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HEPTech and ESS Innovation Procurement Workshop

HEPTech and ESS Innovation Procurement Workshop Practices in National Public Research Organisations European Research and Innovation Policy Unit, MIWF Anne Müngersdorff , ZENIT GmbH. Agenda. ZENIT GmbH - shareholders, priorities and areas of expertise

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HEPTech and ESS Innovation Procurement Workshop

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  1. HEPTech and ESS Innovation Procurement Workshop Practices in National Public Research Organisations European Research and Innovation Policy Unit, MIWF Anne Müngersdorff, ZENIT GmbH 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  2. Agenda • ZENIT GmbH - shareholders, priorities and areas of expertise • General information on public procurement in Germany • Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept • Innovative procurement in North Rhine-Westphalia / Germany 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  3. Shareholders(Public-Private Partnership) ZENIT – Zentrum für Innovation und Technik (since 1984) Netzwerk ZENIT e.V. Consortium of banks German State of North Rhine-Westphalia Represented by: Ministry of Innovation, Science and Research NRW.BANK WGZ BANK Bankenvereinigung NRW Network of 200 primarily small and medium-sized enterprises from NRW 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  4. Partner in the Enterprise Europe Network NRW.EuropaNCP for SMENCP - CIP-ICT-PSP ZENIT - Priorities and areas of expertise Funding Information on fundingEvaluation of project ideasChoice of programme Application support Innovation Europe International technology transfer,innovation management, technology searches and appraisals EU information Internationalisation strategies Cooperation partner search 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  5. Agenda • ZENIT GmbH - shareholders, priorities and areas of expertise • General information on public procurement in Germany • Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept • Innovative procurement in North Rhine-Westphalia / Germany 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  6. General information Key facts and legal framework on public procurement in Germany • Annual procurement volume in Germany on federal, regional and local level isabout 300 billion EUR (EU 2,400 billion EUR and some 19% of GDP),> 30.000 procurement departments, high potential for innovation • New ways of interrelation between purchasers and suppliers paved,additional incentives for reference projects in innovative organisations • 1 legal framework at federal level + 16 legal frameworks at Länder level (regional level) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  7. General information National Public Research Organisations (PROs) in Germany • Wide range of PROs, performing about 15 % of total R&D expenditure (2009) • Many different organisations/institutions with a variety of governance and financing models - ranging from basic research to applied research institutes • PROs are organised under the following four main organisations: • Max Planck Society (MPG) • Fraunhofer Society (FhG) • Helmholtz Association (HGF) • Leibniz Association (WGL) • MPG and FhG: integrated organisations with strong headquarters,HGF and WGL: umbrella organisations of legally independent institutes • Most governed by the Federal Ministry of Education and Research • All receive basic funding from Federal or Länder Governments 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  8. General information National Public Research Organisations (PROs) in Germany • MPG: 80 institutes, research units, working groups, mainly in the field of basic research; R&D expenditures 1.7 billion EUR (2011) • FhG: >80 research units, applied research and scientific and technical expertise for enterprises/SME; R&D expenditures 1.6 billion EUR (2010); of which roughly 80% is generated through contract research • HGF: community of 18 research centres, Germany's largest scientific research association, focusing on research which requires large scale installations,research which contributes substantially to answering the major challenges facing science, society and industry; R&D expenditures in 3.7 billion EUR (2013) • WGL: comprises 86 research institutions and service facilities, working at the interface of problem-oriented basic research and applied research; R&D expenditures 1.1 billion EUR (2009) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  9. General information E. g. Helmholtz organisations, located in Germany Source: Federal Ministry of Education and Research, BMBF map 2010: http://www.bmbf.de/de/5355.php 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  10. General information Identified constraints in the field of public procurement • Public money is tight, too little financial incentives for purchasers • Low risk and low strategic management in public procurement • Life-cycle costs less regarded • IP-Rights not used for risk sharing • Lack of knowledge of innovative instruments • On-the-job training needed (combination of legal, operational and economic) • Low interrelation between user, purchaser and supplier • e-Procurement tools are not completely compatible 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  11. Agenda • ZENIT GmbH - shareholders, priorities and areas of expertise • General information on public procurement in Germany • Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept • Innovative procurement in North Rhine-Westphalia / Germany 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  12. Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Impulses for innovation in public procurement • 2007 State Secretary Resolution of six Federal Ministries on the use of innovative public procurement within the frame of the High-Tech Strategy (HTS) of the Federal Government in Germany. The HTS(launched in August 2006) is the first national concept, which connected the key stakeholders involved in innovation around a common idea • 2009 progress report on innovative public procurement in Germany • The German Federal Ministry of Economic and Technology (BMWi) presented in May 2012 the revised innovation strategy of the general orientation of R&D and innovation policy • Including incentives to support innovative procurement (two PCP-pilots in Germany are planned on federal level, each 1 million EUR funding) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  13. Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Examples of innovative procurement from public research organisations Max Planck Society Cryo-Scanning Electron Microscope Fraunhofer SocietyInstitute for Photonic Microsystems OLED: Organic Light Emitting Diodes 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  14. Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept New Competence Centre for Innovative Procurement • March 2013 – BMWi opened the new Competence Centre for Innovative Procurement, established at the Association Materials Management, Purchasing and Logistics (AMMPL),Bundesverband für Materialwirtschaft, Einkauf und Logistik e. V. (BME) • Information centre (www.ko-inno-bmwi.de) • Consultancy service • Virtual market place • Support to pre-commercial procurement projects • Regional events 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  15. Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Prizesfor excellence in purchasingandlogisticsmanagement in 2013,each10,000 EUR • City of Detmold (use of innovative materials, reduction of health and environmental impact) in the region of North Rhine-Westphalia • University Hospital Bonn (standardisationanddefragmentationofinvestmentneeds) in theregionof North Rhine-Westphalia Public Procurement Innovation Award (BMWi and BME) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  16. Agenda • ZENIT GmbH - shareholders, priorities and areas of expertise • General information on public procurement in Germany • Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept • Innovative procurement in North Rhine-Westphalia / Germany 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  17. Innovative Procurement: North Rhine-Westphalia / Germany Strategic Dialogue and Milestones Inter-ministerial workinggroup on innovative procurement (IMAG) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  18. Innovative Procurement: North Rhine-Westphalia / Germany Strategic Dialogue and Milestones • Inter-ministerial working group on innovative procurement (IMAG) • Ministry of Innovation, Science and Research • Ministry of Economics • Ministry of Finance • PCP as one accompanying measure within the framework programme onResearch and Innovation for Sustainable Developement „Fortschritt.NRW“ • Internet-platform on innovative procurement www.vergabe.NRW (under construction ) • NRW participation in ICT-PCP-pilots 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  19. Innovative Procurement: North Rhine-Westphalia / Germany Participants from NRW in running PCP-projects „PRACE“ and „Smart@Fire“ Partnership for advanced computing in Europe High Performance Computing (HPC) Partner from NRW: Forschungszentrum Jülich (Research Centre) Smart@Fire Intelligent clothing for firefighters Partner from NRW: IFR - City of Dortmund (Fire brigade and life-saving service) 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  20. Innovative Procurement: North Rhine-Westphalia / Germany April, 23rd 2010 creation of the legal entity (AISBL) PRACEwith seat location in Brussels, Belgium 25 PRACE Members Interest by: Latvia, Belgium • 400 million EUR fromFrance, Germany, Italy, Spainprovided as Tier-0 services on TCO basis • 67+ million EUR from EC FP7 forpreparatory and implementation phasesGrants INFSO-RI-211528, 261557, and 283493Complemented by ~ 50 million EURfrom PRACE members 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  21. Innovative procurement at Forschungszentrum Jülich PRACE-3IP: some facts Innovative Procurement: North Rhine-Westphalia / Germany • Project life time: July 2012 – June 2014 (PCP part – June 2016) • Consortium: 26 partners from 24 countries • Budget: 26.4 million EUR • EC contribution: 19 million EUR • PCP budget: 9 million EUR (4.5 million € EC contribution) for subcontracting • This project receives funding from the European Community’s Seventh Framework Programme (FP7/2007-2013) under grant agreement no. 312763 Source: Forschungszentrum Jülich 2013 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  22. Innovative procurement at Forschungszentrum Jülich PCP - Execution stage Innovative Procurement: North Rhine-Westphalia / Germany Execution stage Pre-commercial small scale product/service development - Field test Solution design Prototype development Phase 1 – 6 months Phase 3 – 16 months Phase 2 – 10 months Vendor dialogue Sep 21, 2012 Supplier A Supplier B Selection of suppliers Selection of suppliers Assessment of results Supplier C Supplier B Supplier D Supplier C Supplier C Supplier E Supplier D Supplier D Supplier F Lesson learnt Recommendations for using PCP for HPC Contracts for phase 2 signed Contracts for phase 3 signed Framework contracts and contracts for phase 1 signed April 1, 2014 Feb. 1, 2015 October 1, 2013 June 30, 2016 Source: Forschungszentrum Jülich 2013 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  23. Innovative Procurement: North Rhine-Westphalia / Germany • Innovative procurement at Forschungszentrum Jülich Vendor dialogue • Agreement on need for dialogue with vendors • Several purposes • to explain our plans to vendors • educate them about PCP and how it works • explain the scale of funding and our technical goals • gather feedback from them • Open conference on PCP • close to 50 participants • more than 20 HPC companies • Very useful process • clear input from vendors on realistic technical goals • lack of funding for in-depth development e. g. silicon • need for simplified process Source: Forschungszentrum Jülich 2013 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  24. Innovative Procurement: North Rhine-Westphalia / Germany • Innovative procurement at Forschungszentrum Jülich Conclusions • PCP is a powerful tool to foster innovation in Europe • PCP should be primarily used by funding agencies and ministries,regions, cities • Conflict of interest: own competence vs. co-development • Horizon 2020: PCP without endanger the excellence principle • PRACE will pilot PCP in HPC Contact: Dr. Florian Berberich, Project Manager PRACE-3IP (PCP Pilot for HPC), Juelich Supercomputing Centre, Helmholtz-Gemeinschaft, Forschungszentrum Jülich, North Rhine-Westphalia Phone: +49 2461 61-2547 eMail: f.berberich@fz-juelich.de http://www.fz-juelich.de/jsc/ Source: Forschungszentrum Jülich 2013 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

  25. Thank you for your attention! Anne Müngersdorff +49 (0)208 30004-88 email: mu@zenit.de www.zenit.de ZENIT Centre for Innovation and Technologie in NRW 7 May 2013, HEPTechand ESS Innovation Procurement Workshop

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