Ref. Ares(2019)5332022 - 21/08/2019
TABLE OF CONTENTS
KEY MESSAGES
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1. STEERING BRIEF
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1.1 Scene setter
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1.2 Objectives and Line to Take
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1.3 Line to take
2. BACKGROUND INFORMATION
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2.1 The Internet of Things
2.2 ICT, the 4th Industrial Revolution and IoT
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2.3 R&I on IoT and the 4th Industrial Revolution under FP7 and Horizon 2020
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3. ANNEXES
3.1 CVs
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1.2 Objectives
Encourage Qualcomm to take an active role in the building of the Digital Single Market by
engaging in collaborations with key European industrial stakeholders (to become part of the
"IoT ecosystem") and contributing in the discussions on the European policy framework,
including the definition of a trusted IoT.
1.3 Line to Take
3 EU Priorities
•
Digital Single Market (DSM): IoT will be one key element to enable the DSM
through new products and services. New business models like ‘Product-as-a-service’
or ‘shared-usage’ will be based on smart connected devices and object. These
technologies can be rol ed out quickly and across the whole of Europe so as to reap
economies of scale and productivity gains for our economies.
The EC encourages
companies to really exploit the DSM and push for the removal of cumbersome
market barriers.
•
IoT Ecosystem: IoT application cases can be very complex and include suppliers,
lead producers, competitors, and other stakeholders who need to team up and
cooperate seamlessly - even big players need to liaise with SME and innovative start-
ups. The EC expects
companies in the IoT area to form IoT ecosystems where the
members coevolve for improving products and services for the customers, and
where smaller and bigger players “survive” together in an open environment without
being dominated by large companies.
•
Trusted IoT: Security, liability, privacy and data protection are critical challenges for
the IoT. The EC expects industry-led incentives guaranteeing a proper use of data
and security to the users. A set of principles and standards could be developed and
result in industrial certificates – e.g. a Trusted IoT label. The Trusted IoT label would
correspond with compliance with a set of (security and) privacy principles like for
example ‘transparency’, ‘privacy by design’, and ‘data minimisation’.
The Internet of Things
• The Internet of Things (IoT) represents the next major disruptive economic and
societal innovation. Any physical and virtual object can become connected to other
objects and to the Internet, creating a fabric of connectivity between things and
between humans and things. IoT will allow companies to change their traditional
business models through new services and also combine the benefits of selling
products with value-added digital services.
• Europe cannot afford to miss the IoT revolution, as it missed the smartphone
revolution. The new Commission is committed to ensure that IoT can flourish
vigorously in Europe through open platforms and joint standardisation efforts, as
well as a supportive legal framework (ex: on liabilities, privacy, security and
spectrum and roaming). The IoT will not only benefit from the Digital Single Market
(DSM), but will be a major enabler for the DSM through new products and services.
• To foster European IoT innovation ecosystems, the Commission published recently a
€ 51 million call for IoT projects in the context of Horizon 2020. The initiative cuts
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across several technological areas and targets in particular SME / IoT innovators for
creating an open IoT environment.
• Through the work programme 2016-17, the Commission will support IoT Large
Scale Pilots to foster the end-to-end value chain integration of Internet of Things, Big
Data and Cloud approaches and technologies. The pilots include solutions in and
between large vertical markets including healthcare, smart cities, and transportation.
The initiative replies to one of the biggest challenges: to overcome the fragmentation
of vertically oriented closed systems, architectures and application areas.
• IoT is a strategic topic in many regions of the world and the Commission has been
active for several years in the international dialogue on important IoT aspects such
as architectures, standards, security and privacy, and governance.
IoT and the 4th Industrial Revolution
• Emphasise the high relevance of the "Internet of Things" (IoT) for managing the 4th
Industrial Revolution, which is crucial for the future of European industry and
Europe's industrial renaissance. Physical devices and the virtual world will be linked
to form Cyber-Physical Systems by way of a strong IT infrastructure, smart
computer-based devices and advanced, flexible and resource efficient production
processes. Europe needs to be one of the main actors in this digital revolution.
• Note that Horizon 2020 and associated initiatives address this challenge already. In
order to fully exploit the potential of the 4th Industrial Revolution we need to go
beyond mere technology development and have to address other elements crucial
for innovation such as the right regulatory framework, the availability of
appropriately skilled workforce and the awareness and acceptance of the public. The
4th Industrial Revolution actually goes beyond mere ICT aspects.
