The impact of CERN on high tech industry developments

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The impact of CERN on high tech industry developments
The impact of CERN on high tech industry developments
Focus: The construction of the LHC

Thursday October 20th

Workshop: Research infrastructures for industrial innovation
European Commission, Brussels

                                                               Jean-Marie Le Goff, PhD, Dphil
                                                               Senior physicist
                                                               HEPTech coordinator
                                                               CERN
The impact of CERN on high tech industry developments
Content
1: Particle Physics characteristics and the LHC project

2: Economic utility resulting from CERN procurement contracts (CERN 1984 -14)

3: Technology transfer and technological learning through CERN’s procurement
activities (LHC, CERN-2003-005)

4: TT: Lessons learned from the construction of a very large research apparatus (LHC)

5: Main impacts of Particle Physics on industry and society

6: Observations and recommendations

         Workshop: Research infrastructure for industrial innovation
         Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
         Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
1: Particle Physics context
PP characteristics
• PP research requires the construction of very complex and extremely large devices (one-off developments)
• PP is a highly collaborative open science environment
  q   requiring expertise in many technology domains
  q   requiring long-term and tight collaboration with high-tech industry
  q   offering top quality education and training from apprentice to post-doctoral
• PP is extremely demanding in terms of equipment design, it generates novel technical approach which benefits many
  research disciplines and ultimately society

World standard institutions (centres of excellence) with high tech laboratories for:
• Accelerators
  q   Accelerator elements, vacuum technologies, magnets, super-conductivity and cryogenics, mechanics & surface treatments
• Particle detectors
  q   Electronics
• Data and computer-intensive software

                  Workshop: Research infrastructure for industrial innovation
                  Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments   3
                  Jean-Marie Le Goff
The impact of CERN on high tech industry developments
1: The Large Hadron Collider
Largest accelerator ever built
• 27 km ring of superconductive magnets
• Operation temperature: 1.8 Kelvin

Research machine
• New physics
• In operation since 2009                                                                         CERN/PS

             Workshop: Research infrastructure for industrial innovation
             Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments   4
             Jean-Marie Le Goff
The impact of CERN on high tech industry developments
1: R&D context for PP and industry
               Research: Open science                                              Industry: In/out sourcing technology
 • Publication of discoveries & R&D results                                 • Protection of innovations & know-how
  q   Scientific recognition                                                 q   Required to facilitate industrial dissemination
  q   Value in copyrights                                                    q   Value in IP rights (patents, etc.)
 • R&D to meet scientific programme objectives                              • R&D to increase market share
  q   Long-term                                                              q   Short-term
  q   Best possible solution within budgetary constrains                     q   Best cost-effective solution
 • R&D results: Technology                                                  • R&D results: Products (prototypes)
  q   IP rights to use internally                                            q   IP rights to manufacture
 • Highly collaborative                                                     • Highly competive
  q   Memorandum of Understanding (MoU)                                      q   Licence and/or partnership agreement
 • Unclear IP situation                                                     • Clear IP situation
  q   Joint ownership of R&D results                                         q   Clear ownership of R&D results
  q   Complex dissemination                                                  q   Dissemination based on manufacturing
 • Funding                                                                  • Financing
  q   Public                                                                 q   Private with public support (EU, National funds)
  q   Quality of research program                                            q   Product market potential

                                            KE: How to enhance societal benefits in an open
                                                         science environment

             Workshop: Research infrastructure for industrial innovation
             Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
             Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
2: Economic benefit to High Tech industry involved in CERN’s
 procurement contracts in relation to their sales (1984)
Period of study (1973 – 1987); SPS construction period

Interviews of 160 European firms (out of the 519 firms providing high tech equipment to CERN)
which supplied estimates of their:
• Increased turnover on sales
• Cost savings on production and procedures

due to CERN’s procurement contracts, in view of estimating the “secondary” economic impact of
CERN:
• Primary impact (Direct impact of long-term research) is not quantifiable
• Secondary impact: Impact of scientific equipment necessary for carrying out the research and supplied by industry
• Almost impossible to quantify all secondary effects -> Focus on main effects
• Effect considered:
  q   New products, quality improvements, productivity increases arising from procurements contracts
• Direct impact on the economy of CERN’s material and personnel budget (multiplier effect) is not within the scope of
  this study

Definition: Economic utility = Increased Turnover + Cost savings
                Workshop: Research infrastructure for industrial innovation
                Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
                Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
2: Main results of study
Qualitative results
• CERN-generated economic utility seems to grow on soil of all kinds, provided that at least one of
  several conditions is fulfilled:
 q   The firm is active in advanced technology
 q   Good professional relationship between CERN staff and firm’s staff with sufficient executive power
 q   The marketing manager is aware of the fact that for some potential customers, CERN is a good reference
 q   The staff responsible for the firm’s quality control have sufficient influence
 q   The firm makes an effort to satisfy CERN’s requirements, without necessarily making a profit while doing so.

