Towards an EIT KIC on
Added Value Manufacturing
Prof. George Chryssolouris
Laboratory for Manufacturing Systems and Automation Department of Mechanical Engineering and Aeronautics University of Patras, Greece
Manufacturing matters
Manufacturing demonstrates a huge potential to generate wealth
and create high quality, value-adding jobs
o Around one in ten (9.8 %) of all enterprises in the EU-27’s non-financial business economy were classified to manufacturing in 2009, a total of 2.0 million enterprises.
o The manufacturing sector employed 31 million persons in 2009, generated 5.812 billion Euro of turnover and 1.400 billion Euro of value added.
o By these measures, manufacturing was the second largest of the NACE sections within the EU-27’s non-financial business economy in terms of its contribution to employment (22.8 %) and the largest contributor to non-financial business economy value added, accounting for one quarter (25.0 %) of the total
Manufacturing matters
European manufacturing is a dominant element of international trade
o EU-27 exported manufactured goods to the value of EUR 3.883 billion in 2010. Extra-EU trade in manufactured goods resulted in a trade surplus of EUR 174 billion in 2010.
Manufacturing is an R&D&I intensive activity
o In 2006, the R&D expenditure just in the Mechanical Engineering sector in EU-10 was $ 8,323 million.
o In 2007, the ‘manufacturing’ sector received the greatest share of business enterprise R&D expenditure in most of the EU-27 countries.
(Source: External and intra-European Union trade, Monthly statistics, 12/2011)
(Sources: [Ifo Institute, Cambridge Econometrics, Danish Technological Institute, Study on the Competitiveness of the
Manufacturing - powerhouse of the EU economy
o In 2011, manufacturing accounted for 23% of employment and 22% of value added in the non-financial business economy.
o It is estimated that for every job in manufacturing a further complementary job is needed in related business services, such as logistics, marketing or legal advice. o Manufacturing has also been the main driver of productivity growth. From 2000
up to 2007 the average productivity growth stood at around 3%, compared to the average for total economy at 1%.
o Industry is clearly a driver of knowledge-based economy, being responsible for some 80% of private R&D.
o Manufacturing is the most important sector for European international trade accounting for over 90% of overall exports of goods.
(Source: Commission Staff Working Document, accompanying the document “Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions Industrial Policy - Communication Update: A Stronger European Industry for Growth and Economic Recovery”, SWD(2012) 297 final, Brussels, 10.10.2012)
Challenges for European manufacturing
o Manufacturing the products of the future, addressing the ever changing needs of society and offering the potential of opening new markets by producing an increasing number of high-tech and smart products
o Economic sustainability of manufacturing, combining high-performance and quality with cost-effective productivity, realising reconfigurable, adaptive and evolving factories capable of economically viable small scale production
o Social sustainability of manufacturing, increasing human achievements, creating sustainable, safe and attractive workplaces, creating sustainable care and responsibility for employees and citizens in global supply chains
o Environmental sustainability of manufacturing, reducing resource consumption and waste generation, optimizing the use of resources
including new or advanced materials in view of producing more with less
o Over 100 organizations, from more than 20 countries, are directly and actively engaged in the ETP, including large OEMs, SMEs, Industrial Associations, Research Institutes, Universities and National Authorities.
Large Companies: DAIMLER, FESTO, SONAE, ALSTHOM, SIEMENS, DANFOSS, COMAU, MONDRAGON, ABB, ROLLS-ROYCE etc.
Associations representing SMEs: ORGALIME, VDMA, AGORIA, FIM, TEKNIKFORETAGEN etc
o Under the ETP’s umbrella, 28 MANUFUTURE National & Regional Technology Platforms are active with more than 1,800 member organizations around Europe.
Its mission is to define and implement research & innovation strategies, capable of speeding up the rate of industrial
transformation in Europe, securing high value adding
employment & winning a major share of world manufacturing output in the future knowledge driven economy
o As a MANUFUTURE initiative, EFFRA has been engaged in shaping and
implementing the ‘Factories of the Future’ (FoF) Public-Private Partnership (PPP) in cooperation with the European Union.
o Its Board of Directors includes representatives of large industrial companies, such as COMAU, DAIMLER, FESTO, SIEMENS, VOLVO, MONDRAGON, SONNAE etc., and associations, such as ORGALIME, VDMA,
TEKNIKFORETAGEN, CETIM, AGORIA, etc.
o Currently, more than 100 member organizations, including industry, research and associations / groupings
Its key objective is to promote pre-competitive research on production technologies within the European
Research Area
The idea – The Teaching Factory paradigm
… industrial practices to the classroom … “new” knowledge to the factory
The Teaching Factory as a 3-ways “learning channel” communicating KNOWLEDGE research education innovation KNOWLEDGE research education innovation
… a deliverable of the process for implementing EC’s Industrial Policy Communication COM(2010) 614
The background
(Source: Commission Staff Working Document, accompanying the document “Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions Industrial Policy - Communication Update: A Stronger European Industry for Growth and Economic Recovery”, SWD(2012) 297 final, Brussels, 10.10.2012)
Co-location Iberia - France Co-location Italy - Greece Co-location North Europe Co-location Germany - Poland Co-location United Kingdom- The Netherlands
The objective – A network approach
The objective – A European Teaching Factory network
Co-location Iberia - France Co-location Italy - Greece Co-location North Europe Co-location Germany - Poland Co-location United Kingdom- The NetherlandsCo-location centres as networked ecosystems to nurture industrial innovations and new ventures
The business perspective - Industrialization of Knowledge
Ref. Mondragon Corporation o Stimulating product / process
innovation in large firms & supporting SMEs
business clubs
technology transfer programs B2B matchmaking events
o New business creation trough spin-offs and start-ups: the KIC´s leitmotiv
best-in-class support systems for technology, market, team, finance
