................................................................................................... 15 3 European ICT Landscape ............................................................................................ 16 3.1 The Global Perspective: European ICT in the World ............................................................................ 16 3.2 SWOT Analysis of European ICT .................................................................................................................... 17 3.2.1 Strengths .............................................................................................................................................................. 17 3.2.2 Weaknesses ......................................................................................................................................................... 18 3.2.3 Opportunities ..................................................................................................................................................... 18 3.2.4 Threats .................................................................................................................................................................. 19

3.3 Strategic Implications ......................................................................................................................................... 20 4 Pillar Strategies .......................................................................................................... 21 4.1 Education ................................................................................................................................................................. 21 4.1.1 Doctoral School ................................................................................................................................................. 22 4.1.2 Master School ..................................................................................................................................................... 24

4.2 Research and World-‐Class Innovation ........................................................................................................ 24 4.2.1 Innovation in ICT .............................................................................................................................................. 26 4.2.1.1 Computing in the Cloud ..................................................................................................................................... 26 4.2.1.2 Cyber-‐Physical Systems ..................................................................................................................................... 29 4.2.1.3 Future Networking Solutions ......................................................................................................................... 32 4.2.1.4 Privacy, Security, and Trust ............................................................................................................................. 34 4.2.1.5 Smart Spaces .......................................................................................................................................................... 36

4.2.2 Innovation with ICT ......................................................................................................................................... 39 4.2.2.1 Digital Cities of the Future ............................................................................................................................... 39 4.2.2.2 Health and Well-‐Being ....................................................................................................................................... 41 4.2.2.3 Intelligent Mobility Solutions ......................................................................................................................... 44 4.2.2.4 Smart Energy Systems ....................................................................................................................................... 46

4.3 Business and Entrepreneurship .................................................................................................................... 48 4.4 Nodes and Co-‐Location Centres ..................................................................................................................... 50 4.4.1 Berlin ...................................................................................................................................................................... 50 4.4.2 Eindhoven ............................................................................................................................................................ 51 4.4.3 Helsinki ................................................................................................................................................................. 52


4.4.4 Paris ....................................................................................................................................................................... 53 4.4.5 Stockholm ............................................................................................................................................................ 53 4.4.6 Trento .................................................................................................................................................................... 54

4.5 Associate Partner Groups ................................................................................................................................. 55 4.5.1 Budapest ............................................................................................................................................................... 55 4.5.2 London ................................................................................................................................................................... 55 4.5.3 Madrid ................................................................................................................................................................... 56


Foreword The Strategic Innovation Agenda (SIA) of EIT ICT Labs describes the strategic objectives and the intended steps to realize them along the main pillars of the KIC – education, research and innovation, business and entrepreneurship, and co-location ecosystems. Its time perspective is the coming three to five years (from today until 2016-2018). The long-term objective of EIT ICT Labs is to drive European leadership in ICT Innovation for economic growth and quality of life. It endeavours to accomplish this objective via the creation of ICT enabled solutions acting on key societal challenges to increase the quality of life, wealth, and employment opportunities of Europeans. To achieve this, it aims to become an established actor in ICT innovation able to set agendas via thought leadership and mobilise ecosystems to deliver results both at national and at European level. In this framework, the SIA is intended to offer a condensed snapshot of the current strategic thinking of the KIC. It is created through a concerted community efforts, on the basis of contributions from the pillar Directors, Node Directors in their two roles as leaders of their nodes and the MC owners of certain action lines, and the Action Line Leaders responsible on their particular lines of work. The 2013 version of the SIA raises the stakes considerably in comparison with the previous instances by including for the first time a holistic view of the ICT landscape of Europe that gives a backdrop for the individual action lines. The level of ambition of the action line contributions has been raised as well by including explicit descriptions of the primary markets and market opportunities they are aiming at. These market data are directly linked with the priority topics of the Call for Activities 2014, thus linking the SIA more tightly with the business planning process of EIT ICT Labs. With this, the SIA is intended to become not only a repository of strategic information, but also a resource that is actually deployed in the everyday work of the action lines and activities. This is a high ambition indeed, and will not happen overnight. However that may be, the SIA 2013 makes an important step forward along the path of reaching the full ambition of the mission of EIT ICT Labs. I thank cordially all contributors to the SIA 2013 for their effort. Paris, April 16 2013 Martti Mäntylä CSO EIT ICT Labs


1 Executive Summary The Strategic Innovation Agenda describes the strategic objectives of EIT ICT Labs for the coming three to five year time period (today until 2016-2018), our vision of the ICT landscape in Europe, and the key actions for realizing the strategy along the key pillars of the KIC. The translation of the objectives to action takes place via the annual management agenda and the annual business plan. The SIA 2013 consists of three main parts. Chapter 2 describes the current snapshot of the multi-annual KIC strategy, largely structured along the main dimensions of the Framework Partnership Agreement, the long-term agreement that regulates the relationship of EIT ICT Labs with EIT. Chapter 3 gives our first snapshot of a holistic ICT landscape of Europe, structured by a SHOW analysis of the relative position of Europe in the global scene. This analysis forms the backdrop of Chapter 4 that gives deeper in sight into the implementation of the pillar strategies of the KIC along education, research and innovation, business and entrepreneurship, and co-location ecosystems.


2 Multi-annual KIC Strategy

2.1 Vision, Strategy, Key Goals Europe is often perceived to suffer from the so-called innovation paradox: even though we are strong in basic research, we lag behind other regions in turning the results of excellent research to practice in terms of new products and services, new companies and business, and new jobs in the European region. The domain of Information and Communications Technologies (ICT) is particularly suspected to suffer from this disease: after a glorious past where European innovators introduced mobile telephony to the world, we seem to have lost the lead to other regions.

Mission and Vision of EIT ICT Labs Mission: Drive European leadership in ICT Innovation for economic growth and quality of life Vision: EIT ICT Labs reaches its mission by exploiting Europe’s strengths in deploying ICT in key domains with societal impact, increasing the pace of innovation of core ICT players in Europe, creating fast growing new ventures through entrepreneurship and new talents, and intensifying the interaction between the knowledge triangle actors.

The top-level goal of EIT ICT Labs is to decisively turn this tide. The mission of EIT ICT Labs is to drive European leadership in ICT Innovation for economic growth and quality of life. To achieve European leadership, we aim at boosting significantly the innovation pace of core European ICT players by exploiting their relative strengths in deploying ICT in various application domains, and also through the creation of fast growing ICT players in new markets and the breeding and deployment of entrepreneurial ICT talents by close interaction between the Education, Research, and Business actors.

Figure 1 Top-level Strategy of EIT ICT Labs


The elements of our strategy bring the unique characteristics of EIT ICT Labs into play. In particular, a close and pragmatic linkage between Education, Research and Business will allow us to tap into new pools of entrepreneurial talents and give them opportunities to excel; our Co-location Centres will upgrade already strong local innovation ecosystems to a European network of ICT hot spots for rapid scaling-up of innovations; and our industrial base gives us access to problem domains and markets where the European strengths can be exploited to the fullest both for economic impact and for bringing added value to people in Europe and beyond.

The Strategy Rests on the Unique Selling Propositions of EIT ICT Labs Knowledge triangle integration: EIT ICT Labs has the mandate to engage in all realms of the knowledge triangle – Education, Research, and Business – and to work across them for added value. We are the sole European institution with this mandate. Complementarity, added value, and leverage: The EIT grant is exclusively aimed at complementary actions executed on top of existing programmes and instruments for added value and high leverage. With this, EIT ICT Labs has the mandate to innovate its ways of working. Co-location Centres and Nodes: Our Nodes and Co-location Centres provide EIT ICT Labs the muscles for executing its agenda at European and national levels. They are also the focus points for mobility, interaction, and open innovation, aiming to become world-class innovation hotspots in their chosen foci. Long-term vision: EIT ICT Labs has been established with a 15-year vision. This longevity makes it possible to define and execute long-term strategies based on knowledge and trust accumulation, leading to a growing presence in the European innovation ecosystem.

The implementation of the strategy rests on two pillars. First, we aim at Bringing ICT Innovations to Life by catalysing open and collaborative ICT innovation strongly driven by perceived market opportunities. To boost the market and societal impact of ICT R&D&I results, we exploit the knowledge triangle by having students, researchers and business developers working together towards more impactful ICT innovations and by making education an integral part of the innovation process for faster and better take-up of the ICT innovations by users and practitioners. With this, we aim at rapid and impactful market introduction of ICT innovations and the creation of fast growing ICT companies. Second, we Empower ICT Talent for the Future by deploying the knowledge triangle to attract and breed entrepreneurial ICT top talents both with our own EIT labelled education programmes and through outreach actions with wider European footprint. We link ICT students to advanced research and business environments to offer them opportunities to excel with tough real-world problems and to increase their innovation and business awareness. With this, we not only create more ICT entrepreneurs, but also more generally facilitate the continuous skill renewal of the ICT workforce in Europe.


The strategy also forms the basis of the long-term business model of EIT ICT Labs. The business model will be based on the particular assets and USP’s of the KIC that can be monetized as services to external stakeholders. This is expected to lead to the development of own sources of revenues for the KIC and clear the path towards a sustainable mode of operation.

2.2 Integration of KIC Knowledge Triangle Actors

2.2.1 Governance and Management As a whole, the EIT ICT Labs KIC consists of multiple legal entities and agreements binding them as shown in Figure 2.

Figure 2 EIT ICT Labs legal structure

The central entity of the KIC is EIT ICT Labs IVZW, a not for profit Association with limited liability under Belgian law. The Core Partners of EIT ICT Labs constitute the Membership of the Association. The Association also contains the key governance and management bodies of the KIC: the General Assembly (GA) with representatives of all members, the Executive Steering Board (ESB), the CEO and other officers, and the Management Committee (MC). All other entities are included in the KIC through various legal agreements executed between the entity and the Association, or between the partners forming a Node. Figure 3 summarises the main governance and management bodies and positions of EIT ICT Labs. The present staffing of MC positions is shown in Figure 4.

L

EIT ICT Labs IVZW

GA

FPA

MAssociate Partners

Associate Partners

IA

PG

A

L

S &

BL

Affiliate Partners Affiliate Partners

IA

PG

A

Nodes Nodes

IA

NG

A &

NFA

Core Partners

Core Partners

IA

PG

A M

= Membership = Legal Agreement = Financial Agreement

S &

BL

S &

BL

S &

BL

GA = Grant Agreement FPA = Framework Partnership Agreement

NGA = Node Grant Agreement IA = Internal Agreement

PGA = Partner Grant Agreement

L = Observer M = Member

S&BL = Statutes and By-laws


Figure 3 EIT ICT Labs governance and management structure

Main governance and management bodies and positions of EIT ICT Labs General Assembly (GA): The General Assembly is the highest decision body in EIT ICT Labs, deciding on the strategic issues and approving the EIT ICT Labs Strategic Innovation Agenda and the Business Plan. The General Assembly also elects the Executive Steering Board. Executive Steering Board (ESB): The ESB consists of two Core Partner representatives per Node, one from industry and one from academia/research. The ESB appoints its chairman, the CEO and other main officers of the KIC. It provides guidance to the CEO in strategic tasks, decides on specific EIT-funded actions, evaluates and validates the progress of these actions, approves non-EIT funding, and makes recommendations on the admission and exit of partners. Chairman of the Executive Steering Board: The Chairman is responsible for the strategic positioning of EIT ICT Labs and for securing long-term private funding. Chief Executive Officer (CEO): The CEO leads EIT ICT Labs daily operations and ensures achievement of the goals according to the business plan. The CEO is appointed by and works under the supervision of the ESB. Chief Strategy Officer (CSO): The CSO liaises with the Education, Research, and Business Directors and prepares the Strategic Innovation Agenda (SIA) and the annual Business Plan. Chief Operating Officer (COO): The COO is responsible for the planning, record keeping and reporting towards EIT and prepares the annual update of the Business Plan. The COO is also responsible for distributing the EIT funds to the Nodes and KIC Partners according to the ESB decisions.

Affiliate Partners

Core Partners

Management Committee (MC)

Node Director Stockholm

Node Director Berlin

Node Director Eindhoven

Node Director Helsinki

Node Director Paris

General Assembly (GA)

Education Director

Business Director

Research Director

Executive Steering Board (ESB)

CEO

CSO

COO

MarCom Director

Affiliate Partners

Core Partners

Affiliate Partners

Core Partners

Affiliate Partners

Core Partners

Affiliate Partners

Core Partners

Associate Partners

Legal

IP Board

Node Director Trento

Affiliate Partners

Core Partners


Education, Research, and Business Directors: The ERB Directors are each responsible of developing the KIC pillar strategies and activities in their respective areas, in particular the catalysts. Marketing and Communications Director: The MarCom Director leads the marketing and communications operations of the KIC. Management Committee (MC): Chaired by the CEO, the MC comprises the CSO, the COO, the Education, Research and Business Directors, the six Node Directors, and the MarCom Director. It supports the CEO in the daily operations of the KIC. IP Committee: The IP Committee is nominated by the ESB. It advises the ESB on IP policy issues and is responsible for monitoring and encouraging optimal use of IP generated in conjunction with EIT ICT Labs.

Figure 4 EIT ICT Labs Management Committee

2.2.2 Nodes and Co-location Centres At present, EIT ICT Labs consists of six Nodes located in Germany, the Netherlands, Finland, France, Sweden, and Italy. In addition, the associate partner clusters in Budapest, London, and Madrid increase the European footprint of the KIC. See Figure 5 overleaf for summary illustration of the status of present Nodes and co-location centres. Nodes consist of three to eight Core Partners together with additional Affiliate Partners. Each Node operates a physical Co-location Centre (CLC) where much of the KIC activities are carried out. Each Node appoints a Node Director (ND) responsible for coordinating the Node activities and ensuring KIC-level deliverables and inter-Node collaboration.

