Regional Innovation Monitor Plus 2016 · The main aim of 30 regional reports is to provide a description and analysis of developments in the area advanced manufacturing with a clearly

www.technopolis-group.com

30 May 2016

Regional Innovation Monitor Plus 2016 Regional Innovation Report Pays de la Loire (Industry 4.0 and smart systems)

To the European Commission

Internal Market, Industry, Entrepreneurship and SMEs Directorate-General

Directorate F – Innovation and Advanced Manufacturing

Regional Innovation Monitor Plus 2016

Regional Innovation Report Pays de la Loire (Industry 4.0 and smart systems)

technopolis |group| in cooperation with

Patrice Léger, Technopolis Group Belgium

Regional Innovation Monitor Plus 2016 i

Table of Contents 1. Advanced Manufacturing: Industry 4.0 and smart systems 5!

1.1 Overview of performance and trends 5!1.2 Business sector perspective 7!1.3 Scientific research potential 11!1.4 Role of intermediary institutions 13!1.5 Developing skills for the future 15!1.6 Major investment projects 16!

1.6.1 Mutualised research and technological platforms 16!1.6.2 Other regional R&D projects 20!

1.7 International cooperation 21!1.7.1 International collaborative R&D projects 21!1.7.2 Interclustering and brokerage activities 23!

1.8 Policy support and delivery mechanisms 24!1.8.1 Advanced manufacturing at the forefront of the regional innovation strategy 24!

1.9 Good practice case 26!1.9.1 Collaboration as a regional cultural heritage 26!1.9.2 Creating a regional ecosystem on advanced manufacturing: the Jules Verne Manufacturing Valley 27!1.9.3 Vision 2020: towards a Third Industrial and Agricultural Revolution 28!

1.10 Leveraging the existing potential 29!2. Regional Innovation Performance Trends, Governance and Instruments 31!

2.1 Recent trends in innovation performance and identified challenges 31!2.2 Institutional framework and set-up 34!2.3 Regional innovation policy mix 39!2.4 Appraisal of regional innovation policies 44!2.5 Policy good practice 44!

2.5.1 Regional Innovation Platforms 44!2.5.2 The Neopolia cluster 45!

2.6 Possible future orientations and opportunities 46!Appendix A Bibliography 48!Appendix B Stakeholders consulted 49!

ii Regional Innovation Monitor Plus 2016

Table of Figures

Figure 1: Territorial influence of advanced manufacturing in Pays de la Loire .............. 6!Figure 2: Share of industrial companies in Pays de la Loire having developed a technological innovation according to their strategic priorities in 2008-2012 (in %) ... 8!Figure 3: External trade in Pays de la Loire ..................................................................... 9!Figure 4: opinion on the state of commands and stocks in industry in Pays de la Loire......................................................................................................................................... 10!Figure 5 IRT Jules Verne’s three main research axis & 14 associated themes ............... 12!Figure 6 EMC2 cluster’s seven technological challenges ............................................... 14!Figure 7 View of the Technocampus Composite ............................................................. 17!Figure 8 View of the Technocampus Smart Factory ...................................................... 18!Figure 9 View of the Technocampus Océan ................................................................... 19!Figure 10: Ulysseas, STX’s latest concept ship targeting expeditionary cruises ........... 20!Figure 11 Jules Verne Manufacturing Valley ...................................................................... 27!Figure 12: TRIA’s four drivers of competitiveness and six structuring pillars ............. 28!Figure 13: Importance and dynamism of research efforts of regional enterprises in France in 2012 ................................................................................................................. 31!Figure 14: SWOT analysis of the Regional Innovation System ..................................... 32!Figure 15: Articulation between the 22 regional industrial sectors and the six regional specialisations ................................................................................................................. 36!Figure 16: Wind turbine factory of Alstom in Saint-Nazaire inaugurated in 2014 ....... 46!

List of Tables

Table 1: Main products exported from Pays de la Loire in 2013 (in million euro) 9!Table 2: Overview of the six regional specialisations 37!Table 3 Regional innovation support measures 41!

Regional Innovation Monitor Plus 2016 1

PREFACE In the context of the growth and investment package set out in the Investment Plan of the European Commission, the Regional Innovation Monitor Plus (RIM Plus) provides a unique platform for sharing knowledge and know-how on major innovation and industrial policy trends in in some 200 regions across EU20 Member States.

Launched in 2010, the Regional Innovation Monitor aimed at supporting sharing of intelligence on innovation policies across EU regions. Building upon the experience gained and results obtained during the period 2010-2012, the RIM Plus 2013-2014 provided practical guidance to regions on how to use the collected information, via a network of regional experts. Since 2014, the RIM Plus has introduced a thematic focus on advanced manufacturing.

The RIM Plus 2015-2016 evolved from a general monitoring of innovation policies towards establishing a more thematic focus in selected areas in order to contribute to improving the competitiveness of European regions.

Particularly, the RIM Plus aims through its activities and in close cooperation with the regional stakeholders and other relevant initiatives to:

•! Contribute to the development of new and open spaces of collaboration and exchange on advanced manufacturing, each with a clearly defined thematic focus.

•! Play an enabling role in providing evidence-based information on specific themes and bring in outside perspective from other regions.

•! Map out regional practices in support of advanced manufacturing and relevant pilot/demo projects and work towards involving the relevant stakeholders.

•! Provide an easy access and comparative overview of regional innovation policies and relevant actions in the field of advanced manufacturing.

•! Share the lessons learned with the European Commission services to feed into the preparation of future programmes.

The main aim of 30 regional reports is to provide a description and analysis of developments in the area advanced manufacturing with a clearly defined thematic focus and regional innovation policy, taking into account the specific context of the region as well as general trends. All regional innovation reports are produced in a standardised way using a common methodological and conceptual framework, in order to allow for horizontal analysis, with a view to preparing the Final EU Regional Innovation Monitor Plus report.

European Commission official responsible for the project is Alberto Licciardello ([email protected]).

The present report was prepared by Patrice Léger ([email protected]). The contents and views expressed in this report do not necessarily reflect the opinions or policies of the Regions, Member States or the European Commission.

Copyright of the document belongs to the European Commission. Neither the European Commission, nor any person acting on its behalf, may be held responsible for the use to which information contained in this document may be put, or for any errors which, despite careful preparation and checking, may appear.

Further information:

https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor

2 Regional Innovation Monitor Plus 2016

Executive Summary

1. Advanced Manufacturing: Industry 4.0 and Smart systems

Historically, Pays de la Loire has been an important industrial centre in France. Thanks to a dense and diversified production base, industry made up 18.3% of GDP and 16.8% of employment in 2013, against respectively 14.0% and 12.5% for France as a whole.

Advanced manufacturing gained momentum in the region in the mid-2000s, as a reaction to the threat of wide-scale deindustrialisation imposed by increased international competition and the relocation of low added-value production to developing countries. The region then elaborated a proactive strategy to upgrade its productive system and become more competitive through differentiation on quality and extra-cost criteria. Advanced manufacturing was then seen as the opportunity for the region to capitalise on its historical know-how in the manufacturing of large-scale infrastructures, so as to strengthen traditional sectors, such as shipyards and automotive, but also to enter emerging markets such as marine renewable energies.

The region has implemented several successful initiatives that aim to create a regional innovation value chain in the area of advanced manufacturing. The establishment of the ECM2 cluster in 2005 with an exclusive focus on advanced manufacturing technologies was a first major step in this process. The region then took another step forward to strengthen its research capacity in the field with the establishment in 2012 of the Technological Research Institute Jules Verne. The region also counts three “Technocampus” platforms and a dynamic network of Regional Innovation Platforms. We present as a good practice example the creation of the “Jules Verne Manufacturing Valley” label, which objective is to create a regional community of actors in the field of advanced manufacturing. We also highlight the originality of the strategic plan, “Vision 2020: towards a Third Industrial and Agricultural Revolution”, as an illustration of the regional tradition of collaboration.

The following main challenges related to the area of advanced manufacturing/Industry 4.0 have been identified:

•! Challenge 1: R&D concentration on a limited number of industries

The research competencies dedicated to advanced manufacturing are mainly concentrated on medium-high-tech sectors around a number of key clusters and research centres, most prominently in the aerospace, marine, rail, transport, and renewable marine energy (RME) sectors in and around the Nantes Saint-Nazaire area. Such concentration may weaken the region’s ambition to generate technological cross-fertilisations with the region’s 22 identified sectors. In the medium to long term other regional sectors may see their competitiveness weakened as a result of missed opportunities to introduce advanced manufacturing techniques and the technological or business model transformations they imply.

•! Challenge 2: Consolidate the position of Pays de la Loire as an innovation-hub of advanced manufacturing and enhance cooperation with the renowned centres from other regions in France

The Pays de la Loire region is characterised by a significant concentration of technical expertise and know-how in the area under review. This is illustrated by the protagonist role of the region within the national plan “Factory of the Future”. Nevertheless, other centres in France are considered to have an important track record of experience and relatively high potential in specific research topics related to Industry 4.0 and smart systems. Consolidating the existing potential in key regional sectors should go hand-in-hand with long-term partnerships with other leading French regions. This can create synergies in a wider array of industrial sectors, so that Pays de la Loire can further develop a critical mass in the area of advanced manufacturing technologies.


•! Challenge 3: Avoid creating lock-in effects by integrating SMEs into global value chains

Interviews highlighted the strong cultural heritage of industrial collaboration in the Pays de la Loire region. Nevertheless, this also results in a certain reluctance to cooperate with other national, European or international partners. Given the worldwide investment and dynamic changes taking place in the area of advanced manufacturing, Pays de la Loire faces the challenge of anticipating and actively being involved in the new European and global value chains.

2. Regional Innovation Performance Trends, Governance and Instruments

Pays de la Loire still lags behind national standards in terms of research and innovation performance and must increase its efforts to fully reach its potential. Despite recent positive trends, R&D spending only represents 1.22% of GDP against 2.24% at national level and 2.03% for the EU28 average. The local R&D system remains business-dominated, and is marked by a weak presence of national public research institutions. Among major strengths we can highlight the dense and diverse network of higher education institutions (HEIs), together with a well-recognised scientific research capacity in some strategic fields and a good territorial anchorage of technological institutes. This is partly due to the dynamism of the nine regional clusters.

In January 2014 the region published its regional innovation strategy for the period 2014-2020. As a result of an intensive consultation process with regional stakeholders, six priority axes were defined: advanced manufacturing technologies, maritime industries, food and bio-resources, computer science and electronics, design and cultural and creative industries, and “therapies of tomorrow” and health.

The main challenges in the Pays de la Loire region can be summarised as follows:

•! Challenge 1: Overcome the region’s structural weakness in R&D spending

The region must pursue its long-term effort to catch-up and reach its full research and innovation potential. Regarding private R&D spending, this requires a balance between the necessity to focus of R&D spending in a limited number of promising areas on which the region can build its competitive advantages, and the need to strengthen innovation throughout all regional economic sectors. As for public R&D spending, the region’s local public research landscape remains structurally weak, and is concentrated in a limited number of lead projects.

•! Challenge 2: support the upgrade of the regional workforce’s skills to trigger innovation within enterprises

The level of unemployment (9.1% in the last semester of 2015) remains far above its pre-crisis level (5.5% in 2008) despite the regional economic recovery. The regional shift of industrial and services activity towards higher added-value activities must go hand-in-hand with a stronger plan to upgrade the skills of the regional workforce so it can fully benefit from the emergence of higher innovative sectors.

•! Challenge 3: Explore new business opportunities in cooperation with actors from other European regions

The region’s commitment to European cooperation is strongly emphasised in the Regional Innovation Strategy. In concrete terms, however, regional enterprises are still involved only to a limited extend in European R&D collaboration projects. How the plans are translated into actions and implemented should be closely monitored. In this respect, there is a real risk of reinforcing lock-in effects.


3. Future Actions and Opportunities

With regard to Industry 4.0 and smart systems

Based on the existing evidence, it can be concluded that possible future orientations and opportunities in the area of Industry 4.0 in Pays de la Loire lie particularly in:

•! Increasing the regional outreach of the Jules Verne Manufacturing Valley

The Jules Verne Manufacturing Valley is an innovative initiative to create a strong sense of community among the regional actors involved in advanced manufacturing. The region must make sure that the Valley’s outreach does not remain limited geographically to the headquarters of its core members (EMC2 and IRT Jules Verne) in the area of Nantes, but successfully reaches other regional actors in a variety of industrial sectors.

•! Engaging in strategic cooperation with other French and European regions to position firms in global value chains

In order not to create lock-in effects and path dependencies, it will be necessary to establish strategic cooperation with partners from other French and EU regions active in the area of advanced manufacturing techniques / Industry 4.0. The region should invest in additional human resources both within regional authorities and key competence centres (EMC2 and IRT Jules Verne) to strengthen the participation of the region in European networks (i.e. Vanguard Initiative) and increase the participation of regional SMEs in EU-funded programmes, notably Horizon 2020.

With regard to innovation policy

Based on the limited existing evidence, it can be concluded that possible future orientations and opportunities for regional innovation policy in Pays de la Loire lie particularly in:

•! Preparing the regional workforce for the impending economic transformations

Increase the innovation capacity of the regions must go hand in hand with an ambitious plan to upgrade the skills of the available workforce. Given the level of unemployment, it is imperious to prepare the regional workforce to the impeding economic transformations in all economic sectors. The possibility to widen the scope of the Competencies 2020 plan should be explored. This could lead to a better coupling with the six specialisation priorities foreseen in the regional innovation strategy.

•! Increasing the participation of SMEs in regional clusters and the outreach of regional clusters support measures

The challenge is for public authorities to increase the outreach of clusters towards SMEs which are not necessarily engaged in the innovation process but may benefit from participation in a cluster to exploit their innovation potential. Regional authorities should also evaluate whether the current set of innovative measures (the “innovation path”) is still considered burdensome, and take measures as a result.

