Manufacturing Innovation Programs Across the Atlantic (Part 2)

1. Introduction

In our previous exploration of global funding ecosystems, we examined the structures supporting research and innovation in the United States and European Union. We found that the U.S. system relies on a mix of federal, state, and private funding, while the EU emphasizes cross-border collaboration through programs like Horizon Europe. Now, we'll focus on a key sector for both economies: manufacturing.

Manufacturing is crucial for technological progress and economic growth. In the U.S., manufacturing contributes 11% of GDP and employs over 12.5 million workers, according to the National Association of Manufacturers. Similarly, the European Commission reports that manufacturing accounts for 16% of the EU's GDP and employs more than 32 million people.

Advanced manufacturing technologies are increasingly important for addressing global challenges. Research published by UNIDO shows how these technologies can help achieve the UN's Sustainable Development Goals, particularly in sustainable industrialization and innovation.

Let's examine how ManufacturingUS and Horizon Europe, - Cluster 4 are shaping the future of manufacturing through their funding and collaboration strategies.

2. ManufacturingUS Bolsters American Industry

2.1. Structure and Key Components

ManufacturingUS consists of two main initiatives:

1. The Manufacturing Extension Partnership (MEP): Overseen by the National Institute of Standards and Technology (NIST), the MEP network includes 51 centers across the U.S. and Puerto Rico. These centers support small and medium-sized manufacturers with resources for innovation, job creation, and profitability.
2. Manufacturing USA: A network of 16 manufacturing innovation institutes, each focused on a specific technology area. These institutes bring together industry, academia, and government partners to invest in emerging technologies.

2.2. Main Goals and Focus Areas

ManufacturingUS aims to boost U.S. manufacturing competitiveness through technology innovation and workforce development. Key areas include:

1. Advanced manufacturing technologies (e.g., additive manufacturing, robotics, AI)
2. Workforce training to address skills gaps
3. Strengthening domestic supply chains
4. Promoting sustainable manufacturing processes and products

A Deloitte and Manufacturing Institute report highlights the importance of these focus areas in addressing the projected shortage of 2.1 million skilled manufacturing jobs by 2030.

2.3. Funding Approach

ManufacturingUS uses various funding mechanisms:

1. Federal funding through agencies like the Department of Defense, Department of Energy, and NIST
2. State and local government matching funds
3. Private sector investments and in-kind support

The America COMPETES Reauthorization Act of 2010 authorized up to $700 million in federal funds for Manufacturing USA, to be matched by non-federal sources.

2.4. Case Study – Advancing Biopharmaceutical Manufacturing

The National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL) demonstrates ManufacturingUS's impact. During the COVID-19 pandemic, NIIMBL accelerated the development of diagnostic tests, therapeutic antibodies, and vaccines.

One notable project, funded by an $8.9 million NIIMBL grant, led to the creation of a rapid, low-cost COVID-19 test. This collaboration between the University of Delaware and Siemens Healthineers resulted in a test providing results in under 10 minutes, showcasing the potential of advanced manufacturing techniques in addressing urgent health challenges.

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3. Horizon Europe, (Cluster 4) Spurs European Industrial Growth

3.1. Position within Horizon Europe

Horizon Europe, the EU's primary research and innovation funding program, is organized into three pillars and six clusters. Cluster 4: Digital, Industry and Space falls under Pillar II, "Global Challenges and European Industrial Competitiveness". This cluster is key to advancing Europe's industrial strategy, focusing on green and digital transitions.

With €15.3 billion allocated for 2021-2027, Cluster 4 represents a significant portion of Horizon Europe's €95.5 billion total budget, reflecting the EU's commitment to technological innovation and industrial competitiveness.

3.2. Primary Objectives

Cluster 4 aims to transform European industry for a sustainable, digital, and resource-efficient future. Its main goals include:

1. Promoting climate-neutral, circular, and digitized production
2. Increasing autonomy in strategic value chains
3. Developing human-centric and ethical digital and industrial technologies
4. Advancing space technologies and services

These objectives align with the European Green Deal and the EU's Digital Strategy, working towards making Europe climate-neutral by 2050 while ensuring digital sovereignty.

ManufacturingUS builds on 51 MEP centers and 16 manufacturing institutes across the country, yet EU's HaDEA (Cluster 4) uses project teams that form and disband based on specific calls for proposals.