KIC Central Coordination

COO Stan Smits

ERB- Directors

Node Directors

CSO Martti Mäntylä

ND Eindhoven Patrick Strating

CEO Willem Jonker

Business Director Klaus Beetz

ND Stockholm Gunnar Landgren

MarCom Johanna Gavefalk

Research Director Vacant

ND Paris Stéphane Amarger

ND Trento Roberto Saracco

Education Director Anders Flodström

ND Berlin Udo Bub

ND Helsinki Marko Turpeinen


Figure 5 EIT ICT Labs Co-location Centres

2.2.3 Operational Principles To align and focus the work of the KIC and its partners and to achieve efficient impact delivery, the bulk of the work of EIT ICT Labs takes place in action lines. Action lines are composed of several topically linked KIC activities focusing on challenges with high potential for innovation and new business generation and operating in several nodes. Each action line has a designated Action Line Leader (ALL) responsible of the planning and progress of the action line. The ALL reports to a member of the Management Committee of the KIC who acts as the “owner” of the action line and is expected to support the leader in developing and executing the action line strategy. In addition, each action line has a designated business developer and marketing and communications expert assisting the ALL.

Figure 6 Catalyst - Carrier model

The work of the KIC activities is delineated by the catalyst-carrier model illustrated in Figure 6. Specifically, EIT ICT Labs has developed a set of valued-adding activity types, the catalysts, and applies them on top of existing complementary activities, the carriers, to create added value and achieve high leverage. EIT funding will only

Berlin Eindhoven Helsinki Paris Stockholm Trento


be applied to the evolution and deployment of catalysts, while carriers must be based on complementary funding from other sources. The performance of the catalysts is monitored, and the set is developed further on the basis of the results. The present set of catalysts is shown in Figure 7.

Figure 7 EIT ICT Labs Catalysts 2014

2.2.4 Core Processes The operations of EIT ICT Labs are largely conducted in four core processes summarized in Figure 8 overleaf. The Strategic Planning Process guides the work of the entire KIC by developing and maintaining a long-term vision of the development of ICT and the role of EIT ICT Labs therein. The process makes use of the foresight available from the Innovation Radar catalyst. The tangible result of the process is the annually updated Strategic Innovation Agenda of EIT ICT Labs. The Business Planning Process translates the vision to the annual Business Plan through a Call for Activities scoped and guided by the SIA. A key goal of the Call is to collect the bottom-up ideas and interests of the EIT ICT Labs community and match them with the top-down vision. The Activity Planning Process turns the Business Plan to an executable plan by completing the necessary detail, such as activity-specific consortia, details of complementary funding, internal reporting, etc. Its tangible results are the detailed Activity Plans per activity and the Partner Grant Agreements summarizing the responsibilities of each KIC Partner.

Education Catalysts Integrated I & E Education provide integrated entrepreneurship education satisfying the EIT label

KIC Branded Education provide KIC branded education programs, modules, and events integrated to ICT innovation action lines

Research Catalysts

Technology Maturation raise the maturity of a technology-based innovation opportunity towards exploitation

Business Catalysts

Strategic Coaching coach start-ups towards growth strategies

Access to Finance ensure capital availability for all stages

Co-Location Centres lead nodes and CLCs towards world-class innovation hotspots

Technology Experimentation validate experimentally the technical and business performance of a technology-based innovation

Technology Opportunity Scouting identify and define a technology-based innovation opportunity

KIC Management lead the KIC to make it a leading force in ICT

Business Modelling provide techno-socio-economical modelling of a business domain

Innovation Lead lead an action line or activity towards its goals

Common Catalysts

Soft Landing help start-ups and SME’s to grow to European level

Innovation Radar and Portfolio Management create business intelligence of the future for the management of the innovation portfolio of EIT ICT Labs

Professional Training provide professional training to industry

Open Source Booster catalyse industrial take-up of open source flagship projects

Standards Booster foster impact and ensure sustainability of key results through standards

Technology Transfer identify the exploitation path of an innovation and execute the handover to the recipient

CLC Mobility Program foster inter-CLC mobility of educators, researchers and innovators

EIT Labelled Education Platform provide a platform for EIT labelled education

Industry Mentoring create a link between industry and students


Figure 8 Core processes of EIT ICT Labs

The Activity Management and Reporting Process tracks the implementation of the Business Plan through quarterly reporting and reviews, deliverable tracking and quality control, KPI tracking, and frequent meetings at various levels (KIC / Action line / Activity). Much of the process is supported by the intranet of the KIC. The tangible result of this process is the annual KIC Report and the related KPI reporting.

2.3 Progress Towards KIC Sustainability The development of own sources of revenues for the KIC is part of the long-term sustainability strategy of the KIC. During 2012, a study of potential sustainable business models was executed with support from an experienced business strategy consultancy firm. The business models identified were analysed in terms of revenue relevance (opportunity) vs. competitive position of the KIC (risk). Several potentially attractive models were identified. The study also analysed various boundary conditions, such as intellectual property, mixed funding schemes, revenue sharing, and governance. The work will continue in 2013 and onwards through development of more concrete business models, possibly leading to business pilots.

2.4 Implementation of Intellectual Property Rights within the KIC The basic Intellectual Property policies of EIT ICT Labs are defined in the By-Laws of the KIC legal entity “EIT ICT Labs IVZW” and have been accepted by the core partners. To implement the principles of the By-Laws, the partners of an activity may prepare and execute a more detailed consortium agreement. A KIC-level IP Board monitors and develops the IP guidelines to evolve with the progress of the operations of the KIC.


2.5 Implementation of KIC Communication, Dissemination and Outreach Activities

2.5.1 Marketing and Communications The definition and implementation of the communication strategy of EIT ICT Labs is assigned to the MarCom Director, who reports to the CEO and is a member of the Management Committee of the KIC. A full-time MarCom specialist at each Node facilitates the operations. The Node-level MarCom specialists are also seconded to a specific action line to support the work of the ALL. The MarCom strategy focuses on building a consistent and impactful “face to the customer” by establishing and developing the EIT ICT Labs brand. This covers the entire range of interactions with external and internal stakeholders: innovation ecosystem partners, industry clusters, relevant innovation communities in European and national level, non-European contact points, user communities, decision makers, general public. The means range from electronic communication to KIC-branded event formats and CLC colour schemes. Part of this strategy is presence and visibility in key venues. In 2012, the KIC was present at the influential CeBIT conference and in 2013 at the Mobile World Congress.

2.5.2 Outreach During the time span of this SIA, EIT ICT Labs intends to build an international network of partnerships with key innovation hotspots of the world. The choice of sites and partners will be driven by access to critical inputs for the work of the KIC, in particular entrepreneurial talents, and also by the need to spread the critical outputs to wider realms in Europe and elsewhere. The build-up of European outreach was commenced in 2012 in the form of a successful cross-KIC outreach program that established powerful contacts with innovation epicentre leaders and organizations in several Eastern-European countries. This program is likely to continue in 2013 in an expanded form. The preparation of the international network building commenced in 2012 with an initial short-listing of candidate sites and partners. The prime targets of this exploration include USA, especially Silicon Valley/Bay Area (Stanford, Berkeley) and Boston area (MIT), and the BRICS countries (Brazil, Russia, India, China). The content of the co-operation with international partners will depend on the particular conditions, but in most cases is likely to include educational outreach, student and teacher exchange, joint innovation actions, experiments and field studies, and technology transfer. The European outreach is driven by the external dissemination of best practices and innovation excellence to relevant stakeholders.

2.6 Partnerships The objective of the partnership strategy is to give EIT ICT Labs the capabilities needed for effective orchestration of complementary resources available from relevant EU and national programmes and initiatives while securing maximal complementarity, added value, and high leverage of EIT funding.


To achieve this, EIT ICT Labs has so far established links with Future Internet PPP initiative of the 7th Framework Programme, the ITEA 2 programme, and the Trust in Digital Life consortium. Further partnerships are likely to be created driven by the needs of the action lines and the KIC.

2.7 EIT ICT Labs in Horizon 2020 ICT contributes to all pillars of Horizon 2020 as an enabling platform for new products and services addressing the societal challenges; as embedded to core technological domains to drive industrial leadership; and as part of the excellence in science both as a discipline of its own and as a driver for computational science. EIT ICT Labs is active in all these domains through innovating both with ICT and in ICT in its action lines and through its educational initiatives for empowering the ICT talent for the future. In particular, the action lines in Health and Well-Being, Smart Energy Systems, Intelligent Mobility and Transport Systems, and Digital Cities are directly embedded in the Societal Challenges pillar of Horizon 2020. At the core of the complementarity of EIT ICT Labs and Horizon 2020 is the integration of the domains of the knowledge triangle. This deep integration will allow EIT ICT Labs to explore cross-pillar synergies outside the reach of all other Horizon 2020 elements, and to mobilize actors and resources to joint actions that otherwise would be impossible.


3 European ICT Landscape To build a sound basis for the work of EIT ICT Labs, a comprehensive understanding of the overall shape of the ICT landscape in Europe, with its strengths, weaknesses, opportunities and threats is indispensable. This section describes the current snapshot of our on-going effort towards painting such a holistic picture. As such, it gives the backdrop of how the overall strategy outlined in the previous section is translated to action along the key pillars of the KIC.

3.1 The Global Perspective: European ICT in the World In the global landscape, the ICT industry consists of three mega-clusters in the United States, in Asia (including India), and in Europe. As shown in Error! Reference source not found., the profiles of these three clusters are complementary.

Figure 9 Global ICT Landscape

In this analysis, the United States dominates in several domains of the core ICT, as well as important areas of business-to-consumer software and services. Similarly, East Asia’s present strengths are in ICT manufacturing and commodity ICT products, including several branches of multimedia components and devices. In the global perspective, the main strengths of European ICT are in business-to-business software and services (although with strong USA competition), embedded

Existing • Operating systems • Middleware •  B2C and B2B internet

software and services (apps)

•  Semiconductor design •  IT consulting & system

integration

Emerging •  Internet enabled consumer

devices • Consumer oriented HW

and experience design

Existing •  Business software and

services •  Telecom equipment &

services •  Embedded software

(automotive, aviation, production automation)

•  IC design & manufacturing tools

Emerging •  Complex IT based

solutions, e.g. - Smart grid - Integrated manufacturing

automation •  ICT for sustainability

Existing •  ICT manufacturing •  Semiconductor

manufacturing •  Consumer electronics •  Software development •  Service outsourcing

Emerging

•  Telco equipment •  Tablets & smartphones •  IT consulting & system

integration •  B2C internet services


software, and in particular in applying ICT in complex system level solutions in various industrial and societal domains. Of course, this does not preclude possible European future success also in other areas – remembering the past successes in open source software, mobile communications, and special areas such as VOIP (Skype).

3.2 SWOT Analysis of European ICT To give more insight into the general landscape of Europe’s ICT, we conducted an initial SWOT analysis on its relative position. Error! Reference source not found. shows a selection of the main findings for strengths, weaknesses, opportunities and threats, grouped as to their relevance for the ICT Labs pillars. The selection is by no means intended to be exhaustive, but guided by the relevance for the mission of the EIT ICT Labs.

Figure 10 SWOT analysis of European ICT

3.2.1 Strengths A basis for Europe’s position is laid by its obvious strengths in the use of ICT in the society at large, demonstrated by indicators such as the high penetration of mobile phone subscriptions (1.2 contracts per capita, vs. 0.9 in the USA and 0.8 in Asia) and good cross border internet connections (bandwidth per user in the EU27 is 75kbit/s, US: 40, Asia: 9). Europe also enjoys basic tenets such as deep cultural heritage and diversity with strong traditional links to the rest of the world and a large market of 500M people.

Strengths •  Strong European High Tech engineering, SME

base •  High software and services share in B2B and

industrial ICT market •  World class in embedded SW •  Government push to introduce ICT in classical

industries (e.g. via the Fraunhofer Society) •  Good education levels and strong math and

science programs

Weaknesses •  Inadequate market share in fast moving B2C

business •  Venture capital availability and VC risk taking low •  Government and firms slow in ICT adoption •  Loosing ground in IPR protection and standards

setting potential •  R&D investments in non-Telecom related ICT

sectors is only 10% of the global investment •  Few elite institutions and programs for ICT

Opportunities •  Leverage traditional European industrial and

social system strengths by augmenting solutions with ICT, e.g. Smart Grids, transportation, cyber-physical systems, eHealth, better aging, inclusion, !

•  Push open source, open data, open innovation for European style business ecosystem innovation

•  Pan-European advanced education programs

Threats •  European ICT industry being marginalized

because of •  low footprint in global market •  slow growth in home market

•  R&D expenditures in Asian countries are rising rapidly and focusing on ICT business creation

•  Declining number of students entering science and engineering programs

Business R&D Education


Focusing on ICT, European strengths are especially clear in the telecom sector, where the R&D investments in telecom equipment sector are the highest in the world (by a small margin vs. USA) and the R&D investments in services are double that of the nearest competitor (Japan). The strengths of the European education system, demonstrated by facets such as strong secondary education levels throughout EU (enrolment is 103% vs. US 96%, Asia 68%); 17% of students enrol in mathematics, informatics, natural sciences and technology courses (double the ratio of the USA); and the quality of math and science education is high (assessment of WEF Executive Opinion Survey).

3.2.2 Weaknesses These strengths are balanced (and in some topics outweighed) by several clear weaknesses. Significantly, a joint European (digital) market has not yet been realized, weakening the growth of European ICT in its home market due to complex and variable regulation and business conditions. Although these conditions apply to European business in general, the conditions are particularly relevant in the ICT industry with its fast moving innovations, typically a large share of non-local business, and cross-border service delivery and consumption models. In general, European governments fail to act as innovation accelerators: public use of ICT is significantly lower than in the USA, and complex procurement rules act as efficient innovation barriers. As a result, Europe is underrepresented in the global ICT market: only 15 of the top 100 ICT companies have HQ in Europe, vs. a European ICT market size of 24%. Still worse, European firms appear to be less capable to adopt new technologies (and this increasingly means ICT) as the key competition: the latest WEF Executive Opinion Survey Scores show a gap of 0.7 (on a scale of 1 to 7) compared to the US. In absolute terms, investment in ICT in the USA is 3 times that of the EU. The role of entrepreneurship is generally acknowledged to be critical for the ICT domain – and this is an obvious strength in the USA. In this respect, Europe’s position is weakened by the lower entrepreneurial experience of start-up founders and lower access to VC than in the US (both by a factor of 2) and that the European VCs are generally less willing to take risks: VC funds invested in early stages (before revenue is generated) is 41% in the EU vs. 53% in the USA. Europe is also losing ground in protecting European generated IPR – Asian companies are significantly strengthening their patenting activities. And due to the below-par growth and innovativeness, also the European ability to define ICT-relevant industry standards on a global level is in decline.

