The BIOCHEM projectEco-IP partnership for driving innovation in

the sector of bio -based productsthe sector of bio -based products

Bologna, 25 October 2011

Maria Grazia Zucchini, ASTER, Italy

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BIOCHEM – putting SMEs at the core of bio-based products innovation

European Funding for InnovationDrivers and Challenges to InnovationBio-based ProductsThe BIOCHEM Projecto Objectiveso Structure and Organizationo Innovative Methodology and targeted resultso Dissemination and Exit Strategy Planso Project Partnerso Achievements to Date & Next Steps

Conclusions

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European Funding for InnovationResearch versus Innovationo Research is the generation of new knowledgeo Innovation is the conversion of knowledge into successful business o Research consumes money whilst innovation generates money

Within the European Commissiono Research is supported by DG Researcho Innovation is supported by DG Enterprise & Industry

Over the period 2007 – 2013o Research budget is approx. € 53 billion (FP7)o Innovation budget is approx € 1.1 billion

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Europe INNOVA

The principal initiative within DG Enterprise & Ind ustry to support industrial innovation, mainly by funding the development of new tools and instrumentsThree eco -innovation projects funded to start in 2010Three eco -innovation projects funded to start in 2010o BIOCHEMo REMAKEo INNOWATER

Total BIOCHEM budget is €4.4 milliono Including €2.85 million from the EC (65%)

BIOCHEM supports one of the EU ‘Lead Markets’ –bio-based products

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Drivers and Challenges to Innovation

SOCIETAL DRIVERS

Climate Changeo EU target of 20% GHG reduction o EU target of 20% GHG reduction

by 2020

Security of raw material supplyo Reducing dependency on fossil fuels

Creation of new jobs

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Drivers and Challenges to Innovation

BUSINESS DRIVERSGrowth in demando Switching from hydrocarbon to carbohydrate

feed stocks for making chemicals• 2010- $125 billion global• 2020- $250 billion global

o One third of chemicals and materials will be produced from biological sources by 2030

o Demand for ‘green’ products

Cost Benefitso Cost of petroleum feed stocks will at some point

exceed the cost of renewable biomasso ... and technology costs will reduce

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Bio -Based ProductsDefinition: Non-food products derived from biomass (plants, algae, crops, trees, marineorganisms and biological waste from households, animals and food production). Bio-basedproducts may range from high-value added fine chemicals such as pharmaceuticals,cosmetics, food additives, etc., to high volume materials such as general bio-polymers orchemical feed stocks.

IMPORTANCE

o 7% of global sales $ 77 billion in value within the chemical sector (2005) o EU industry accounting for ~ 30% of this value

IMPORTANCE

2005 2010 2020

Volume of the newbio-based productmarkets

$77 billion (global) $125billion (global) $250 billion(global)

Jobs dependent onnew products

120.000 190.000 380.000

Accelerating the Development of the Market for Bio- based Products in Europe REPORT OF THE TASKFORCE ON BIO-BASED PRODUCTS Composed in preparation of the Communicati on “A Lead Market Initiative for Europe” {COM(2007) 860 final}

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Estimated EU production volumes of bio -based chemicals

EU, million tonne

Total consumption, 2008

Bio-based consumption, 2008

Bio-based potential, 2020

Growth potential, % pa

Plastics 48 0.13 0.9 16

Lubricants 5.2 0.15 0.23 3.6

Solvents 5.0 0.63 1.1 4.8

Surfactants 2.7 1.52 2.3 3.5

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Source: “Assessment of the Bio-based Products Market Potential for Innovation”(Poyry, BIOCHEM Deliverable 2.3)

Estimated EU market share and employment opportunities in bio -based chemicals

EU 2008 2020

Market Value (€ billion) 21 40Market Value (€ billion) 21 40

Bio-based share of total chemical value

4.0 6.0

Employment in bio-based chemical production

50,200 93,700

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Source: “Assessment of the Bio-based Products Market Potential for Innovation”(Poyry, BIOCHEM Deliverable 2.3)

Lead Market Potential and Market Barriers Hampering Innovation

Broad market segment

Demand driven instead of

Strategic societal and economic BIO-based

Barriers that hamper innovation• Significant investment required with high risk• Lack of awareness of Industrial Biotech and its

S&T and societal benefits• Lack of availability of facilities and access to first

instead of technology push

Reduction of CO2 and responsible use

of resuources

Added value of prospective,

concerted and targeted, but flexible policy instruments

and economic interest

BIO-based products:

Lead Market

Potential

• Lack of availability of facilities and access to first users to test out new bio-based technology

• Companies not well connected to each other, to the technology base or to their potential supply chains.

