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FRAUNHOFER-GESELLSCHAFT I nstitutional approach to promote innovation

Harald Egner 23 rd April 2010. FRAUNHOFER-GESELLSCHAFT I nstitutional approach to promote innovation. Fraunhofer Introduction Alignment of funding models (FhG/UK) Human resources Cooperation activities UK. The Fraunhofer-Gesellschaft.

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FRAUNHOFER-GESELLSCHAFT I nstitutional approach to promote innovation

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  1. Harald Egner 23rd April 2010 FRAUNHOFER-GESELLSCHAFT Institutional approach to promote innovation

  2. Fraunhofer Introduction • Alignment of funding models (FhG/UK) • Human resources • Cooperation activities UK

  3. The Fraunhofer-Gesellschaft The Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public enterprise and of wide benefit to society. Our Customers: • Industry • Service sector • Public administration

  4. Guiding Principles of the Fraunhofer-GesellschaftMission The Fraunhofer-Gesellschaft promotes and undertakes applied research in an international context, of direct utility to private and public enterprise and of wide benefit to society as a whole. By developing technological innovations and novel systems solutions for their customers, the Fraunhofer Institutes help to reinforce the competitive strength of the economy in their region, throughout Germany and in Europe. Their research activities are aimed at promoting the economic development of our industrial society, with particular regard for social welfare and environmental compatibility. As an employer, the Fraunhofer-Gesellschaft offers a platform that enables its staff to develop the necessary professional and personal skills that will enable them to assume positions of responsibility within their Institute, in industry and in other scientific domains.

  5. Rostock Itzehoe Lübeck Bremerhaven Bremen Hannover Berlin Potsdam Teltow Braunschweig Magdeburg Cottbus Oberhausen Halle Dortmund Schkopau Leipzig Duisburg Schmallenberg Dresden Jena St. Augustin Aachen Chemnitz Euskirchen Wachtberg Ilmenau Darmstadt Würzburg Erlangen St. Ingbert Kaiserslautern Fürth Nürnberg Karlsruhe Saarbrücken Pfinztal Ettlingen Stuttgart Freising Freiburg München Kandern Holzkirchen Efringen-Kirchen The Fraunhofer-Gesellschaft in Germany • 59 Institutes • 17 000 employees

  6. Demands on a Fraunhofer Institute Scientific competence proved by the recognition of the scientific community Well-balanced financial mix of different independent sources Market success and entrepreneurial competence proved by contracts with industry and government Professional networking with other Fraunhofer Institutes and externals

  7. The Profile of the Fraunhofer-Gesellschaft • 59 Institutes • 17 000 employees • 7 Groups: • Information and Communication Technology • Life Sciences • Microelectronics • Light & Surfaces • Production • Materials and Components - MATERIALS • Defense and Security

  8. Fraunhofer Alliances • Adaptronics • Advancer • Ambient Assisted Living • Building Innovation • Digital Cinema • eGovernment • Energy • Food Chain Management • Grid Computing • Nanotechnology • Optic Surfaces • Photokatalysis • Polymer Surfaces • Additive Manufacturing • Cleaning Technology • Simulation • Water Systems (SysWasser) • Traffic and Transportation • Vision

  9. Development of the Fraunhofer Institutes since 1949 8 GMD Institutes Institutes of the eastern German Länder Contract Research with own Institutes without own Institutes Establishment of the “Fraunhofer Model“ Zentrale/P2/Stand: 02-2008

  10. 1 339 1 291 129 million € Other Revenues 1 164 63 million € Revenues EU-Projects 1 068 1 032 320 million € Revenues Public Projects (Federal, German Länder) 407 million € Revenues Contract Financing (Industry) 420 million € Institutional Funding (preliminary) Key Activity Contract Research (million euros)

  11. 1 339 1 291 129 million € Other Revenues 1 164 63 million € Revenues EU-Projects 1 068 1 032 320 million € Revenues Public Projects (Federal, German Länder) 407 million € Revenues Contract Financing (Industry) 420 million € Institutional Funding (preliminary) Key Activity Contract Research (million euros) Public Project Funding Contract Research (Industry revenue) Performance related Institutional Funding

  12. Performance relatedallocation criteria for institutional funding Institutional funding for a Fraunhofer Institute 10% 40% G3 = 10% respectively 40% of industry revenues G4 = 15% of EU revenues G1: Fixed amount 10% G2: Budget of Institute G3: Percentage of industry revenues G2 = 12% of budget G1 = fixed amount 0,6 Mio € G4: Percentage of EU revenues % 25 55 Revenue Industry Allocation of Institutional Funding Target Figures in 2009: 244.9 million €

  13. Fraunhofer Institute - Dual Institute Model Academia,university (more) basic research Human Resources Academic career- PhD- Lecturing Contract Research (Industry) Rulesincentives Public funded Projects InstitutionalFunding Fraunhofer Institute University Institute

  14. The German Research Landscape *overall budget in billion euros Characteristics of Research Fraunhofer* 1,43 Applied Research Federal/German Länder Institutes0,9 Industry (internal and external expenditures)55,41 WGL*1,122 AiF~ 0,25 Univer-sities9,2 HGF*2,42 Fundamental Research MPG*1,442 Funding predominent institutional predominant private 1 estimation Wissenschaftsstatistik 2008, Stifterverband 2 2007 3 2008 HGF Hermann von Helmholtz-Gemeinschaft WGL Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz AiF Arbeitsgemeinschaft industrieller Forschungsvereinigungen MPG Max-Planck-Gesellschaft Source: Stifterverband für die Deutsche Wissenschaft, Destatis

