Editorial: The Crucial Role of Loss-Making Units in R&I Success
Lessons from (very) successful EU R&I institutions

Editorial: The Crucial Role of Loss-Making Units in R&I Success

During a recent institutional visit, a striking phrase from a Vice President of a leading research and innovation (R&I) institution caught my attention: "I am loss-making." This statement, initially surprising, revealed a profound truth about the essence of R&I success. The VP was referring to her unit, which focuses on the corporate side of the instution, on pre-award activities, negotiation, lobbying, intelligence creation, and connecting people. These functions, while not directly profitable or measurable by financial KPIs, are indispensable to the institution's overall success. This narrative sheds light on why loss-making units are crucial and what they signify about the maturity and strategic foresight required for a successful R&I institution.?

The backbone of innovation?

The core activities of a loss-making unit encompass a range of foundational tasks essential for the R&I ecosystem. Pre-award efforts involve identifying funding opportunities, preparing proposals, and navigating the complexities of grant applications. Negotiation and lobbying are vital for securing favorable terms and conditions, while intelligence creation involves gathering and analyzing data to inform strategic decisions. Furthermore, bridging people by fostering collaborations and partnerships is critical for innovation.?

These activities create a fertile environment for researchers to thrive and for innovative ideas to take root. By supporting these foundational tasks, the institution ensures that researchers can focus on their primary work—advancing science and technology—without being bogged down by administrative burdens.?

Enabling financial success?

While these units do not directly generate revenue, their work is instrumental in attracting significant funding and investments. The pre-award and negotiation processes lay the groundwork for successful grant applications, bringing in substantial financial resources. Effective lobbying and strategic intelligence can influence policy decisions, leading to more favorable funding environments and opportunities.?

Moreover, by building strong networks and partnerships, these units enhance the institution's reputation and visibility. This, in turn, attracts more collaborators and investors, creating a virtuous cycle of growth and financial sustainability. Thus, the seemingly loss-making activities contribute indirectly but significantly to the institution's financial success.?

Fostering scientific and technological advancements?

The support provided by these units is not limited to financial aspects. They play a pivotal role in fostering scientific and technological advancements. By ensuring that researchers have the necessary resources and by facilitating collaborations, they create an ecosystem where groundbreaking research can flourish.?

For instance, the development and management of innovation ecosystems, as discussed in our visit, are crucial. These ecosystems bring together diverse stakeholders, including academia, industry, and government, to collaborate on solving complex problems. This collaborative approach accelerates technological advancements and translates scientific research into practical applications, benefiting society at large.?

Indicators of institutional maturity?

The presence and effectiveness of a loss-making unit are strong indicators of an institution's maturity and strategic foresight. Mature institutions recognize that success in R&I extends beyond immediate financial returns. They understand the importance of investing in foundational activities that may not yield direct profits but are critical for long-term sustainability and impact.?

Such institutions are characterized by their ability to balance short-term and long-term goals, ensuring that immediate financial needs do not overshadow the importance of strategic investments. They also demonstrate a commitment to creating a supportive and enabling environment for their researchers, reflecting a deep understanding of the complexities and demands of the R&I landscape.?

Aspiring for institutional maturity?

As we reflect on these insights, it becomes clear that aspiring for institutional maturity involves embracing the crucial role of loss-making units. Institutions must prioritize the foundational activities that support innovation, recognizing their indirect yet significant contributions to financial, scientific, and technological success.?

This approach requires a shift in perspective, valuing the long-term impact over short-term gains and understanding that true success in R&I is multifaceted. By fostering a culture that supports these essential activities, institutions can ensure their sustainability and continued growth in the ever-evolving R&I landscape.?

The narrative of a loss-making unit as a crucial part of an institution's success highlights the importance of strategic investment in foundational activities. These units, while not directly profitable, are indispensable for attracting funding, fostering innovation, and ensuring long-term sustainability. Recognizing and supporting their role is a mark of institutional maturity and a strategic imperative for any R&I institution aiming for lasting success. As we move forward towards FP10, let us embrace this holistic view of success, ensuring that our efforts today lay the groundwork for groundbreaking advancements and societal impact in the future.?