• Remind that a number of European countries have already launched activities to
support the transformation to a smart industry in general and the development of
the IoT in particular. These efforts should be coordinated and linked to the relevant
European initiatives, such as the Digital Single Market.
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2. BACKGROUND INFORMATION
2.1 The Internet of Things
The Internet of Things (IoT) is the next step of disruptive innovation and Europe cannot
afford to miss it, like it missed the smartphone revolution. The new Commission is
committed to ensure that such a promising development can flourish vigorously in
Europe and that we can all take full advantage of its potential (cf. Mission Letter of J.C.
Juncker to G. Oettinger).
According to Gartner nearly five billion things will be connected by 2015, reaching 25
billion by 2020. IDC estimates the IoT marketplace being worth over $7 trillion by 2020.
IoT offers tremendous opportunities for Europe in terms of solving global societal
challenges like industrial renaissance, reducing pollution, resource shortage, aging
societies by providing more accurate information, efficient automated communication
and by enabling alternative and more sustainable business models.
Most importantly, Europe's (and Germany's) industrial strengths on agile and high-
quality production can be maintained and extended through new innovative products
and services, reflecting in the same time important European values such as
sustainability, trust and social inclusion.
There is a need for the Commission to reach out to Member States and make sure that a
common vision and strategy emerges in the very near future, to avoid fragmentation
between national economies, and to make sure that we can reap the benefits of the
Digital Single Market in the IoT area too. The German initiative Industrie 4.0 could be
mobilised to that effect as it goes much beyond Factories of the Future and touches upon
the Connected Economy at large.
Fostering Europe…
In order to foster European
IoT innovation ecosystems the Commission published
recently a € 51 million call for projects (code ICT30) in the scope of Horizon 2020. The
objective is to build stronger relationships between industry, innovators and research
actors. The initiative cuts across several LEIT-ICT technological areas (smart systems
integration, cyber-physical systems, smart networks, big data) and brings together
different generic ICT technologies and their stakeholder constituencies to develop
technological platforms which will have a strong influence on the way in which we live
and work. This call for projects targets in particular SME and IoT innovators and
developers fostering the creating of an open IoT environment.
To complement this funding initiative, and in order to i) overcome the fragmentation of
vertically oriented closed systems, architectures and application areas in the field of IoT,
but as well to ii) move towards open systems and platforms that support multiple
applications, the Commission integrated in the draft Work Programme 2016-17 the
support of
IoT Large Scale Pilots (LSP). In addition, IoT will be a Focus Area (FA),
centred on LEIT-ICT and complemented with Societal Challenges (SC) activities together
with other DGs (RTD, AGRI, MOVE, ENER,…).
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LSP would provide application scenarios (cities, communes, rural areas) in order to co-
develop and validate IoT approaches. The main objective is to enable the deployment of
IoT solutions and services in the economy and society at large, by testing technology
feasibility, user acceptance and relevance of business models, while preparing future IoT
developments through research support.
Examples are IoT Large Scale Projects on Smart living environments, Smart Farming and
Food Security, reference smart cities, environmental monitoring, etc. They shall exploit
IoT innovation topics such as efficient and harmonised system architectures, security &
privacy, semantic data exchange, while at the same time integrating the end-user,
sectors, cities and regions.
The Commission has also set-up an internal coordination mechanism for linking the
subject of the Internet of Things better to related areas of Privacy&Security, Internet
governance, Digital Single European Market, Smart Cities, 5G and Big Data. The DG
CONNECT Advisory Forum (CAF) set up a specific workgroup on the Internet of Things
for providing a closer link with market actors. Regular exchange is taking place with
Member States’ Internet of Things initiatives.
Linking EU / MS initiatives on IoT– Industrie 4.0
Linking EU/MS initiatives on IoT is important in order to ensure complementarity of
policies and where applicable a certain degree of convergence at this two levels of
implementation.
Industrie 4.0 is an initiative in the high-tech strategy of the German government, which
promotes the computerisation of traditional industries such as manufacturing. The goal
is the intelligent factory (Smart Factory), which is characterized by adaptability,
resource efficiency and ergonomics as well as the integration of customers and business
partners in business and value processes. The basic principle of Industrie 4.0 is that by
connecting machines, work pieces and systems, we are creating intelligent networks
along the entire value chain that can control each other autonomously. The main
technological basis is cyber-physical systems and the Internet of Things. Experts believe
that Industry 4.0 or the fourth industrial revolution could be a reality in about 10 to 20
years. The Federal Ministry of Education and Research (BMBF) plans to spend up to 200
M€ for the initiative.
