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

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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:   

1. Prospects for Smart Monitoring and Pathology Screening;

1. Intelligent Medical Decision (including precision diagnosis, prognosis, prescription);

1. Intelligent Treatment to Restore and Promote Health;

1. Key Enabling Principles for Effective Intelligent Care.

Moderated by Alípio Jorge (FCUP and INESC TEC), the session featured engaging presentations showcasing innovative projects from the five research institutions. 

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

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

Diogo Caetano (Técnico and INESC MN) shared the insights from the Bactometer Project which utilizes spintronics and machine learning for rapid detection of multi-resistant bacteria. 

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

Rounding out the presentations, Hélder P. Oliveira (FCUP and 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 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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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:

Ricardo Migueis, Head of INESC Brussels HUB – ricardo.migueis@inesctec.pt

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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 to it here or wherever you get your podcasts! Don’t forget to subscribe!

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Out of the box: 

“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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Note: Various articles in today’s newsletter are part of the “Funding Newswire” section in Science Business. In this section, you can find the latest news on research funding, from calls to policy updates and their 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 be an email address from any of the 5 INESC institutes). 

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Thematic Areas

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 

Bioengineering and Health Technologies 

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

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 

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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 

R&D Funding 

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

Timeline for Horizon Europe work programme release 

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 

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 

Universities 

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

The Ecosystem: European universities test out entrepreneurs in residence 

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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Job Opportunities at INESC

– INESC TEC has 35 vacancies in different work areas, such as Power Systems, Computer Science, and more. Find more at INESCTEC website and via LinkedIn  

– INESC-ID has 3 open positions for Research Grants. Know more here. 

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Events & Training

SEPTEMBER  

– Valorise this: How to speed and scale up tech transfer?, 12 September 2024, 2:00 PM – 5:00 PM, Brussels. Hybrid event. More info here. 
– Europe’s next tech leaders: Bridging the skills gap, 24 September 2024, 6:00 – 9:00 PM CET, Brussels. More info here.
– 11th Edition R&D Controlling and Performance Management, 25 September 2024, Frankfurt. More info here.
 

OCTOBER  

– The role of Southeast Europe: How to maintain, build, and interconnect the research and innovation infrastructures in Europe?, 1 October 2024, Skopje. More info here.
– 2025 Annual Network Conference: Member consultation and planning meeting. 3 October 2024, 02:00 – 03:30 CET, Online Webinar. More info here.
– Brave new world: Building Europe’s capacities for defence and security R&D, 17 October 2024, 10:00 AM- 04:30 CET, Brussels. More info here.
 

NOVEMBER  

– Horizon Europe: New priorities for the European Research Area policy agenda?, 19 November 2024, 3:00 PM – 4:00 PM. More info here.