•! Increase grassroots support to the integration of SMEs into European Collaborative R&D projects

The risk of lock-in effect is not exclusive to industrial companies but concerns all companies engaging in innovative actions. Indeed, the proximity of collaboration partners is usually preferred, as only 35% of enterprises engaged in R&D collaborations seek partners at international level (INSEE, 2014). What is more, only 37% of innovative companies seek or are intending to reach international markets. The region must think thoroughly how to align its European strategy with the current low levels of internationalisation of its SMEs and their propensity to collaborate solely with local partners.


1.!Advanced Manufacturing: Industry 4.0 and smart systems

1.1!Overview of performance and trends Bordering the Atlantic Ocean and four other regions (Bretagne, Basse-Normandie, Centre, Poitou-Charentes), Pays de la Loire had 3.66m inhabitants in 2013, representing 5.7% of France’s total population. With a surface of 32,082 km² it is the fifth biggest French region. Its capital is Nantes, and it is divided in five departments (Loire-Atlantique, Vendée, Maine-et-Loire, Mayenne, Sarthe). The region’s territory is articulated around one central urban axis (Saint-Nazaire, Nantes, Angers, Le Mans), a constellation of medium-sized cities evenly spread across the territory (e.g. Laval, Cholet, La Roche-sur-Yon, Saumur, Châteaubriant) and rural areas. In 2013, regional GDP amounted to €105.8b, representing 5.1% of France’s total, slightly below the population’s proportion. GDP per capita reached €28,800 in 2014, which amounts to about 90% of France’s average (€32,200) and about 105% of the EU28’s average (€27,500) (Eurostat).

The region, whose boundaries have not been affected by France’s territorial reform of 2015, relies on solid economic assets. With about 30,000 newcomers each year (+0.8%), the demographic growth is superior to France’s average (+0.5%). It is indeed one of the few regions with both positive natural and migratory balances, which results both from high fertility rates (2.1 births per woman on average in 2011, France’s highest figure) and the attractiveness of its quality of life and economic opportunities. According to INSEE’s projections, the region will count 900,000 new inhabitants by 2040, France’s biggest demographic rise behind the Île-de-France and Rhône-Alpes regions.

The region also stands out thanks to its overall good economic performance and its capacity to recover from the economic crisis. It is the French region with the second highest Between 2007 and 2013, the region Pays de la Loire registered an annual average growth of 1.56%, being a little stronger than the national growth (1.34%) and EU 28 growth (1.16%, Eurostat). The region already returned to its pre-crisis GDP in 2011. Following a 3% recession in 2009 and neutral growth in 2010, its GDP grew by 4% in 2011, two percentage points above the national average. The crisis negatively impacted socio-economic indicators, however: unemployment rose from 5.5% in 2008 to 9.1% in the third semester of 2015, one percentage point below the national average.

Pays de la Loire is the third industrial region in France. Thanks to a dense and diversified production basis, industry accounts for 18.3% of GDP and 16.8% of employment in 2013, representing a workforce of 253,300 employees, against respectively 14.0% and 12.5% on average in France. The agri-food industry remains the most important sector, with 6% of regional employment, and counts with a number of market leaders (e.g. FleuryMichon, Pasquier, Sodebo, Tipiak). Other prominent industrial sectors are aerospace, military and civil marine (Bénéteau as world leader), mechanical and equipment material, metallurgy and electronic material. Industry employs 40% of the available workforce in some concentrated employment areas (La Ferté-Bernard, Sablé-sur-Sarthe, Les Herbiers and Segré).

According to the Montaigne Institute1, the productive capacity is structured around a core network of medium-sized companies (between 50 and 500 employees). These companies have the advantage of being able to adapt to a changing and competitive environment, which guarantees a sufficient size to absorb innovations, without suffering from inertia as would major companies do. They may suffer on the contrary from a limited critical mass that prevents them from remaining competitive in international markets. Regional industry has witnessed an important shift of the

1 http://www.electionsregionales2015.fr/pays-de-la-loire/bilan


workforce from declining low value-added sectors of long series production (agriculture, maintenance industry) towards customised high value-added sectors that require specific competences.

This context reflects the importance taken by advanced manufacturing, and in particular smart systems in the region. As pointed out in interviews undertaken for this report, advanced manufacturing gained momentum already in the mid-2000s. As a result of the announced restructuring plans of major regional industrial employers like Airbus, regional stakeholders from both the public and private sectors had become aware of the threat of wide-scale deindustrialisation imposed by increased international competition and the relocation of low added-value production in developing countries. In order to preserve its industrial capacity on its territory, the region had to upgrade its productive system and become more competitive through differentiation on quality and on extra-cost criteria. Advanced manufacturing was then seen as the opportunity for the region to capitalise on its historical know-how in the manufacturing of big-scale infrastructures to develop industry in shipyard and automotive sectors, and also enter emerging markets such as marine renewable energies (MRE). Indeed, machinery-related sectors account for 100,000 employees and 4,000 companies in the region, which share common challenges related to the conception and production of products. The first and early collective move in the field of advanced manufacturing was the creation in 2005 of the EMC2 cluster (ECM2 standing for Complex Metallic and Composite Ensembles). The cluster’s first mission was to implement structuring collaborative R&D projects between major clients and suppliers, with a unique exclusive focus on Industry 4.0.

The map below shows that advanced manufacturing techniques have a structural influence in a limited number of employment areas, notably in the industrial port complex of Nantes Saint-Nazaire (from white: low influence to purple: structural influence).

Figure 1: Territorial influence of advanced manufacturing in Pays de la Loire

Source: extraction from the Regional Innovation Strategy for Smart Specialisation (2014)


In 2013 the EMC2 cluster identified 12 major technological challenges across Europe and France that will impact the value chains of the six sectors in which the cluster members are active (aeronautics, energy, shipbuilding, ground transportation, nautical and industrial capital goods).

Following that, it selected and reformulated seven technological challenges mostly relevant for the positioning of the cluster and its ecosystem:

•! Innovate on materials and processes to lighten structures

•! Develop a design approach towards security and durability of vehicles and products

•! Develop tools for systems and industrials processes automation

•! Optimise manufacturing systems

•! Develop energy autonomy and waste recycling and upgrading

•! Deploy Information & Communication Technologies (ICTs) into factories

•! Develop innovative technological solutions for renewable energies.

The cluster then assessed how and to what extend each of the seven challenges would affect each of the six industry sectors covered by the cluster. EMC2 also identified 24 key priority technologies for the cluster, spread across:

•! “Excellence technologies”, where the cluster already benefits from excellent R&D capacity and industry applications (i.e. thermoplastic composites, advanced welding techniques or multi-material assembly techniques);

•! “Emerging technologies”, where the cluster can rely on research competences but still lacks industry applications (i.e. numerical simulation of assembly processes, auto-adaptive manufacturing systems or the industrialisation of large structures, especially in the factory of the future).

At national level, in 2013 the Ministry of Industry selected 34 plans for a “New Face of Industry in France2”. Each plan focuses on one market and was selected based on the potential to contribute to the reindustrialisation of France. One of these 34 plans was called “Factory of the Future”, before being renamed “Industry of the future” under its second phase, officially launched from Nantes in May 2015. The objective of this plan is to support investments in factories to make them more environmental friendly, smarter, more digital and closer to their ecosystems. This national plan was recognised by the regional authorities of Pays de la Loire as a legitimisation of their early positioning in the field of advanced manufacturing. EMC2 is actually an active member of the recently launched Alliance for the Factory of the Future3, the association that gathers the major stakeholders engaged in the national plan.

1.2!Business sector perspective Innovation figures for industry in Pays de la Loire are contrasted, illustrating a great variety of innovation strategies and leadership aspirations across regional industrial sectors. On one side, the overall investment effort in R&D is presented as rather low by INSEE, with R&D spending representing only 0.5% of turnover in industry in 2013 against 0.7% at national level. A more refined study (INSEE, 2015a) on the innovative capacity of industrial SMEs (between 10 and 250 employees) in Pays de la Loire presents interesting findings. Based on the results of the 2012 Community Innovation Survey, the study shows a shift between 2008 and 2012 among regional industrial SMEs from an offensive innovation strategy, focused on the market acquisition issues

2 http://www.economie.gouv.fr/vous-orienter/industrie/nouvelle-france-industrielle 3 http://allianceindustrie.wix.com/industrie-dufutur


(improve quality, increase market share and widen product range) towards a defensive innovation strategy focused on improving productivity (reduce running and supply costs, improve organisational flexibility). This pattern is opposite to the one observed in Germany, where offensive strategies gained momentum. Figure 2 below illustrates this shift in Pays de la Loire.

Figure 2: Share of industrial companies in Pays de la Loire having developed a technological innovation according to their strategic priorities in 2008-2012 (in %)

Source: adaptation from INSEE (2015b), based on Innovation CIS 2008 and 2012

The nature of the innovation put in place (i.e. product, process, marketing and organisation) also differs according to the companies’ strategic objectives and across sectors. As illustrated in Figure 2, a majority of regional industrial SMEs have adopted a defensive strategy, oriented towards cost reduction, most often through organisational innovation. This is the case for the metallurgy sector that presents traditionally low levels of R&D spending. On the contrary, industrial companies aiming to penetrate new markets adopt offensive strategies by differentiating their offer through non-price criteria, most often related to technological innovations which allow the introduction of new products and services, improving quality and developing competences. This is the case of the sector of machinery, equipment and transport material production, which are particularly active in advanced manufacturing. This sector witnessed a substantial rise in the overall share of innovative companies (from 58.4% in 2008 to 62.2% in 2012), with a very high share of technological innovation (from 47.2% in 2008 to 53.6% in 2012).

Regional industrial performance is also characterised by overall disappointing levels of internationalisation. In 2013 Pays de la Loire stood as the ninth French region in terms of export values, representing 4.3% of France’s total exports. Taking into account that the region represents 5.1% of French GDP while being the third French industrial region, there is substantial room for progress. The regional plan for internationalisation of regional companies published in 2013 highlights this regional paradox. Indeed, while the regional economy can rely on sound and diversified industrial sectors, some of these most dynamic sectors (notably aeronautics and food processing) still lag behind national internationalisation standards. The region identifies as a major barrier to internationalisation the structure of the productive capacity, dominated by medium-sized family-owned original equipment manufacturers that often lack an “international culture”.


The region exports mostly agro-food products, pieces for the automotive, shipyard and aviation industries, and machineries, as illustrated in Table 1 below:

Table 1: Main products exported from Pays de la Loire in 2013 (in million euro)

Product Amount (€ m) %

Oil refining products 1,474 8.1%

Aircraft and spacecraft 1,234 6.8%

Lifting and handling equipment 858 4.7%

Other motor vehicle parts and accessories 832 4.6%

Ships and floating structures 811 4.5%

Dairy products and cheese 681 3.7%

Agricultural and forestry machinery 670 3.7%

Motor vehicles 628 3.5%

Non hazardous waste; Collection of non-hazardous waste 421 2.3%

Meats butchery and slaughter products 412 2.3%

Total exports 18,164 100.0% Source: Observatoire régional économique et social des Pays de la Loire (March 2015)4, based on national customs data

The region imports mostly pharmaceutical products, raw materials (construction, wood, chemical products for plastics, rubber) and energy products. In 2013, the trade deficit amounted to €4.9b, most of which is due to the import of energy products for major refinery sites (Donges, Cordemais) which feed the west of France. The latest trends in external trade, as presented in Figure 3, highlight a sharp fall in export and exports following the crisis of 2009, followed by a fast recovery from 2011 to 2013 and stable levels of export and imports in the last two years.

Figure 3: External trade in Pays de la Loire

Source: Observatoire régional économique et social des Pays de la Loire (March 2015), based on national customs data

4 http://ores.paysdelaloire.fr/740-commerce-exterieur.htm

Billion euros

Export Import Export (without hydrocarbon) Import (without hydrocarbon)

2008 2009 2010 2011 2012 2013 2014 20150

2

4

6

8

Source : French customs


The latest industry sales figures provide overall rather optimistic perspectives, as they bear good progress in regional industrial production. According to a survey of CEOs performed in November 2015 by the Bank of France5 (Figure 4), following a sharp decline from 2011 to 2013, industrial production progresses since 2013, comforting the post-crisis recovery in a context of reduction of raw material and finished products’ prices. Short-term forecasts are also positive. Some major achievement confirm this positive tendency, including record commands for Airbus in 2015, the command of two giant ocean liners and four ferries for STX, the implantation of EON reality (world leader in the field of 3D interactive applications) in Laval, and about €1.5m worth of commands for SMEs involved in the emerging Neopolia business cluster dedicated to Marine Renewable Energy.

Figure 4: opinion on the state of commands and stocks in industry in Pays de la Loire

Source: Observatoire régional économique et social des Pays de la Loire (November 2015), based on data from Banque de France

Interestingly, export rates vary widely across industrial sectors, having been superior to 40% for more than 6 years in the sectors mostly active in advanced manufacturing, including machinery and equipment production (50.8% in 2013), electrical and electronic equipment and components (44.6% in 2013) and production of transport material (39.4% in 2013).

As outlined above, the Pays de la Loire industrial sector is characterised by a few large, internationally leading firms coupled with a dense network of local suppliers. The most preeminent industrial firms actively involved in advanced manufacturing in Pays de la Loire include: DAHER Aerospace in Saint-Nazaire (Aircraft manufacturer), STX France in Saint-Nazaire (formerly Alstom marine until 2006, shipbuilder), Bénéteau (Vendée), Auto Chassis International in Le Mans (subsidiary of Renault specialised in conception, validation and fabrication de undercarriage), Airbus in Saint-Nazaire (assembly, testing and equipping of plane front and centre fuselages), Manitou France in Ancenis (machinery equipment for handling and agriculture), Mecachrome France in Amboise (high precision machinery), Europe Technologies (Loire Atlantique), Valeo systèmes thermiques in Laval (thermal system to reduce vehicle consumption), Man Diesel and Turbo France in Saint-Nazaire (motors), SAH Leduc in Ligné (building and repair of hydraulic cylinders). The former list is by no means exhaustive and several

5 https://www.banque-france.fr/economie-et-statistiques/conjoncture-et-croissance/publications-regionales/publications/pays-de-la-loire.html

Tendencies

CommandsPaysdelaLoire CommandesFrance StocksPaysdelaLoire

2011 2012 2013 2014 2015-30

-20

-10

0

10

20

30

Source:BanquedeFrance


companies operating in the region can be identified in the different areas of Industry 4.0.