Quantitative results
• Every €1 paid to industrial firms generates €3 of additional business.
• 75% of the increased sales were to sectors outside particle physics, such as:
 q   solar energy,
 q   the electrical industry,
 q   railways,
 q   computers and telecommunications
              Workshop: Research infrastructure for industrial innovation
              Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
              Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
3: LHC procurement
Figures
 q   4.3 Billion Swiss francs

 q   1170 call for tenders/price enquiries

 q   1040 contracts and 115 700 orders

 q   6400 suppliers

Strategy*
• CERN’s acts as general contractor. CERN makes the conceptual design of the accelerators and it’s
  main components (plus part of the hardware for the detectors) and subcontracts to industry.
• CERN’s requirements are divided into two categories
 q   Standard products
      – The responsibility lies with the supplier (power converters, transformers, cryoplants)
      – A performance specification using international quality standards is the basis for tendering

 q   New products requiring a conceptual design phase. The manufacturing methodology has to be developed
      – These products are strategic and exclusively designed for CERN needs
      – To reduce price and risk, CERN buys most of the components. This gives better control over the production and allows to spread the procurement
        over all the Member States as more companies can be involved
                                                                                                       (*) T. Lagrange Head of Finance and Purchasing Department/CERN
                Workshop: Research infrastructure for industrial innovation
                Brussels, October 20th, 2011                                       The impact of CERN on High-tech developments
                Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
3: LHC procurement: TT &Technology learning (CERN-2005-03)*
Survey of 154 suppliers (178 valid answers) from the main countries that participated in
CERN’s procurement activities during the period 1997 – 2001.
• Respondents represent 50% of the total procurement budget for the period under study
• 10% of CERN’s suppliers represent genuinely technology-intensive companies of some financial significance
  (Companies with orders  25 kCHF
        629 Technology intensive companies identified from internal interviews with experts                                     1197
        154 178 questionnaires received                                                                                          503

                                                                                           (*) M. Streit-Bianchi, E. Autio, H. P. Hamery
         Workshop: Research infrastructure for industrial innovation
         Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
         Jean-Marie Le Goff
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The impact of CERN on high tech industry developments
3: TT & Technological learning through procurement activities (3)
                                                            Main findings
    Ø   38% developed new products as a direct result of the supplier project
    Ø   13% started new R&D teams because of the CERN project
    Ø   14% started a new business unit
    Ø   17% opened a new market
    Ø   42% increased their international exposure
    Ø   44% indicated technological learning
    Ø   36% indicated market learning
The benefits assessed by the present study suggest that, for this subpopulation of
companies participating in highly demanding development and cutting-edge
technological projects, conventional procurements and stringent requirements are
not the most appropriate modes of interaction when one wishes to foster learning and
innovation in the long term.

Some measures to facilitate true R&D partnership with industrial partners are
required

         Workshop: Research infrastructure for industrial innovation
         Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
         Jean-Marie Le Goff
                                                                                                                      10
Lessons learned from the construction of a very large research apparatus (LHC)

4: TT activities during the LHC construction

     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
     Jean-Marie Le Goff
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4: CERN technology portfolio
During the period of analysis, 163 TT cases have
been recorded:
• More than 90% are related to the LHC programme
  q   Technology/expertise originating from the LHC programme
       – Ex: Mechanics: Diaphragm system used for the assembly of the LHC dipoles

  q   Developments carried out to support the LHC programme
       – Ex: IT: Electronic Document Management System (EDMS) used for the handling
         of the LHC and experiments construction data

• Cases almost evenly distributed across technology domains
  q   Accelerators
  q   Detectors
  q   Electronics
  q   IT & software
• Average exploitation level of the technology portfolio: 50%
• TT cases distribution
  q   00-04: On average 22 new TT cases/year on
  q   05-09: Decreasing to 9/year -> end of LHC construction

                   Workshop: Research infrastructure for industrial innovation
                   Brussels, October 20th, 2011                                       The impact of CERN on High-tech developments
                   Jean-Marie Le Goff
                                                                                                                                     12
4: TT lessons learned from the construction of the LHC
A large scale physics research programme boosts innovation
• 90% of the technology disclosures to the KTT group during the period of analysis corresponded to technologies &
  know-how related to the LHC programme