BIOCHEM Project

BIOCHEM

Overall Objective :

To develop practical solutions which will lower the barriers to innovation in bio -based products

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BIOCHEM: ObjectivesDevelop a new and tailored integrated BIOCHEM toolbox forproviding technical and business support to reduce barrier s to take-up ofIndustrial Biotech, particularly for small and medium-size d companies

Test the toolbox through a European BIOCHEM accelerator process, thatTest the toolbox through a European BIOCHEM accelerator process, thatselects high potential bio-based SMEs and supports them fromidea identification to bio-based business plan developmen t, findinginternational business partners, realising proof-of-con cept up toattracting finance and market introduction

Complete a comprehensive assessment of the bio-based productsmarket and potential, deploy a broad dissemination action in order toincrease the awareness of its potential for the chemistry-u sing sector

BIOCHEM: Structure & OrganizationWP 2

Market and Needs Assessment

WP 3Develop new Market

assessment and Innovation development tools

WP 4Develop new On-line

partnering & open Innovation System

WP 5Develop new access to

finance tools and services(public + private funds, incl.

BBB Fund)

WP 6 Integrated BIOCHEM Toolbox

WP

11 Aw

areness

WP

1 Project M

anagement

13BIOCHEM Accelerator

BIOCHEM ToolBox

WP 6 Integrated BIOCHEM Toolbox (including linking to other existing toolboxes e.g. IMPR3 OVE, G2G)

WP 7 European BioBased Business Generator(select new BBB ideas through Business Plan

competitions and TTT events)

WP 8 European BioBased Business Developer(SME Individual Development plans and

Consultancy Support using Toolbox)

WP 9 Finance BBB development(VC events, vouchers first users,

BBB Fund)

WP 10 Evaluation of integrated Toolbox and

Accelerator and develop Exit Strategy

Aw

arenessC

reation, Training and D

issemination

WP

1 Project M

anagement

BIOCHEM: Innovative Methodology & targeted results

BIOCHEM Toolbox

• New Bio-based market information and assessment tools for SMEs

• New European on-line partnering and open innovation resources system

• Tailored Gate2Growth support portal and tools for bio-based business planning

• Tailored on-line private and public funding directory

BIOCHEM Accelerator

•On-line publication of demand-side driven bio-based technology or product challenges•Selection of novel bio-based product and business ideas

Targeted results

• BIOCHEM Toolbox and Accellerator tested with at least 250 bio-based SMEs

• At least a total of 80 bio-based SMEs trained

• At least 250 SME assessments, development plans and mentoring

BIOCHEM Business Generator

4 EuropeanBIOCHEM Accellerator Fora

(London, Frankfurt, Madrid, Milan)Combine in a single three day event :

BIOCHEM Business Developer

•Audits and individual SME development plans •Selecting first users or test facilities

•Promote international market access•Links to available bio-based product standards and certification schemes

•Help fund proof-of-concept projects •Help develop tailored business plans (training) and get access to finance

• 100 – 300 Funding Assessment Reports

• 30 – 50 Funded Proof of Concept projects

• 30 – 50 Business Plans• European wide awareness

campaign• Exit strategy and

recommendations for a sustainable integrated or networked service package

Customized Eco-Innovation platform for the BIO-base d product market sector within an Open Innovation approach

Access to finance

1. Transnational Technology Transfer Events2. Partnering Sessions3. VC Events

• At least 120 bio-based SME participants

Dissemination and exit strategy plans

Industrial Community (SMEs)

• Dedicated partnering system• Training event for National Innovation Managers

• 4 Fora organized (combined Transnational Technology Transfer event, Partnering event and Finance and

Community at largeEducational audio visual customized material• Round tables• Debate fora• Newsletter containing general purpose educational material related to the societal importance of Bio-based

Exit strategy

• Potential to continue joint service provision

• Project Impact assessment analysis• Long term possibilities for establishment a sustainable Eco-Innovation BIOCHEM platformevent, Partnering event and Finance and

Venture Capital Event).• 2 Business plan competitions• On-line Customized innovation tools and materials