Present challenges are a lack of adequate skill-sets, the threat of redundancy of the
corporate IT department, and a general reluctance of the stakeholders (in particular
end-users) to change.
Standardisation
Why is IoT Standardisation important in this exercise? Standardization is one of the
essential elements for successfully deploying the IoT technology into the marketplace.
The innovative solutions (use cases) coming out from the IoT ecosystems and Large
Scale Pilots can only be taken up by the market if interoperability across these use cases
is ensured; important elements of the use cases (e.g. platforms, architectures, protocols
etc.) need to be transformed into global/European standards. To this end, the EC has
mandated ETSI (European Telecommunications Standards Institute) this year to draw a
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roadmap of the existing IoT standards and prepare recommendations on priority
standards that could be further validated through the LSP initiative. Results are
expected by late summer 2015.
Integration of EC FIWARE/IoT activities
Stronger emphasis is now given to the integration of IoT components of FIWARE (FI-
PPP) with the results from direct IoT research and innovation, supporting the
development and deployment of common IoT platforms with generic and open enablers
/ open source components, in order to provide a platform for rapid Internet of Things
take-up and support pre-normative activities. A further intention is to federate the
innovation communities from FI-PPP phase 3 with the IoT innovation communities and
makers.
RRI&SSH (Responsible Research & Innovation and Social Sciences and Humanity)
research
Responsible Research and Innovation in the context of H2020 and IoT means that
societal actors work together during the whole research and innovation process in order
to better align both the process and its outcomes, with the values, needs and
expectations of European society.
In view of the radical changes brought on by the deployment of ICT in today's society,
ICT challenge the very meaning of what is responsible research. It is suggested that the
CONNECT RRI-SSH approach in H2020 WP16-17 would not only support SSH research
for ICT R&D and all elements of RRI (open access, public engagement, gender equality,
ethics, and science education), but would also explore new ways to achieve responsible
research and innovation.
International cooperation
IoT is a strategic topic in many regions of the world and for this reason it is important
for the EC to have a very good understanding of planned or on-going foreign IoT
initiatives. The Commission has been active for several years in the international
dialogue on important IoT aspects such as architectures, standards, security and privacy,
and governance, in particular with Asian countries but the US is also an important
partner. At present more emphasis is given on how to connect European IoT innovation
to foreign marketplaces and to expand the exchange on IoT Large Scale Pilots.
2.2 ICT, the 4th Industrial Revolution and IoT
ICT and R&D&I
There are strong links between the digital world and research, development and innovation.
Most innovative products, processes and services rely on Key Enabling Technologies and are
intrinsically linked to IT systems. This applies to all life-cycle phases, be it development,
production or use and implementation. The 4th industrial revolution will further entwine the
physical with the virtual world and make the internet of things a reality.
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Research and innovation play a major role in this respect. Europe fulfils the major
prerequisites, that is, the research and innovation which are indispensable to capitalise on its
advanced know-how, a strong industrial basis, a well-developed IT infrastructure and a skilled
workforce. But Europe has to act quickly and be determined to succeed in the face of fierce
global competition. In this respect, the cooperation between EU Member States and
Associated Countries in Horizon 2020 provides mutual benefits for both sides.
The "digital economy" and the support for the transition to a "smart industry" are not new to
European research and innovation. A number of activities have been and will be contributing
to make the 4th Industrial Revolution happen, such as the public private partnerships (PPPs)
on Factories of the Future (FoF), and on Sustainable Process Industries (SPIRE). These PPPs
are well embedded in Horizon 2020.
Although R&D is key for the competitiveness of Europe's industry – and consequently for
growth and jobs –, it is not sufficient to ensure innovation. We also need the right framework
conditions, including a well-functioning "digital single market". If we want to establish a
flexible, smart, highly efficient industrial system, benefitting where appropriate from cross-
border value chains, we need to encourage investments in new online services and
applications and in digital infrastructure. Furthermore, industry needs easy access to digital
and online technologies and services and to secure (business to business) e-commerce.
That said, we should take a more holistic approach going beyond ICT aspects and including
other dimensions crucial for innovation as well, such as a skilled (or re-skilled) workforce,
and minimising environmental impacts and the reliance on resources (referred to as the
"circular economy").
