Bror Salmelin, Head of Unit Information Society, European Commission

1. Innovation and collaboration for productive economy: Changing the growth curve Bror Salmelin, Head of Unit Information Society, European Commission

2. Structure • context • trends • answers and action • conclusion

3. Society: challenges and opportunities • The EU has set the objectives for 2010… Lisbon council …. “To become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion.” eEurope: A major instrument providing consolidation in Member States • IST: key technologies….creation, sharing and exploitation of knowledge • Knowledge & Skills • determines the success of individuals and companies in the global economy

4. Globality: challenges and opportunities Challenges… • Productivity gap? • Relocation of low quality standardized jobs and, high skilled work to countries outside the EU • Job losses • Inclusion (regional, rural, skills) Opportunities… • Strengthening the European Research Area – the IST is a priority • Investing in human capital – expand the base of qualified ICT practitioners in strategic niches, emerging technologies, skills of ICT users of innovative systems…

5. Interplay needed at all levels Legal & Self-regulatory Economy & Society Infrastructure & Technology

6. Value Creation in Knowledge Economy • intangible economy • extended products including embedded services, covering entire life cycles • knowledge based economy • digital content and services • networking • simultaneous, complex and multidisciplinary

7. Productivity gap? • World Competitiveness ranking 2004 (http://www.weforum.org) : • Finland, USA, Sweden, Taiwan, Denmark, Norway, Singapore,…..-> different models, very holistic! • ILO statistics (http://www.ilo.org/public/english/employment/strat/kilm/htm) • Productivity growth per hour not higher in US than in Europe! (US 3,4% p.a, e.g. Fi 5,6, UK 3,8%, F 3,9% in years 1980-2001) • We work far less hours • -> societal model and societal values

8. Winning paradigms : simultaneous, sharing and collaborating Handicraft Industrial E-business E-life + e-work Local Multinational Inherently global Space Sequential Simultaneous Operation Strategy Win-lose Win-win Competitive factor Skills Capacity Multi-skill Innovation Energy Transportation Materials Individual Information Communication mobility processing 1800 1850 1900 1950 1980 2000

9. Change of Paradigms • Networking characteristics: • complexity • dynamics • synthesis, and “best guesses” • connectivityrather than competence • Global issues binding technology, business and legal innovation • “e- space” for “all” • privacy, IPR, ADR etc…. • public-private partnership • Digitalization of goods and services • from cost to value

10. Single European Electronic Market (SEEM)

11. ? Whole society in Change Societal Change impact Efficiency gains employment, skills, work organisation new products, services, business models contribution to wealth creation changes in product/sectoral value chains intensity Transaction/business size nature of transaction/business readiness Potential usage access technology infrastructure socio-economic infrastructure Phase e-Economy e-Society Take-up Best Practice Transformation Modified after OECD DSTI/ICCP/IIS(2000)5

12. New economy: research challenges Create a joint research agenda: 1. Finding the techno-economical drivers and enablers? 2. Describing macro-meso-microeconomic effects? - (synthetic) indicators for the new phenomenon - measuring economic performance 3. Creating multidisciplinatory research in living labs - models, scenarios, “new economic theory”, experiments….. Funding response from 7th Framework Programme for RTD

13. Thesis • In knowledge economy the trends suggest us to move from organisation- to human centric perspective: • We all have multiple simultaneous roles: • private - public • work – private • often multiple and changing in context with no clear boundaries • Organisations vs. Communities • Organisations catalyse or inhibit value creation • Incentives for the individuals to value creation

14. Knowledge Society Challenge: Put people in the centre • Creating new living and working environments for all • Combining productivity and quality of life • Human centered: • Location independently • Time independently • Device independently • Knowledge supported

15. People in the centre: Ambient intelligence • Barrier-free surroundings • media rich, multimodal, sensory perception • context sensitive, identities, preferences, care, safety • mobility, manipulation, navigation • multiple roles, work, citizen, social/leisure communities • design for all • Empowering the users • communication and collaboration, shared workspaces, social interaction, smart homes • knowledge access, transfer, accumulation • skills,value creation, innovation Full participation in the Knowledge Society To create a New Living and Working Environment when and where the individual wishes

16. Competence nodes networking L L L Competences Connectivity Leadership Customers

17. Emerging Technologies Beyond Robotics ’ Life like systems Complex System Cognition Presence Intelligence Perception Enhancing the best of human life through exploration of knowledge Ambient Small Large Disappearing computer Molecular computing Global Distributed Quantum information Global computing

18. Target: • increasing participation at work • improving communication in teams • improving innovation and creativity

19. The process of innovation! AMI@work Whole innovation process supported by: • Bringing research actors together with deployment and policy decision makers • Fostering interlinking • Innovating at the crossroads of the communities • Facilitating, not controlling!

20. Ambient Intelligence @Work communitiesAMI@Work family of self-organising ERIA Communities relating to New Working Environments technology themes & SEEM horisontal communities challenging validation environments vertical communities Innovative enabling technologies meet societal innovation - for systemic innovation, re-organising & transitions. Collaboration@Work Knowledge@Work Rural@Work Rural Information Society, Extended AgriFood Products and Services Life-Cycle Management @Work Sustainability, Individualisation and Interoperability for Products, Services and Environments Media @Work Public Sector @Work Modernisation of Public Administrations and Services Mobility@Work SEEM@Work Single European Electronic Market

21. AMI @ work environments • Required perspectives • connectivity: the work and collaboration process; • how to collaborate, how to transfer and accumulate knowledge, skills... • access and interaction: the immediate working surrounding: • media-rich location independent environment and connectivity • individual at the centre: the context sensitivity: • how to set the individuals personal environment, preferences, “identity” in the centre

22. Themes for research and verification in AMI@work • value creation based on collaborative structures across and within organisations,   • 24 hours global work and business patterns across communities • quest for knowledge and its conversion into value creation • technology development and validation • empowering individual in knowledge economy, next phase of eWork • "Conversing companies”     • Networking/Community organization or non-organization • Changing patterns of work in industry • regional innovation and collaboration • societal innovation

23. Full Impact Needs Systemic Innovation Component innovation Systemic innovation

24. 2005 2003 2004 2007 - 2010 … 2006 Timeline of EU Research Framework WP03-04 WP05-06 Call1 Call4 Call6 (tbc) Call5 Call2 Call3 FP6 FP7 WP + Calls Communication: "Preparing the future: reinforcing European research policy" (12/05/04) Adoption Proposals on FP, SPs and RfP eEurope 2010 Lisbon 2010 New Financial Perspectives Communication “Building our common future: Policy challenges and Budgetary means of the Enlarged Union 2007-2013" (10/02/04)

25. FP7 - 5+2 (+2) axes • Individual research teams • Research capacities • Private/public partnerships (technology platform concept) • Networking and collaboration • Co-ordination of national and regional research programmes and policies + • Space • Security + • Innovation • International cooperation • ICT research maps onto all 5+2 (+2) axes Cutting across

26. Conclusions • Human Centered Knowledge Society means • Increased responsibility for the individual • Increased productivity through innovation and creativity • Time gain by collaborative structures and shared environments • Increased possibilities for wealth creation by atypical job relations • New work paradigms • New work environments

27. Contact websites • http://europa.eu.int/eeurope • http://www.cordis.lu/ist • http://www.amiatwork.com • and e-mail: bror.salmelin@cec.eu.int