3.3. Funding Strategy

Horizon Europe uses a competitive grant funding approach to encourage collaborative innovation across borders. Key features include:

1. Regular calls for proposals published on the Funding & Tenders Portal
2. Requirements for international consortia, typically involving at least three independent entities from different EU Member States or Associated Countries
3. Rigorous peer review of proposals based on excellence, impact, and implementation quality
4. EU funding of up to 100% of eligible costs for research actions and up to 70% for innovation actions

3.4. Case Study – Revolutionizing Steel Production with Green Hydrogen

The H2FUTURE project, funded by Horizon 2020 (Horizon Europe's predecessor), showcases the program's impact. This €18 million initiative, supported by the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), aims to produce green hydrogen for steel production.

Led by a consortium including Voestalpine, Siemens, VERBUND, and research partners, H2FUTURE has implemented a 6MW PEM (Proton Exchange Membrane) electrolyzer at a steelworks in Linz, Austria. This installation, one of the largest of its kind globally, can produce up to 1,200 m3 of green hydrogen per hour.

By replacing coal with green hydrogen in steel production, H2FUTURE paves the way for significant CO2 emission reductions in one of Europe's most energy-intensive sectors. This aligns with Cluster 4's goals of climate-neutral production and increased autonomy in strategic value chains.

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4. Comparing ManufacturingUS and Horizon Europe, (Cluster4)

4.1. Structural Approaches

ManufacturingUS and Horizon Europe, HaDEA use different approaches to foster innovation:

ManufacturingUS operates through physical institutes and centers:

• 51 MEP centers across the U.S.
• 16 Manufacturing USA institutes, each focusing on a specific technology area

Horizon Europe uses a project-based funding model:

• Issues calls for proposals on specific topics
• Funds temporary consortia formed to address these calls, rather than permanent institutions

These differences reflect each region's context. The U.S. approach builds on existing industrial strengths and geographic distribution, while the EU model promotes flexibility and cross-border collaboration.

4.2. Focus Areas and Priorities

Both initiatives address similar global challenges with different emphases:

ManufacturingUS priorities:

1. Advanced manufacturing technologies
2. Workforce development
3. Supply chain resilience
4. Sustainable manufacturing

Horizon Europe, Cluster 4 priorities:

1. Climate-neutral and circular production
2. Digital transformation of manufacturing
3. Strategic autonomy in key value chains
4. Space technologies and services

Both target advanced manufacturing and sustainability (prioritizing their gaps), yet ManufacturingUS emphasizes workforce development and domestic supply chains. Horizon Europe, Cluster 4 focuses more on digital transformation and strategic autonomy, reflecting the EU's Digital Strategy and Industrial Strategy.

"The H2FUTURE steel plant in Linz makes 1,200 cubic meters of green hydrogen per hour through EU funding, while ManufacturingUS helps small local manufacturers add robots and digital tools to their production lines."

4.3. Funding Landscapes

The funding landscapes differ in scale and accessibility:

ManufacturingUS:

• The MEP program receives about $140 million annually in federal funding.
• Manufacturing USA institutes are funded through federal and non-federal sources, with federal funding capped at $70 million per institute.

Horizon Europe, HaDEA:

• Has a budget of €15.3 billion for 2021-2027, averaging about €2.2 billion per year.

Accessibility:

• ManufacturingUS programs mainly target U.S.-based entities, especially small and medium-sized manufacturers.
• Horizon Europe, Cluster 4 is open to participants from EU member states and associated countries, with some international cooperation opportunities.

4.4. Collaboration Models

Both initiatives emphasize collaboration but with different approaches:

ManufacturingUS:

• Promotes public-private partnerships within the U.S.
• Encourages collaboration between industry, academia, and government agencies.
• Limited international collaboration, focusing on domestic innovation.

Horizon Europe, Cluster 4:

• Requires international consortia for most projects.
• Promotes collaboration across EU member states and associated countries.
• Offers some opportunities for cooperation with non-EU countries.

For example, the NIIMBL institute under ManufacturingUS brought together over 150 members from industry, academia, and government to advance biopharmaceutical manufacturing. In contrast, Horizon Europe projects like H2FUTURE involve partners from multiple EU countries, combining diverse expertise to tackle complex challenges.

The EU's approach to international cooperation is outlined in its Strategy for International Cooperation in Research and Innovation, which aims to maintain the EU's global leadership in research and innovation while promoting its values and interests.