These leading industries aspire to play a pioneer and leading role on global markets, by differentiation through process and innovation, positioning themselves at the vanguard of smart production systems. The EMC2 competitive pole and Neopolia cluster have played a fundamental and complementary role in that regard. Neopolia emerged in 2006 in the context of generalised degradation of the naval industry, and is now structured in five business clusters – aeronautics, railway, naval, renewable marine energy (RME), and oil and gas – gathering about 190 members. The main mission of the cluster is to structure the network of suppliers through collaborative co-development projects that answer the specific needs of major buyers. On the other side, the EMC2 cluster was also the result of the region’s willingness to structure the regional value and innovation chains by co-funding collaborative structuring R&D projects between buyers and suppliers. The success of Neopolia is presented more at length in Chapter 2.5 below.

Regional start-ups can play a major role in the deployment of numeric and electronic tools throughout the smart production chain, from conception to production. The region can rely on a dynamic numeric sector, with excellence competences in the fields of software engineering, data models and virtual and augmented reality. The Industrial Centre for Virtual Reality (CIRV) in Saint-Nazaire is a technological platform which mission is to foment the use of virtual reality manufacturing processes. The regional incubators Atlanpole, Laval Mayenne Technopole and the forthcoming Hub Creatic are also major actors in the valorisation of ICT start-ups.

It is in that vein that the IRT Jules Verne (see presentation in chapter 1.3 below) has created a specific program dedicated to start-up and spin-off companies in the field of Industry 4.0. It collaborates with NantesTech, a business accelerator for start-ups in the numeric sector, and the FabLab, a 380m2 workshop dedicated to experimentation in new materials and production processes. HydrOcean, a member of the IRT Jules Verne, is an example of successful regional start-up. Created eight years ago and incubated at the Ecole Centrale de Nantes (an engineering school), it became a world leader in the numeric simulation of hydrodynamics, offering assessment and optimisation services of hydrodynamic and aerodynamic performance for the naval, offshore, MRE and boating industries.

1.3!Scientific research potential The Region has taken a major step forward to strengthen its research capacity in the field of advanced manufacturing with the establishment in 2012 of the Technological Research Institute Jules Verne6 (French acronym, IRT Jules Verne, named after the famous Nantes-born author of science fiction adventures). Originally settled by the EMC2 cluster, the project secured competitive funding under the national programme “Investment of the Future”7. IRT Jules Verne is an industrial research and technology organisation (RTO) that brings together the private sector and scientific research institutions on a public-private partnership (PPP) model with the view to improving the competitiveness of regional industry. It aims at becoming a world-leading research, training and innovation centre in the field of advanced manufacturing and industry 4.0. Its research campus, based in the area of Nantes, brings together on a unique co-working area all stakeholders: companies, universities and economic development organisations. SMEs are actively involved in the institute thanks to Albatros, a specific legal entity representing 20 innovative SMEs in the board, and the active presence of the EMC2 cluster, dedicated to advanced manufacturing which counts 150 SMEs among its members. The institutes also has the vocation to create an

6 http://www.irt-jules-verne.fr/ 7 http://www.economie.gouv.fr/lancement-seconde-phase-nouvelle-france-industrielle


international network ecosystem in the field of advanced manufacturing, relying in particular on the European Institute of Innovation and Technology (EIT).

The institute is positioned on key generic and multisectorial technologies. Its research follows a global approach, covering the entire production cycle, including the coupling product/processes. It also covers the full technological development cycle, from fundamental research (technology readiness level, TRL >3) to applied research (TRL > 7). The figure below illustrates the combination of the IRT’s three major research axes and 14 associated themes:

Figure 5 IRT Jules Verne’s three main research axis & 14 associated themes

Source: IRT Jules Verne

To perform its research, the IRT relies on three mutualised research and technological platforms: Technocampus Composit (for aeronautics and automotive industry), Technocampus Océan (for shipbuilding and MRE), and Technocampus Smart Factory (dedicated to virtual/augmented reality). Chapter 1.6 below presents more at length these platforms.

The institute currently counts 37 industrial members, including 14 SMEs. Its budget for 2015 amounted to €30m. Since its creation, it registered 10 patents and worked on 50 research projects worth €70m of investment. In the long term, the main objectives of the IRT Jules Verne in key figures is to reach 1,000 research personnel by 2020, 5,000 qualified jobs created in 10 years, 1,000 students trained « from operators to doctors » (see detailed presentation of the Jules Verne Manufacturing Academy in section 1.5 below), €800m of provisional budget, support the emergence of 15 to 20 innovative technological companies, and animate 30 excellence thematic under the leadership of world-leading researchers.

In the specific field of robotics, the region can also counts on the expertise of the IRCCyN8 (Institut de Recherche en Communications et Cybernétique de Nantes). The Institute, which forms part of the Ecole Centrale de Nantes, counts 260 employees. Its research and development activities focus on the development of tools and methods that order to bring solutions to concrete problems raised by economical and social partners. It covers a wide scientific spectrum which encompasses: control of complex

8 http://www.irccyn.ec-nantes.fr/en/


systems, signal and image processing, video communication and handwritten recognition, robotics, computer aided mechanical design, user oriented design, modelling and optimisation of production process, virtual engineering, real time systems, modelling and checking of embedded systems, bio-informatics, logistics and production systems, discrete event systems and cognitive psychology end ergonomics. Due in part to the collaboration with companies, members of IRCCyN also contribute to patent deposits, and to start-up or spin-off creations

Importantly as well, CEA Tech opened branch offices in Toulouse, Bordeaux, Metz and Nantes in 2013. CEA Tech is the CEA’s (the French Atomic Energy and Alternative Energy Commission) technology research unit, with 4,500 collaborators working on innovation for industry. It produces and disseminates key enabling technologies for all industrial sectors and all types of companies. CEA Tech has a technology platform dedicated to advanced manufacturing located in Grenoble, which counts 200 researchers on a 2000m2 site. To build the Factory of the Future, the platforms’ research focuses on the following technologies: robotics, cobotics, non-destructive testing, virtual and augmented reality, interactive simulation, training and ergonomics. The mission of the CEA Tech’s newly-opened “regional technology-transfer platforms” will be to make French manufacturers more competitive on global markets, using the findings of basic research and making Key Enabling Technologies available to a broad range of industries across the countries, with a special focus on regional SMEs. Advanced manufacturing is one of the key strategic axes of the CEA Tech’s office in Nantes, which will count 120 researchers in the long term. It will collaborate with local research centres, including the IRT Jules Verne.

1.4!Role of intermediary institutions The region has structured the diffusion of R&D efforts of the regional actors around the following two major axes:

•! The development of innovative processes for the conception, manufacturing and integration of complexes pieces and structures

•! The conception and development of the Factory of the Future through the optimisation of product and processes.

The main intermediary institutions tasked with the diffusion of R&D results and the uptake of advanced manufacturing technologies by local companies in Pays de la Loire is the EMC2 cluster and the network of Regional Innovation Platforms (French acronym PRI – Plateforme Régionale d’Innovation).

EMC29 is an industrial cluster (“competitive pole” labelled by French state) dedicated to advanced manufacturing technologies with no equivalent in Europe. The cluster was founded in 2005 by five major regional companies (Airbus, DCNS, STX, Bénéteau and ACI, a subsidiary of Renault) active in various sectors but sharing common issues related to the modernisation of production processes for major pieces under harsh environmental constraints.

The cluster’s ambition is twofold: support the development of the territory through collaborative innovation, and become a world reference in the field of smart production processes. To that purpose, EMC2 defines technological priorities and coordinates high-pay-off collaborative R&D projects. The cluster creates synergies between large international groups, small and medium-sized companies, research laboratories and training institutions. It provides a wide range of services in order to turn innovation into new processes and products and speed up the industrialisation of research outcomes. The figure below summarises the cluster’s three major actions axis and seven technological challenges faced.

9 http://www.pole-emc2.com/


Figure 6 EMC2 cluster’s seven technological challenges

Source: EMC2’s website

EMC2 considers advanced manufacturing in a cross sectorial approach, generating cross-fertilisation among the clusters’ key industrial sectors (aeronautics, energy, shipbuilding, ground transportation, nautical industry and industrial capital goods). The cluster operates mostly in Pays de la Loire and the neighbouring Bretagne region and has signed a number of cooperation partnerships at national and international level. The cluster directly supported the establishment in 2009 of Technocampus Composite, the first technological platform dedicated to advanced manufacturing, and was also at the origin of the establishment in 2012 of the IRT Jules Verne. EMC2 and the IRT Jules Verne collaborate actively in the wake of the Jules Verne Manufacturing Valley, as presented in section 1.9.

At the beginning of 2015, the cluster counted about 300 members, three-quarters of which are SMEs. Since its creation, the cluster has labelled 365 projects representing €1.7b of R&D investment. The cluster co-funded 198 projects with a total budget of €1.2b with €453m of public funding. As stated in its strategic plan for 2013-2018, the cluster aims to reach by 2018 400 members, support 400 R&D projects, label €1.4b worth of R&D projects (a figure already surpassed), create/preserve 5,000 jobs and allow the emergence of five middle-size companies (between 250 and 4,999 employees). Examples of the cluster’s major achievements are presented in section 1.6.

In the field of advanced manufacturing, so far the region has developed competences in a few industrial sectors covered by the EMC2 cluster. In the medium term, however, it aims to create further cross-fertilisation with national “competitiveness poles” active in the region, including the following:

•! Valorial – cluster of the regional food industry focused on the “food of the future” (Bretagne, Pays de la Loire, Normandie)

•! Images et Réseaux – a worldwide cluster fostering innovation in the ICT sector (Bretagne, Pays de la Loire)

•! Atlanpole Biotherapies – interregional cluster (Pays de la Loire, Bretagne and Centre Val de Loire regions) which coordinates the work of laboratories, companies and platforms on the bio-medicine value chain from target discovery to clinical evaluation

•! ID4CAR – fostering innovation in the regional car industry

•! Elastopole S2E2– cluster of the regional rubber and polymers industry.


Among regional clusters, we can highlight:

•! Vegepolys – world-reference cluster specialised in vegetal innovation

•! Neopolia – a network which gathers about 160 suppliers in five business clusters (Aerospace, Marine, EMR, Oil&Gas, Rail)

•! We Network – fostering innovation in professional electronics

•! Novabuild – cluster focused on innovation for sustainable construction

•! Nova Child – European cluster focused on innovation for the wellbeing of children up to 12 years of age

•! Atlansun – gathers the actors supporting innovation in the sun energy sector

•! Atlanbois – cluster of regional forest-based industry

Regional Innovation Platforms also play an essential role in the diffusion of R&D results to local industries. PRIs emerged in 2009 in Pays de la Loire in order to find solutions to the need of companies through specialised and agile regional collaboration networks. PRIs are resource centres dedicated to open innovation for companies. A detailed presentation of the PRI model can be found in section 2.5 of this report.

In the field of Industry 4.0 the PRI Proxinnov platform plays a central role. Inaugurated in 2013 in La Roche-Sur-Yon, Proxinnov is dedicated to industrial robotics. Capitalising on the experience and expertise of regional leaders in the field of robotics (notably Sepro Group, “the leading independent manufacturer of Cartesian robots for injection moulding machines”), the platform’s mission is to increase awareness among regional companies on the opportunities offered by robotics and support the introduction of robotics in their production processes. To that purpose, it supports the whole robotisation process, from diagnostic of needs and R&D efforts to industrialisation and commercialisation. The platform performs also feasibility studies and trains personnel in the adoption of robotics. Its demonstration facilities now count four industrial robots and one humanoid.

There are about ten PRIs directly involved in advanced manufacturing activities, such as PRI Clarté (virtual reality), design’in Pays de la Loire (Integrate design thinking in all industrial projects), PRI Cisna 2.0 (virtual reality, fast prototyping), PRI Atrium (connected objects), PRI CEMCAT (research centre on advanced composite materials for transports), PRI Orace (energy consumption in industrial processes), and PRI Primabor (agricultural machinery).

1.5!Developing skills for the future The IRT Jules Verne ambitions to reinforce the regional dynamics in the field of advanced manufacturing by setting a resource centre for training and vocational education. The project, called “Jules Verne Manufacturing Academy”, will create a national and international network of education centres in charge of providing training to fulfil the needs of the industry and spreading the adoption of advanced manufacturing technologies. To that purpose, the Academy will:

•! Implement new training methods by using technological facilities;

•! Propose a large scale of training from professional bachelor to engineer diploma;

•! Offer in-house training, continuing education and vocational training; and

•! Motivate the youth to come work in the manufacturing industries.

The campus will represent an investment of €30m, including €20m for real estate and €10m in equipment for a total surface of 8,000 m2 to be delivered in early 2017. According to Stéphane Cassereau, the director of the IRT Jules Verne, “the idea is to


creates bridges, by federating university with engineering schools, and also technicians, operators and engineers on common projects, so that they learn by working together”. In the long term the academy ambitions to welcome 1,000 students, half of which would be full-time and the other half receiving short-term training.

Advanced manufacturing is also a strategic axis of the Competencies 2020 plan (Compétences 2020) which forms part of the region’s operational management of employment and competences in key regional economic sectors. The plans brings together regional authorities, economic actors (buyers and suppliers), training and educational centres and professional insertion centres (Pôle Emploi) to adapt the training efforts based on the needs of regional companies. So far the plan has implemented two strategic action plans: one in the automotive industry in the Sarthe department, and a second one in the employment area of Nantes-Saint Nazaire in collaboration with the sectors of aeronautics, naval and RMEs.

The Regional Innovation Platforms also offer training solutions tailored to the needs of their members thanks to its collaboration with a network of regional and national actors, including regional engineering schools like ICAM (Institut Catholique d'Arts et Métiers, Nantes) the AFPI (Pôle Formation des Industries Technologiques, Pays de la Loire), or the University of Nantes.

