CDTI´s Role in the Spanish RTDI Landscape “KSI” launching. 14 Feb 07

Page 2 OUTLINE I.Current situation of RTDI activities in Spain II.Challenges (and opportunities) for Spain III.Mission and description of CDTI IV.CDTI Strategic Action Plan

Page 3 I.Current situation of Research, Technological DeveIopment & Innovation activities in Spain

Page 4 R&D expenditure as a proportion of GDP Insufficient business participation in domestic R&D expenditure (2004) Sources Data: OECD Science, Technology and Industry Scoreboard (2005) e INE Estadística de I+D Public Sector Private Sector Lisbon objective : 3% Lisbon objective: 66% Current Situation of RTDI activities in Spain. Where are we?

Page 5 Current Situation of RTDI activities in Spain. Where are we? 1,1% GDP in R&D 2% GDP Structure of the production system in Spain focused in non-innovative sectors and lack of innovative “Champions”. Fragmentation, lack of coordination, and low attractiveness of Spanish public aid. Structure of the production system Public Aid for RTDI Short/Mid- Term impact Long- Term Impact Insufficient business participation in domestic R&D expenditure (48,4%). The number of firms that carry out R&D investments is very limited  4,000-5,000.

Page 6 II.Challenges (and opportunities) for Spain

Page 7 Challenges for Spain … Increase RTDI investment (public & private). Increase business participation (2/3 private R&D, 1/3 public) CDTI field of action. Raise the economy’s technological level. –Primary, secondary and tertiary sectors must be more technology-intensive

Page 8 INGENIO 2010: Programme to increase spending on R&D  Reach 2% of GDP in R&D expenditure by 2010 and 1,5% by  Private investment in R&D will increase from 48% to 55% of total by  Reach the European average in terms of Information Society indicators Objectives INSTRUMENTS  CENIT: Increase the public-private cooperation in R&D.  CONSOLIDER: reach critical mass in public research projects promoting large consortia, Currently are excessively atomize  electronic payments, double the number of houses with internet access. CDTI Ingenio 2010 … and opportunities for Action !

Page 9 III.Mission and brief description of CDTI

Page 10 Mission and brief description of CDTI Created in Currently reporting to the Ministry of Industry, Tourism and Trade through the Secretary General of Industry. Mission: To raise the competitiveness of the Spanish economy by increasing the technological level of its business sector. Demand driven model (Technology pull; Bottom-up model). Horizontal approach based on technical excellence criteria. Reference “management hub” in Spain for international R&D (Framework Programme, Eureka, … etc) since mid´80. CDTI’s legal entity provides the necessary flexibility to deal with firms and provide support to collaborative RTDI actors in Spain.

Page 11 Aeronautics and Space Division Management of instruments of support to the aeronautical R+D (civilian and military) ESA Technological provisions (CERN/ESRF, Hispasat /Eumetsat/Spainsat ) National Division Evaluation and finance R&D projects (interest-free loans and subsidies) Financing new technology based companies (NEOTEC and NEOTEC Capital Risk) International Division Management of international programs and cooperation projects with a technological content (EU Framework Programme, Eureka, Iberoeka, Chineka) Promotion of international technology transfer projects (External network) Brief description of CDTI Divisions Funds managed by CDTI in 2006  million €

Page 12 Tipos de proyectos nacionales de I+D+i financiados por CDTI Tipos de proyectos nacionales de I+D+i financiados por CDTI Proceso de I+D+I empresarial empresarial InvestigaciónPrecompetitiva DesarrolloTecnológico InnovaciónIndustrial InvestigaciónIndustrialConcertada Proyectos de Desarrollo Proyectos de Innovación de Innovación Tipo de proyecto CDTI proyecto CDTI Colaboración centro de investigación Desarrollo nuevos productos/procesos Incorporación y Asimilación de tecnología Línea CDTI - ICO Modernizacióntecnológica Consorcios Ingenio 2010-CENIT

Page 13 DIRECT FINANCING (Million euros in nominal terms, 2006 forecast) **

Page 14 Financiación preferente 50 % a 75 % ! de subvención Crédito incl. 25 % ! no reembolsable CréditosCDTI Programa Marco de I+D UE Bilaterales, EUREKA e IBEROEKA PromociónTecnológicaInternacional Número de socios del proyecto proyecto “Fondo común” de los países Miembros – libre concurrencia según la excelencia De 2 a múltiples socios (financiación descentralizada y en “geometría variable”) Patentes empresariales, adaptación tecnología, prototipos, etc... Línea ICEX- CDTI Programas internacionales de I+D+i gestionados por el CDTI Programas internacionales de I+D+i gestionados por el CDTI