3.2.3 Opportunities Most opportunities are based on what makes Europe special in the world: a deeply rooted cultural heritage of 27 independent and sovereign states with strong historic and cultural links to the rest of the world. This diversity gives Europe both the multilingual and multicultural skills necessary to succeed in the global market place, and the wealth of connections makes Europe an obvious partner for many countries.


In addition, the domestic market includes, apart from the own, 26 other countries, forming a potential customer base matching that of the US and China. Due to a general societal consensus on the need for environmental protection and a sustainable economy, ICT based solutions in Smart Grids, renewable energy generation, eMobility, etc., see a higher and more widespread market demand than in other parts of the world. The well-established social systems can assume a leading role in developing advanced solutions for preventive and curative healthcare, for better aging, social inclusion, and better living in general, in response to the demographic challenge posed by the aging Europe. The diverse background of Europeans and the increasing number of immigrants together with ever more quickly changing demands on skills by new technologies in almost every industry, from agriculture to high tech services, calls for an integrative, pan European education platform, enabled by ICT and guided by European formats and standards. A more aggressive approach to opening up the growing data sets of administrations, cultural institutions, smart city projects, etc., for public access will stimulate new creative use by combining and transforming this data to generate added value. Combined with traditionally strong open source and open innovation movements, and building on the diversity of European knowledge, skills, needs, and interests, this can create monetizable benefits for citizens, business, and the society at large.

3.2.4 Threats Despite the many strengths and opportunities available in Europe, it must not be overlooked that we are under attack. We are in danger of being overtaken or increasingly being left behind in a number of areas critical for Europe’s success in its own and the world markets. R&D expenditures in Asian countries are rising rapidly: from 24% of global R&D in 1999 to 32% in 2009, compared to 24% in North America and 23% in Europe. Furthermore, Asian R&D efforts concentrate on ICT and focus on creating business impact, whereas European R&D funding traditionally focuses on basic and applied research in traditional proportions for the various fields, leaving the transformation to business results to the industrial sector. Although the European education system is generally in good shape, the number of students enrolling in MINT (mathematics, informatics, natural sciences and technology) courses will not suffice to satisfy the demand by industry. Asian countries are far ahead quantitatively and are also catching up rapidly in the overall quality of their education systems. Lastly, there is the danger that the current European crisis reduces government priorities to revive European ICT industries on a back burner: in a recent survey conducted by the World Economic Forum, respondents from academia and business ranked the importance of the digital communications revolution at position 3 to 4, while government representatives see it only at position 14 of in total 15 of the most important global trends.


3.3 Strategic Implications The options for improving the state of the European ICT landscape are manifold and have been analysed by a number of public and private organisations in a number of publications, such as DG CONNECT (ICT Competiveness Week 2012), DIGITALEUROPE (Vision2020 position paper), and AT Kearny (The Future of Europe’s High-Tech Industry). EIT ICT Labs uses those and its own view on the most relevant actions as well as an analysis of its own position as an organisation to identify the areas where it can make the most efficient impact, also drawing on its unique characteristics for best added value and complementarity. In particular, the EIT ICT Labs initiatives in the education pillar can be seen as a direct response both to the observed weaknesses and opportunities of the European education landscape. The education programs emphasise Innovation and Entrepreneurship education to raise the entrepreneurial spirit of students and to enable them for careers in the industry. The structure of the programs gives a blueprint for expansion both not only by EIT ICT Labs itself, but also by other actors working towards an integrated European education platform. Likewise, the selection of research and innovation topics supported by EIT ICT Labs is guided by achieving world-class results creating a true competitive advantage for the participants involved. The thematic setup of EIT ICT Labs programmes address many areas where Europe has an advantage over global players or a good chance to create one. The design of research and innovation catalysts is focused on complementarity and impact. The business catalysts are squarely aimed at improving entrepreneurial clout and professionalizing business creation by early start-ups, a key weakness identified in the SWOT. Likewise, they aim at supporting the profitable growth of ICT SME’s. The appropriate mix of measures will align the EIT ICT Labs activities in order to build on the strengths and address the weaknesses of Europe’s ICT industries. Thus it will help to build the capabilities for a more aggressive exploitation of the available opportunities and for the mitigation of threats to the European ICT landscape.


4 Pillar Strategies

4.1 Education Key Phrase: Catalyse education of next-generation talents in close interaction with action lines Education Director: Anders Flodström, KTH, [email protected] Through history, knowledge and skills to use knowledge always has been a magic rod. When it is applied it changes the lives of humans and nations, almost always in a positive way. Education has been the fairy in calling on the power of the magic rod. Remember the 19th century new technical institutes driving the first industrial revolution or the USA universities through the GI public act educating the post 2nd war Americans to create the new USA. Today we see countries like China and India applying the same recipe. We are entering the 4th industrial revolution where the digital accounting of physical and thought processes and the usage and communication of the data revolutionize product development, production, logistics, marketing and consumption. ICT skills have never been more magic in their own development and as a tool for other societal sectors as education, healthcare, entertainment and industry. New knowledge and new skills to use knowledge are at the core of the ICT competencies that EIT ICT Labs is mandated to foster by the EIT regulation, and by a unison opinion from European industry and European nations through the EU commission. Today, however, the positivism of innovation is clouded by the fact that innovations not only create new, better, attractive products, services and infrastructure and let us create jobs and meet the mankind challenges. Innovation also destroys jobs and in times of economic downturn it creates massive youth unemployment. How to balance the need of new people with new competencies where the economic progress is fast and the necessity to reach an economic upturn in all European regions will decide Europe’s future. Looking back to the 1st industrial revolution, Sweden and the other Nordic countries were winners because of early educational emphasis. There is still plenty of work to do but as the society is more complicated today we do not always know enough about future business models and especially how to get public good and private profit to work in synergy. EIT ICT Labs has a tough task. We should educate the new ICT professionals to become able to handle the new industrial and societal landscape through their personal and ICT competencies. We know that skills such as creativity, being innovative and entrepreneurial, and having the ability to judge values and sustainability are key competencies and create flexibility for doing new work with new knowledge. This is why we base the EIT ICT Labs added value on these competencies and we do it in the context of the newest ICT research. We use the colocation universities’ educational programs as carriers and we add the EIT label competencies as a catalyst to create a new brand of graduates both on master and doctoral level.


In setting up the EIT ICT Labs educational programs we needed a common structure to create the critical mass of faculty, industrialists and students working together for the students to reach the learning outcomes related to the key competencies. The common structure gives the students freedom to choose different colocation centres as entry and exit points and promotes geographical mobility. The master and doctoral schools are the infrastructure basis for the EIT ICT Labs education. Soon we will add the corresponding infrastructure for professional education based on the Academy Cube platform. This makes us to the most foresighted European tertiary educator. To have the infrastructure and the student recruitment and educational processes in place is a necessity but not enough. We must be sure that the students reach the learning outcomes and that the labour market agrees. A learning outcome based quality system is needed. The quality system is a driver. You learn that the learning processes are in place and that the graduates are the future professionals needed. The School paradigm gives us stability and the power necessary to become a European role model. It is not always fancy but it delivers and we know why. Obviously the skills must be connected to the different technical action lines research. The doctoral school and its connected doctoral training centres deserve a reflexion. Near three-quarter of the new PhDs enter another labour market that the academic one. EIT ICT Labs doctoral school is the first attempt to answer up both to the academic labour market and to the one in industry and outside the academy. We use a major and minor thinking and we ask the students for an extra year to become the best PhDs in any perspective. This is exciting, experimental and daring and we hope that European industry will answer up and see our PhD graduates as the future technology managers of European industry.

4.1.1 Doctoral School Key Phrase: Grow the EIT ICT Labs Doctoral Program on ICT Innovation Action Line Lead: Christian Queinnec, LIP6/UMPC, [email protected] MC Owner: Gunnar Landgren, EIT ICT Labs Stockholm, [email protected] The global competition for competence implies not only the need for highly specialized educations within certain segments but also the need for generalists with a broader, widely cross-disciplinary knowledge and good understanding of both the scientific-technical domain and the innovation opportunities and constraints offered by business world. Obviously the latter need can in part be accommodated by combining two separate education programs, e.g. a Ph.D. in engineering combined with an MBA. However, experience shows that rather few students can take the time, effort, and cost to pass two such formal educations. Hence, since time is always scarce EIT ICT Labs proposes to establish a new Ph.D. level education that integrates the engineering part with significant business, innovation and entrepreneurship aspects tailored for the ICT business segment.


Furthermore, EIT ICT Labs proposes to carry out such an endeavour at the European level in order to naturally encompass internationalization and improve impact and networking across Europe. Due to the lack of standardized requirements on Ph.D. exams in different European countries such a program faces significant challenges but if successful it would on the other hand contribute significantly to a broader view on what a Ph.D. level education could and should be. To address the needs described above EIT ICT Labs proposes to establish and run a pan-European Doctoral School based on the excellence of the partners in EIT ICT Labs, the alignment of technical content to the challenges addressed by the Action Lines of EIT ICT Labs, significant involvement of our business partners and our start-up incubators and with the full support of the EIT ICT Labs business development activities whenever emerging student ideas warrant direct coaching and support. The size of the Doctoral School should be targeted towards 120-150 EIT labelled degrees per year in steady state, corresponding to about 600 candidates enrolled. These students will provide a cadre of young engineers with a high level of technical competence while also having an entrepreneurial mind-set and being aware of the challenges and opportunities offered by the rapidly innovating and globally competitive ICT business. The basic requirements for such an EIT labelled Ph.D. have already been agreed upon by EIT ICT Labs and a number of our partner universities. The main elements of the education include

• A Ph.D. in an engineering subject as required by the participating university regulations

• An Innovation and Entrepreneurship course package corresponding to 30 ECTS

• A six-month geographic mobility to another Node • A six-month “Business Development Experience” in a business company or a

start-up. To complement the general requirements above, EIT ICT Labs has also created a number of so-called Doctoral Training Centres (DTC) to further pursue academic-business co-operation, critical mass for the I&E education and enhanced visibility. A DTC consists of about 20-30 students, has its own manager and advisory committee, is physically located at the EIT ICT Labs Co-location Centres and has enhanced requirements on business engagement in the education. The theme of the DTC is always aligned with one of the Action Lines of EIT ICT Labs. The doctoral school was created at the end of 2012 with 40 doctoral students and 4 DTCs. The key activities for 2013 are to grow the doctoral school with 80 more doctoral students and 2 additional DTCs. The main thrust in the near and medium future will be to get the Doctoral School up to speed and volume across all the Nodes of EIT ICT Labs. A major long-term challenge will be to ensure the level and quality of the business involvement in a sustainable and structured way.


4.1.2 Master School Key Phrase: Providing EIT labelled M.Sc. educational programs with an integrated I&E module Action Line Lead: Carl-Gustaf Jansson, KTH, [email protected]

MC Owner: Patrick Strating, EIT ICT Labs Eindhoven, [email protected] EIT ICT Labs Master School has the strategic ambition to equip students with skills for creativity, risk taking and entrepreneurial capacity by catalysing and renewing key technical ICT educational programs at advanced level. In a seven-year perspective, the Master School should have won a worldwide recognition. Likewise, its students should have become an elite group of forthcoming ICT professionals. Unique features of this advanced level education are:

• Integration of first-rate technical majors with a standardized and deeply embedded business minor.

• Hands-on experience of innovation and entrepreneurship satisfying the EIT label requirements by design.

• Broad stakeholder involvement, in particular a mentorship program and guaranteed internships in EIT ICT Labs partner companies.

• Flexible combination of organizational and geographical mobility. • Interdisciplinary and inter-node teambuilding amongst the students. • Utilization of EIT ICT Labs co-location centre resources linking to EIT ICT

Labs research and business activities. The Master School has a uniform structure: a set of technical majors (90 ECTS) and a standardized business minor in Innovation and Entrepreneurship (30 ECTS). Students are enrolled in new local Master programs in ´ICT Innovation´ for which they will be awarded double degrees accompanied by an EIT Certificate documenting the EIT specific learning outcomes. The whole Master School education will be held in English and all partner universities are assumed to use ECTS units. The aim is to expand the Master School to 500 students within 3 years. In 2013 the School runs 7 technical majors with 20-30 students/major. A partner university can contribute by being an entry point or exit point or both. The guideline is to have around 3 entry points and 6 exit points for each technical major. Currently 19 out of 28 partner universities contribute to the work.

4.2 Research and World-Class Innovation Key Phrase: Boost the maturation of innovative research towards business Research Director: (vacant) The strategic objective of the research and innovation pillar of EIT ICT Labs is to boost the maturation of the results of innovative carrier activities towards successful exploitation either through the business activities of the KIC or through new products and services and technology transfer, including industry standards and open source software.


For this, the pillar offers a set of research catalysts intended to offer integrated support for the whole innovation chain from identifying and qualifying innovation opportunities in carriers to the maturation and experimentation of the chosen technologies. Specific catalysts boost contributions to standards organisations and impactful open source software. An explicit business underpinning expressed in terms of target market definitions drives the deployment of the research catalysts in action lines.

Figure 11 EIT ICT Labs innovation pipeline

In practise, the deployment of research catalysts is sandwiched with the deployment of relevant business and education catalysts especially for catalysing the definition and refinement of the business case addressed, the build-up of the innovative team committed to the maturation, and the integration of students to the work. See Figure 11 for an illustration. The bulk of the concrete deployment of research catalysts takes place in action lines innovating with and in ICT, as described in subsequent sections. In addition, the deployment of research catalysts is supported by specific research catalyst activities that facilitate especially large-scale experimental evaluation of innovative technologies in testbeds, experience and living labs, and on the field. The rate of success of the research and innovation pillar is highly dependent on the quality of the carriers as a basis for innovation maturation. While the prime responsibility of recognising and mobilising carriers resides with the action lines, the pillar strategy complements this by developing and facilitating strategic relationships with relevant European and national research and innovation initiatives in liaison with the KIC management. Obviously, a good link with the forthcoming Horizon 2020 programme will be of paramount importance to EIT ICT Labs.