The LHC programme has fostered a rich variety of technologies and know-how
• Showing effective transfer
  q   50% of the technology portfolio is exploited
• The maturity of the technologies increases the chances of transfer
  q   71% of the technologies with high readiness level (3) are exploited

A large fraction of the CERN know-how and technologies is not patentable
• Patents are not the most suited protection for know-how and electronics
• Complex joint-ownership of developments reduces chances of filing patents
• Results of R&D partnerships with industry are an additional source of patents (co-ownership)

Pooling PP technologies can enhance dissemination prospects
• Various institutions are working on the same technology topic
• Pooling results can make the PP offer more attractive to industry

               Workshop: Research infrastructure for industrial innovation
               Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
               Jean-Marie Le Goff
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4: TT Lessons learned (2)
CERN technologies can be used in various domains but a large fraction lacks readiness
• Only 51% of the technologies are at the highest technology readiness level for transfer
• Promoting technologies and know-how is often insufficient to attract industrial interests
• Difficulty to identify pertinent applications where:
  q   The technology should be adapted to the needs of industry
  q   The use of the technology will definitely give industry a competitive advantage
  q   No alternative technology is easily accessible to industry
• Lack of dedicated funds to finance early demonstrators aiming to attract industrial interests

CERN technologies require further applied R&D to increase their market readiness
• About half of the contractual arrangements addresses R&D matters
• About 50% of the annual revenue is for financing R&D activities aiming to get closer to the market

Typical time to market for PP technologies ranges between 10 to 20 years
• Typical R&D project duration ranges between 3 to 5 years
• Commercialisation of products occurs typically 8 to 10 years after patent filing

               Workshop: Research infrastructure for industrial innovation
               Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
               Jean-Marie Le Goff
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The complex and sophisticated tools of particle physics are rich sources of new
concepts, innovation and groundbreaking technologies, which benefit various
applied research disciplines and eventually find their way into many applications
that have a significant impact on the knowledge economy and society.

5: Main impacts of PP on industry and society
     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
     Jean-Marie Le Goff
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Economic benefits
u   More than 30,000 accelerators are active worldwide; Less than 200 are for research purposes.

u   The impact of the world economy is much larger than just the sales of these accelerators; Products and
     processes produced have a monetary value that is 100-1000 times larger than the initial capital cost.

u   All the final products that are processed, treated or inspected by the particle beams of industrial accelerators
     worldwide, have a collective annual value of more than €500 billion.
     Applica'on	
                  Total	
     Systems	
  sold/      Sales/year	
  (€M)	
    System	
  price	
  (€M)	
  
                                 systems	
          year	
  
     Cancer	
  therapy	
             9,100	
                 500	
                 1,800	
        2.0	
  –	
  5.0	
  

     Ion	
  implanta'on	
                         9,500	
                   500	
                 1,400	
      1.5	
  –	
  2.5	
  

     e-­‐	
  welding	
  &	
  cuKng	
              4,500	
                   100	
                   150	
      0.5	
  –	
  2.5	
  

                                                                                                                                                 Market growth >= 10%/year
     e-­‐	
  and	
  X-­‐ray	
  irradiators	
      2,000	
                     75	
                  130	
      0.2	
  –	
  8.0	
  

     Radioisotopes	
                                 550	
                    50	
                    70	
     1.0	
  –	
  30	
  

     Non-­‐destruc've	
  tes'ng	
                    650	
                  100	
                     70	
     0.3	
  –	
  2.0	
  

     Ion	
  analysis	
                               200	
                    25	
                    30	
     0.4	
  –	
  1.5	
  

                                                                                                                                     2007 data
     Neutron	
  generators	
                      1,000	
                     50	
                    30	
     0.1	
  –	
  3.0	
  

     Total	
                                     27,500	
                 1,400	
                 3,680	
              	
  
                       ESGARD: European Steering Group for Accelerator Research and Development
                                                                                       The impact of CERN on High-tech developments                                          16
Basic and applied sciences go hand in hand, relying on and challenging one
another. Public support is instrumental to fostering this delicate alchemy.
Europe’s future prosperity depends on it.