The 4th Industrial Revolution
Over the last three decades, the IT revolution has radically transformed our working and
living environment. The rapid development of IT infrastructure, the evolution of PCs into
smart devices, the miniaturisation and the linking of ubiquitous powerful and autonomous
microcomputers in embedded systems with each other and with the Internet will link the
physical and the virtual worlds together to form Cyber-Physical Systems (CPS).
This dramatic change, often referred to as '4th Industrial Revolution', offers huge potential for
increasing flexibility, efficiency, resource productivity etc. in the production and service
sector, but also in our everyday life. The manufacturing industry in highly industrialised
countries is in danger if no action is taken, as devices become commodities and functional
differentiation becomes more difficult.
The European 'Factories of the Future' Public-Private Partnership (FoF cPPP), which started
in 2008 as part of the recovery package, supports EU manufacturing enterprises, in particular
SMEs, to adapt to global competitive pressures by developing the necessary key enabling
technologies across a broad range of sectors. The focus of the forthcoming years will be on
the development of clean, highly performing, environmental friendly and socially sustainable
high added value manufacturing technologies. It includes important elements of the '4th
industrial revolution', for example the use of ICT and 'interconnectedness' to make
manufacturing more flexible in terms of distributed supply chains, increase automation and
enable small-lot manufacturing of customised products and solutions.
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In addition to FoF, many other activities undertaken or planned by the Commission address
the concepts behind the 4th Industrial Revolution: the SPIRE cPPP for sustainable process
industries (DG RTD); the future KIC on Added Value Manufacturing (DG EAC); ICT for
manufacturing (linked to the Internet of Things, DG CNECT); the Task Force on Clean
Manufacturing, etc. – all support the desired transformation of the European manufacturing
industry.
Policy framework
In the 2012 Communication on the Industrial Policy Update 'A Stronger European Industry
for Growth and Economic Recovery', advanced manufacturing technologies that enable clean
production are recognised as one of the six priorities areas for the new industrial revolution:
'Tomorrow's factories will use highly energy- and material-efficient processes, employ
renewable and recycled materials, and increasingly adopt sustainable business models such as
industrial symbiosis to recover materials and dissipated heat and energy.'
In the Communication 'For a European Industrial Renaissance' of January 2014 it is stated
that a strong industry, supported also by advanced manufacturing, will be of key importance
for Europe’s economic recovery and competitiveness (see the Staff Working Document
'Advancing Manufacturing – Advancing Europe').
2.3 R&I on IoT and the 4th Industrial Revolution under FP7 and Horizon 2020
Europe's research and innovation programmes have been addressing these challenges for
years, in particular by public private partnerships (PPP) such as
'Factories of the Future'
(FoF) and
the PPP for
sustainable process industries (SPIRE), which are jointly managed by
DG RTD and DG CNECT (the latter one focussing on the ICT related parts). Many additional
activities are undertaken or planned by the Commission relating to the 4th Industrial
Revolution, e.g. the future KIC on Added Value Manufacturing (DG EAC); ICT for
manufacturing (linked to IoT, DG CNECT); and the Task Force on Clean Manufacturing. All
support the desired transformation of the European manufacturing industry.
Under FP7, € 70 million went directly to projects on IoT, indirect contributions are
difficult to estimate as they are distributed across the programme.
To foster European IoT innovation ecosystems, a call of € 51 million for IoT projects was
published under Horizon 2020. The initiative cuts across several technological areas and
targets in particular SME / IoT innovators for creating an open IoT environment.
Through the work programme 2016-17, the Commission will support IoT Large Scale
Pilots to foster the end-to-end value chain integration of Internet of Things, Big Data and
Cloud approaches and technologies. The pilots include solutions in and between large
vertical markets including healthcare, smart cities, and transportation. The initiative,
managed by DG CNECT, replies to one of the biggest challenges: to overcome the
fragmentation of vertically oriented closed systems, architectures and application areas.
DG CNECT intends to increase its budget for the Calls 2016-17 on the Internet of Things
to € 110 million (€ 17-20 million to go to Large Scale Pilots). They are considering
putting forward a Focus Area on IoT in that programming period to work more closely
with the Societal Challenges.
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Furthermore, Horizon 2020 will continue to support the contractual PPPs linked to the
4th Industrial Revolution (see below) with an average annual budget of roughly € 160
million for FoF (out of which € 100 million are not directly ICT related) and € 130
million for SPIRE.
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