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5. Maximizing Your Chances for Funding Success

5.1. Tips for Navigating ManufacturingUS

1. Use the MEP Network: Contact your local MEP Center for tailored assistance and resources. Join MEP-organized workshops and training to improve your manufacturing capabilities.
2. Work with Manufacturing USA Institutes: Find institutes relevant to your technology area in the Manufacturing USA network. Consider becoming a member to access shared facilities, expertise, and collaboration opportunities.
3. Align with National Priorities: Review the National Strategic Plan for Advanced Manufacturing to ensure your proposals match national objectives.
4. Build Partnerships: Team up with universities, national labs, and industry partners to strengthen your proposals. Use the Federal Laboratory Consortium (FLC) to find potential federal research partners.

5.2. Strategies for Success with Horizon Europe, Cluster 4

1. Learn the Program Structure: Study the Horizon Europe Program Guide and Cluster 4 documentation.
2. Create Strong Consortia: Use the Funding & Tenders Portal to find partners and join consortia. Include partners from at least three different EU member states or associated countries in your consortium.
3. Address EU Priorities: Align your proposal with the European Green Deal and Digital Strategy. Focus on cross-cutting issues like sustainability and digital transformation.
4. Follow Evaluation Criteria: Address the key evaluation criteria: Excellence, Impact, and Implementation. Use the Horizon Europe Standard Application Form to structure your proposal.

5.3. Choosing the Right Program

Consider ManufacturingUS if:

• You're a U.S.-based entity, especially a small or medium-sized manufacturer.
• You're focused on practical applications of advanced manufacturing technologies.
• You want to strengthen domestic supply chains and workforce development.

Consider Horizon Europe, Cluster 4 if:

• You're based in the EU or an associated country, or open to significant international collaboration.
• Your project aligns with EU priorities like climate neutrality and digital transformation.
• You're interested in large-scale, transnational research and innovation projects.

For projects with global potential:

• Consider using both programs where possible.
• Look into international cooperation opportunities within Horizon Europe for U.S.-based entities.
• Explore bilateral S&T agreements between the U.S. and EU for potential collaborations.

Remember, success often requires persistence and adaptability. Don't hesitate to seek expert advice or contact program officers for clarification on specific opportunities.

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6. The Future of Manufacturing Innovation Funding

6.1. Emerging Trends

Several key trends are shaping the future of manufacturing innovation:

1. Artificial Intelligence and Machine Learning: A McKinsey report suggests AI could create up to $3.7 trillion in value for manufacturing by 2025. Both ManufacturingUS and Horizon Europe, Cluster 4 are likely to increase their focus on AI-driven manufacturing processes.
2. Sustainable Manufacturing: The World Economic Forum predicts a significant shift towards circular economy principles in manufacturing. Future funding will likely prioritize technologies that minimize waste and maximize resource efficiency.
3. Advanced Materials: The development of new materials, including nanomaterials and bio-based materials, is set to transform manufacturing. Both the U.S. Department of Energy and the EU's Horizon Europe emphasize this area in their future strategies.

6.2. Opportunities for Transatlantic Collaboration

Despite their structural differences, ManufacturingUS and Horizon Europe, Cluster 4 offer opportunities for transatlantic collaboration:

1. Joint Research Initiatives: The EU-US Trade and Technology Council provides a framework for cooperation on emerging technologies, including in manufacturing.
2. Knowledge Sharing: Programs like the Intelligent Manufacturing Systems initiative facilitate global cooperation in advanced manufacturing research.
3. Standards Alignment: Collaboration on international standards for emerging technologies can help ensure interoperability and market access for innovations on both sides of the Atlantic.

6.3. Roadmap to Manufacturing Innovation Funding

1. Understand the Ecosystem: Whether you're targeting ManufacturingUS or Horizon Europe, Cluster 4, a deep understanding of the program structure and priorities is crucial.
2. Build Strong Partnerships: Both systems value collaboration. Invest time in building robust networks and consortia.
3. Align with Strategic Priorities: Tailor your proposals to address key challenges identified by each program, such as sustainability and digital transformation.
4. Stay Informed: Keep abreast of emerging trends and funding opportunities through official channels and industry networks.
5. Consider a Dual Approach: Where possible, explore opportunities to leverage both US and EU funding mechanisms to maximize your innovation potential.

With the understanding these key points and staying tuned to the evolving landscape of manufacturing innovation funding, researchers and organizations can position themselves to make significant contributions to the future of manufacturing on both sides of the Atlantic and beyond.