  15. Fraunhofer Introduction • Alignment of funding models (FhG/UK) • Human resources • Cooperation activities UK

  16. Production Implementation • Fully production capable process qualified on full range of parts over extended period Technology Assessment and proving • Process Validated in Lab using development equipment Technology Readiness Level TRL 9 ProductionImplementation 8 7 Pre-production • Process optimised for capability and rate using production standard equipment 6 Pre- Production 5 4 3 TechnologyAssessment& Proving 2 1

  17. 1 2 3 4 5 6 7 8 9 Alignment of Funding Models UK Funding Bodies EPSRC TSB TRL / UK Fraunhofer Funding Mechanism Industrial Contracts(industry buying knowledge, applications0.5 – 1 year) Institutional Funding(3 – 5 years to market) Project Funding(2 - 3 years to market)

  18. 1 2 3 4 5 6 7 8 9 Fraunhofer Funding Model translated into TRL money to make knowledge knowledge to make money Fraunhofer Funding Mechanism Industrial Contracts(industry buying knowledge, applications0.5 – 1 year) Institutional Funding(3 – 5 years to market) Project Funding(2 - 3 years to market)

  19. 1 2 3 4 5 6 7 8 9 ValueforMoney Delivery Shorttermsolutions Creating competitive advantage for companies Creating Competitive Advantage for Companies TRL / UK Fraunhofer Funding Mechanism Industrial Contracts(industry buying knowledge, applications0.5 – 1 year) Institutional Funding(3 – 5 years to market) Project Funding(2 - 3 years to market)

  20. 1 2 3 4 5 6 7 8 9 Integrated Fraunhofer Model TRL / UK Fraunhofer Funding Mechanism Uni Fraunhofer Institute Department inside institute Working group inside department

  21. 1 2 3 4 5 6 7 8 9 Development of technology area over time TRL / UK -2 years Uni Uni +2 years Uni time

  22. 1 2 3 4 5 6 7 8 9 Market driven use of institutional funding TRL / UK Creating performance related institutional fundingannual effect -2 years Uni +2 years Investing institutional fundingin industrial needs / marketstypically 3-5 year effect time

  23. Product Life Cycle of technology area revenue Turning SoA;becoming available through commercial providers (companies, consultants) IndustrialRelevancefor institute time

  24. Need for Innovation/Business Continuity revenue time

  25. Summary of Fraunhofer principals • High autonomy of institutes • Integrated approach / responsibility TRL 2/3 to 8/9 • Performance related institutional funding inside Fraunhoferand inside institutes • Market driven investment of institutional funding on business unit level  risk mitigation • Companies buying knowledge to achieve competitive advantage • Fraunhofer brand • „Spring board“ to high level career in industry

  26. Fraunhofer Introduction • Alignment of funding models (FhG/UK) • Human resources • Cooperation activities UK

  27. Researcher Inventor Entrepreneur Joseph von Fraunhofer The Fraunhofer-Gesellschaft Discovery of “Fraunhofer Lines“ in the sun spectrum e.g.: Innovation Award 2004 of the German Federal President for Electric Biochip Technology New methods of lens processing e.g.: 2 patent applications each working day Head of Royal Glass Factory e.g.: ~ €450 million revenues from industry (about 4000 contracts)p. a.

  28. Fraunhofer-Gesellschaft Human Resources • As at December 31 of that year, including part-time jobs

  29. The top employers chosen by German students Universum Student Survey 2009 Quelle: Universum Communications, Stand Mai 2009

  30. 23 points 20points 19 points 17 points 14 points In the employer ranking Fraunhofer comes in second Universum Student Survey 2009 Quelle: Universum Communications, Stand Mai 2009

  31. „Spring board“ to high level career • Integrated approach along TRL levels • High throughput – opportunities for promotion • Academic and professional career in parallel • Market driven investment into new ideas • Understanding needs of companies to achieve / maintain competitive advantage • Multidisciplinary and cross-sector approaches • Building high quality networks • Brand

  32. Fraunhofer Introduction • Alignment of funding models (FhG/UK) • Human resources • Cooperation activities UK

  33. Levels of Cooperation - Fraunhofer institute / UK • Cooperation level • Joint research projects (FP7, EUREKA, bi-national) • Joint research agenda (institute level) • Joint research programme (DE / UK) • Institutionalised Cooperation (Centre) • Starting as joint Research Group (3 – 5 years) • Setting up formalised institution • Further steps depending on success over 3-5 years

  34. Institutionalised Fraunhofer Cooperation Fraunhofer DE Academia,university (more) basic research Human Resources Academic career- PhD- Lecturing Contract Research (Industry) Contract Research (Industry) Public funded Projects Public funded Projects Rules, incentives InstitutionalFunding InstitutionalFunding Institution UK FhI / DE University Institute UK Formal Agreement

  35. Thank you very much for your patience • harald.egner@ipa.fraunhofer.de

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