Explore Mature Experiment Deploy

Technology experimentation

Technology Transfer

Open Source Technology opportunity

scouting

Business Modelling

Technology maturation

Access to Finance

Standard

Strategic Coaching

Business Modelling

M.Sc./PhD projects

I&E Education Events I&E Education Events


4.2.1 Innovation in ICT The action lines innovating in ICT aim at technology-driven innovations within the ICT domain itself, especially telecommunications and business ICT.

4.2.1.1 Computing in the Cloud Key Phrase: Establishing the information factories market through seamlessly interconnected computational, storage and information resources provided as utility Action Line Lead: Seif Haridi, KTH & SICS, [email protected] MC Owner: Stéphane Amarger, EIT ICT Labs Paris, [email protected] Cloud Computing is fuelling the development of the Internet by changing it from a communication network shuffling bits into a network of services where compute, storage and information resources are interconnected and provided as utility. Clouds are hosted on large data centres and provide an elastic set of resources that are used by software deployed and accessed as a service. These data centres form the information factories of a post-modern society, and result in many advantages: economy of scale, frugality in energy consumption, elasticity, the lack of any entry barrier, and the possibility to pay only for actual usage or “pay as you go” when customers do not own the resources in the data centre. The improved connectivity of the Internet and the increased capacity of cloud infrastructures, to store and process data and information, have enabled the emergence of truly global collaborative service platforms, c.f. social networks, that generate huge amount of data and information. Also, various sectors of society, thanks to cloud infrastructures, have now the ability to store, process and analyse large data volumes that previously were generated but thrown away due to lack of storage resources. These two trends, global applications and increased storage and processing capacities, have led to the emerging technological development of the field of data-intensive computing which is one focus of this action line. Data-intensive clouds, with improved tools and platforms, can be put to good use in many application areas including e-Science, e-Health, e-Government, process industry and automation, operation and maintenance, media, content & entertainment, and sustainable society. Decisions within industry and public authorities will become increasingly dependent on awareness through refinement of these large amounts of data. This increase in dependence on data, which is growing exponentially, puts pressure on improved technological innovations in large-scale data management, data-intensive infrastructures, and also on novel scalable algorithms for processing large data volumes. The emerging Internet of Things, where huge number of devices and sensors are connected to the Internet, will also dramatically change requirements on cloud infrastructures and systems as just-in-time analysis of real-time streaming data will become a common requirement. This is just an emerging area, with a huge opportunity for technological innovations on data-intensive platforms and


computational frameworks that are able to collect, aggregate and process distributed real-time streaming data collected from a large number of sources. While cloud computing today is hosted on large data centres with excellent Internet connectivity, there exists a considerable number of potentially global applications, which are time-critical and require hard deadlines either for correctness (to function at all), or for improved user experience. In general, the latency of round-trip response of the data centre and the latencies between data centres constitute the main problem. These require a more distributed approach to computations and data, which can be solved either by more distributed and heterogeneous deployment of small/larges data centres, or by embedding processing and storage in the network. There is an opportunity for innovative research on multiple data centres, platforms and hybrid approaches where clouds will also extend to exploit resources in the network and also on terminals at the edge of the network. Achieving the overall goals of the action-line requires close collaboration in the knowledge triangle of education, research and business development. The action-line will involve and deploy EIT ICT Labs education, research and business catalysts, that will result in well trained engineers and researchers in an area where currently there is a shortage and huge demand in Europe and worldwide. The market of cloud computing and related technology is extremely broad and is currently nearly equivalent to a large chunk of worldwide ICT platforms expenditure. We will instead define the market in a narrower manner for specific targeted products within the cloud computing ecosystem.

Computing in the Cloud Business Underpinning

Market definition Data Intensive Computing Infrastructure In many areas, applications are generating a growing amount of data, leading to the need for data-intensive solutions. These solutions shall not focus on large data-sets management only. Real-time data retrieval and real-time data processing represent also critical challenges to address.

As an example, The North American electric power grid operations generate 15 terabytes of raw data per year, and estimates for analytic results from control, market, maintenance, and business operations exceed 45 Tbytes/day. As developers add new high-resolution sensors to the grid, this data volume is increasing rapidly while the time available to make control decisions remains constant.

Social networking sites such as Facebook capture and store petabytes of heterogeneous information and maintain complex networks that link users. Mining this data to create new, high-value applications for users is an immensely challenging problem. For example, Google sorts through 20 Pbytes per day. IDC also estimates that the amount of information will grow by a factor of 10 in just five years.

Market opportunity

Having just a look to some significant figures gives an idea of the size of the data-intensive market: - 4 billion of pieces of content are shared everyday on Facebook - 235 terabytes of data has been collected by the US library of congress in

April 2011

The projected growth of 40% of global generated data per year must be put


in balance with the estimation of 5% only of global IT spending growth per year. Therefore, the need for efficient and smart solution is needed to make better use of the resources that won’t mechanically address the data growth.

Having a look to specific sector gives also an idea of the business potentials for smart and efficient solutions rather than pure scalability of the infrastructure: - Healthcare: in the US, in ten years, the implementation of data-intensive

solutions in the health industry could capture $300 billion annually. At the same time, the healthcare expenditure will move from 17% of the GDP in 2010 to 9% in 2020.

- Government: utilizing data-intensive solutions, Europe’s public sector could reduce costs by 20% or €300 billion.

- Personal location technology: in the US, the potential annual revenue from personal location data is estimated at around $600 billion and represents more than 1 petabyte of data annually.

High impact target

The challenges and examples exposed above demonstrate that a significant business impact can be generated by creating value through better specification and exploitation of the “data resources”. Therefore, developing efficient, safe, and real-time data processing and storage solutions is a key strategic action for demonstrating the impact of EIT ICT Labs on the European ecosystem.

Market definition Multi data centre data-management, Cloud infrastructure management For a business to access data from anywhere and at any time, the data centre must be operational around the clock, under any circumstances. In addition to high availability, as the business grows, businesses should be able to scale the data centre, while protecting existing capital investments. In summary, data is an important aspect of business and from this perspective; the business goal is to achieve redundancy, high availability, and scalability. Securing the data must be the highest priority.

Enterprises lose thousands of dollars in productivity and revenue for every minute of application or services disruption. A recent study by Price Waterhouse Coopers revealed that globally network downtime costs business $1.6 Trillion in the last year. This equated to 4.4 Billion per day, $182 million per hour, or $51,000 per second. In the U.S. with companies with more than 1000 employees, it is a loss of $266 Billion in the last year. A similar Forrester Research survey of 250 Fortune 1000 companies revealed that these businesses lose a staggering US$13,000 for each minute that an Enterprise Resource Planning (ERP) application is inaccessible. The cost of supply-chain management application downtime runs a close second at US$11,000 per minute, followed by e-commerce (US$10,000). Therefore, a better data centre/cloud infrastructure management is a must for business operations and revenue guarantee.

Market Opportunity

According to a Gartner study, North American managed hosting and colocation revenues grew $3.7 billion to $24.7 billion in 2011 and are expected to grow $4.3 billion in 2012. In the same study, the CAGR (Compound Annual Growth Rate) of the global cloud services is forecasted to be of around 19% from 2010 to 2015. At the same time, the Enterprise data centre market is expected to increase dramatically between 2011 through 2016 and, according to Gartner Group over 45% of existing data centre users will need new data centres within the


next three years.

Therefore, the development of smart and efficient multi data centre data-management and cloud infrastructure management solutions is a must in order to capture a significant share of this huge business opportunity.

High impact target

Develop and target a platform with novel features not provided in current commercial or open source offerings. These features include: high level query languages; support for stream and incremental data processing, iterative computations; and flexible parallel execution engines.

4.2.1.2 Cyber-Physical Systems Key Phrase: Exploit cyber-physical systems to create innovations and business opportunities in critical infrastructures and production systems Action Line Lead: Holger Pfeifer, TU München, [email protected] MC Owner: Marko Turpeinen, EIT ICT Labs Helsinki, [email protected] Strategic Ambition and Scope The term Cyber-Physical Systems (CPS) refers to systems whose core functionality intrinsically relies on a tight coupling of physical processes with computational processes. Such systems consist of embedded hardware and software that interacts with physical objects using sensors and actuators. CPS are networked systems, which are connected not only with one another, but also with globally available services and information systems, e.g. via the Internet. In this way, data collected from the physical world can both be processed locally and also be used by external services that are connected through global networks, and which can influence the behaviour of the physical objects through the actuators. CPS extend networked embedded systems, moving from closed, self-contained units to open, highly networked socio-technical systems of systems. The integration of software-intensive embedded systems with global networks opens a whole range of new application areas and innovative solutions. The reason for this is the potential leverage of CPS: these systems, as components of comprehensive technical systems will increasingly become a decisive feature in the economic competition. It can be foreseen that many traditional products will lose their ability to compete if they fail to include innovative functionality on the basis of cyber-physical systems. These functionalities, such as the capability of intelligent control and networking of components, the ability to merge various data from different sources to yield meaningful information, or to combine services that are available via global networks, create an enormous added value with respect to deployment and usage of such systems. Thus, a relevant part of their economic significance does not result from the business volume that is created directly from the embedded parts of the system. A much more significant share will come from its extended use, and volume that comes from products and processes that are fundamentally based on CPS. Cyber-physical systems are at the core of a revolution that is currently transforming a variety of markets, and new CPS applications can be envisaged in several domains, including energy, health and medical, infrastructures, manufacturing and robotics, logistics and transportation.


Building on Europe’s strength in embedded systems, the action line aims to develop competencies to utilize the innovation potential of cyber-physical systems through concerted activities, integrating the knowledge triangle:

• Create exploitable research results and foster their transitioning into marketable products and services in sensing, actuating and control, data-aggregation and analytics, communication and services, and design methodology and engineering processes.

• Develop tools and demonstrators, launch pilots, and elaborate business models for real-life CPS applications, particularly in new application areas that complement the EIT ICT Labs action line portfolio, such as critical infrastructures and environmental monitoring and control, or intelligent manufacturing.

• Create and implement added-value European CPS curricula and develop life-long education programmes to proliferate CPS knowledge in both academia and industry.

Cyber-Physical Systems Business Underpinning

Market definition The Sensing, Monitoring & Control industry is defined as a part of the ICT sector, providing solutions for sensing/monitoring, supervising, controlling and automating everything from objects/systems, to industrial processes/systems and (critical) infrastructures. These systems can be found both at the upper levels of enterprise organisation, for example in IT systems performing supervisory and interfacing roles, and at lower levels like in machines and processes through the application of sensors and actuators.

Application markets are, e.g., Environment (agriculture, air, water, soil, waste), Critical infrastructure, Manufacturing and Process Industries (factory and business automation), Building (construction, services automation, facility management), or Healthcare (health and home care). The global monitoring & control market was taxed at 190B€ in 2007, representing 8% of total ICT expenditures worldwide. The global growth level is predicted at a high level of 8% per year, over the period 2007-2020. (Source: EC Smart Study 2007/047).

Market opportunity

Smart networks, tools, and services for remote monitoring, diagnostics, and control of critical infrastructures. The market for critical infrastructure M&C was valued at 14.3B€ in 2007, with hardware and software segments totalling 56%. (Source: EC Smart Study 2007/047).

High impact target

Standardized, service-based communication infrastructure.

High impact target

Technology for large-scale, adaptive sensing and self-organising communication.

High impact target

Architectural and technology solutions for infrastructure security and resilience, including support for automated analysis, quality assurance, user acceptance, validation & verification, and certification.

Market CPS can provide new solutions for intelligent monitoring and control of natural and built environments, including application areas such as detection of forest


opportunity fire or flood, water management, building energy performance monitoring and management, or structural integrity monitoring. The global environmental sensor and monitoring market was valued at $11.1 billion in 2010. This market is expected to reach $11.3 billion in 2011 and $15.3 billion in 2016, a compound annual growth rate of 6.5% between 2011 and 2016. The global market for products created with remotely sensed data is predicted to reach $12.4 billion by 2017. (Source: BCC Research)

High impact target

Architectural and algorithmic solutions for intelligent sensor data aggregation and integration for near real-time situational awareness.

High impact target

Information systems providing real-time data visualization and analysis for improved failure prediction and decision support.

High impact target

Systems for anticipation of harmful effects and proactive planning in early warning and emergency management.

Market definition Intelligent manufacturing: Manufacturing is one of the driving forces of the European economy, contributing over 6 500 billion Euro in GDP and providing more than 30 million jobs. It covers more than 25 different industrial sectors, largely dominated by SMEs, and generates annually 1 500 billion Euro of value added. (Source: EU Research & Innovation, Industrial Technologies). The global industrial automation market is forecast to reach more than $200 billion by 2015 (Source: IMS Research).

Market opportunity

Cyber-physical systems bear the potential to upgrade existing production processes to smarter, self-sustaining systems. Cyber-physical production systems (CPPS) connect production equipment with cloud-based service solutions to scale down manufacturing costs through more flexible, automated production, cheaper maintenance, and more efficient logistics. Inter-trade organisations estimate that by 2020 about 50 billion machines and devices will be connected (source: M2M Alliance); 81% of German IT-Companies consider CPPS an important business segment, with 10% of the companies already offering dedicated solutions in their portfolios (source: Bitkom).

High impact target

Standardization of machine-to-machine communication including data formats and interfaces for increased flexibility in production planning and execution.

High impact target

ICT platform enabling interoperability and integratability of services.

High impact target

Standardized development environments and integrated tool chains for the complete design-operation continuum in engineering and production, including support for co-simulation in virtual product development.

High impact target

Augmented reality support for diagnosis, maintenance, development and deployment of production equipment.

High impact target

Tools and algorithms for usage analysis and optimization, as well as maintenance planning.