1.6!Major investment projects

1.6.1!Mutualised research and technological platforms The “Technocampus” platforms are certainly the most structuring public co-funded infrastructures in Pays de la Loire dedicated to advanced manufacturing. They are a set of mutualised technological research platforms that collocate high-performance materials and industrial and academic players that work on strategic sectors. They aim to position the region at the vanguard of advanced manufacturing by encouraging interdisciplinary approach and collaborative R&D. There are currently three platforms: Technocampus Composites (2009), Technocampus Smart Factory (2013) and Technocampus Ocean (2015). A fourth Technocampus decided to acoustics and its application to industrial processes is foreseen in Le Mans by the end of 2016.

The Technocampus platforms are based on public/private original model. They are managed, animated and promoted by Technocampus Group10.

1.6.1.1!Technocampus Composites

Technocampus Composites (formerly Technocampus EMC2) is a mutualised technological research platform dedicated to composite manufacturing. It encompasses industrial and academic players that work on developing innovative manufacturing technologies for high-performance composite materials. This platform offers pooled equipment and resources, encourages interdisciplinary approach, collaborative R&D and technology transfer.

10 http://www.technocampus.fr/fr


Figure 7 View of the Technocampus Composite

With an area of 16,800 m², the Technocampus represented an original investment of €66m, including €36m in equipment and €30m in R&D. The campus benefited from various sources of public funding, including the State (€5m), the Regional council of Pays de la Loire (€10.9m), the general council of Loire-Atlantique (€4m), Nantes Métropole (€4.8m), CARENE (€0.5m) and €10.8m of ERDF.

The Technocampus Composite now gathers about 300 active researchers and technicians on-site from various organisations, including major companies (notably Airbus, Daher and STELIA Aerospace), research organisations (IRT Jules Verne, CEA Tech and Cetim, the national Technical Centre for Mechanical Industries), clusters (EMC2, Elastopôle, Plasti Ouest, ID4CAR, Plastipolis) and academic partners (Ecole Centrale de Nantes, Ecole des Mines de Nantes, ICAM, Ecole Polytechnique de l’Université de Nantes). The Technocampus also foments the participation of SMEs through Albatros, a grouping of regional innovative SMEs and the inauguration of an open FabLab.

Amongst past and current structuring projects of the Technocampus, we can mention the Robofin Project and the FabMake.

Robofin project

Robofin is an industrial demonstrator to develop robotic solutions for finishing operations (trimming, drilling and sanding) for composite and metal structures elements. The project was launched in 2013 with a total investment of €874,000 over three years. It is labelled by the IRT Jules Verne, and counts with the active collaboration of IRCCyN, Nantes University and Ecole Centrale de Nantes as academic partners and Daher, DCNS, Europe Technologies, Loiretech, Multiplast, STX, Coriolis Composites on industry side. The project acquired its first operational demonstrator in April 2013, an articulated robot manoeuvring along on an 18 m long rail.

The FabMake: “the fabulous makers of manufacturing”

The FabMake opened shop in September 2014 at the Technocampus Composite under the supervision of IRT Jules Verne and the support of the EMC2 cluster. Its 300m2 open digital workshop offers 20 work places and self-service equipment accessible through monthly subscription. This co-working space should allow developers to move very quickly from idea to object by proposing means of creation (creativity room, animation of design thinking workshops, creating collaboration among FabMake users, sharing knowledge), conception (IT tools and software, personalised training) and creation (laser and vinyl cutting machines, 3D printers and scanners, modular


numerical controls, collaborative robots…). The FabMake targets engineers, researchers, technicians, operators, students, creators, entrepreneurs and CEOs. It also proposes professional services to support project development, provide technical training or animate creative workshops. The FabMake presented for its first 24 month of operation a total budget of €540,000, including €200,000 from the national call for projects “Fab labs 2013” of the Minister of Industry.

National high-speed composite pilot line

The Technocampus Composite hosts a unique high-volume production line for composite parts with the objective to develop “seamless” production (from fibre to finished product) of carbon-fibre thermoplastic composite parts and hybrid composite parts. This high-volume line must coordinate a total manufacturing cycle of approximately one minute. This “national” tool relies on a remarkable set of stakeholders. Under the guidance of two technological research institutes, IRT Jules Verne and IRT MP2, this group is composed of the main industrial manufacturers in the industry (Arkema, Faurecia, PSA-Peugeot Citroën, Renault, Solvay); technical centres (Cetim, Cemcat and PPE (Pôle de plasturgie de l’Est)); academic laboratories such as those of École Centrale de Nantes, University of Nantes, CNRS (French national scientific research centre), Arts et Métiers Paristech (Angers and Metz), the University of Lorraine and Ensic de Nancy. This unprecedented project involves a funding commitment of approximately €14.7m over the 2013/2015 period.

1.6.1.2!Technocampus Smart Factory

Technocampus Smart Factory, which hosts the industrial centre of virtual reality (CIRV), enables companies of all sectors to appropriate industrial uses of virtual reality, in all stages of the industrial value chain (from design to production). It offers mutualised cutting-edge technological equipment, shared human resources, and assists companies with tailored services. Technocampus Smart Factory contributes to developing links between digital and manufacturing to develop the Factory of the Future.

Figure 8 View of the Technocampus Smart Factory


Its campus of 1,500 m2 located near Saint-Nazaire was inaugurated in November 2014. The investment amounted to €4.8m in real estate, funded by the Région des Pays de la Loire (54.1%), ERDF funds (25%) the general council of Loire-Atlantique (10%), CARENE (10%) and Nantes Métropole (1%), and €3.8m in equipment implemented, funded by the Region (75%) and ERDF fund (25%). Equipment includes one immersive ‘CAVE 5 faces’ (a 3 m x 3 m augmented reality space formed by five screens), two CAD-WALLs (2.8 m x 1.9 m) and one Virtual Reality headset.

The campus counts with several industrial clients, including major groups like Airbus, STX France, Alstom and GRDF, but also innovative SMEs like iMMERGENCE Studio and Creasynth.

1.6.1.3!Technocampus Océan

Technocampus Ocean is the third mutualised technological research platform dedicated to marine structures and metallic materials that contributes to the excellence of Pays de la Loire region in the field of maritime industry. It encompasses industrial and academic players that work on developing innovative manufacturing technologies for shipbuilding and MRE. Technocampus Ocean offers pooled resources, encourage interdisciplinary approach, collaborative R&D and technology transfer.

Within its 17,000 m2 building inaugurated in October 2015, the campus aims to gather 350 researcher and technicians from private companies and clusters (EMC2, DCNS and its subsidiary Sirenha, ACB, Alstom, Dassault Systèmes, Hydrocean, STX France) research centres and universities (CEA Tech Pays de la Loire, Ecole Centrale de Nantes, Ecole Nationale Supérieure Maritime, ICAM de Nantes, IRT Jules Verne, l’Université de Nantes).

The platform represented an original investment of about €39.7m of public funding, including the Region Pays de la Loire as owner (€23.10m), Nantes Métropole (€5.95m), the department of Loire Atlantique (€3.96m), CARENE (€0.59m) and ERDF funds (€6.1m).

Figure 9 View of the Technocampus Océan

There are currently more than 20 open collaborative R&D projects. This research focuses on a number of themes, including:

•! New additive manufacturing processes for ceramics, composites, and metals based on robotics and IT which reinforce industrial competitiveness

•! Numeric simulation to improve understanding of behaviour and reliability of crafts in all maritime conditions, contributing to improving the safety of the crew

•! Conceiving smart materials which are multifunctional (structure, antenna, stealth…), and contribute to lightening of structures with direct applications (war vessel’s bridge of the future)

•! Reducing submarine noises on vessel’s hulls to improve life aboard


•! Improve the prediction of ocean’s swells with hydrodynamic simulation, with important impact on the installation of floating structure in MRE

Among most recent equipment acquisitions, we can highlight a new parallel robot working on cables settled in February 2016 in the robotic workshop of the Technocampus Océan. This demonstrator is 7 m long, 4 m wide and 3.5 m high. It will allow researchers to explore new manufacturing processes enabled by the use of robotics. The reconfigurability of the robot allows tailor-made solutions in a wide array of applications such as painting, blasting, assembly, measurements and inspections of big infrastructures. In the long term, this project will improve safety conditions for manufacturing operation on big infrastructures and improve access to certain zone.

1.6.2!Other regional R&D projects This section presents a selection of illustrative regional R&D projects in the field of Industry 4.0.

An application in the shipyard industry: STX France’s Smart Yard 2020

This project results from a 5-year partnership signed between CEA Tech and shipyard producer STX France in 2105 in the wake of the ‘Smart Yard 2020’ project, which will mobilise €100m investment to build a smart construction site in Saint Nazaire. The producer aims to reduce by 10% the cost of its cruisers through the optimisation of production processes. The CEA Tech will bring its expertise in the fields of digital systems, micro- and nanotechnologies and materials. A first step in this process is the exploitation of computer data in harsh environment on the whole shipyard during its construction. CEA Tech’s research will also covers the design of cobots capable of working with men to facilitate the handling of heavy loads.

Figure 10: Ulysseas, STX’s latest concept ship targeting expeditionary cruises


An application in the aerospace industry: Daher’s factory of the future

Daher’s factory in Nantes was among the four first technological projects to be labelled by the national Alliance for the Industry of the Future (“Alliance Industrie du Futur11”) in February 2016. Daher Aerospace is specialised in the manufacturing of equipment for the aeronautics industry, and employees about 1,700 workers in the region on its five manufacturing sites. Its factory in Nantes was recently equipped with three high-frequency robotised production lines for the manufacturing of complex pieces, applying techniques such as thermoplastic junctions and fluid transfers. Theses pieces will be used in particular for the building of the Airbus A350.

An application in the food industry: the slaughterhouse of the future

HOLVIA Porc in Laval is running an R&D project which purpose is to integrate a cobot on a particularly exposed working site that will reduce constraints imposed by the repetitiveness of tasks, but also support the handling of heavy weights. HOVLIA Porc relied on the scientific competences of the CEA List, the branch of CEA Tech specialised in smart digital systems.

An application in the automotive industry: the factory of the future

AIMM is a company in Changé with about 200 employees specialised in sheet metal cutting and stamping. Changé has enlarged its factory by 10,000 m2 to reorganise flux, improve processes, group teams and welcome new machinery. The company relied on virtual reality before launching operations in order to pre-visualise the reorganisation of the space and improve the ergonomics of the factory. The virtual factory at scale one was developed with the collaboration of Clarté, the resource centre located in Laval dedicated to virtual reality.

1.7!International cooperation The regional smart specialisation strategy (2014) emphasises the strong European vocation of the Pays de la Loire region, in particular when it comes to advanced manufacturing. So far, the international strategy involved the central actors of the Jules Verne Manufacturing Valley (EMC2, IRT Jules Verne and the Technocampus platforms) has followed three major paths: the organisation of collaborative R&D projects, interclustering activities and the organisation of international brokerage events.

1.7.1!International collaborative R&D projects At European level, the regional actors are currently reinforcing their participation to Horizon 2020 projects. EMC2 has taken two important initiatives in that sense:

11 http://allianceindustrie.wix.com/industrie-dufutur


•! The launching of the “Pro-PME” initiative, founded by the national Directorate General for Enterprises, in collaboration with the clusters Plastipolis, LUTB and Véhicule du Futur. Its objective is to accelerate the internationalisation of French SMEs by supporting their access to EU-funded R&D projects. To that purpose, the network will identify and raise the awareness of SMEs able de join European R&D projects, orient them towards funding opportunities, support the foundation of consortia and support the submission of proposals.

•! The creation of a European Task Force: three times a year, this task force gathers the companies and research organisations engaged or interested in European projects, in order to share good practices and discuss new opportunities. It is animated by EMC2 together with IRT Jules Verne and UNAM (Université Nantes Angers Le Mans).

Interviews have shown though that regional companies are still culturally reluctant to engaging in European calls for tenders, and have long been tempted to focus their efforts in strengthening ties with neighbouring regions (like Bretagne in RME) or national actors. Also a lack of availability both from the regional agency Pays de la Loire Territoires d’innovation and the EMC2 cluster which may have resulted in missed opportunities for European partnerships.

FORTAPE12 is an example of Horizon 2020 project, where the IRT Jules Verne is actively involved. The strategic objective of FORTAPE is to research and develop an efficient and optimised integrated system for the manufacturing of complex parts based on unidirectional fibre tapes for its application in the automotive and aeronautical industry, with the minimum use of material and energy. The founding partners are CTAG (coordinator, ES), ARKEMA (FR), CANOE (FR), EADS (ES), Grupo Antolin (ES), FORD (DE), MATEX (IT), OPTEL (PL) and Fraunhofer ICT (DE).

At European level, the IRT Jules Verne is currently the National Contact Point for the NMP Programme (Nanotechnologies, advanced materials and advanced manufacturing and processing). In that quality it will mostly be in charge of raising awareness and inform French companies on the opportunities of this H2020 programme and support the submission of project proposals.

IRT Jules Verne is also a member of several European networks, including:

•! EFFRA (European Factories of the Future Research Association)

•! EARPA (European Automotive Research Partners Association)

•! EUROBOTICS (European Robotics Association)

•! Foreseen involvement in the upcoming Added Value Manufacturing KIC.

The region, through the regional agency Pays de la Loire Territoires d’Innovation, is also increasing its involvement in the Vanguard Initiative.

Finally, at European and international level, the EMC2 cluster has signed a series of bilateral partnership agreement, including the following:

•! In Europe – M2i, TU Delft and NAG in the Netherlands, M.A.I Carbon & Carbon composites e.V., Fraunhofer Lightweight Alliance in Germany, VM CATAPULT and KTN in the UK, Tecnalia, CTAG, IK4 and PRODINTEC in Spain, among others.

•! EMC2 has a strong partnership with CRIAQ in Quebec since 2009.

12 http://fortapeproject.eu/


•! EMC2 has a new partnership with the National Composites Center, the Gifu Composites Center and the Ishikawa composites Center and in Greater Nagoya, Japan (2014).

•! EMC2 signed a partnership agreement with Berkeley University in the USA in 2014.

•! EMC2 also organises trade missions with its members and receives international delegations and visits, in cooperation with the regional Chamber of Commerce and Industry.