Ricardo Migueis, Head of INESC Brussels HUB

We invite you to engage, to reflect, and to join us in shaping the discourse that will define the future of research and innovation in Europe. Check the full version of the newsletter below or directly on our website and do not hesitate to contact us: [email protected]?


INESC Highlights?

Unveiling the groundbreaking advancements and initiatives from INESC institutes:?

Inter-institute collaboration: INESC's Cutting-Edge AI Innovations in Health Systems?

Earlier this month, at Encontro Ciência 2024 (Porto, 3-5 July 2024), the INESC group hosted the session “Advancing Intelligent Care: Bridging AI and Health Systems through INESC Innovations” under the conference motto "Science for Health and Global Well-Being". This event brought together researchers from the five INESC institutions - INESC Coimbra, INESC-ID, INESC-MN, INESC INOV, and INESC TEC - along with healthcare stakeholders.?

The session focused on significant R&D&I contributions towards Intelligent Care across four major pillars:????

  • Prospects for Smart Monitoring and Pathology Screening;?
  • Intelligent Medical Decision (including precision diagnosis, prognosis, prescription);?
  • Intelligent Treatment to Restore and Promote Health;?
  • Key Enabling Principles for Effective Intelligent Care.?

Moderated by Alípio Jorge (INESC TEC and Faculdade de Ciências da Universidade do Porto | FCUP ), the session featured engaging presentations showcasing innovative projects from the five research institutions.??

Joana Matos Dias ( INESC Coimbra and Universidade de Coimbra ) kicked off the presentations with her work on “Reinforcement Learning and Quadratic Optimization for Optimal Radiotherapy Treatment Planning”.??

Following her, Ana Madureira ( INOV INESC Inova??o and ISEP ) introduced the ambitious “eHospital4Future” project, which aims to build a digitally skilled and innovative hospital for the future.??

Diogo Caetano ( INESC Microssistemas e Nanotecnologias and Instituto Superior Técnico ) shared the insights from the Bactometer Project which utilizes spintronics and machine learning for rapid detection of multi-resistant bacteria.??

Rui Henriques INESC-ID and Instituto Superior Técnico highlighted ongoing advances in human health technologies in several reserch fields ongoign at INESC-ID.??

Rounding out the presentations, Hélder P. Oliveira INESC TEC discussed the project AI4LUNGS and the development of AI-based personalized care for respiratory diseases using multi-modal data for patient stratification.?

Read the complete article here.? ?

Latest INESC news:?

INESC TEC researcher elected coordinator of the European Commission’s Atlantic Strategy?

Europe plans to monitor and preserve insect populations – with INESC TEC’s support?

INESC-ID joins Current/OS Foundation?

INESC INOV-Lab: inauguration session for the new R&D unit?

Porto City Council awards Medal of Merit to Pedro Guedes de Oliveira?

José Tribolet, a visionary shaping INESC’s legacy?

INESC TEC is the first Portuguese entity to join international consortium to accelerate the use of generative AI in science and engineering?

Yes, ISTSat-1 solar panels are charging in space?

INESC-ID brings Smart Care, International Collaborations, and Scientific Excellence to “Ciência 2024”?

Let’s decarbonise cities – the path is made with energy transition, sustainable mobility and a greener economy?

Addressing Gender Imbalance in Academia: Insights from CMU’s Jeria Quesenberry?

Guinea-Bissau’s first 24-hour Health Line features INESC TEC technology?

INESC TEC is the latest member of the network of Offices for the Promotion of Industrial Property (GAPI)?

Fostering innovation and excellence within our community.?

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Podcast: The Insider Roundup?

For the R&I Community, by the R&I Community - An Overview of the Brussels Buzz on LinkedIn and Other Social Networks?