4.2.1.3 Future Networking Solutions Key Phrase: Address the challenges of providing an ICT structure supporting producers and consumers exchanging rich digitised media across heterogeneous domains Action Line Lead: Henrik Abramowicz, Ericsson, [email protected] MC Owner: Gunnar Landgren, EIT ICT Labs Stockholm, [email protected] The action line has a mission to address the challenges of providing an ICT structure supporting producers and consumers exchanging rich digitised media and content across heterogeneous domains and in particularly focus on scalability of access networks, integrating Internet of Things, backbone networks and improving the performance of interaction between networks and applications in a cost-effective way, e.g. for media and content with networking. Digitalisation of media and the simplicity in creating and distributing/communicating content has caused a tremendous load onto the networks implying that more cost-effective communications means need to be developed. The users wish to be always connected using any terminal on any network to access and distribute media. The wish for convenience also shows that the access to networks becomes more predominantly via wireless access than fixed. All these requirements from users/producers of content and the avalanche of traffic make it imperative to increase capacity in the networks. This is in particular a challenge for wireless access so new methods for sharing and using new spectrum as well as becoming more effective in using the spectrum are needed. Also services are becoming more and more varied so providing flexibility in services for applications with various QoS and QoE turns out to be more important. Other trends are the increasing interactivity of media as well as mixing media during the same sessions. Optimisation across layers will be important to improve network performance in relation to applications as well for the performance of the applications themselves. What we in addition see as a result of Internet is the diminishing distance between producers and users collapsing the traditional distribution layers for direct interaction between producer and user roles and users can take on the roles of both producer as well as consumer, prosumer. The challenges we face is thus to provide new ICT infrastructure, capable of delivering rich data-intensive storage services that are user-friendly and can be personalized at competitive costs, across different domains, ensuring quality of service/experience, to end users in various contexts of use and still not increase the usage of energy but rather become more green.

Networking Solutions for Future Media Business Underpinning

Market definition The market for networking and services is huge but the real growth area is around mobile broadband where we have a very quick uptake; cf. to previous generation of mobile networking. There are currently close to 7 B mobile connections and 1.6 B mobile broadband subscriptions. The growth rate is


about 40 % worldwide and the market is very dynamic. The traffic growth is exponential and implies that new cost effective means of communications are needed. Similarly we see a growing market w r t Internet of Technologies (Cisco has just published a report on the market size for 2022 14 trillion USD, maybe a bit too optimistic). Furthermore we might see eventually some dynamism coming back to core networks (where there has been a quite rigid market) with the advent of network virtualisation and Software defined networking. Also the image processing and media production is a very big market and through the advent of technology breakthrough for image search and media annotation this is becoming a very dynamic and changing market moving from analogue to digital.

Market opportunity

Solutions and technologies for more effective scaling of capacity of the access network infrastructures in a cost-effective as well as energy efficient way. This is a very dynamic area where a lot of the growth and where Europe is worldwide leader with renowned universities and academic institutions as well as vendors.

High impact target

Provide a concept that is capable of 1000-fold traffic increase by 2020 and is energy-efficient.

Market opportunity

Solutions and architectures for backbone network based on Software Defined Networking and Virtualisation; e.g. for CDNs

Here we have an opportunity to break open the impasse in core networks to provide dynamism through Virtualisation and SDN. We believe that European vendors and academic institutions are better apt to break open the deadlock as this a possibility to enter a market where Europe has not been very prominent.

High impact target

Deployment of SDN and Virtualised networks by 2018 taken up by European operators.

Market opportunity

Currently we have a market of “Internet of Things” that is very much fragmented and stove-oriented and the opportunity is changing the market by providing better (general) communication support, horisontalising the market to provide a platform usable for several segments and applications and support through processing and storage in the network. We have excellent academic partners on IoT, leading network vendors and applications areas in ICT Labs like health and wellbeing, smart energy, transportation. Connection towards these application oriented action lines will be beneficial.

High impact target

Deployment of an IoT platform that serves several vertical segments by aggregation, horisontalisation and networking support by 2018.

Market opportunity

Building an ecosystem and sustaining interaction between applications and networks for cross layer optimisation will be beneficial to both network solutions and applications developer. Providing a business feasibility test bed would benefit application developers as well as network vendors.

High impact target

Overall improved performance of the network functionality and applications by employing cross-layer optimisations by 2018. Fostering an eco-system between networking and application areas.


4.2.1.4 Privacy, Security, and Trust Key Phrase: Support selected ICT scenarios with innovative solutions in terms of privacy, security and trust. Action Line Lead: Guido Bertoni, ST Microelectronics, [email protected] MC Owner: Roberto Saracco, EIT ICT Labs Trento, [email protected] ICT is a double sword technology, in the sense that it can be seen both as a problem and as a solution. It is a solution because it enables new services and allows improving the quality of life but from the angle of privacy, security and trust it poses new problems with new vulnerabilities. As shown in Figure 12 we can consider the three aspects of Privacy, Security, and Trust on a triangle whose vertices are People, Regulation and Context.

Figure 12 Three aspects of privacy, security and trust

The growth in volume and penetration of ICT makes the limitation in terms of privacy, security and trust bigger and dynamically changing. At the same time the progress of ICT makes new approaches and temporary solutions available. This is an area where there are neither silver bullets nor definitive solutions. The unique position of the ICT LABS, for its geographical coverage, latitude of interest and participation of various constituencies makes it an important player in this domain. Although the following considerations are focused on the PST action line, their implications span over most of the other action lines and indeed aspects of Security, Privacy and Trust are fundamental in areas like Digital Cities, Smart Spaces, Health and Well-Being, and Intelligent Mobility Solutions. More specific aspects of Security (in the broad sense, including safety) are important in Future Network Solutions, Computing in the Cloud, and Smart Energy Systems. Tackling the TRUST aspect requires considering how ICT can affect people and the context in which people live, both physical and virtual. Tackling PRIVACY requires


considering the interplay of between People (and their behaviour as ICT consumers), Institutions and Regulation. This latter changes as geography change as well as specific areas. Since the network is nullifying boundaries and services can be offered and consumed disregarding geographical, political and cultural boundaries there is a need for dealing with both local and global issues. Tackling SECURITY aspects requires consideration of both end user (both people and enterprises) aspects as well as process aspects.

Security, Privacy and Trust Business Underpinning

Market definition Market size - Security

• Cloud - 6.4 Billion$ in 2013 growing to 8.8 Billion$ in 2015 (Gartner) • Network and software - 7 Billion$ in 2014 (Juniper) • Mobile and desktop security client software top 7.3 Billion $ by 2016

(Infonetics) • Mobile security is where the growth is, CAGR over 50%, desktop

basically stable. Most players are US based (Symantec, McAfee, Cisco, IBM, Juniper....). http://jameskaskade.com/?p=1291

There are no data on direct Market size. Both Trust and Privacy are seen with different weights in different sectors as enablers or show stoppers.

The crucial importance here is to make sure that appropriate ICT functionalities and appropriate ICT constraints augment the enabling aspects and decrease the hampering effects.

Market opportunity

CYBER SECURITY: More and more aspects of our life are based on services deployed by cyber-physical systems. The securization of these services is a great opportunity. This would be in line with the European Commission strategy on "An Open, Safe and Secure Cyberspace" and improvement of resilience of cyber infrastructure, cyber defence while reducing cybercrime. The last Norton Cybercrime Report estimates in $110 billion the direct cost related to cybercrime word wide, with a share of $16 billion for Europe.

High impact target

FOCUS ON CRITICAL INFRASTRUCTURES - We need to target critical infrastructures to have maximum impact, like smart grid, factory automation, or infrastructures for smart cities, where end nodes are evolving from dedicated sensing devices to user oriented devices or internet connected nodes. This evolution allows new efficient infrastructures but could give space to more vulnerability. Pike research estimates in $14 billion the cumulative investment in smart grid cyber security in the 2011-2018 time frame.

Business models relevant cover both B2B2C and partly B2C. We need partnering with stakeholders in the B2B2C. Start-ups can be generated in the B2C area.

High impact target

FOCUS ON CLOUD SERVICES - We target the increasing use of cloud services, and the associated demand of security, privacy and trust. The global market of cloud and customer premise equipment reached 13 Billion $, accordingly to accordingly to Infonetics, with an increase of 12% compared to 2011. Business models relevant cover both B2B2C and partly B2C. We propose to focus on B2B2C and we need to identify stakeholders to make this possible.


This is the area where most impact can be had.

Market opportunity

DIGITAL IDENTITY: Reliable means for interfacing users and services in the digital world. On one side the user requires the protection of his privacy and avoids possibilities of identity cloning, on the other side service providers want to guarantee their business. The revenue of mobile payment is expected to rise from $47.2 billion in 2011 to $998.5 billion in 2016 accordingly to IEMR.

High impact target

Technologies for managing digital identity, like the use of mobile devices. Smartphones could be used in different scenarios thanks to NFC or other means. The use cases to be addressed are, for instance, those related to payment, transportation and fruition of digital services over internet.

Market opportunity

PRIVATE MOBILE CLOUD: development of technologies and awareness creation tools for the mass market.

High impact target

The limitation of privacy, security and trust of health and wellbeing services are considered as a possible showstopper. Wearable devices, apps and cloud services allow monitoring personal parameters and storing these records somewhere in the cloud. Enabling users to trust the service and manage their data is a missing ingredient that could fragment the market. The sole market related to apps for fitness and sports is estimated to reach $400 M and 1 billion annual download of health related apps by 2016 accordingly to ABI research. This can start as a B2B2C business involving a number of key Stakeholders.

High impact target

The leveraging of data in many sectors is not supported by data current neutralization approaches. Specific, targeted research is needed. Applications of the results of this research are to be pursued in Digital Cities, Smart Spaces, and Intelligent Transportation. The research activity should result in concrete software packages ready for customisation in various applications fields.

A start-up can be incubated to become a leader in this area that is now quite open.

4.2.1.5 Smart Spaces Key Phrase: Create new businesses by comfortable service experience for users in in every-day working and living environments Action Line Lead: Petri Liuha, EIT ICT Labs IVZW, [email protected] MC Owner: Marko Turpeinen, EIT ICT Labs Helsinki, [email protected] Smart spaces refer to built environments such as apartments, offices, museums, hospitals, schools, malls, university campuses, and outdoor areas that are enabled with digital services for ubiquitous interaction with frequent and sporadic visitors. People spend time and effort every day trying to find relevant items, information and places. Smart spaces like offices, homes and shops equipped with sensing systems help people find relevant information quickly and use services comfortably. Prime business scenarios include smart retail environments and public areas that provide better service to customers and citizens, and home and office environments


that make living and working more comfortable and efficient. Smart Spaces also open up opportunities in gaming and education. Smart Spaces consist of various interconnected embedded systems, services, devices, and mobile terminals. These integrate the information of the local surroundings and people with information from the Internet to form a digital virtual space. Natural and rich user interfaces provide open access to the digital applications and services in a convenient way. Smart Spaces have means for perceiving, measuring and storing context information of entities in the environment. Technical advances in analysis of local activities, users, and objects with location information will create new business potential. Innovations in smart spaces are based on work in user research, interaction methods, user modelling, context-awareness, intelligent information access, machine learning, augmented reality, techniques for opening and sharing of the embedded information, semantic interoperability, interaction with the semantic web, interoperability of devices and services, and event based and ubiquitous computing. Further enabling technologies include signal processing for sensors, indoor navigation, distributed computing platforms, and intelligent networking techniques connecting foreground spaces and background knowledge sources. The businesses applying or potentially benefitting from smart space solutions include e.g. mobile and out-of-home advertising and info services, digital signage, and office infrastructure. Also lighting industry can benefit from smart space solutions in both indoor and outdoor environments for energy saving purposes. A significant part of mobile apps can be part of a local service relying on smart space technologies. Key challenges for the existing and new businesses include e.g. delivering the information at the right time and place to right audience. These audiences include consumers at shops, people at urban spaces, and people at evens like exhibitions, sports, or concerts (of different sizes). People expect to access easily information wherever, and use less conventional channels. The best user experience at a particular is competitive advantage. Secondly advertisers, retailers, event organizers and office space leasers need to understand the usage of the space and support new ways of buying, working or spending time.

Smart Spaces Underpinning

Market definition The markets for smart space solutions are in the global markets of mobile local search, mobile and out-of-home advertising, digital signage, lighting, indoor and urban navigation, mobile applications and analytics services. They constitute a market size of 1200B€.

Market opportunity

The major trend in advertising is the shift from conventional and broadcasting media based advertising to on-line and also more targeted advertising in a large way. The markets of mobile and out-of-home advertising and digital signage are expected to grow 15-20% annually. On the other hand, the market of mobile local search is growing 35% annually and mobile is overtaking all local search by 2015. A noteworthy development is that 50% of the search happens in mobile apps.

The size of the mobile advertising market in the USA in 2017 is 27 Bn$. EIT ICT Labs can address 95% of the market that includes messaging


based, mobile video, mobile internet based display, and in-application mobile advertising. Sources: eMarketer 2013 / Frost & Sullivan, US Mobile Advertising Market, NB92-65, 2012

The 2017 forecast of the digital signage market size is 2.5 Bn€. EIT ICT Labs can address 60% of the market that includes software, design and media players. Sources: Frost&Sullivan Global Digital Signage Systems Market, NA75-70, 2012 The 2016 forecast of the mobile local search market size in USA 113Bn$. EIT ICT Labs can address roughly 70% of the market. Source: BIA Kelsey, 2012

High impact target

Create smart urban experience by providing a scalable content creation and sharing service for situation aware infoservices and advertising that are build on the capabilities of mobile augmentation and/or on large public interactive displays. Target the shifting trend of advertising and the opening of new market places that can be turned into revenues by 2015.

High impact target

Create a mobile gaming based solution and a business model that combine fun effect to other benefits like wellbeing or environmental awareness. Provide a service that can be hosted by large events like exhibitions, sports, or concerts, and by local business or by the local municipality.