1.7.2!Interclustering and brokerage activities Interclustering is seen as a strategic means to increase the outreach of regional actors and pave the way to new cross-European R&D partnerships. EMC2 organises an Inter-Cluster Brokerage Event (ICBE) since 2011 to discuss opportunities to join EU-funded projects and strategies for cross-cluster collaboration. It is the occasion to network with European clusters and research centres such as M2i, Carbon Composites e.V., TWI ltd, IMAST Scarl, CFK-Valley Stade e. V., Campaniaerospace, Kunststoffland or Prodintec.

EMC2 and IRT Jules Verne jointly organised on 24 June 2015 the first edition of the European Brokerage Event on Advanced Manufacturing and Processing in the wake of Horizon 2020’s NMP Project. The topics discussed included:

•! Advanced manufacturing and processing (NMP)

•! Factories of the Future (FoF) & ICT Robotics

•! Energy-efficient Buildings (EeB)

•! Sustainable Process industries (SPIRE)

•! Mobility for Growth (MG)

•! Green Vehicle (GV)

•! Low Carbon Energy (LCE)

•! Bottom-up topics (Fast Track to Innovation, SME Instrument).

The project will now be organised once every two year in Nantes and every other year in the UK by High Value Manufacturing Catapult HVM. The event attracted 150 participants from 14 different countries, 44 project ideas and expert profiles pitched, and about 130 persons involved in more than 280 business-to-business (B2B) meetings.

The Jules Verne Manufacturing Valley, with the support of Daher Group and national, regional and local authorities are organising in 2016 the first edition of the “Manufacturing Thinking” conference directed to industrial audience13.

13 http://www.manufacturing-thinking.com/en


1.8!Policy support and delivery mechanisms

1.8.1!Advanced manufacturing at the forefront of the regional innovation strategy Advanced manufacturing techniques (French acronym: TAP, Techniques Avancées de Production) constitute the first of the six priorities put forward by the Pays de la Loire region in its smart specialisation strategy for the years 2014-2010. The region aims to “position itself as a European leader in advanced manufacturing for the development and competitiveness of all regional industrial sectors”. The generic concept of advanced manufacturing here foresees a systemic approach from conception to production and recycling, common both to industrial and research organisations. The regional innovation agency (Agence Régionale Pays de la Loire Territoires d’Innovation14) is the operational arm of the regional council in charge of overseeing the development and implementation of relevant support measures and initiatives.

As stated formerly, advanced manufacturing gained momentum and became a priority axis already in the mid-2000s, when regional actors, public and private, took conscience of the risk of fast deindustrialisation which was caused by two competitive forces: the competition of developing economies in low added-value big production series on one side, and the pressure on higher added-value imposed by countries like Germany which position at the vanguard of innovation in manufacturing processes. The only issue was thus for the region and France in general to catch-up on competitors and invest massively on the modernisation of its manufacturing apparatus and create the Factory of the Future, relying on the principles of Industry 4.0.

The strategy relies on the creation of products of high technological density by the development of cutting-edge manufacturing technologies with cross-sectorial and transversal applications, which promote efficiency, quality, flexibility, and respect of the environment and humans. Relying on the European definition of KET AMS (Key Enabling Technologies Advanced Manufacturing System), these advanced processes integrate: manufacturing systems and associated services, processes, factories and equipment, automation, robotics and ‘cobotics’, measurement and sensitive systems, and IT system controlling production processes.

The Factory of the Future, as presented in the regional innovation strategy, must be:

•! efficient, increasing productivity and competitiveness by the introduction of cutting-edge technologies;

•! digital and connected, with the introduction of electronics all along the production chain, from conception to production;

•! smart and flexible, with the ability to adapt and react to the fluctuations of demand;

•! environmental friendly, through the eco-conception of products and analysis of products’ life cycle; and

•! centred on human, allowing on the capacity for employees to introduce organisational, managerial and logistical innovations (lean manufacturing).

The region focused its efforts on creating the framework conditions for collaboration among regional actors in order to create a regional innovation value chain in advanced manufacturing techniques. This collaborative approach is presented as the key of the region’s industrial success. Conceiving and creating pilot lines and demonstrators is also key to mutualise risk and spread the diffusion of advanced manufacturing techniques across industrial sectors.

14 http://www.agence-paysdelaloire.fr/


The creation of the EMC2 cluster (see presentation in chapter 1.4) was the cornerstone of this strategy, which was followed by the creation of the Technocampus EMC2 (now Technocampus Composites) in 2009, the IRT Jules Verne in 2012, and the last two Technocampus (Smart Factory and Ocean) in 2013 and 2015.

The region also invested in the creation and strengthening of the Regional Innovation Platforms in key areas related to Industry 4.0, capitalising on the areas of expertise of regional companies and research organisations to foment cross-fertilisation dynamics across sectors. These include the Pleiade platform on the electronic campus in Angers, the Proxinnov platform for robotics, the inauguration of the regional branch of the CEA tech, etc.

The automation of the manufacturing processes through robotics is one of the key strategic axes of the region. As highlighted during interviews, regional authorities strongly believe that the adoption of robotics allows companies to widen and increase the quality of their offer and thus relocate productions on the regional territory. The region is thus raising awareness on the opportunities opened by robotics, standing against the common argument that robotics destroy jobs. Robots are presented as a means to increase workers’ competences and improve their working conditions.

Concretely, the region invested €10m in the last two years to accelerate the adoption of robots by regional industrial SMEs by creating a “robotisation pathway”. Relying on the regional innovation toolbox and the expertise of the PRI Proxinnov, the region proposes a “robotic loan” with the support of BPI France. Some regional SMEs also benefited from the national ROBOT Start PME programme launched in March 2013 in the wake of “Investments of the Future” plan.

The region also intends to maximise the diffusion of advanced manufacturing techniques in direction of regional SMEs. To that purpose, it invested €10m in two years to create a “pathway towards advanced manufacturing for SMEs”. The plan includes awareness raising actions (innovation days, “web is industry” workshop in 2015 during the Web2Day digital festival), the funding of technological diagnostics, training actions (dynamic RSE) and importantly the funding of collaborative R&D projects and demonstrators accessible to regional SMEs.

Regional companies can also count on the financial support from the national public investment bank BPI France that has disclosed €1.2b of loans under the “Industry of the Future” programme, which displays a range of four thematic loans:

•! “Prêts verts” (green loans) for companies that undertake actions to increase their resource efficiency

•! “Prêts robotique” (robotic loans) targeting companies which invest in structuring project integrating automated production processes, including robots

•! “Prêts pour l'industrialisation” (industrialisation loans) to cover material and immaterial spending following the achievement of R&D projects to sustain the industrialisation and commercialisation of an innovative product, process of service

•! “Prêts numériques” (digital loans) for companies engaged in the digitalisation of processes to improve competitiveness.


1.9!Good practice case

1.9.1!Collaboration as a regional cultural heritage To achieve its objective of becoming a European leader in advanced manufacturing, Pays de la Loire stands aside by its capacity to federate regional actors on a common action plan, investing in collaborative intelligence to overcome common challenges. As highlighted during interviews, the region aims to develop “Industry 5.0”, which combines the modernisation of factories under the principles of Industry 4.0 with collective and organisational intelligence. According to regional authorities, this capacity to work together (“faire ensemble” in French) allows regional actors to react with agility to the requests of the market.

This collaborative approach is deeply rooted in the culture of the region. The manufacturing sector has a long tradition of local collaboration, which was already illustrated by its capacity to recover from the economic crisis of the 1930s, which hit particularly the shipyard industry, at that time the region’s first employer, by shifting the production capacity towards new markets, in particular the aerospace and automotive industries.

Nowadays, the industrial port complex of Nantes Saint-Nazaire still plays a structuring role in the economic development of the region. It represents a total workforce of 24,400 employees, 7,700 of which are directly part of the maritime industry while the 16,700 remaining are located in industry or service activities directly linked to the port’s activity (INSEE, 2015a). This industry is of high added value, representing 4.1% of the wealth generated by regional companies while only representing 1.9% of its workforce. The port historically welcomes shipyard and floating structures manufacturers, more recently aeronautics and emerging industries including RME. Deeply impacted by the economic crisis, which reduced the traffic in the port, the complex is pursuing its reconversion by investing massively in the emerging in the EMR sector. The region indeed announced an investment plan of €180m in the region by 2020. The region will also invest €16.3m and the State €18.1m by 2020 to modernise the intermodal infrastructures of the port.

Another flagship example of a highly collaborative sub-regional ecosystem is the industrial area of Les Herbiers. Located in the Vendée department, this small agglomeration gathers 14,000 employees active in a wide array of industrial sectors, including leisure cruisers, food processing industry, high-precision machinery or clothing. Unemployment rate in the area stands at only 5.8%, half the national average. Most companies emerged as family-owned business, some of which have now become national or world market leader. The industrial site welcomes for instance the factories of Janneau (subsidiary of Beneteau Group, with headquarters in in Vendée), leader in the pleasure shipbuilding market, or K-LINE (a subsidiary of Groupe Liébot), manufacturer of highly innovative windows. The fluidity of social dialogue, the capacity to define long-term business strategies and take fast decisions on investments, together with the easiness of collaboration among local business managers are the key success factors of the site15.

The following section presents three recent initiatives which illustrate the capacity of the region to create collaborative actions towards the future of manufacturing: the Jules Verne Manufacturing Valley and the Vision 2020 strategy for a Third Industrial and Agricultural Revolution.

15http://www.lesechos.fr/23/10/2015/lesechos.fr/021428333954_les-herbiers--si-pres-du-plein-emploi.htm


1.9.2! Creating a regional ecosystem on advanced manufacturing: the Jules Verne Manufacturing Valley

Jules Verne Manufacturing Valley, “the French industrial place to be”, is the label that embodies the region’s ambition to create to unique ecosystem dedicated to advanced manufacturing and the factory of the future. The label is not an additional entity. It intends to gather all the actors engaged that form the innovation value chain in advanced manufacturing within a single community with a strong common visual identity, together with a shared vision, strategy, and means.

The Valley gathers three main components: the EMC2 cluster, the IRT Jules Verne and the grouping that manages the four Technocampus. It will also welcome the Jules Verne Manufacturing Academy, and associates all Regional Innovation Platforms active in advanced manufacturing.

The label is a key instrument to raise awareness among regional companies of the opportunities created by advanced manufacturing techniques, and to brand the performances of the regional ecosystem internationally. The label will also welcome the first edition of the Manufacturing Thinking conference in spring 201616.

The Valley also foresees a territorial structural plan to create a dynamic living environment. So far, the EMC2 cluster, the IRT Jules Verne and the Technocampus Composite and Ocean are located nearby the airport of Nantes, but the area still lacks attractiveness due to the absence of housing and shops. The city of Nantes thus announced a plan for the construction of 100 housing for the students of the Manufacturing Valley, the creation of a “Jules Verne House”, living centre of the Valley, by the end of 2017. The whole infrastructure is presented in the figure below.

Figure 11 Jules Verne Manufacturing Valley

16 www.manufacturing-thinking.com/en


1.9.3!Vision 2020: towards a Third Industrial and Agricultural Revolution The “Third Industrial and Agricultural Revolution in Pays de la Loire” (French acronym TRIA, “Troisième révolution industrielle et agricole”17) is another illustration, an initiative launched in 2014 by the three regional consular chambers: the Chamber of Commerce and Industry, the Chamber of Trades and Crafts and the Chamber of Agriculture.

TRIA’s first objective is to mobilise economic actors and public authorities in a common transition towards a shared strategy and objectives so as to achieve a more efficient, competitive and environmental friendly economy. The strategy is directly inspired by Jeremy Rifkin’s concept of the third industrial revolution, which relies on the combination of digital solutions and renewable energies.

As highlighted during the interviews, TRIA does not duplicate the efforts undertaken by the regional authorities in the wake of the smart specialisation strategy. Instead, TRIA’s purpose is to achieve common objectives by increasing awareness among regional businesses of the challenges imposed by current economic mutations and supports them in achieving the transition of their business model. The three chambers will thus collaborate with the regional authorities to guide regional business towards the adapted support measures. They will also align the selection criteria of the regional support measures they are responsible for (i.e. “Dinamic Entreprises” implemented by the CCI) with the objectives of the TRIA.

According to the strategy plan, Vision 2020, TRIA intends to achieve two overarching objectives by 2020:

•! Support the greatest number of the 200,000 businesses located in the region in their economic mutation relying on four drivers of competitiveness

•! Promote the emergence of 3,000 leading businesses in economic sectors with high growth potential based on six pillars.

The four drivers of competitiveness and six structuring pillars are presented in Figure 12 below.

Figure 12: TRIA’s four drivers of competitiveness and six structuring pillars

It is still too early to evaluate the impact of TRIA, as the three regional chambers are still in the process of mobilising the regional actors so that they take ownership of the process and actively contribute to different pillars of the initiative. Nevertheless, this initiative is another illustration of regional actors’ capacity to implement joint initiatives following common strategic objectives and based on a shared diagnostic of the economic challenges faced by the region.

17 http://triapdl.fr


1.10!Leveraging the existing potential Based on the analysis of materials collected during the desk research, complemented by a series of face-to-face interviews with the regional stakeholders, the following main challenges related to the area of advanced manufacturing / Industry 4.0 have been identified.

•! Challenge 1: R&D concentration on a limited number of industries

The research competencies dedicated to advanced manufacturing are mainly concentrated on medium-high-tech sectors around a number of key clusters and research centre in the region’s traditional mid-tech industries, most prominently in the aerospace, marine, rail, transport, and RME sectors, in and around the Nantes Saint-Nazaire area. This is symbolised by the location of the Jules Verne Manufacturing Valley, in the area of Nantes, with the key R&D centres dedicated to manufacturing, notably the EMC2 cluster, the IRT Jules Verne and the three Technocampus. Per se, there is nothing wrong with such geographic concentration as it emanates from a historical dense network of collaboration between local original equipment manufacturer in industries directly concerned with the technological challenges related to advanced manufacturing techniques.

