HEPTech and ESS Innovation Procurement Workshop

www.wissenschaft.nrw.de


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HEPTech and ESS Innovation Procurement Workshop

Practices in National Public Research Organisations

European Research and Innovation Policy Unit, MIWFAnne Müngersdorff, ZENIT GmbH

7 May 2013, HEPTech and ESS Innovation Procurement Workshop


7 May 2013, HEPTech and ESS Innovation Procurement Workshop 3

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



Netzwerk ZENIT e.V.Netzwerk ZENIT e.V.

Network of 200 primarily small and medium-sized enterprises

from NRW

Consortium of banksConsortium of banks

NRW.BANK WGZ BANK

Bankenvereinigung NRW

German State of North Rhine-Westphalia

German State of North Rhine-Westphalia

Represented by:Ministry of Innovation, Science

and Research

ZENIT – Zentrum für Innovation und Technik (since 1984)

Shareholders(Public-Private

Partnership)



ZENIT - Priorities and areas of expertise

FundingFunding

Information on fundingEvaluation of project ideas

Choice of programmeApplication support

InnovationInnovation

International technology transfer,

innovation management,technology searches and

appraisals

EuropeEurope

EU information Internationalisation strategiesCooperation partner search

Partner in the Enterprise Europe Network NRW.EuropaNCP for SMENCP - CIP-ICT-PSP



Agenda







• Annual procurement volume in Germany on federal, regional and local level is

about 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)

General information

Key facts and legal framework on public procurement in Germany


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General information

• 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


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)

General information

National Public Research Organisations (PROs) in Germany


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General information

Source: Federal Ministry of Education and Research, BMBF map 2010: http://www.bmbf.de/de/5355.php


E. g. Helmholtz organisations, located in Germany



• 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

General information

Identified constraints in the field of public procurement



Agenda







• 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)

Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept

Impulses for innovation in public procurement


21.04.23 14


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





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



Prizes for excellence in purchasing and logistics management in 2013,each 10,000 EUR

•City of Detmold (use of innovative materials, reduction of health and environmental impact) in the region of North Rhine-Westphalia

•University Hospital Bonn (standardisation and defragmentation of investment needs) in the region of North Rhine-Westphalia


Public Procurement Innovation Award (BMWi and BME)



Agenda






Strategic Dialogue and Milestones

Inter-ministerial working group on innovative procurement (IMAG)


Innovative Procurement: North Rhine-Westphalia / Germany




• 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

•

Strategic Dialogue and Milestones




Participants from NRW in running PCP-projects „PRACE“ and „Smart@Fire“

Partnership for advanced computing in EuropeHigh Performance Computing (HPC)Partner from NRW: Forschungszentrum Jülich(Research Centre)

Smart@FireIntelligent clothing for firefighters

Partner from NRW:IFR - City of Dortmund(Fire brigade and life-saving service)


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25 PRACEMembers

April, 23rd 2010 creation of the legal entity (AISBL) PRACE

with seat location in Brussels, Belgium

400 million EUR fromFrance, Germany, Italy, Spain

provided 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 EUR

from PRACE members

Interest by:Latvia,Belgium




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Innovative procurement at Forschungszentrum Jülich PRACE-3IP: some facts

• 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



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Execution stage

Ap

ril 1,

20

14

Framework contracts and contracts for phase 1 signed

Feb

. 1,

20

15

Octo

ber 1

, 2

01

3

Contracts for phase 2 signed

Prototype development Pre-commercial small scale product/service

development - Field test

Supplier A

Supplier B

Supplier C

Supplier D

Phase 1 – 6 months

Jun

e 3

0,

20

16

Phase 2 – 10 months Phase 3 – 16 months

Supplier B

Supplier C

Supplier D

Solution design

Sele

ction

of

sup

plie

rs

Sele

ction

of

sup

plie

rs Supplier C

Supplier D

Asse

ssmen

t of re

sults

Contracts for phase 3 signed

Lesson learntRecommendations

for using PCP for HPC

Supplier E

Supplier F

Vendor dialogueSep 21, 2012

Innovative procurement at Forschungszentrum Jülich PCP - Execution stage





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• 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

Innovative Procurement: North Rhine-Westphalia / GermanyInnovative procurement at Forschungszentrum Jülich Vendor dialogue




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• 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: [email protected] http://www.fz-juelich.de/jsc/

Innovative Procurement: North Rhine-Westphalia / GermanyInnovative procurement at Forschungszentrum Jülich Conclusions




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Thank you for your attention!

Anne Müngersdorff +49 (0)208 30004-88 email: [email protected] Centre for Innovation and Technologie in NRW


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HEPTech and ESS Innovation Procurement Workshop

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