Market opportunity

The already visible phenomenon in retail industry is show rooming – people viewing purchase items at brick and mortar shops, and then checking and buying from the cheapest web-store on-line while at the shop. This has created challenges for retail industry, but also opportunity to showcase more at the shop. Sources: McKinsey, Frost&Sullivan

High impact target

Create a smart retail experience and service with customer applications that help the retail to increase the conversion rate by 10%. Target a solution with indoor positioning, lighting, search, and on-line information delivery on items of interest to the buyer. The new solution and services could be brought to market with system integrators or alternatively on-line consumer services or retailers.

High impact target

Provide the retail industry service and tools to measure the brick and mortar shop performance. The technology and solution can serve also other industries or organizations for other environments.

Market opportunity

Use of office space and the optimization of resources and facilities conflicts with the objectives of productive working, learning and collaboration environment. Smart office experience can balance the conflict and still offer cost saving for facility owners. Sources: McKinsey, Frost&Sullivan

High impact target

Develop an office and working environment with smart lighting and collaboration services that can increase the office space usage by 20% without decrease of user satisfaction. The new solution and services can be brought to market with office rental industry or applied directly by businesses.

The 2016 lighting market forecast is 91Bn$. EIT ICT Labs can address 80% of the market which include general lighting (also LED), but excluding automotive. Source: McKinsey, Lighting the way: Perspectives on the global lighting market, 2012


High impact target

Provide a service that enable people to collaborative in new ways in different spaces and between spaces without degradation in work productivity. The new solution and services can be brought to market with office rental industry or applied directly by businesses.

4.2.2 Innovation with ICT Action lines in this group aim at ICT-enabled innovations in key European technological domains such as health and wellbeing, mobility, and energy.

4.2.2.1 Digital Cities of the Future Key Phrase: Offering to the citizens the opportunity to improve their ICT infrastructure, to collect their data and to create their services Action Line Leader: Khaldoun Al Agha, UMPC, [email protected] MC Owner: Stéphane Amarger, EIT ICT Labs Paris, [email protected] The focus of the action line is on Citizen-Centric Cities (CCC), a paradigm allowing the opportunity to enhance the participation of the citizens in the information, decision, and implementation processes for a better life in the city. These new polices aim in particular at increasing the awareness of the citizens of their individual and collective capabilities, in the decision making process, in the implementation of these decisions and in the ability to create and invent new services. The ultimate goal is to realize a migration from the customer-centric to the user centric model. Citizen participation can take different forms: (i) by collection of new data to be broadcast to the other citizens, or used to analyse and “sense” the dynamic status of the city; (ii) and by the creation of crowdsourcing platforms that increase interaction between citizens where problems and solutions could meet easily. The notion of open data, open networks and open crowd platforms is at the heart of the CCC paradigm. On one side, public administrations, companies, operators, and Internet providers offer their data in a raw form and a transparent way and then on the other side, ICT actors develop models, tools and applications facilitating the use of the data to optimize the urban environment. Business models engaging developers for intelligent applications and the citizens to use those applications are a vital prerequisite for this. The expected results should provide applications guaranteeing the interests of the cities such as improving the safety of the citizens, their transportation time, the carpooling, the tourism tours, and the education system.

Digital Cities of the Future Business Underpinning

Market definition Collecting and managing open and big data for citizen services The massive use of data coming from the city and its activities, intelligence communities to better manage in real time to better plan and anticipate the short term, to engage citizens in the processes of the city ... all these actions happen (some are already there). Who will benefit from these developments?


how to make ambitious collective benefits and shared? ABI Research indicates that for the next 5 years, $116 billion will be invested in these programs: e-government, intelligent transport systems, integrated waste management and recycling ...

Market opportunity

While in 1950 around 29.1% of the world population lived in cities, this figure jumped to 50.6 % in 2010 and it is predicted to evolve to 64.7% by 2040. The numbers are simply exploding, especially when we realize that urban areas occupy around 2% of the world’s surface.

The knowledge gathered from the “civilization” up to 2003, is now injected into the web every two days. Every day of the week, 2.5 quintillion bytes of data is created. Between 2009 and 2020, the size of the ‘Digital Universe’ will increase 44 fold. That is equal to a 41% increase in capacity every year.

Therefore, the need for collecting and managing a big amount of data that must be accessible to the public is a key challenge for success of Digital City business.

High impact target

The have a significant impact here, the solutions developed must allow real-time collection of heterogeneous data (coming from individuals as well as sensors, smart meter, ...).

We are targeting solution able to qualify data, preserve their privacy and being compliant to local regulations. The need for real-time services based on open data will become more and more central and will need to be maintained overtime, taking into account the ever growing amount of data involved.

Market definition Offering Crowdsourcing platforms and services for citizens Crowdsourcing enables a company to broadcast an issue to a diverse audience and ask them to contribute ideas to solve the problem. Google, for example, employs internal crowdsourcing in the recruiting process by asking its employees for feedback on job candidates based on similarities in experience—the candidate and the employee may have attended the same university at the same time or previously worked for the same company, for instance.

For a fifth consecutive year, PepsiCo sponsored a crowd-driven contest in which consumers created 30-second commercials for its Doritos® and Pepsi MAX® products. More than 5,600 videos were submitted, and consumers voted at the company’s “Crash the Super Bowl” Contest website to select six commercials that would air during the game. Based on the USA Today

PepsiCo got six commercials for a bargain price of $1.4 million in prizes to winners, while fully engaging its customers in its brands and further building its social networking base.

Market opportunity

Crowdsourcing is seen as a disruptive model in many of the markets that is applied to with the following potential opportunities:

- Saving money: New York City estimates that they can leverage an equivalent of $10 million of innovation investment for just $20,000 expense when using the ChallengePost (http://challengepost.com/) platform to help improve transport in the city.

- Offering cash prizes for the best ideas – like InnoCentive that awards prizes for people who solve problems submitted by various companies. Netflix did something similar when it offered to give $1 million to anyone who could improve its own film recommendation service by 10%. Google


has also offered cash prizes to those who come up with innovative ideas. This is a form of crowdcasting.

- Asking for new product ideas – and then releasing products which meet those specifications. This is what Dell is doing with its IdeaStorm approach to new model development. IBM did something similar when it held an “Innovation Jam” in 2006. The meeting attracted 46,000 ideas and IBM announced it would invest $100millionto create ten new businesses based on the ideas which were put forward at the Innovation Jam.

- Running prediction markets – like the Iowa Electronic Markets that allow people to place bets on a range of future events. Traders can bet on the outcome of future events and the system calculates odds based on these bets. This is an example of an information market in action. Other good examples of this are the Hollywood Stock Exchange (forecasting movie revenues) and Marketocracy (where investors run investment portfolios using $1 million of Monopoly money as their starting point).

High impact target

Beyond the trend of creating value and intelligence from crowd-sourced data, the business impact will come from the quality of the date collected. Indeed, how trustable can be the information coming from an anonymous mass of individuals? How to cross-validate this information with actual and already qualified data? How to make sure that the data collected is enough to make emerge the intelligence we look for?

Answering to all these questions is a prerequisite to build high impact business in the field.

4.2.2.2 Health and Well-Being Key Phrase: Opening up the market of Active Healthy Aging by providing affordable unobtrusive ICT enabled Mental, Physical, and Social Wellbeing services Action Line Lead: Jean Gelissen, Philips, [email protected] MC Owner: Patrick Strating, EIT ICT Labs Eindhoven, [email protected] The Health and Wellbeing (HWB) action line improves the quality of everyday life via the development of ICT enabled services. These services support a sustainable healthy (mental, physical and social) lifestyle in the context of Ambient Assisted Living (AAL) for Active Healthy Ageing (AHA). Global, societal and economic trends (e.g. ageing population, growing consumer empowerment) call for an innovative and entrepreneurial ICT enabled and supported approach towards health and wellbeing. The HWB action line approach improves the quality of life by supporting people with ICT based solutions to live uncompromised, comfortable, safe, and active lives also at an advanced age and enables independent living while at the same time avoid social exclusion. In other words: support active healthy ageing. This includes both regular as well as innovative emerging service providers. The action line focuses on providing meaningful and affordable services to achieve impact in the functional domains of mental, physical and social health and wellbeing. The HWB systems in Europe are gradually opening up, but high (non-functional) barriers are still in place. Traditional research has the tendency to focus on specific problems, targeting specific groups in a specific context. Often, implementing these solutions gets


bogged down by non-functional barriers such as legal issues per country, different economical models / reimbursement schemes, privacy / security rules or differences in social and cultural systems and ethics / habits. Therefore, the Health & Wellbeing action line of EIT ICT Labs also wants to force a breakthrough. This is realized by establishing a business community. The Active Healthy Ageing platform concept facilitates fast service development. This platform is an ICT system that incorporates the functional and non-functional aspects in its design. It allows for product / service introduction, up scaling & maintenance / sustainability.

Health and Well Being Business Underpinning

Market definition The EU27 population of 500M people has a HealthCare expenditure of 1.085B€ (2170€ per capita). Non-acute / primary prevention counts for 271B€. Primary prevention / care, long term care and home care account for 90B€ of this 271B€. These wellbeing related expenditures are expected to grow by 3% p.a. to 108B€ by 2020. The segments of physical, mental and social wellbeing account for about one third of that market, putting it at 36B€ in 2020 (from 30B€ in 2014). This will have to be shouldered by the patients/citizens themselves, the public and private healthcare systems, and the health insurance sector. The majority of the cost increase is due to the fact that the development of (multiple) chronicle diseases is not in line with the increased life expectancy. Due to this discrepancy the costs of cure and (long term) care for these (multiple) chronicle diseases increases significantly. A large part of these costs is related to heart diseases and dementia. Reducing the need for cure and intensive (long term) care by the improvement of (physical, mental and social) lifestyle and the application of primary preventive product / service combinations for the earliest as possible detection of physical and mental anomalies will provide a significant benefit both for the society at large as well as for the individual person. It is the goal of the action line Health & Wellbeing to act on this economic and societal opportunity.

Market opportunity

Early detection of mental decline: Mental decline is a serious problem in ageing populations. Early detection of mental decline allows for treatments that can slowdown the decline process, providing affected people and their environment with a higher quality of life. Therefore we request activities specifically focusing on early detection of mental decline, such as, for example: dementia. We are specifically targeting cost effective product/service combinations with go-to-market strategies compatible with national health care systems (with possible voluntary private payments by citizens and a role for service providers & health insurance organizations).

This segment accounts for 32% of the above-mentioned market of 36B€ in 2020. ICT based services can offer superior benefits over traditional preventive measures and also can offset part of the expected increase of traditional treatments. A reasonable target is to capture 20% of the expected market increase for the (intensive) care of patients with mental decline by providing early screening product / service combinations in for instance the dementia related care domain. This then constitutes an addressable market growing to 400M€ per year in 2020.

High impact target

Provide meaningful and affordable services for "Mental Wellbeing – Early Screening and Slowdown of Mild Cognitive Impairment" that can turn 20% of the potential cost saving for the intensive care of dementia patients into early screening product / service combinations in the dementia related care


domain by 2018. The service may be brought to market through the national health-care systems.

Market opportunity

Early Screening of Physical Anomalies: Physical anomalies can have a high impact on wellbeing. We therefore would like to address product/service combinations that have a high impact either in terms of the improved quality of life, or the total addressable market e.g.: cardio vascular related anomalies. The go to market strategies might be either through the national health-care systems or occupational health organizations (with possible voluntary private payments by citizens and a role for health insurance organizations).

This segment accounts for 41% of the above-mentioned market of 36B€ in 2020. ICT based services can offer superior benefits over traditional preventive measures and also can offset part of the expected increase of traditional treatments. A reasonable target is to capture 20% of the expected market increase for the (intensive) care of patients with physical anomalies by providing early screening product / service combinations in for instance the cardio vascular related care domain. This then constitutes an addressable market growing to 500M€ per year in 2020.

High impact target

Provide meaningful and affordable services for “Physical Wellbeing - Early Screening of Physical Anomalies” that can turn 25% of the potential cost saving for the intensive care of cardio vascular patients into initial diagnostics and earlier screening of cardio-vascular condition symptoms and anomalies product / service combinations in the cardio vascular related care domain by 2018. The service may be brought to market through the national health-care systems and occupational health organizations.

Market opportunity

Personalised Fitness: Improved physical fitness has a high impact on personal wellbeing and a high economic impact by preventing the loss of labour capacity. Activities should focus on services that aim to provide personalised programs for (long term) fitness management programs in a social context that have significant impact on cost savings in the related care domain. The services may be brought to market through the national health-care systems, occupational health organisations or in B2B and/or B2C models (with possible voluntary private payments by citizens). This segment accounts for 27% of the above-mentioned market of 36B€ in 2020. ICT based services can offer superior benefits over traditional preventive measures and also can offset part of the expected increase of traditional treatments. A reasonable target is to capture 20% of the expected market increase for the care of patients with physical condition (and associated social) problems by providing product / service combinations in the social fitness management / coaching domain. This then constitutes an addressable market growing to 300M€ per year in 2020.

High impact target

Provide meaningful and affordable services for “Social Wellbeing - Fitness in a Social Context” to provide personalised programs for fitness improvement that can turn 20% of the potential cost saving in the related care domain and the loss of labour potential into product / service combinations that support (long term) fitness management programs by 2018. The service may be brought to market through the national health-care systems, occupational health organizations or in a business to consumer model.