Nonetheless, such concentration may weaken the region’s ambition to generate technological cross-fertilisations with the region’s 22 identified sectors. In the medium to long term other regional sectors may see their competitiveness weakened as a result of missed opportunity to introduce advanced manufacturing technique and the technological or business model transformations they imply.

This challenge is currently being addressed with promising initiatives, such as the opening of another Technocampus in Le Mans and the animation of the dense network of Regional Innovation Platforms. It remains to be confirmed this results in concrete structuring R&D projects beyond the region’s traditional areas of industrial expertise.

•! Challenge 2: Consolidate the position of Pays de la Loire as an innovation-hub of advanced manufacturing and enhance cooperation with the renowned centres from other regions in France

The Pays de la Loire region is characterised by an important concentration of technical expertise and know-how in the area under review. This is illustrated by the protagonist role of the region within the national plan “Factory of the Future”.

Nevertheless, other centres in France are considered to have an important track record of experience and relatively high potential in specific research topics related to Industry 4.0 and smart systems. Consolidating the existing potential in key regional sectors should go hand-in-hand with long-term partnerships with other leading French regions. This can create synergies in a wider array of industrial sectors, so that Pays de la Loire can further develop a critical mass in the area of advanced manufacturing technologies.

As an example, the national Alliance for the Industry of the Future has recently designated the factory of Daher in Nantes as a “flagship technological model”. Another laureate is the DIGI IO project launched by the SNCF (national railways) at its industrial technical centre in Oullins, close to Lyon, which introduces smart systems (internet of things, cobotics, 3D printing) to improve rail maintenance. Gaz Liquide, world leading supplier of industrial gases and related services, was also rewarded for the “Connect” project, a €20m investment plan to create a highly innovative control centre in the area of Lyon that guarantees real-time control over production processes. These two experiences highlight the potential for inter-regional cooperation with other market leaders in other industrial sectors (e.g. rail and raw material storage).


•! Challenge 3: Avoid creating lock-in effects by integrating SMEs into global value chains

Interview highlighted the strong cultural heritage of industrial collaboration in the Pays de la Loire region. This is a key asset to structure collaborative project as illustrated by successful experiences like the Neopolia and the EMC2 clusters. Nevertheless, this also results in a tendency to limit the scope of opportunities and capacity to cooperate with other national, European or international partners.

The region’s economy is indeed characterised by a large share of small and medium- sized firms that face a variety of challenges ranging from increasing global competition to their dealing with the impending transformation of manufacturing. So far, only a limited number of smaller and medium-sized firms in Pays de la Loire have actively entered global markets in a self-determined manner. When they have done so, however, these activities have often proven successful. Consequently, it can be assumed that the potentials for economic success on international markets in Pays de la Loire remain less than fully exploited.

An inward looking approach has an inherent risk of creating lock-in effects and path dependencies. Given the worldwide investment and dynamic changes taking place in the area of advanced manufacturing, Pays de la Loire faces a challenge of anticipating and actively being involved in the new global value chains. Particularly, the priority should be on ensuring that those efforts bring positive effects on the modernisation and competitiveness of regional industrial base.

Based on the existing evidence, it can be concluded that possible future orientations and opportunities in the area of Industry 4.0 in Pays de la Loire lie particularly in:

•! Increase the regional outreach of the Jules Verne Manufacturing Valley

The Jules Verne Manufacturing Valley is an innovative initiative to create a strong sense of community among the regional actors involved in advanced manufacturing. The region must make sure that the Valley’s outreach does not remain limited geographically to the headquarters of its core members (EMC2 and IRT Jules Verne) in the area of Nantes, but successfully reaches other regional actors within a variety of industrial sectors.

For instance, the EMC2 cluster to date has signed partnership agreements with the ID4CAR cluster, also located near Nantes, and Pôle Mer Bretagne Atlantique, with headquarters in Brest, in Bretagne. The cluster could engage into other structuring partnership with regional clusters with a view to increase the regional outreach of the Jules Verne Manufacturing Valley.

•! Engage in strategic cooperation with French and European regions to position firms in global value chains

In order not to create lock-in effects and path dependencies, it will be necessary to establish strategic cooperation with partners from other French and EU regions active in the area of advanced manufacturing techniques / Industry 4.0.

The region should invest in additional human resources both within regional authorities (including the regional agency Pays de la Loire Territoires d’Innovation) and key competence centres (EMC2 and IRT Jules Verne) to strengthen the participation of the region in European networks (i.e. Vanguard Initiative) and increase the participation of regional SMEs in EU-funded programmes, notably Horizon 2020.


2.!Regional Innovation Performance Trends, Governance and Instruments

2.1!Recent trends in innovation performance and identified challenges The regional innovation strategy (2014) acknowledges that the Pays de la Loire region still lags behind national standards in terms of research and innovation performance and must increase its effort to fully reach its potential.

Indeed, the latest consolidated data available at regional level18 show that in 2013 the region’s overall expenditure on R&D contributed to 2.71% (€1.29b) of the French total, well below its share of GDP (5.1%). Regional R&D expenditures as share of intramural GDP (1.22%) remain one percentage point below the national average (2.24%) and also below the EU28 average (2.03%). The region is nevertheless in a general increasing trend, with total intramural R&D expenditure (GERD) rising by 36% between 2008 and 2012, which is to a greater extent due to the rise in public R&D expenditures (+50%) than in private R&D expenditures (+30%). The personnel affected to R&D in Pays de la Loire (13,877) represents 3.32% of French total19. In 2012 the region registered 502 requests for patent, ranking sixth among French regions.

The local research and development system remains business-dominated. In 2013 the business share of R&D expenditures amounted to 64.77%, in line with the national average of 64.68%. Figure 13 below shows that the evolution of the R&D efforts in Pays de la Loire over the years 2008-2012 positions the region as an average performer in comparison with its competitors.

Figure 13: Importance and dynamism of research efforts of regional enterprises in France in 2012

The regional innovation strategy of Pays de la Loire for the period 2014-2020 included an accurate SWOT analysis, which we present in the figure below.

18 http://ec.europa.eu/eurostat 19 http://www.insee.fr/fr/themes/tableau.asp?reg_id=99&ref_id=TCR_058#col_1=3


Figure 14: SWOT analysis of the Regional Innovation System

Source: extraction and adaptation from the Regional Innovation Strategy for Smart Specialisation of Pays de la Loire (2014)

The analysis of the results of the Community Innovation Survey in Pays de la Loire performed by INSEE (2014) highlights encouraging innovative behaviours of regional enterprises. Indeed, according to the 2012 survey results, 52.3% of enterprises with 10 to 249 employees acknowledge having developed an innovation in a large sense (product, processes, internal organisation), which is slightly above the national average of 51%. This share reaches 57.2% among regional manufacturers and 65.2% among service providers. It also increases with the size of the company: it concerns 44% of companies from 10 to 19 employees, 53% from 20 to 49 and 67% from 50 to 249. Companies with 10 to 19 employees innovate more than in other regions.

The study presents a structural “regional effect” that favours innovation more than other regions. Indeed, “structural factors” (size and activity of companies) would only explain a third of the differences in innovation performance with other region in industry, and a quarter in services. “Non-structural factors”, also called the “regional effect” would explain the rest, combining several elements like individual characteristics, the importance of qualified jobs, the intensity of cooperation networks, the quality of the local ecosystem or the efficiency of the public and private support.

The results of the Community Innovation Survey of 2012 also show a tendency among regional companies to favour cooperation and strategic alliances with local market players rather than academic partners. Indeed, almost two thirds of companies who introduce innovations through cooperation estimate that collaborations with market partners (providers, clients, competitors or consultants) were the most important ones. This propensity is greater in industry (66%) than among service providers (53%). The survey also shows that 9% of regional companies consider their direct competitors as potential partners, against 6% in the rest of French regions. What is more, only 35% of cooperating companies are seeking partners internationally.

These figures are an illustration of the region’s strong cultural heritage favouring local cooperation, as well as the importance of regional clusters in fostering collaborative innovation.

Based on the discussion presented in the section above and complemented by a series of interviews with the regional stakeholders, the main challenges in the Pays de la Loire Region can be summarised as follows.


•! Challenge 1: Overcome the region’s structural weakness in R&D spending

Regional figures show poor performance of R&D spending (1.22% of GDP) compared to the economic weight of the region. The region must pursue its long-term effort to catch-up and reach its full research and innovation potential.

Regarding private R&D spending, this requires a balance between the necessity to focus of R&D spending in a limited number of promising areas on which the region can build its competitive advantages, and the need to guarantee the irrigation of innovation throughout all regional economic sectors.

As for public R&D spending, beyond the region’s lead universities, the region’s local public research landscape remains structurally weak, and is concentrated in a limited number of lead projects. The regional innovation system remains business-dominated not only in relative, but also in absolute terms. Outside the key clusters of regional expertise, strong research organisation types are missing. In the less innovative areas of the regional economy and in less developed sub-regions, universities of applied science play a supporting role, which, however, needs to be further developed.

•! Challenge 2: support the upgrade of the regional workforce’s skills to trigger innovation within enterprises

The financial and economic crisis resulted in particularly high levels of unemployment, which remains high (9.1%) and far below its pre-crisis level (5.5% in 2008) despite the regional economic recovery.

The regional shift of industrial and services activity towards higher added-value activities must go hands-in-hands with a stronger plan to upgrade the skills of the regional workforce so it can fully benefit from the emergence of higher innovative sectors.

•! Challenge 3: Explore new business opportunities in cooperation with actors from other European regions

The Pays de la Loire region’s commitment to European cooperation is strongly emphasised in the Regional Innovation Strategy published in January 2014. In concrete terms though, the regional enterprises are still involved only to a limited extend in structuring European R&D collaboration projects. It should be closely monitored how the plans will be translated into actions and implemented in practice. In this respect, there is a real risk of reinforcing lock-in effects and creating long-term path dependencies.

For instance, the regional involvement in the Vanguard Initiative is promising in the long term. Nonetheless the region has played so far a rather passive role in the pilot initiatives20, while many of them are directly in line with the region’s key specialisation area. This is the case in particular the Pilot project Bioeconomy related to the innovative use of non-food biomass, the Efficient and Sustainable Manufacturing (EMS) initiative and the Pilot Project on Advanced Manufacturing for Energy Applications in harsh environments.

20 http://www.s3vanguardinitiative.eu/pilotinitiatives


2.2!Institutional framework and set-up The Regional Council is in charge of defining the regional innovation strategy, under the political leadership of the President of the Regional council (Bruno Retailleau) and the vice-president in charge of enterprise, international development, tourism, innovation and higher education and research (Paul Jeanneteau), and the technical support of the directorate general for economy and innovation. The regional innovation agency (Agence Régionale Pays de la Loire Territoires d’Innovation21) is the operational arm that coordinates the implementation of all policy instruments. The regional economic, social and environmental committee (CESER22) also advises the Regional Council as representative of civil society.

To define its regional smart specialisation for the years 2014-2020, the Regional Council coordinated an intense participatory process. The process relied on the governance system set-up in 2011, which is articulated around three instances:

•! The Regional Conference for Sustainable Economy and Employment (CREED, Conférence Régionale de l’Economie et de l’Emploi Durable), which gathers actors engaged in economic development, professional training, employment and territorial development.

•! The Regional Consultative Committee for Research and Technological Development (CCRRDT, Comité Consultatif Régional de la Recherche et du Développement), which gathers public and private universities; national research organisations and intermediary institutions supporting valorisation of research results and technological transfer.

•! The Regional Commission for Innovation (CRI, Commission Régionale de l’Innovation), which gathers enterprises, value chain leaders, professional training institutions and actors involved in technological, social and cultural innovation.

The consultation process was marked by a series of fundamental steps, including:

•! an analysis of academic forces and the publication of the regional scheme for higher education, research and innovation (SRESRI, Schéma régional de l’enseignement supérieur, de la recherche et de l’innovation);

•! a SWOT analysis of the regional innovation system;

•! the definition of strategic roadmaps for the regional clusters;

•! an in-depth analysis and the consolidation of strategic roadmaps for the 22 industrial sectors of the region (annexed to the smart specialisation strategy); and

•! the organisation of six workshops to discuss the six smart specialisation domains, including a first inventory of potential structural collaborative R&D projects.

Following this consultation phase, three structural axes were defined, declined in six specialisation areas in which the region presents strong competitive advantage:

•! Axis 1: Reinforce productive industrial sectors and promote industrial leaders

o! Advanced manufacturing technologies

o! Maritime industries

o! Food and bio-resources

21 http://www.agence-paysdelaloire.fr/ 22 http://ceser.paysdelaloire.fr/


•! Axis 2: Key competences for a sustainable economy

o! Computer science and electronics

o! Design and cultural and creative industries

•! Axis 3: A region of high wellbeing and quality-of-life standards

o! Therapies of tomorrow and health.

The intervention of European Structural and Investment Funds will be concentrated on structuring projects related to the six specialisation areas in order to maximise their impact. The region also fosters dynamic synergies and interactions with the 22 regional industry sectors, particularly through the cross-fertilisation of key technologies. All 22 sectors remain actively supported by national funds (based on the State-Region contract for 2015-2020, national calls for projects, BPI France…) and regional funds.

The strategic governance of the smart specialisation strategy will rely on the three above-mentioned governance entities (CRI, CREED and CCRRDT). As for the operational implementation, the regional agency interacts directly with the Network for the Development of Innovation (RDI, Réseau de Développement de l’Innovation), as presented in section 2.3 below.

The regional agency also interacts directly with one designated lead interlocutor for each specialisation domain, namely:

•! Advanced manufacturing technologies – IRT Jules Verne/ EMC2 cluster

•! Maritime industries – Neopolia

•! Food and bio-resources – CAP Aliment

•! Computer science and electronics – We Network/ Ouest Numérique

•! Design and cultural and creative industries – Quartier de la création

•! Therapies of tomorrow and health – Atlanpole Biothérapies.

Figure 15 below presents the interactions between the six specialisations domains and the 22 regional sectors. Table 2 then proposes a summary of the key actors involved in each specialisation domain, together with the intervention domains.