6: Observations and recommendations
     Workshop: Research infrastructure for industrial
     innovation                                         The impact of CERN on High-tech developments
     Brussels, October 20th, 2011
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Observations
Research and innovation
• Research in curiosity-driven science is a key driver for technological innovation and economic success
  q   There would not be any microelectronics to speak off without accelerators
  q   Accelerators play a key role in cancer therapy by directly destroying tumours
• Basic and applied sciences go hand in hand, relying on and challenging one another

Intellectual Property
• Due to its openness and collaborative approach, a large fraction of the technological innovation is not patentable
• Technology pooling across institutions to enhance the attractiveness of the offerings to industry

Impact on industry and society
• Technology transfer activities related to PP do not properly reflect the impact of the discipline on society
  q   A very large fraction of the industrial developments with significant economic impact resulting from research, did not occur through
       Knowledge and Technology transfer contractual arrangements
  q   Publications and researchers’ mobility are key drivers for Knowledge Transfer
• Industry is slow in the adoption of novel technologies from research
  q   Most of the accelerators used in industrial processes are based on technologies developed by research in the 60’s
  q   Large gap between technology and industrial applications
  q   Patents on the original inventions are in the public domain
                Workshop: Research infrastructure for industrial innovation
                Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
                Jean-Marie Le Goff
                                                                                                                                     18
Recommendations
Fostering synergies between academia and industry in R&D for future PP projects is instrumental
to sustainable KT

There is a clear need to join forces at the research community level to:
• Communicate and raise awareness on the long-term impact of research
• Market the technologies and the expertise of the community
• Speed-up the adoption of research results by industry
• Assist researchers in adapting their R&D practices to the evolving high tech industrial environment

Joint TT actions are needed to bridge the funding and time gaps between research and industry
• Communication on the technology and expertise capability of the research community
• Technology matching events: Joint academia – industry technology events to motivating industry to partner with
  research and highlight the market potential of the technology
• Demonstrators: Elaborate technology offerings for the development of pre-industrial prototypes in domains of high
  relevance to European priorities with a view to attracting applied research and industrial partners and funding

           Workshop: Research infrastructure for industrial innovation
           Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
           Jean-Marie Le Goff
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Ex: Mini-cyclotron for producing medical isotopes
R&D collaboration with CIEMAT/SPAIN representing a consortium (AMIT) of 9 companies and 14
research laboratories in Spain for the design and construction of a demonstrator of the smallest
possible accelerator for producing medical isotopes
• Analysis of the situation regarding the production of medical isotopes (2008):
  q   Size and costs of cyclotrons for producing isotopes are strong limiting factors for the use of PET devices for drug discovery.
  q   Isotopes are limited in practice to 18F, due to the short half-life of other positron emitters such as 11C (preferred isotope)
• Solution:
  q   Build a very small cyclotron capable of producing 18F and 11C that could be installed in a very small enclosure
       within a clinical facility combined with microfluidic techniques for synthesising drug markers in situ
• Scheme elaborated by the TT Network:
  q   Foster ‘cash-less’ R&D collaborations with national PP laboratories that would take the responsibility of building
       demonstrators with industrial partners using LHC technologies (superconductivity, super fluidic, UHV, etc.)
• Benefits of this scheme:
  q   Use of accelerator technologies from the PP community in industrial applications
  q   Opportunity for national PP labs to acquire cutting edge technologies and expertise while taking a leading role in applied projects
  q   Possibility for CERN to license and/or establish R&D collaborations to transfer results to other applications
• Results:
  q   A multi-disciplinary institution (CIEMAT) and CERN have implemented the scheme, sought industrial partners and funding
  q   R&D collaboration contract signed (Sept. 7th; Project has just started)
                 Workshop: Research infrastructure for industrial innovation
                 Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
                 Jean-Marie Le Goff
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A model for setting up R&D collaborations with industry?
Analysis of the situation
• PP laboratories with important experimental facilities
  q   Have expertise and technology that can significantly benefit a large variety of applications
  q   Lack resources (Human and Financial) and time to take care of the construction of the pre-industrial demonstrator
       – Same experts to work on too many projects
       – Compensations

• Multi disciplinary Institutions
  q   Active in applied R&D
       – Have expertise on aspects that are complementary to PP
       – Have pertinent industrial contacts
       – Have access to dedicated national funds to support the construction of pre-industrial demonstrators

  q   Interest in building in-house expertise on PP high-tech matters
       – To position itself better with respect to the PP Community

  q   Interested in enhancing their visibility
       – At the national level
       – With the PP community

• The TT Network is a pool of expertise and contacts and acts as a facilitator and catalyst

                 Workshop: Research infrastructure for industrial innovation
                 Brussels, October 20th, 2011                                      The impact of CERN on High-tech developments
                 Jean-Marie Le Goff
                                                                                                                                  21
The model