• Prototype Crowd sourcing Open Innovation system

• Publications in specialized/end user media

societal importance of Bio-based products

• Publications in “general public media”• Alignment with the INNOVA Communications services and in coordination with strand 6

platform• Memorandum of Understanding on the BBP Federated Investment Fund

• Recommendations to Policy Makers• Aligned with commitment of the “High Level Group on the Competitiveness of the European Chemicals Industry” to promote long term sustainable innovation across the value chain

Communicating the benefits of bio-based products to users a nd the public at large, in order to get a buy-in from all releva ntsocietal groups and market actors and considering a sustain able exit strategy

BIOCHEM Project Partners

Belgium

CEFIC, ESSENSCIA, PNO, eUN, FTC

UKCIKTN, Univ. Manchester, CPI,

PNO

NetherlandsNWO, PNO

FinlandPOYRY

DenmarkInvestors Net

ItalyASTER, Sviluppo Chimica, PNO

SpainMadrid Biocluster,

PNO,FEIQUE

GermanyDECHEMA, PNO

BIOCHEM Toolbox Overview

Networking ToolsPartnering Platform

Open Innovation / Crowd Sourcing

Sustainability ToolsSustainable Design Guide

Life Cycle Assessment: CCaLC

OpportunityAssessment

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ReportsBusiness Innovation Challenges

Products Market Pot. for Innovation

Business ToolsPublic/Private Funding Directory

Innovation Readiness/Business Plan

BIOCHEM Toolbox Overview

Sustainability Tools

CCaLCCCaLC enables quick and easy estimations of carbon footprints along the

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o CCaLC enables quick and easy estimations of carbon footprints along thewhole supply chains, helping SMEs to identify low-carbon options andopportunities for development of sustainable products and technologies.

Sustainable Design Guideo A practical workbook to build sustainability thinking into innovation

processes to define opportunities in bio-based products. It contains currentbest practice approaches, innovation strategies and numerous casestudies.

BIOCHEM Toolbox Overview

Partnering PlatformOnline service to build and enlarge personal networks within the bio-based

Networking Tools

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o Online service to build and enlarge personal networks within the bio-based products community and to search SMEs, industry organisations, universities and research facilities from all over Europe for identifying cooperation and business partners.

Crowdsourcing (Open Innovation)o Online service for description of co-operation offers/requests incl. R&D

projects, licensing opportunities and more.

BIOCHEM Toolbox Overview

Funding Directorieso Public Funding Directory for available public funding and possible project

partners

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partnerso Guide to Equity Financing

Business development tools for SMEs (Selection)o Business Plan Assessment Toolo Business Calculatoro Development of business modelso IP Managemento Investment fund

Business Tools

BIOCHEM Toolbox Overview

Assessment of BBB Innovation Challenges

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Assessment of the Bio-based Products Market Potenti al for Innovation

Best Practices of Bio-Based Businesses

Reports

Summary of Project DeliverablesYear Oneo Develop toolboxo Develop delivery processeso Generate background information to support innovationo Engage with target SMEs

Year Twoo Test the toolbox with 100 SMEso Develop and test crowd sourcing prototypeo Entrepreneurial teaching classes and first major accelerator forumo Business Plan competitions

Year Threeo Refine toolbox and use with a further 150 SMEso Analysis of project output and exit strategyo Development of BBP investment fund

Throughout projecto Newsletter, case studies, video, etc

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Progress and achievements to dateDevelopment of toolboxo Opportunity assessment questionnaireo Business support tools, including on-line partnering, funding directory,

LCA, Sustainable Design Guideo Innovation agencies trained in use of audit methodology and toolbox o Innovation agencies trained in use of audit methodology and toolbox

in March 2011

SME Visitso 36 SME visits have been conducted to date versus Year 2 target of

100

Accelerator Eventso First event in Milan event, 5-7 October 2011

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Success at the end of the project?

A toolbox that is useful to, and used by, SMEs and larger organisationsA community of SMEs and larger companies, A community of SMEs and larger companies, together with national and regional innovation agencies, which can collaborate to lower the barriers to innovation in bio-based productsA practical exit strategy to ensure that the legacy continues to live

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Acknowledgements

DG Enterprise and Industry

All the BIOCHEM partners

o And the regional organisations who are helping to find the right SMEs

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Thank you for your attention !

For further information on BIOCHEM see http://www.europe -innova.eu/biochem/http://www.europe -innova.eu/biochem/

From mid October the new BIOCHEM portal will be athttp://www.biochem -project.eu

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