Figure 15: Articulation between the 22 regional industrial sectors and the six regional specialisations

Source: Regional Innovation Strategy for a Smart Specialisation (2014)


Table 2: Overview of the six regional specialisations Smart Specialisation Area

Economic actors Research and training institutions

Clusters Infrastructures Key technologies and areas of intervention

Advanced manufacturing technologies

DAHER Aerospace, Airbus, STX France, Auto Chassis International (Renault), Manitou France…

Ecole Centrale de Nantes, Institut Le Mans Acoustique, Pôle Achats Supply Chain Atlantique (PASCA).

EMC2, ID4CAR, Elastopole, S2E2, Valorial, Images et Réseaux, Vegepolys, Neopolia, We Network, Novabuild, Nova Child, Atlanbois.

IRT Jules Verne, Technocampus EMC², PROXINNOV, CISNA 2.0, PRECEND, Atrium, Centre Industriel de la Réalité Virtuelle, plateforme technologique Clarté

Production systems and associated services; processes, plant and its equipment; automation; robotics; cobotics; measurement systems and sensors; information system; production control; factory of the future; factory connected; products and advanced manufacturing processes.

Maritime industries DCNS Propulsion, Alstom Power, STX France, Rollix Defontaine, Bénéteau, Zeppelin, Navalu…

Ecole Centrale de Nantes, Université de Nantes, Institut Le Mans Acoustique, Le GIS LIRGeC, Institut d’excellence en matière d’Energies Décarbonnées (IEED) France Energies Marines.

EMC2, S2E2, Mer Bretagne Atlantique, Neopolia, Atlanpole BlueCluster, NovaBuild.

IRT Jules Verne, Technocampus EMC², Technocampus Océan, site d’expérimentation en mer SEMREV

Shipbuilding (merchant marine, tourism, yachting, fishing, aquaculture, defence); marine renewable energy; ship of the future; wind energy on land and at sea; offshore structures; offshore techniques; port facilities; maritime logistics; design and construction of recreational craft; services related to the use of sea areas; aquaculture; marine resources

Food and bio-resources Laiterie de Montaigu, Fleury Michon, Biofournil, Pasquier, Terrena, Lactalis, Saupiquet…

ONIRIS, Agrocampus Ouest, Universités de Nantes-Angers-Le Mans, Institut National de la Recherche Agronomique, IDEFI MAN-IMAL…

Vegepolys, Valorial, Nova Child and Atlanpole BlueCluster

Campus du Végétal, PRI Cap Aliment, PRI Machinisme agricole, PRI Ligépack.

Agricultural and fishery products; agricultural machinery; agroecology; health of plants and animals; short circuits; specialised plants; bioresources valorisation; food factory of the future; slaughterhouses of the future; diet and eating habits; nutrition and health; assemblies and food matrices; quality and functionality of food; traceability and safety..


Smart Specialisation Area

Economic actors Research and training institutions

Clusters Infrastructures Key technologies and areas of intervention

Computer science and electronics

Eolane, Valéo, Tronico, Lacroix, Thalès, Vision Object, I-Advize, Obeo, Capgemini…

Ecole Centrale et l’Ecole des Mines de Nantes, Université de Nantes- Angers-Le Mans, ESEO, INRIA, Fédération de Recherche ATLANSTIC, laboratories IRCCyN and LINA.

Images et Réseaux, S2E2, ID4CAR, EMC2, Végépolys, Valorial, Atlanpole Biotherapies, We Network, Alliance Ouest Numérique, Quartier de la creation, Green Lab Center, Novabuild, Nova Child, Neopolia.

PRI Astinov, IDEV, Proxinnov, CIRV, CISNA, PLEIADE, Clarté, la Cité de la Réalité Virtuelle, wC platform.

Professional electronics; production and design of cards and subsystems; adaptable electronics; electronics for robotics; power electronics; communication devices and solutions; embedded systems; software engineering ; science data; cloud computing; virtual, augmented and mixed reality; visitor experiences; digital security; Green IT and IT for Green; bioinformatics; e-learning; electronic and digital technologies for the design and industrial production; digital and cultural and creative industries

Design and cultural and creative industries

Pôle de coopération pour les musiques actuelles en Pays de la Loire, l’Abbaye de Fontevraud, associations PiNG and Trempolino, La Fabrique Laboratoire(s) artistique(s), Stereolux.

Ecole de Design Nantes Atlantique, Ecole Nationale Supérieure d’Architecture de Nantes, Ecoles des Beaux-Arts, Fédération de recherche « Art, Cultures et Territoire »

Images et Réseaux, Végépolys, Quartier de la Création à Nantes, la mission AnCRE d’Angers, Le Mans Créapolis, la Cité de la Réalité Virtuelle, Alliance Ouest Numérique, NovaBuild, NovaChild.

PRI Design’in Pays de la Loire, PRI IDEV, plateform Plante & Cité

Design; performing arts; visual arts ; graphics; heritage ; contemporary music; graphics; fashion ; advertisement ; cinema and audio-visual; book ; architecture; city creation; vegetable; digital arts; cross-fertilisation.

Therapies of tomorrow and health

Valvena, Biofortis, Eurofins, Effimune, Affilogic…

ONIRIS, LABEX IGO, LABEX IRON, Hospital of Nantes and Angers, IHU prometteur CESTI, DHU Oncogreffe and DHU 2020, l’institut du thorax et l’institut des maladies de l’appareil digestif; interregional network Biogenouest

Atlantpole Biotherapies, Vegepolys, Isotop4life, Atlanpole BlueCluster, NovaChild , We Network

Le Cyclotron Arronax, le démonstrateur PGT d’Atlantic bio GMP, le Gérontopôle des Pays de la Loire, la PRI Cap Aliment

Personalised medicine; biotherapy; immunotherapies; immunology; oncology; radiopharmaceuticals; nuclear medicine; ionising radiation; restorative and regenerative medicine; transplantation; Bioinformatics

Source: Regional Innovation Strategy for a Smart Specialisation (2014)


2.3!Regional innovation policy mix The policy mix of the new programming period 2014-2020 is guided by a strong willingness to foster a dynamic and consistent innovation ecosystem by building a strong regional network of innovation support organisations and simplify the access to support measures through a common “innovation path”. These two overarching elements are complemented by a set of measures supporting interregional, cross-European and international R&D cooperation.

Foster collective dynamics among regional actors of the knowledge triangle

The innovation strategy is rooted in the historical culture of collaboration that characterises the Pays de la Loire Region. To this purpose, the regional authorities triggers a permanent dialogue and engages all regional stakeholders towards common strategic objectives by. In practice, this takes the form of regular consultation with the entities that form the regional governance system for economic and social policy (CRI, CREED and CCRRDT), and the animation of four thematic hubs: an “international hub” in cooperation with the Chamber of Commerce and Industry, a “financial hub” in cooperation with BPI France, an “innovation hub” animated by the Regional Innovation Committee and an “SME hub” in cooperation with the network of economic developers. The regional innovation strategy is also part of two overarching strategic schemes that structure the strategy and governance of the region: the Regional Scheme for Sustainable Economy and Employment (SREED, 2011) and the Regional Scheme for Higher Education, Research and Innovation (SRESI, 2013).

The construction of a dynamic regional ecosystem also relies on the mobilisation of key actors in dynamic and flexible innovation networks throughout the territory. To that purpose, the region invests directly in the emergence of collaboration structures of different forms depending on purposes. This includes:

•! Fostering collaborations between companies and research organisations following common objective by supporting and investing in the emergence of strong regional research institutions and clusters in the key areas of specialisation. The emergence of the EMC2 cluster and the IRT Jules, currently co-funded on a 50/50 basis by public and private institutions, has played a key role in engaging regional actor and structuring the innovation value chain in the field of advanced manufacturing technologies; and

•! Increasing the outreach of territorial innovation networks that gather actors engaged in common themes. To that purpose the region has actively supported since 2009, both financially and logistically, the emergence of about 40 Regional Innovation Platforms (PRI) which structure the ecosystem and favour joint experimentation and training. PRIs are presented in detail in section 2.5 below.

Table 2 above illustrates the diversity of actors engaged in the six specialisations areas.

Build a consistent and accessible “innovation path”

To maximise the impact and outreach of innovation following a systemic and universal approach, the regional authorities have built an “innovation path” (parcours de l’innovation) which structures all support measures available in the region along the innovation value chain, from fundamental research to technological development, field experimentation and commercialisation. Information on the support measures in centralised on a single website23. To secure the effective implementation of the “innovation path”, all the actors that take part in the funding and provision of support measures are grouped in the Network for the Development of Innovation (RDI,

23 http://www.territoires-innovation.paysdelaloire.fr/comment-innover/les-principaux-dispositifs-d-aide/


Réseau de Développement de l’Innovation). The RDI was hosted by the Regional Chamber of Commerce and Industry in Nantes until 2015 and by the Regional Agency since 2016. It organises regular coordination meetings with the network’s members (230 collaborators from about 60 organisations).

This “innovation path” targets in particular regional SMEs considered “potential innovators” or “primo-innovators”, in direct contact with local support organisations. Support is provided through the following steps:

•! Étincelle Innovation – a one-hour coaching session, free-of-charge, during which SME managers meet innovation experts to discuss their innovation potential and potential step forwards.

•! Déclic Innovation – a two-and-a-half-hour meeting, free of charge, in which SME managers discuss their company’s capacity to implement innovation projects with acceptable levels of risk.

•! Tremplin Innovation – a four-day training seminar in which the SME manager discusses with innovation experts realises a preliminary feasibility study of his innovation project. €1,500 remain at the charge of the company.

•! Dinamic Entreprises – a nine-month programme that reinforces SME’s innovation potential through individual coaching sessions (21 half-day sessions), training seminars (20 days), joint methodological seminars between SME managers (16 half-day sessions). The programme is funded at 70% by public authorities, with €3,000 to €6,000 remaining the responsibility of the company. So far about 1,000 have received personalised coaching since the launching of the programme in 2007.

The regional fund “Fonds Pays de la Loire Territoires d’Innovation” (FTI)24, co-funded by the Regional council, the State and BPI France, provides a wide array of funding instruments to foster innovation in Pays de la Loire. It is conceived as a flexible toolbox targeting innovation in a wide understanding (including non-technological innovation), which mobilises several funding instruments (subsidies, repayable advance, interest-free loans…) depending on target groups and objectives. FTI funds a series of support measures like Chèque Territoires d’Innovation (CTI, up to €8,000 grant to fund early-stage feasibility studies of innovation ideas) or Premiers Pas Territoires d'Innovation (PTI, up to €8,000 grant to support technical diagnostic, tests and patent acquisition). A call for projects has been launched under the FTI worth €20m of investment for R&D projects undertaken in one of the six areas of specialisation.

NAPF25 (Nantes-Atlantique Place Financière) also plays an active role in the regional innovation ecosystem. It animates a network of about 50 members, creating a place for exchange of experiences and advices, building bridges between regional entrepreneurs and actors of private finance (banks, insurance, business angels, investors…).

The region also funds awareness-raising campaigns, like the Innovation Trophy (Trophées Pays de la Loire Territoire d’Innovation26) or targeted campaigns like the “Advanced manufacturing tour” which organises a series of thematic workshops throughout the region.

Table 3 provides an overview of the most relevant support measures and funding solutions available in the Pays de la Loire Region.

24 http://www.territoires-innovation.paysdelaloire.fr/comment-innover/les-principaux-dispositifs-d-aide/fonds-pays-de-la-loire-territoires-innovation-3351.kjsp?RH=1321522791543

25 www.napf.fr 26 http://trophees-innovation.paysdelaloire.fr/



Table 3 Regional innovation support measures Title Duration Policy priorities Budget Organisation

responsible More information

Etincelle Innovation 2013- ongoing 5.3. Innovation awareness-raising

n/a RDI - Réseau de Développement de l’Innovation en Pays de la Loire

Pays de la Loire – Territoires d’Innovation

Déclic Innovation 2013 - ongoing 5.4. Innovation management and advisory services

n/a Chamber of Commerce and Industry (departmental level)


Tremplin Innovation

2013 - ongoing 5.4. Innovation management and advisory services



Dinamic Entreprises 2007 - ongoing 5.4. Innovation management and advisory services



Innovative Territory Chèque

(Chèque territoire innovation)

2013 - ongoing 4.1. Direct funding to business R&D and innovation

5.4. Innovation management and advisory services



First step Innovative Territory

(Premiers pas territoire innovation)n





FTI laboratories 2013 - ongoing 4.1. Direct funding to business R&D and innovation

4.2.Organisational, process and other non-R&D innovation

n/a Pays de la Loire – Territoires d’Innovation


Title Duration Policy priorities Budget Organisation responsible

More information

Maturation fund SATT

2014 - 2020 2.1. R&D cooperation projects between academy and industry

2.3. Knowledge transfer structures between academia and industry

€70m dedicated to R&D projects

SATT Ouest Valorisation Ouest valorisation

Participatory loan CCI Innovation

(Prêt participatif CCI Innovation)


n/a CCI Pays de la Loire (level of department), in cooperation with BPI France

CCI Pays de la Loire

CIFRE 2013 - ongoing 2.1. R&D cooperation projects between academy and industry

4.1. Direct funding to business R&D and innovation

n/a Minister of Higher Education and Research


EFFER ' V SENS 2013 - ongoing 2.1. R&D cooperation projects between academy and industry

n/a CCI Pays de la Loire Pays de la Loire – Territoires d’Innovation

Research Tax credit

(Crédit impôt recherché)

1983 - ongoing 4.6. Tax incentives for business R&D and innovation

n/a Minister of Higher Education and Research


Unique Interministerial Fund

(Fonds Unique Interministeriel)

n/a 2.4. Demonstration projects, proto-types and proofs of concepts

5.1. Cluster development

5.2. Science-, technology parks and incubators

n/a BPI France Pays de la Loire – Territoires d’Innovation


Title Duration Policy priorities Budget Organisation responsible

More information

Regional Innovation Platform (PRI)

2009 – ongoing 2.4. Demonstration projects, proto-types and proofs of concepts

2.1. R&D cooperation projects between academy and industry

5.2. Science-, technology parks and incubators

n/a Agence Régionale Pays de la Loire – Territoires d’Innovation


Objective Performance Innovation



n/a Agence Régionale Pays de la Loire – Territoires d’Innovation


VIA Pack Export – International Volunteers in Enterprises

2012 - ongoing 7.3. Support to participation in international R&I programmes

n/a CCI Pays de la Loire, in cooperation with Ubifrance


Enterprise Europe Network

2009 - ongoing 7.3. Support to participation in international R&I programmes

n/a Enterprise Europe Ouest Enterprise Europe Ouest

ABAB (Atlantique Business Angels Booster)

2007 - ongoing 5.5. Seed and early-stage capital vehicles, business angel networks

n/a ABAB (Atlantique Business Angels Booster)

ABAB (Atlantique Business Angels Booster)

Source: www.territoires-innovation.paysdelaloire.fr and own assessment based on the Regional Innovation Strategy for Smart Specialisation of Pays de la Loire (January 2014).