4.2.2.3 Intelligent Mobility Solutions Key Phrase: Leverage ICT to improve people’s daily commutes and journeys and create new business opportunities. Action Line Lead: Christian Müller, DFKI [email protected] MC Owner: Roberto Saracco, EIT ICT Labs Trento, [email protected] The action line Intelligent Mobility Solutions has the ambition to create new ICT-enhanced business models for European car manufacturers, first tier suppliers, and SME’s by addressing the societal goals of becoming safe (zero accidents) and sustainable (zero emissions) and contributing to the vision of Mobility as a Service (MaaS). The Action line evolves from the activities of 2013 to focus in 2014 on business opportunities for innovation, leveraging on next generation connected vehicles to provide new paradigms of safe and sustainable mobility, as well as added value services for more comfortable displacements. Key business opportunities regard novel fleet management and multimodal mobility concepts, Car2x and cloud enhanced in-vehicle systems including ADAS and navigation, and collaborative vehicle-infrastructure interaction for improved traffic management. The goal is to have a clear impact on the way transportation can be used leveraging ICT and generating business opportunities to existing players and opening a business space for new players. From individual users’ point of view, MaaS is expected to provide safe and comfortable journeys be affordable for everyone, keep risks related to mobility should be kept to a minimum and awareness of danger to a maximum, and reduce the time spent on daily commutes while permitting people to choose how they want to use the time (relaxing, entertaining, working). In particular, compared to the baseline costs (e.g. total costs of ownership of a car), MaaS should be competitive (cheaper) at the same level of quality. From the viewpoint of municipalities, MaaS is expected to reduce the negative impact of traffic to the quality of life in cities such as space consumed by and noise, pollution and fine dust caused by vehicles. Also the effort and cost required in emergency and accident management should be reduced, leading towards safer roads and an improved management of traffic and events (e.g. management and rescue time). Likewise, the economical impact through maintenance costs and damage caused inefficient traffic should be minimized. From the societal angle, MaaS should contribute to minimising the ecological impact and achieving resource frugality. The number of accidents should be minimised, as well as their primary impacts (fatalities, injuries) and secondary impacts (traffic, costs). Transportation can become an “ambient” that in many cases has a significant importance in a person and community life given the time dedicated and that should be leveraged by engaging people in societal interaction. While we acknowledge the fact that ICT solutions for individual modes of transportation (e.g. cars) can contribute to the above objectives, holistic solutions with a strong focus on actual user requirements are clearly preferred. The latter are


expected take into consideration multiple modes of transportation as well as the traffic infrastructure.

Intelligent Mobility Solutions Business Underpinning

Market definition Market size – Mobility: Outlook of Global Automotive Industry in 2020

• From Car Ownership (1 million car-sharing member base) to Mobility Integration, Integrated Mobility, Car Sharing (50 million car sharing member base)

• From modular vehicle (standard features, e.g. GPS) to Intelligent Vehicle (3G/WiFi connectivity, Internet Radio, V2X)

Solutions for future mobility, OEM’s perspectives

• Key global OEMs are developing integrated mobility solutions. • The need for connected services is driving the market for mobile apps,

mobile technology and in-car wireless technology. • Key global OEMs have launched applications in telematics, vehicle

information, entertainment, location-based services, navigation, car sharing and mobility. By 2020, OEMs are likely to increase focus on mobility apps.

• Over 135 models of micro-mobility solutions are expected to enter the global marked by 2020, 58 of which launched by key OEM’s

• Driven by an ageing society, OEM’s are developing new mobility concepts for elderly drivers.

Market opportunity

Understanding traffic and mobility in real time. The initial market focus is on B2G services, with the main of monetizing potential savings in a municipality, mostly tied to better quality of life (less pollution, less accidents, less time wasted) and once a year (or so) savings in assessment of traffic for tuning public transportation and traffic routing.

High impact target

Providing easy to use monitoring of mobility from a personal point of view, capturing real time information and proving right on time information and mobility options also leveraging social networks.

High impact target

A platform including novel IoT and V2x technologies to support global traffic management, with more effective traffic related data acquisition in smart cities, congestion avoidance systems in urban areas, traffic planning and optimization

High impact target

Novel management techniques in tunnels and other critical road infrastructures, advanced fleet management.

Market opportunity

New vehicle concepts. Initial market focus is on B2C and B2G services, potential customers potentially being public transportation and municipalities.

High impact target

Safer mobility through Advanced Driving Assistance Systems – Intelligent and co-operative vehicles enabled by IoT and V2X technologies, to support partially automated driver assistance (including vulnerable road user detection) preventive safety including assistive guidance. Support of virtual reality technologies to assess safety improvements.

High impact target

More sustainable mobility through active green driving, co-modal routing and ticketing to integrate the use of public/shared/private vehicles of any type (e.g., including shared bikes).


High impact target

In-car LTE platform enabling set of services, technologies and contents, for creating a package of advanced features (maps, navigation, traffic, parking…) with great benefit for the customer thanks also to the integration with existing devices. Vehicle networking with cloud based functions (e.g. connected navigation in the cloud).

Market opportunity

Vehicle sharing in cities going beyond current fleet management and including multimodal transportation. Pooling and sharing of (possibly but not necessarily electric) vehicles owned by people/companies/institutions. Negotiation for demand/offer matchmaking. Innovative solutions fuelled by ICT for shared cars, shared vehicles and dynamic public transportation routing.

Five out of eleven major OEMs currently offer car-sharing services or have started car sharing pilot programmes. By 2020, the European market for car sharing is expected to reach 9 billion USD.

High impact target

Solutions for service provisioning, billing. Value-added services making the offering more attractive.

High impact target

Social media and apps for optimizing availability of vehicles, incentive concepts, easy access users that are not technology affine and people with special needs.

4.2.2.4 Smart Energy Systems Key Phrase: Contributing to the creation of an open European energy market by testing and deploying decentralised IVT infrastructures and user-centric services for smart energy systems Action Line Lead: Ariane Sutor, Siemens, [email protected] MC Owner: Udo Bub, EIT ICT Labs Berlin, [email protected] Meeting EU’s climate change and energy policy objectives for 2020 and beyond will require a major transformation of our electricity infrastructure. Large-scale renewable energy generation has an inherent variability and weather dependence while at the same time there is limited capacity for energy storage. The deployment of distributed energy resources can mitigate the uncertainties connected to large plants and exploit the potential of dispersed resources. However, the integration of distributed energy resources is extremely challenging both from a market and a technical point of view. One key to the integration of intermittent and dispersed renewable energy and to increased energy efficiency is the introduction of Smart Grids that make the electricity system smarter through the introduction of Information and Communication Technologies (ICT). Thereby physical infrastructures are needed as well as new business models and regulation. Moreover it is imperative that consumers understand and trust the process and receive clear benefits. The action line Smart Energy Systems drives European innovation for smart energy systems focussing decentralized ICT infrastructures and user-centric services, and mobilizes a strong network of industrial partners, research institutes and technical universities. We want to deploy ICT technologies in the energy domain enabling the future smart energy infrastructures and to accelerate implementation of results in


daily life and we aim to provide user-centric services to make life easier and come up with technologies for optimizing energy efficiency. Our mid-term vision is to contribute to the creation of an open European market by defining the blueprint of future energy systems and by bringing together smart energy ecosystems.

Smart Energy Systems Business Underpinning

Market definition While the global market for transmission and distribution of electricity is estimated to grow from roughly €380b in 2011 to €550b in 2020, the market for ICT, applications, service, security, and smart homes will almost double during the same period: ~€25b à almost €50b (Source: EIT KIC InnoEnergy Strategic Roadmap).

Market opportunity

Decentralized ICT infrastructures are the key enabler for efficient distributed energy systems (domain-specific ICT). Decentralization concerns spatially distributed systems, decentralized decisions (e.g. peer to peer exchange), but equally important decentralization of markets and responsibilities. Therefore new energy management systems are needed and at the same time the establishment of market mechanisms and market roles.

The market size for decentralized ICT and security is estimated roughly half of the above stated figures: ~€12b in 2011 à almost €25b in 2020 (Source: EIT KIC InnoEnergy Strategic Roadmap) Major target groups are small / municipal utilities, grid operators, energy retailers, building owners.

High impact target

Provide energy management solutions both for district and municipal grids as well as for buildings and households and investigate market mechanisms and business impact in real world applications and large-scale demonstrators.

High impact target

Develop and deploy hybrid energy grid management solutions including EV and microgrids, and integrating e.g. electricity, heat and gas with special emphasis on interoperability.

High impact target

IT security and privacy: develop attack and protection schemes / tools and provide input to European standardization; establish secure communication especially for massively distributed systems also using public networks.

High impact target

Use the European virtual smart grid lab for joint experiments that are imminently deployed in real world applications and large-scale demonstrations. Investigate potential business cases for the lab itself possibly leading to a new market opportunity for testbeds.

Market opportunity

In future energy systems user roles will change. While users may be involved more actively an opposing trend is the development of ICT offering automated support. Services for energy monitoring, forecasting and optimization offer a market which is expected to grow from ~€13b à ~25b in the period 2011 to 2020 (Source: EIT KIC InnoEnergy Strategic Roadmap). Target groups for services are end-users like building or EV owners, service providers like telecommunication companies, and small / municipal utilities.

High impact target

Develop applications for energy monitoring and home energy management for end-users; this may include visualization applications and consulting services.

High impact

Provide new smart grid services to small / municipal utilities, grid operators and aggregators e.g. for energy forecasting and for energy management “in


target the cloud”.

High impact target

Extend and further integrate the pan-European experience and living lab based on standardized communication interfaces and offer access to partners and 3rd parities like SMEs. Investigate potential business cases for the lab itself possibly leading to a new market opportunity for testbeds.

4.3 Business and Entrepreneurship Key Phrase: Deliver European Growth Success Stories by providing a comprehensive set of business development services to EIT ICT Labs partner network and the action lines Business Director: Klaus Beetz, Siemens, [email protected] The strategic goal of EIT ICT Labs is to transform research results in business. To ensure this target EIT ICT Labs has set up a Business Development Accelerator (BDA) with a team of up to 24 business developers in the 6 nodes of EIT ICT Labs. The heart of the BDA is the management of a funnel of innovation cases toward European success stories for growth and job creation. It includes scouting and coaching which lead the global process toward success. Along this path, the BDA will deploy various business catalysts such as “Business Modelling”, “Technology Transfer”, “Soft Landing”, and “Access to Finance” as required for accelerating the process.

European Growth Success Stories

EIT ICT Labs Business Development AcceleratorThe Funnel of business transformation

EIT ICT Labs General Overview | Page 3

Technologies at different level of maturity

Innovative SMEs

Innovative Start up

Sources of raw cases : Action Lines and EIT ICT Labs partner network:

Talents

Scoutingfor Innovation Opportunities

Strategic Coaching

N * 100s cases

N * 10s qualified cases

Figure 13 The EIT ICT Labs Business Development Accelerator


The EIT ICT Labs BDA is radar for innovative projects and SME’s connected both to the Action Lines and to the innovation hotspots (CLC's). On this case basis, it offers a high-quality support for commercialization of innovation opportunities. The business developers of the BDA are the “spiders in the web”, connecting the various members and stakeholders of the EIT ICT Labs partner network:

• Action Lines through detecting, evaluating and driving the exploitation of innovation opportunities arising from the work in the activities by the researchers, innovators, and students

• Local innovation eco-systems by connecting to entrepreneurial communities and supporting new business creation and growing of SME’s to a European level

• Large industry by matchmaking for technologies, ventures and SME’s and facilitating technology transfer.

A key goal is to create an open market for problems and solutions by matching research results with potential entrepreneurs or industry partners. The Action Lines of the EIT ICT Labs playing an important role within this scenario by maturing technologies that are developed within the carriers towards commercialisation; “Ready to Market” or “Ready to Transfer”. For each Action Line the Business Developers have formed competence teams with those Business Developers who are skilled and experienced within the thematic scope of the Action Line and nominated one out of the team as single point of contact to the Action Line Lead in order to ensure the business value of their activities. A great potential for European economical growth and generation of new jobs is seen in already established ventures bent on international growth. The “Total Accessible Market” (TAM) by EIT ICT Labs BDA partners in terms of ICT SME’s and ventures is for instance in France only over the thousand. Most probably over 30% of them will qualify for support of the EIT ICT Labs. Another key aspect is increasing focus on tapping into entrepreneurial talents to facilitate the birth of start-ups. The potential for this was amply shown in the Idea Contest 2012 with more than 400 participants organized in over 130 teams from all over Europe applying with their business ideas. In 2014 we plan to run an EIT ICT Labs Innovation Contest in each node fitting to the thematic scope of the node, e.g. an Innovation Contest on Heath & Well-being in Eindhoven and an Innovation Contest on Digital Cities in Paris. In 2013 pilots running with some of our large industrial core partners defining the scope of their interest (hunting fields) in order to bundle technologies, Start-ups and SME out of the EIT ICT Labs partner network for regular matchmaking events. These pilots will lead to a systematic and structured collaboration process between our large industrial partners and the other members of the EIT ICT Labs partner network (Action Lines, Research Institutes, Local Eco-Systems, etc.). This will become important an ingredient part of the EIT ICT Labs with the BDA as key enabler.


4.4 Nodes and Co-Location Centres The six nodes and their co-location centres (CLC) provide EIT ICT Labs the capability of executing its agenda at European and national levels. They also are the focus points for mobility, interaction, and open innovation, aiming to become world-class innovation hotspots in their chosen foci.

Figure 14 CLC nomenclature

In the EIT ICT Labs approach, “co-location centre” denotes the physical location where these focus activities take place (e.g., office, a single building). “Hotspot” denotes the limited geographical locale where the majority of the partners and their KIC activities take place (e.g., a campus, a city, a region). “Node” refers to the totality of KIC partners and activities in a single country organized as a legal entity, possibly including satellites and affiliate partners outside the core hotspot. By the start of 2013, the initial build-up of CLC’s in all six nodes of EIT ICT Labs has been achieved. With this, the focus of the node and CLC strategy has shifted to ensuring that the CLC’s and their locales continue progressing towards world-class innovation hotspots characterized by frequent encounters between people from different backgrounds and working together in the spirit of open innovation. Nodes and CLC’s also present the unique characteristics and strengths of their local innovation ecosystems at the KIC level. For this, they are invited to express and develop their complementary profiles as shown in Table 1 overleaf.

4.4.1 Berlin The overall goal of the Berlin Node is to shape the agenda of the German ICT landscape. Its director coaches Action Lines Smart Energy Systems and Future Internet Technology and Architecture. The Berlin Node consists of six Core Partners from industry (Deutsche Telekom AG, SAP AG and Siemens AG) and academia (DFKI, Fraunhofer Gesellschaft and Technische Universität Berlin). Nine Affiliate Partners from both industry and academia add further knowledge to the Berlin Node. Possible future partners are already in the process of application. For the Node, an own legal entity has been formed (EIT ICT Labs GmbH).


