Industry 4.0 enabled by the Internet of Things (IoT) allows for the integration of people, assets and applications within a company. It also contributes to the integration of a company with its wider ecosystem, which probably consists of customers, subcontractors, suppliers and R&D partners.
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Major trends that encourage Industry 4.0 are shorter product and service lifecycles and therefore the need to speed up time to market. Thus, the need for innovation will be increased. It might bring organisations to their limit in terms of innovation capacity and capabilities internally. Open Innovation can be an approach to master the innovation game and to stay competitive in fast-changing markets.
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The term Open Innovation was coined by Henry Chesbrough, a professor at UC Berkeley`s Haas Business School. In his definition it is “the use of purposive inflows and outflows of knowledge to accelerate internal innovation and to expand the markets for external use of innovation”.  This is based on the acknowledgement that knowledge and experience within an organisation is limited and that internal regulations/processes might even cause further limitations to evoke innovation.

The most prominent challenge that comes along with Open Innovation is how to handle the intellectual property (IP). The collaboration with third parties in innovation could create conflicts about IP ownership and raise the question of which part of the innovation will be owned by whom.
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Thus, it is a good idea to have a contractual regulation between the organisations for the processes of open and connected innovation fostered by Industry 4.0. There could be also a framework agreement between the organisations, that will set the rules under which joint innovation will take place.
 

Author 
Inqubator Leeuwarden

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​Since 2008 the Slovenian Enterprise Fund has been offering financial support for newly established innovative enterprises with a high growth potential. The focus has been at enterprises at the beginning of their business journey and are developing innovative products for the wider market as well as processes and services with a high added value.
 
These incentives provide financial support to young enterprises in the first development phase, which covers the setting up of an enterprise, the creation of a minimum viable product (MVP) based on own development, the creation of an entrepreneurial team, a direct transfer of knowledge and knowledge institutions into the business environment. 
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This is the most extensive group of newly established young innovative enterprises that show potential for rapid growth and need the most favourable financial sources at the beginning of their business journey. The call for  proposal is composed of two phases: pre-selection and complete project proposal. The successful startup can gain up to 54k euro in grants funding.
 
In addition to financial suppport, the startups can benefit also from free consulting services, provided by eminent mentors and coaches. This  measure »Startup Incentives« is  the first part of the comprehensive Support Programme for young enterprises in Slovenia.

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Author
Chamber of Craft & Small Businesses of Slovenia

​Several domain leaders are looking to collaborate with start-up companies that are more open to novel approaches and flexible in their approach towards manufacturing. These start-ups usually focus on creating new technologies that can enhance the capabilities of existing organizations by leaps and bounds.

​Another major benefit of partnering with start-ups is that they are smaller in size and it is easier for them to adapt to the changing business ecosystem. Finally, services offered by start-ups that are just beginning to gain scale in the market are usually priced low and are easily affordable. Thus, organizations can save huge amounts by opting for start-ups instead of established companies for their collaborations.

Moreover, start-ups usually come armed with a variety of new-age entrepreneurs that are skilled in several cutting-edge disciplines. The exchange of novel thoughts and ideas between individuals who have worked on and with leading technologies is always a huge plus for evolving companies.
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Keeping in mind that digitization will be at the heart of these collaborations, here are some key factors that can lead to a successful collaboration between organizations:
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• Take Small Steps: An organization, after collaborating with an innovative service provider, might remain in the stage of implementation for a prolonged period of time. During this time, organizations should focus on acquiring technological capabilities in an efficient manner instead of trying to fast-track the results.
• Devise New Products: While looking to collaborate to acquire industry 4.0 capabilities, it is always a good idea to commence the partnership with a fresh product. In this way, the company offering its technological expertise can test its developing technology in tandem with an established corporation.
• Look Beyond the first Project: While collaborating with one or more companies, it is important for a manufacturer to focus on long-term synergy. Aligned strategies and goals along with similar long term visions make for more fruitful collaborations between organizations.

Currently, rapidly evolving trends and multitudes of challenges exist in the manufacturing industry. Along with widespread technological uptake, companies will have to go through complete mindset shifts in order to survive in the 4th industrial revolution. Organizations carrying out business alongside each other will be required to become one unit, to share digital technologies and infrastructures and remain competitive in this ever-evolving business landscape.  


Author
Inqubator Leeuwarden

Different from the traditional R&D business model that keeps all the information internal, companies who embrace Open Innovation let the door open and ask for external ideas to solve their current business challenges more efficiently.
 
According to the article Could Open Innovation save the world? (Fitzgerald, 2020), there are few aspects that Open Innovation can bring benefits to the company:

• Identify some fantastic innovations that can complement companies’ own business solutions and benefit their clients
• Bring new discoveries, simplify the operation and bring new products to market in the shorter period
• The partnership with the external party can let the companies jump out of the routine, approaching the existing problems from different angles

 

The World Economic Forum is providing a manual to help startups and corporates work together.
The White Paper illustrates the Benefits for each side, going through Risks they should be aware of, and it finishes with the Challenges they both groups are facing when working together. The main conclusion is that they have to develop a common understanding of collaboration.

The ​European Data Incubator (EDI), a Horizon 2020 project, backed by the European Commission, is entering its final round.

The University of Deusto, project partner in the Upskilling Lab project, co-funded under the Erasmus+ programme, leads a consortium of experts in Big Data and Incubation of startups. “Only 2 out of the top 20 companies changing lives and making money from Big Data are European”. So this virtual incubator is linking startups with data providers (hopefully, some of them will become customers) to solve a challenge that the latter place on the table.

EDI will help those startups and data providers jump this hurdle providing:
(1) a free infrastructure with open source tools
(2) training on the most known off-the-self solutions
(3) support and business services to develop their business idea
(4) equity-free funding.
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The European Data Incubator is a three-phase incubation programme (more details in the picture below):

• Explore
• Experiment
• Evolve
  
  Each phase will allow the startup to develop its big data solution further, from defining the initial concept to launching into market in the last phase. 
  
  ​After each phase, a jury form by members of the consortium and investors decides if they are prepared to enter into the next phase or they should leave the incubator.

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The project is entering now Evolve phase of the second call and in March the new call for startups and data providers will be opened again.
 
So far, 70 startups have profited from the different services and grants provided by EDI. And, the aim of this project is to help 120 startups by the end of the third round.

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Author
University of Deusto

The EU funded project UpskillingLab 4.0 kicked off in Sofia, Bulgaria, on the 12th and 13th December. The main project goal is to provide skill improvement opportunities to companies’ staff (managers and employees) in order to connect international start-ups, scaleups, and established companies operating in specific verticals with focus on modern technologies and innovation (Industry 4.0). The meeting was an opportunity for all the partners to get more acquainted with the details of the project.
 
The consortium delivering the project is composed of:
●       Bulgarian Industrial Association (BIA), leader of the consortium
●       Knowledge, Innovation and Strategies Management Club (KISMC), from Bulgaria
●       Chamber of Craft & Small Business of Slovenia (CCSBS), from Slovenia
●       University of Deusto, from Spain
●       European Startup Network (ESN), from Belgium
●       Inqubator Leeuwarden (INQ), from the Netherlands

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