2.4!Appraisal of regional innovation policies There is limited evidence available to provide a thorough appraisal of the regional innovations policies of the Pays de la Loire region. Indeed, as the implementation of the new set of measures in line with the strategy for the new programming period of 2014-2020 only started recently, the first evaluation will take place in 2016. What is more, the evaluation and monitoring system foreseen in the strategy is not yet set-up, so no indicators are available to evaluate the impact of the measures undertaken. What is more, no other type of independent assessment is available.

Nevertheless, the interviews and desk research allow to cautiously presenting a few remarks on whether the innovation policy suits the factual needs of the region.

First and foremost, it must be highlighted that the definition of the regional strategy is a result of a thorough consultation process, in line of the recommendations of the European Commission with regards to the “entrepreneurial discovery” of the regional key competences. The definition of the final regional innovation strategy results on one side on a thorough diagnostic, which consisted in an analysis of the strengths and weaknesses of the regional innovation system, a diagnostic of the state of the 22 regional economic sectors, and an analysis of the state of the academic sector and its potential to contribute to innovation. Following that, the definition of the final six key areas of specialisation resulted from a direct consultation of all stakeholders. All and all, about 40 actors from the private sector (most often clusters and business associations), 50 from academia and 40 from public institutions were consulted during the process. The elaboration of the strategy lasted almost a year.

Furthermore the innovation strategy stands out by its capacity to generate efficient and agile platforms for collaborations, as illustrated in several occasions throughout this report, which good practices examples such as the Neopolia cluster, the EMC2 cluster, the TRIA Vision 2020 strategy, and the originality of the dynamic network of Regional Innovation Platforms.

Among the main weakness, it appears the new strategy does not fully address the weaknesses identified in the SWOT analysis. Indeed, it seems that most efforts are concentred in deepening the current strengths of the region and exploring opportunities while leaving aside the region’s main weaknesses. Indeed, it appears clearly how in the innovation strategy how the region intends to further strengthen its scientific capacity in key domains, increase territorial attractiveness and support the emergence of industrial leaders in promising markets (e.g. RME). Nevertheless, no grassroots measures are presented to counter the structural low levels of R&D intensity or tackle the low utilisation of support measures in favour of integration of graduates in R&D activities.

2.5!Policy good practice The Pays de la Loire region provides several good practice examples on how to establish successful bottom-up networks and cluster structures organising collaborative innovative projects, of which two shall, in the following, be presented in some detail.

2.5.1!Regional Innovation Platforms The regional authorities have since 2009 supported the establishment of Regional Innovation Platforms (PRI, Plateformes Regionales d’Innovation)27 in key industrial and technological sectors, which have been identified as being of particular importance for the economic development of the region. PRIs make up an original instrument, with no equivalent in other French region. Their specificity consists in the

27 http://www.territoires-innovation.paysdelaloire.fr/decouvrir-l-innovation/les-plateformes-regionales-d-innovation-3052.kjsp


mutualisation of competences and means brought in by experts from research, training and technology transfers on one side and local companies on the other side to spread the adoption of emerging technologies.

PRIs emerged as part of the “anti-crisis” set of measures approved in May 2009. The objective was to improve the competitiveness of companies through collaborative R&D projects in a context of economic crisis in which companies were particularly risk averse and under financial constraint. Companies joining PRIs have the opportunity to access rare equipment and experts to support them in their innovation projects, but also benefit from the exchange of experience with the other members and receive tailored training to acquire new competences. PRIs also combine to the territorial structuration by targeting territorial value chains, increasing the dissemination of innovation towards local SMEs. PRIs thus contribute to reinforcing the innovative capacity of intermediary landscape beyond few key centres.

There are about 40 platforms currently active in the region. Their organisational model varies widely from one platform to another in terms of number and composition of members, funding model and collaboration processes depending on their missions and needs. The geographic scope also varies from local ecosystems to international cooperation projects.

Financial support of the region is guided by mutual cooperation contracts signed with PRIs based on 3-year strategic plans. This support can take various forms, from real estate investment, equipment purchase or funding of human resources.

Even though there has been no evaluation of the impact of PRIs so far, the dynamism of the network of PRIs and the number of structuring R&D projects undertaken in less than a decade witness their central role in the regional innovation ecosystem. Key success factors are the reactivity and adaptability guaranteed by their flexible organisational structure. Regions aiming to transfer this model should be pay particular attention to the technical and financial implications (in particular in terms of funding regulations), the availability of human resources able to follow closely the setting-up of PRIs but also the strong commitment of dynamic companies.

2.5.2!The Neopolia cluster

The Neopolia cluster28 provides another interesting illustration of successful and innovative collaborative platform for industry. Neopolia Pôle Industriel Atlantique (now Neopolia) was established in 2007 in the context of generalised degradation of the naval industry and the willingness to create joint synergies with other industrial sectors of high economic potential. The first business cluster Neopolia Aerospace was inaugurated in 2009, and was followed by Neopolia Marine, Neopolia Oil&Gas, Neopolia Rail and ultimately Neopolia Marine Renewable Energy. In 2015, Neopolia counted 190 member companies representing 18,000 employees for a cumulated turnover of €1.6b.

The originality of the organisational model of the cluster stems from the fact that it is composed and animated by local entrepreneurs, mostly SMEs or middle-size original equipment manufacturer. Its members define collective strategies and propose joint offers resulting from collaborative projects in order to conquer new markets at national and international level.

Co-development intends a change of paradigm: in Neopolia suppliers not only answer to market needs but proactively offer joint innovative solutions to major buyers (STX, Airbus, etc.). Collaboration is project-based: an ad-hoc consortium is created between members to explore specific market opportunities and provide tailored collaborative solutions. Cluster members thus share the cost and risk of innovation through co-conception and co-innovation. Collaboration also allows local suppliers to reach the

28 www.neopolia.fr


sufficient critical mass and overcome financial barriers so as to answer wider-scale commands. The cluster is also experimenting a new model of joint financial guarantees for SMEs answering calls for tenders worth tens of million euros.

Finally, another key success factor of the cluster is the creation of cross-sectorial synergies by the acquisition of key transferable technological know-how. The five business clusters indeed share a common base frame around mechanical equipment and advanced materials. The cluster members also collaborate actively with external research institutions, notably the IRT Jules Verne, but also clusters like EMC2.

The results achieved are substantial: since 2010 the members of clusters jointly responded to 85 calls for tender resulting in about €80m gains in turnover. Overall the cluster has proved successful in creating tide collaboration network among local suppliers. The cluster strengthened the mutation of traditional sectors like shipbuilding but also supported the emergence of players in new markets like Renewable Marine Energy. An illustration of this successful early positioning in RME is the signature in May 2015 of a major contract between members of Neopolia EMR and Alstom for the assembly and transport operations of wide-size offshore wind turbine nacelles29. This follows the inauguration in 2014 of two Alstom factories in Saint-Nazaire for manufacturing the Haliade turbine in the wake of the offshore wind farm project to be established in the department, and the announced opening of an R&D centre in Nantes. The Regional Agency played a strong supportive role, engaging four FTE in the MRE sector.

Figure 16: Wind turbine factory of Alstom in Saint-Nazaire inaugurated in 2014

2.6!Possible future orientations and opportunities Based on the limited existing evidence, it can be concluded that possible future orientations and opportunities for regional innovation policy in Pays de la Loire lie particularly in:

•! Preparing the regional workforce for the impending economic transformations

Increase the innovation capacity of the regions must go hand in hand with an ambitious plan to upgrade the skills of the available workforce. Given the level of unemployment, it is imperious to prepare the regional workforce the impeding economic transformations in all economic sectors.

29 http://www.usinenouvelle.com/article/energie-marine-neopolia-remporte-un-premier-contrat-preserie-avec-alstom.N330647


The Competences 2020 (Compétences 2020) plan is a positive initiative that relies on permanent dialogues between enterprises, educational and training institutions and professional insertion centres (Pôle Emploi) to adapt the training efforts based on the needs of regional companies. The scope of the plan remains nonetheless limited in scope to the automotive industry in Le Mans and the sectors of aeronautics, naval in the employment area of Nantes-Saint Nazaire.

The possibility to widen the scope of the Competencies 2020 plan should be explored by regional authorities. This could lead eventually to a better coupling with the six specialisation priorities of the regional innovation strategy across six regional training plans.

•! Increase the participation of SMEs in regional clusters and the outreach of regional clusters support measures

The results of the CIS Study highlight two regional patterns. On one side, the share of industrial SMEs engaged in clusters in 2012 remains at stable and low share of only 4% (INSEE, 2015b). What is more, SMEs that join a cluster are highly innovative, as 90% had introduced technological innovations. The challenge is thus for public authorities to increase the outreach of clusters towards SMEs which are not necessarily engaged in innovation process but may benefit from participation in a cluster to exploit their innovation potential, thus supporting their transition towards higher added-value business models.

On the other side, 47% of the companies having introduced a technological innovation have received public financial support, but half of them deplore high administrative burden and the high level of constraints (INSEE, 2014). Regional authorities must thus evaluate whether the current set of innovative measures (the “innovation path”) is still considered burdensome, and take measures as a result.

•! Increase grassroots support to integration of SMEs into European Collaborative R&D projects

The risk of lock-in effect is not exclusive to industrial companies but concerns all companies engaging in innovative actions. Indeed, the proximity of collaboration partners is most often favoured as only 35% of enterprises engaged in R&D collaborations seek partners at international level (INSEE, 2014). What is more, only 37% of innovative companies seek are intending to reach international markets.

The region must think thoroughly how to align its European strategy with the current low levels of internationals and propensity to collaborate solely with local partners.


Appendix A!Bibliography

1.! Banque de France (2015) Les entreprises en Pays de la Loire, Bilan 2014 – Perspectives 2015. Available at: https://www.banque-france.fr/economie-et-statistiques/conjoncture-et-croissance/publications-regionales/publications/pays-de-la-loire.html

2.! Conseil Régional des Pays de la Loire (2011) Le Schéma régional de l'économie et de l'emploi durables (2011-2016)

3.! Conseil Régional des Pays de la Loire (2014), Stratégie régionale d'innovation pour une spécialisation intelligente (SRI-SI). Available at: http://www.paysdelaloire.fr/politiques-regionales/economie/

4.! Conseil Régional des Pays de la Loire (2015), Contrat de plan Etat-Région des Pays de la Loire. Available at: http://www.paysdelaloire.fr/politiques-regionales/territoires/actu-detaillee/n/consultation-du-public-evaluation-environnementale-strategique-du-contrat-de-plan-etat-region-2/

5.! INSEE (2014) Un contexte favorable à une démarche active d’innovation dans les Pays de la Loire. Available at: http://www.insee.fr/fr/themes/document.asp?reg_id=3&ref_id=21743

6.! INSEE (2015a) 24 400 emplois sur le complexe industrialo-portuaire de Nantes Saint-Nazaire. Available at: http://www.insee.fr/fr/themes/document.asp?reg_id=3&ref_id=23116

7.! INSEE (2015b) L’innovation des PME industrielles : un levier stratégique face aux changements. Available at: http://www.insee.fr/fr/themes/document.asp?reg_id=3&ref_id=22427

8.! INSEE (2015c) Le bilan économique 2014. Une année économique encore morose dans les Pays de la Loire. Available at: http://www.insee.fr/fr/themes/document.asp?reg_id=3&ref_id=22789

9.! Ministère de l’Enseignement Supérieur et de la Recherche (2015), Les dépenses de R&D dans les régions françaises en 2012. Available at: http://www.enseignementsup-recherche.gouv.fr/cid92413/les-depenses-de-r-d-dans-les-regions-francaises-en-2012.html

10.!Observatoire Régional Economique et Social. Available at: http://ores.paysdelaloire.fr/

11.! Walendowski, J.; Henning, K; Zenker, A. and Meyborg, M. (2015) Regional Innovation Monitor: Thematic Paper 2 – Advanced Manufacturing Case Studies. Available at: https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor/report/thematic


Appendix B!Stakeholders consulted

1.! Rémi Chevret, programme manager Third Industrial and Agricultural Revolution (TRIA), CCI Pays de la Loire (9 December 2015).

2.! Olivia Cahn, European & International Project Manager, EMC2 (10 December 2015).

3.! Thierry David, Director for Innovation and Economic Sectors, Agence régionale - Pays de la Loire Territoires d’Innovation, (3 December 2015).

4.! Annie MOYSAN, Advisor for economic development of industrial sectors, Agence régionale - Pays de la Loire Territoires d’Innovation (3 December 2015).

5.! Gaëtan Gaborit, Responsible of the Regional Economic and Social Observatory, Agence régionale - Pays de la Loire Territoires d’Innovation (3 December 2015).

6.! Jocelyn Lucas, Director, PROXINNOV (3 December 2015).

7.! Damien Forey, Director, Nantes Atlantique Place Financière (NAPF, 2 December 2015).

technopolis |group| Belgium Avenue de Tervuren 188a B-1150 Brussels Belgium T +32 2 737 74 40 F +32 2 727 74 49 E [email protected] www.technopolis-group.com

Documents

Regional Innovation Monitor Plus 2016 · The main aim of 30 regional reports is to provide a description and analysis of developments in the area advanced manufacturing with a clearly