Node Education Research Innovation

Berlin Virtual University Internet of Things and Services

Entrepreneurial Campus with Capital for all Stages

Eindhoven Embedded Education

Health and Well-being

Growing Ventures for a Global Market

Helsinki Multidisciplinary Teams in Education

Empowering People – Enabling User Creativity

Entrepreneurship for New Business Creation, Re-use of Dormant IP

Paris Innovation and Basic Science

Future Internet for a Sustainable Digital Society

Capitalizing on Joint Academia – Industry Labs

Stockholm International M.Sc. Programmes

Mobile Computing and Communications

Tech Transfer Models for Open Innovation

Trento Open Learning Quality of Life User-centric Innovation

Table 1 CLC profiles

Especially in this Node, activities leading to a sustainable business model will be tested. This will provide valuable information for the future development of the whole ICT Labs KIC to become a sustainable and self-supporting institute fostering innovation and growth in Europe. The Berlin CLC hosts an increasing number of workshops, meetings, featured talks and conferences. First class representatives of important players of the ICT research and business landscape appear regularly at these events. The most outstanding carrier is the national project Software Campus. This is an initiative by the German government, industry and academic partners for the education of tomorrow’s IT leaders to strengthen Germany as a location for leading edge technology innovation. All Core Partners of the Berlin Node as well as further leading national companies do participate in this initiative.

4.4.2 Eindhoven The Eindhoven Node implements the knowledge triangle in the Benelux area. The Node and Co-location Centre is becoming a nucleation point for activities that integrate Education, Research, and Business, leading to a hands-on, result-driven and people-centric approach to innovation. The Eindhoven partnership in EIT ICT Labs consists of Philips, Océ, 3TU Federation (TU Delft, TU Eindhoven and UTwente), Novay, CWI, and TNO. The Affiliate


Partners are Holst Centre, University Utrecht, NXP, and High Tech NL, and there is a close relation to associate partner iMinds in Belgium. The Eindhoven CLC is situated on the high-tech R&D area of the High Tech Campus Eindhoven. The High Tech Campus is an industry-oriented campus, which enables the Eindhoven Node to maintain a very close relation with its industrial partners. It is the ambition to strengthen the integration with these partners where possible, e.g. by relocating the co-location. The Eindhoven Node wants to promote the Eindhoven area, which is already recognized as an industrial R&D hub, to an ICT hotspot, especially in the area of Health and Wellbeing. This is reflected in a diverse set of activities related to the Action Line of Health and Wellbeing, such as the organisation of Health and Wellbeing summer and winter schools. Also, there is the ambition to strengthen the position in the area of tech start-up activities, through the organisation of start-up weekends and start-up coaching. A third spearhead topic related to the interests of Eindhoven industrial partners is lifelong education.

4.4.3 Helsinki The Helsinki Node is a consortium of the Finnish partners in the EIT ICT Labs. Three core partners of the Helsinki Node are Aalto University, VTT Technical Research Centre of Finland, and Nokia (including Nokia Siemens Networks). Ten affiliated partners include universities, research institutes, companies, and other key actors of the Finnish ICT innovation system. The Helsinki Node is continuously seeking possibilities to enlarge the partnership in Finland, especially towards industry. Helsinki Node is an active and recognized thought leader in setting the Finnish agenda for future ICT. In its carrier activities, the Helsinki Node concentrates on the following six areas: (1) Enabling Mobile Data Explosion, (2) Smart Spaces and Ubiquitous Interaction, (3) Services based on Big Data, (4) ICT and Sustainability, (5) Games and Gamification, and (6) ICT for Well-Being and Active Aging. The main hotspot for ICT in Finland is in Otaniemi where all core partners are strongly present within walking distance from each other. The Helsinki Co-Location Centre is located in the middle of the Otaniemi Campus in the newly established Open Innovation House, where also Nokia Research Center, Helsinki Institute for Information Technology, Aalto Science Institute, Wärtsilä Innovation Hub and AppCampus are located. The goal of the Helsinki Co-location Centre is to be a vibrant space for entrepreneurial-minded hackers, researchers, designers, business creators and other top talents in ICT for collaboration and innovation. Special emphasis in Helsinki Co-location Centre is placed on integrating the students to EIT ICT Labs activities by providing a home base for the EIT Master School students and by hosting the Doctoral Training Centre. Supporting local start-ups that are related to EIT ICT Labs Action Lines, and activating them early to participate in European collaboration, is another strong priority for the Helsinki Co-location Centre activities. The volume of attractive events that are either organized or co-branded by EIT ICT Labs Helsinki continues to increase, and local recognition and visibility is of high priority for the Helsinki Node.


4.4.4 Paris The Paris Node of EIT ICT Labs is creating an ICT innovation community, in a win-win manner, among the French partners of the EIT ICT Labs. The French specificity of the Paris Node, organized around a main site in Paris (collocated within the INRIA premises down-town Paris) and two satellite sites (in Sophia Antipolis, located within the ICT Campus, and in Rennes, collocated within the Rennes 1 University) makes it a unique tool to address ICT innovation at large in France. Thanks to these three locations, the Paris Node has an established presence within the main ICT areas in France, well know for gathering a critical mass of industrial and academic members and having an internationally recognized impact at both scientific and business levels. This allows the Paris Node to have a significant impact on all the Action Lines of EIT ICT Labs. The Paris Node is constantly searching for new industrial and academic partners and is considering expending the number of satellite nodes in order to cover even more the French ICT innovation landscape. Because of these three strategic locations, the Paris Node of the EIT ICT Labs has a significant and visible presence within the main Universities and France, giving to the node the opportunity to play a major role in the Education activities of the EIT ICT Labs (mainly through the management of the Doctoral School). The structure of the Paris Node of the EIT ICT Labs is perfectly matching the way ICT innovation incentive programs are organized in France. This is a strategic positioning if we want be able to be influential and in a position to coordinate the best way possible the interests of the French partners. The three main strategic targets of the CLC (in Paris, Rennes and Sophia Antipolis) are:

- to establish a neutral place where people can gather, share ideas and create value through creative actions,

- to provide to the best students the possibility to get in touch with the industrial world in an informal way,

- to be the place for young start-ups and SMEs to be able to get the best environment possible for their business ideas to be transformed into reality.

Through the events (more than 150 each year) organized within the CLC (in Paris, Sophia-Antipolis and Rennes) premises and the ever growing number of requests for keynote speeches are making the Paris Node of the EIT ICT Labs highly visible beyond the circle of the partners and, in particular, to governmental bodies and innovation funding agencies. This is an outstanding opportunity for the EIT ICT Labs in a period where France is redesigning its innovation policy.

4.4.5 Stockholm The Stockholm Node of EIT ICT Labs coordinates the interests of the Swedish partners in EIT ICT Labs. The main direct action is the operation of our Co-location Centre in the Electrum building of “Kista Science City” in northern Stockholm, the most innovative and ICT-dense area of all of Sweden and an internationally recognized ICT hot spot. Thanks to the intensive coaching of our partners the


Stockholm Node has been successful in establishing presence in all the Action Lines of EIT ICT Labs. Nevertheless, the Node is continuously investigating opportunities to attract new, especially industrial, partners to the KIC. Since the Electrum building and indeed the entire Kista Science City can be regarded as a truly collaborative working environment with very strong ICT focus, EIT ICT Labs Stockholm has its focus on catalysing even further this strong partner interaction through involvement in EIT ICT Labs activities. Having most of our partners, including KTH, SICS, Ericsson (HQ & Research), STING, KSC and Stockholm University, located within the building or within a few minutes walking distance has greatly facilitated the establishment of the CLC as the preferred meeting place for our partners and project activities. Recent efforts include participating in the planning for moving more KTH students to the Electrum building in the 2014 timeframe and to free up space for potential use of start-up. One of the key targets with the CLC is to provide an inspiring workplace for the EIT ICT labs master and doctoral students. This has proved to be a much-appreciated aspect from both students and activity organizers and its impact is expected to grow with the increasing number of students. External local visibility of and outreach to political, industrial, research and entrepreneurial communities is carried out both through our own events and through co-branded events in close collaboration with our partners. Several such events with more than 200 participants each are organized every year.

4.4.6 Trento The Trento Node has expanded by adding three affiliate partners (FT Coop, Reply and Poste Italiane) at the beginning of 2013 to strengthen its capacity to impact on the territory, a crucial aspect of the Trento Node strategy, aiming at bringing ICT to the territory, both in the vicinity of the Co-Location Centre (Trentino) and in Emilia Romagna, Lombardy, Piedmont and Tuscany through its partners. A special focus is on harvesting data, through partners and stakeholders, to drive the creation of services meeting citizens’ present and future needs. Hence, activities in Privacy, Security and Trust, Intelligent Transportation Solutions, Smart Spaces, Digital Cities, Health and Well-being, and Computing in the Cloud are of particular interest to the Node. To accommodate the growing membership in the CLC an expansion is under way, tripling the space available in the CLC by the end of the year. This new space will be used also for live demonstration of the results of the EIT ICT Labs activities, with a particular focus on those that are involving the Node. Part of the space is in itself a Living Lab, an integral component of the Living Labs as a precursor of the Territorial Labs being implemented in the Trento Region. They are an important component of this strategy. These benefit from the availability of a pervasive broadband fixed infrastructure and LTE to support native connectivity, thus enabling Internet of Things type trials and deployment. Master and Doctor courses focuses and are in synch with the above interest areas by educating young generations not only to the invention of leading edge ICT, but also to the adoption and fruitful economic exploitation of such technologies.


Trento Node is actively involving key stakeholders to create innovation that can become part of the territorial processes. A Project Coordinator and a team of national action line reference points ensure coordination of activities. To ensure visibility and involvement of the various constituencies the Node has planned talks, interaction with national media, the visualization of results in a way that is understandable and engaging for the layperson, interviews to people, interaction with opinion leaders, presence on mass media. The MarCom person at the Node is in charge of these activities.

4.5 Associate Partner Groups The associate partner groups in Budapest and London widen the European scope of EIT ICT Labs further to key areas of innovation. In 2013, a new associate partner cluster will be launched in Madrid. This section gives an outline of the strategies of these groups.

4.5.1 Budapest In harmony with the EIT ICT Labs mission and vision, the Budapest Associate Partner Group (the universities ELTE and BME, and their industrial partners, such as Ericsson Hungary, Hungarian Telecom, Cisco Systems Hungary) has set up an infrastructure (similar to that of the CLCs) to create and promote best practices in four major areas – namely, in (1) applying the knowledge triangle model in education, (2) promoting research, development and innovation in communication software and system performance, (3) disseminating mainly in Central and Eastern Europe for the homogeneity of Europe, and finally, in (4) building a regional industrial “hub” of dynamically developing small and medium sized companies. The Budapest Associate Partner Group builds on the long experience of ELTE and BME in operating an industrial partnership based on the knowledge triangle model. As a result, the Budapest Associate Partner Group has also developed special expertise in communication software and system performance. This topic has emerged as the thematic focus of the EIT ICT Labs Doctoral Training Centre in Budapest, which ties to the action lines “Networking Solutions for Future Media” and “Internet Technologies and Architectures.” The Budapest Associate Partner Group has a strong regional position crucial to the creation of a homogeneous Europe. The X-Europe project launched in 2012, which directly seeks to bring the talented students, researchers, and professors into a regional network of excellence, will give a substantial boost to the maintaining of network ties to neighbouring countries.

4.5.2 London The London associate partner group brings together the combined expertise of some of the world’s pre-eminent universities with some of the most technically forward thinking companies operating in Europe today, housed within an ecosystem that includes one of the most vibrant hubs of high tech entrepreneurship in the world. In addition the partners currently possess the capacity to educate, coach, incubate and


commercially support entrepreneurs to go from concept idea to full commercial exploitation. The ambition of the London group is to become a full node from 2014 onwards. The main direct actions of the proposed London Node of EIT ICT Labs have been to progress with the establishment of the Node and to support the partners of the Node consortium to participate in the 2014 Call. The identification of a suitable Co-location Centre is expected shortly. Thanks to the intensive coaching of our partners the London Node partners hope to be using the forthcoming call to establish a presence in many of the Action Lines of EIT ICT Labs. Even though we do not yet have formal approval for a London Node we continue to promote the opportunities of EIT ICT Labs to attract new partners to the KIC. There are currently active discussions under way with the BBC and the Royal College of Art. External local visibility activities and outreach to political, industrial, research and entrepreneurial communities has been carried out by the Node Director. There have been several meetings with Government, and Government funded bodies in order to agree the relationships that would be appropriate once the London EIT ICT Labs node has been formally approved.

4.5.3 Madrid The newest member of the EIT ICT Labs family, the associate partner group in Madrid is the hub of a nation-wide network of research, education and business key players in ICT, involving some of the most active Spanish actors plus the support of SMEs, Local Governments, and Public Administrations. The core partners Telefonica, BBVA, Atos, and UPM are co-located in Madrid with links to other regions. The starting motto of the cluster is “ICT providing citizens convenience with confidence”. To realize this ambition requires research and innovation excellence to devise applications, services, methods and tools that will allow the development of IT products and infrastructure with sophisticated functionality and high quality, i.e., safe, reliable, secure, trustworthy, and efficient, and, at the same time, conveniently adapted to consumers needs and satisfaction. The role of the Madrid associate partner group will build on major Spanish strengths, such as recognized excellence in core topics of ICT Labs and strong baseline in test beds, living labs, research infrastructures, and innovation initiatives. The Spanish partners can also offer a bridge to the increasingly vigorous entrepreneurial and business scene of Latin America. The Madrid associate partner group will be organized as an association under Spanish law. Its work can build on the experience from Spanish Technology Platforms. The Madrid co-location centre will be located in the new IMDEA Software building at UPM Montegancedo Campus, an environment rich in innovation, research and education and offering excellent connections, offices and video-conference rooms.

Documents

EIT ICT Labs Strategic Innovation Agenda 2013 v1eirict.win.tue.nl/docs/EIT-ICT-LABS-2014/EIT ICT... · economic impact and for bringing added value to people in Europe and beyond