                                                                                     Industrial	
  
                                                                                     Partner(s)	
  

                                                        Mul%-­‐disciplinary	
  
                                                               PRO	
  

                    Par%cle	
  Physics	
  	
  
                         PRO	
  

     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
     Jean-Marie Le Goff
Role and resources

                                                                                                Industrial	
  
                                                                                                Partner(s)	
  
                                                                                                    	
  
                                                                                           Builds	
  pre-­‐industrial	
  
                                                         Mul%-­‐disciplinary	
                demonstrator	
  
                                                                PRO	
                                   	
  
                                                       	
                                   Commercializa'on	
  
                                                                  R&D	
  project	
  
                                                                 management	
  
                    Par%cle	
  Physics	
  	
                               	
  
                         PRO	
                                Design,	
  construc'on	
  
                           	
                                      and	
  test	
  of	
  
                    Provides	
  exper'se	
                       demonstrator	
  
                    and	
  consultancy	
  on	
  
                     PP	
  technologies	
  
                                	
  
                     Provides	
  tes'ng	
  
                            facili'es	
  

     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                          The impact of CERN on High-tech developments
     Jean-Marie Le Goff
                                                                                                                            23
Technology transfer: formal Intellectual Property

                                                                                                   Industrial	
  
                                                                                                   Partner(s)	
  
                                                                                                       	
  
                                                                                                   Owns	
  the	
  
                                                                                                demonstrator	
  and	
  
                                                           Mul%	
  disciplinary	
                exploits	
  results	
  
                                                                   PRO	
                                  	
  
                                                        	
  
                                                               Licenses	
  its	
  results	
  
                     Par%cle	
  Physics	
  	
                  and	
  sublicense	
  PP	
  
                                                                  PRO	
  results	
  to	
  
                          PRO	
                                       industry	
  
                            	
  
                    Licenses	
  its	
  results	
  
                   and	
  background	
  on	
  a	
  
                   non-­‐exclusive	
  basis	
  to	
  
                   mul'-­‐disciplinary	
  PRO	
  

      Workshop: Research infrastructure for industrial innovation
      Brussels, October 20th, 2011                                            The impact of CERN on High-tech developments
      Jean-Marie Le Goff
Technology transfer: expertise and know-how

                                                         Mul%-­‐disciplinary	
  
                                                                PRO	
  
                                                         	
  
                                                           Learn	
  from	
  PP	
  PRO	
  on	
  
                   Par%cle	
  Physics	
  	
                   PP	
  technologies	
  	
                 Industrial	
  
                        PRO	
                                            	
  
                                                                                                       Partner(s)	
  
                          	
                                  Trains	
  engineers	
  	
  
                   Provide	
  exper'se	
  and	
                from	
  industry	
                          	
  
                                                                                                   Provides	
  engineers	
  
                      consultancy	
  to	
  Mul'-­‐
                                                                                                  to	
  mul'-­‐disciplinary	
  
                        disciplinary	
  PRO	
  
                                                                                                             PRO	
  
                                 	
  
                                                                                                        Recruit	
  young	
  
                    Trains	
  students	
  on	
  PP	
  
                                                                                                  graduates	
  trained	
  in	
  
                          technologies	
  
                                                                                                    PP	
  technologies	
  
                 	
  
     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                             The impact of CERN on High-tech developments
     Jean-Marie Le Goff
Minimize dedicated resources and maximize impact

                      Industrial	
                                                                            Industrial	
  
                      Partner(s)	
                                                                            Partner(s)	
  
                                            Mul%-­‐                                       Mul%-­‐
                                         disciplinary	
  	
                            disciplinary	
  	
  
                                             PRO	
                                         PRO	
  
                                                                    Par%cle	
  
                                                                    Physics	
  	
  
                                                                     PRO	
  

                                                                   Mul%-­‐
                                                                disciplinary	
  	
  
                                                                    PRO	
  

                                                                   Industrial	
  
                                                                   Partner(s)	
  

     Workshop: Research infrastructure for industrial innovation
     Brussels, October 20th, 2011                                            The impact of CERN on High-tech developments
     Jean-Marie Le Goff
Conclusion
Proper setup with adequate funds and resources operating with the RI‘s support and
dedicated to building pre-industrial demonstrators can facilitate the access of
technology and expertise to industry and speed-up their adoption in industrial
processes

                                      Thank you for your attention

       Workshop: Research infrastructure for industrial innovation
       Brussels, October 20th, 2011                                  The impact of CERN on High-tech developments
       Jean-Marie Le Goff
                                                                                                                    27
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