Welcome to 'The Insider Roundup,' your go-to podcast dedicated to providing an in-depth overview of the latest buzz within the EU Research and Innovation community. I’m Ricardo, your host, and I'm excited to take you through the most relevant discussions, debates, and updates from LinkedIn and other social networks.?

Staying informed about the latest trends, policies, and conversations in the EU R&I sector can be a challenge. That's why we created 'The Insider Roundup'—to bring you a concise, engaging summary of what's happening across various social platforms. Whether you're a researcher, innovator, policy-maker, manager, lecturer, or simply someone passionate about R&I, this podcast is tailored just for you.?

Listen here (https://pod.co/the-insider) or wherever you get your podcasts! Don’t forget to subscribe!?

References:

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Out of the box: The Smartphone of the Middle Ages?

"Out of the box” is a section about... those different, geeky ideas we all love.?

The Smartphone of the Middle Ages?

Federica Gigante (historian and specialist in Islamic scientific instruments at the University of Cambridge) says an accident of lighting helped her to uncover the surprising history of an ancient astronomical device called an astrolabe, which some have described as the original smartphone.?

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Thematic Areas?

Note: Various articles of today’s newsletter are part of the “Funding Newswire” section in Science Business. In this section you can find the latest news in research funding, from calls to policy updates and its implications.??

INESC is part of the Science|Business Network, so you get free access to this section by signing up with your institutional email (it must an email address from any of the 5 INESC institutes).?

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Artificial Intelligence and Data Science?

Warsaw hub aims for ‘lighthouse role’ in AI energy efficiency?

Commission is shaping up €500M generative artificial intelligence calls?

Call for proposals in AI: A list of funding opportunities in the EU, the UK, Switzerland, Norway, and the US?

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Bioengineering and Health Technologies?

Calls in in cancer research: A list of funding opportunities in the EU, UK, Switzerland, Australia and the US?

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Electronic systems, Microelectronics and Optoelectronics?

EU and South Korea announce winners of four co-funded semiconductor projects?

EU opens new front with China over car chips?


Transversal Areas?

EU R&I Policy??

European Parliament – ITRE (Committee on Industry, Research and Energy) Constitutive Meeting to take place on 23 July?

European Innovation Scoreboard 2024 was released on 4 July 2024?

Europe's innovation performance steadily improving but at different speeds between Member States?

Ursula von der Leyen lays out vision for tech-enabled competitiveness?

Von der Leyen: Yes to climate action, clean industry, no to nature protection?

Latest picture of Europe’s innovation mobility is more like a still life?

Innovation report delivers ‘wake-up call’ for Europe?

Spotlight on Cyprus: The small island rising up the innovation rankings?


Critical raw materials?

The role of research and innovation in ensuring a safe and sustainable supply of critical raw materials in the EU?

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R&D Funding?

Horizon Europe’s fundamental research budget will rise to €2.7B next year?

Timeline for Horizon Europe work programme release?

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FP10?

Borys Budka to chair European Parliament’s industry and research committee?

Viewpoint: Scale or focus? A choice for Framework Programme 10?

Viewpoint: Europe needs to think beyond FP10 to boost innovation?


Defence?

EU and NATO team up to support defence and security innovation?

EU takes aim at the dual-use divide?

A look inside NATO’s DIANA start-up accelerator?


Ocean??

EU Mission ‘Restore our Ocean and Waters': €126.9 million for 26 new projects?

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International cooperation?

How Germany’s main science funding agency backs international research?

A brief history of Canada’s participation in EU research programmes?

Ukrainian researchers embrace international collaboration?

Ukraine eyes closer research collaboration with EU?

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Universities?

Report: Universities 4.0: New powerhouses for regional innovation and global impact? (by Elsevier)?

The Ecosystem: European universities test out entrepreneurs in residence?

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Research security?

G7 agree to strengthen open and safe international science cooperation?

European Research Council head pleads for openness at G7 science summit?

White House revamps guidelines for research security at top universities?

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