Page 15 EU FRAMEWORK PROGRAMME > 230 M€/año 4 RESOURCES IN INTERNATIONAL R&D PROGRAMMES MANAGED BY CDTI – 2006 ESTIMATES Méjico Brasil Chile Magreb China Corea del Sur Japón EUREKA ~50+30 M€/año CHINEKA IBEROEKA ~ 50 M€/año INDIA Canadá EEUU KSI

Page 16 IV.CDTI Strategic Action Plan

Page CENIT Programme (National Industrial Research Consortia) CENIT Programme  Big projects that will increase the research and technological capacity of business sector as well as of the public research sector.  Promote the public-private partnership culture in R&D.  Enhance the future participation of Spanish entities in the VII EU Framework Programme. OBJECTIVES CDTI Strategic Action Plan  1st. Call in 2005: 16 selected projects  2nd. Call in 2006: closed on October 31st., 2006  Large, collaborative industry-led projects  Search of a technology break-through

Page 18 CDTI Strategic Action Plan 2. Set up a Venture Capital Fund of Funds (totaling 183 M€ for the period 2006 to 2010) to support the creation of technological firms in their early stages of development: –The fund of funds will be earmarked for investment in other venture capital entities: venture capital funds or venture capital enterprises. –Public and Private participants: CDTI, EIF, Spanish blue-chips –Private participation / contribution > 35 % Fund of funds

Page 19 CDTI Strategic Action Plan 3. To encourage coordination within Spain thereby making CDTI the reference Center of the overall Spanish Administration via : (1) Agreements with Autonomous Regions. 12 Agreements already signed (Aragón, Murcia, Asturias, Andalucía, Comunidad Valenciana, La Rioja, Navarra, Cantabria, Madrid y Cataluña. 3 other are in the process of being signed (País Vasco, Castilla-La Mancha y Castilla-León) and 2 more in the negotiation phase (Canarias and Galicia) (2)Research and Technology Organisations (so called “OPIs” and “CITs” in Spain) : 12 identified with 8 Agreements already settled in order to “leverage” business sector participation in collaborative R&D. (3)Partnerships beyond Europe and Latinamerica. Cooperation with ICEX and CDTI Overseas Network expanded to Asia and North America New Partnerships

Page 20 AMERICA LATINA Méjico Brasil Chile Magreb China Corea del Sur Japón AMERICA DEL NORTE USA SUDESTE ASIATICO INDIA CDTI OVERSEAS NETWORK, IN ADDITION TO THE SOST (Spanish S&T Office) IN BRUSSELS CDTI OVERSEAS NETWORK, IN ADDITION TO THE SOST (Spanish S&T Office) IN BRUSSELS

Page 21 4 Bilateral R&D Programmes, both operational and planned FLEXIBILITY AND RAPID RESPONSE TO SUBMITED PROJECTS... ADDRESSED TO HIGH-GROWTH POTENTIAL INTERNATIONAL MARKETS JOINTLY- DEVELOPPED PRODUCTS, PROCESSES AND SERVICES... DECENTRALISED SUPPORT BY EACH CONTRY / AGENCY

Page 22 PROJETS GENERATED AND PRESENTED BY COLLABORATING FIRMS COLLABORATIVE PROJECTS FOCUSSED ON MARKET-ORIENTED PROJECTS MINIMUN 2 PARTICIPANTS FROM 2 DIFFERENT COUNTRIES PERMANENTLY OPEN CALL FOR TENDERS ALL ALONG THE YEAR QUALITY “LABEL”. VERY APPRECIATED AND APPROPRIATE FOR SMEs DECENTRALISED FUNDING: NO “COMMON POT” NOR “A PRIORI” COMMITMENTS MANAGEMENT AND FUNDING FUNCTIONS CAN BE WITHIN THE SAME ENTITY OR NOT EACH COUNTRY APPOINTS ONE SINGLE ENTITY AS NATIONAL PROJECT MANAGER NATIONAL MANAGERS MIGHT SEARCH PARTNERS, CONSORTIUM AGREEMENTS, ETC FUNDING ENTITIES OR CENTERS CAN BE ONE (EVEN THE SAME) OR SEVERAL ONES FLEXIBILITY Key features of Bilateral R&D Programmes = EUREKA model

Page 23 Background of CDTI´s partnerships in Corea MoU between Spanish and Korean Ministry of Commerce & Industry Agreement with 중소기업진흥공단 ( “ Small Business Corporation ” SBC) Agreement with 한국산업기술평가원 ( “ Institute of Industrial Technology Evaluation and Planning ” ITEP) Agreement with 정보통신연구진흥원 “ Institute for Information Technology Advancement ” (IITA) 2007 February: “ Korea & Spain Innovating” (KSI) Programme signed with ITEP and supported by SBC