Making the UK a global leader in innovation

1. David Coates 4 May 2011 University of Liverpool – Impact Conference Making the UK a global leader in innovation

2. What is the Technology Strategy Board? We are a national body set up to invest in business innovation We work across business, universities and government We mostly come from business -130 people with over 2,000 years of business experience We were responsible for investing c. £300m a year

3. What’s the challenge? Business Investment is too low and too late • Technical and financial risks need to be mitigated • The time for financial return is too long for many players Innovation disrupts value chains and business models • New partnerships are required to build new supply chains • Investment and innovation is required at multiple points Longer term Trends not visible to all players • Impact and opportunities from emerging technologies & policies Innovation infrastructure complex and inefficient • Fragmented and difficult to navigate

4. We support the full range of business We help strengthen the global competitive position of our leading businesses We identify and grow sectors and businesses with the capacity to become the best in the world We nurture the businesses that can succeed in the growth sectors of tomorrow • …… any company based in the UK is eligible to receive funding

5. And we make choices We don’t pick winners We do pick areas of activity where UK businesses can thrive and support innovative companies in them We consider the size of the markets – what’s the global opportunity the capability of the UK to address them the timing …and the difference our support would make

6. Policy environment • Big changes in the innovation landscape • Abolition of the RDAs and physical Business Link • Less funding available • Coalition Government • Focus on growth – driven by the private sector • Importance of manufacturing and small companies • Localism agenda

7. Future strategy • Theme “From Concept to Commercialisation” • …...accelerate economic growth by stimulating and supporting business innovation • Five main strategic areas – •   Accelerating the journey from concept to commercialisation • Connecting the innovation landscape • Turning government action into business opportunity • Investing in thematic areas based on global opportunity • Continuously improving the capability of our organisation

8. Working with the Research Councils The focus of our partnership • Strengthening business engagement with the research base • Maximising opportunities and accelerating the commercialisation process • Expanding our remit – utilising the diverse expertise in the research base • Demonstrating economic impact

9. Technology Innovation We build capability in the underpinning areas that enable a sure and effective response to market needs • Advanced materials • Bioscience • Electronics, photonics and electrical systems • Information and communication technologies

10. Competency Innovation We build capability in those areas which span technologies and markets, and where technology developments can lead to disruptions of the markets • High value manufacturing • Digital technologies • Design

11. Challenge-led Innovation We aim to understand the needs of the markets and support the most innovative and competitive responses • Energy generation and supply • Sustainability (the built environment and food) • Healthcare • Transport • Creative industries • High value services

12. Wave and tidal energy generation UK target of reducing carbon emissions by 80% by 2050 UK world leading capability Many small companies with huge potential

13. Innovation Platforms We work with Government as they address societal challenges to give business the future market definition they need to be competitive • Low Carbon Vehicles • Assisted Living • Low Impact Buildings • Detection and Identification of Infectious Agents • Sustainable Agri-Food Supply Chain • Stratified Medicine

14. Fuel Cell Black Cab hits the streets Consortium led by Intelligent Energy Development of a Fuel Cell Hybrid Black Cab Aim to provide a 250 mile driving range and a refuelling time of only a few minutes, without any loss of passenger or luggage space On the streets in London in time for the Olympics.

15. Ultra Low Carbon Vehicle Demonstrator • 340 passenger cars on the road in the UK • Electric or plug-in hybrid electric vehicles • Involves global vehicles manufacturers • Key outcomes: • Demonstrates UK capability and • government intent • Provides ‘real world’ operating knowledge • Encourages investment

16. The ways we support business • Grant for Research and Development • Collaborative R&D • Feasibility Studies • Knowledge Transfer Partnerships • Knowledge Transfer Networks • UK Space Agency • SBRI • Technology and Innovation Centres • EU programmes – Eurostars, Eureka • International missions

17. Grant for R&D • Assist small and medium sized companies, pre-start-ups and individuals - UK wide - supersedes RDA scheme, working alongside DA schemes • Single company grants • Always open – 6 Assessments a year • UK based SMEs and Start-ups, <250 people and €50m T/o

18. Collaborative R&D • Support the collaboration between businesses and between businesses and academia • Start-up, Micro, SMEs, Large companies, RTOs, academia • Competitions in thematic priority areas

19. Feasibility Studies – Single Company and Collaborative • Investigate the technical and commercial feasibility of turning a highly innovative technology into a new product or process. • No separate mechanism but uses the single company grant for R&D and collaborative R&D products • Single company - Start-up, Micro, SMEs • Collaborative - Start-up, Micro, SMEs, Large companies, RTOs, academia.

20. Knowledge Transfer Partnerships • Addressing business issues by facilitating the transfer of knowledge between the knowledge base and business through innovation projects undertaken by high calibre, recently qualified, people under the joint supervision of personnel from the business and the knowledge base • Facilitated by very experienced business Advisers • Start-up, Micro, SMEs, Large companies, third sector and knowledge based partner

21. Knowledge Transfer Networks Complemented with cross-sector, challenge-led Special Interest Groups such as in Space, Defence and Industrial Biotechnology

22. _connect • https://ktn.innovateuk.org/web/guest

23. Working with the UK Space Agency Delivery partner of the UK Space Agency for European Space Agency Telecommunications and Navigation programmes Promoting business opportunities for the UK Space industry across other growth sectors Encouraging Space companies to enter CR&D competitions Providing Technology Demonstration opportunities TechDemoSat and UKube1 Knowledge Sharing to drive growth Space Special Interest Group, National Space Technology Strategy Open Innovation to accelerate commercialisation of R&D activity Innovation in Space Feasibility Studies Competition International Space Innovation Centre - Harwell

24. SBRI • Uses government procurement to drive innovation • Provides business opportunities for innovative companies to solve the needs of public sector organisations with new technologies and ideas • Competitions are run in specific areas for short-term development contracts. • Phased development programmes to manage risk • Pre start-up, Start-up, Micro, SMEs, Large companies, Universities and registered charities (able to demonstrate a route to market).

25. Technology and Innovation Centres • Business-focused centres that makes world-leading technical capability available to businesses to solve their technical challenges • Engagement with pre start-up, start-up, micro companies, SMEs, large companies, RTOs and the knowledge base • Modus Operandi: • Access to world-leading technology & expertise • Reach into the knowledge base for world-class science • Capability to undertake collaborative R&D projects with business • Capability to undertake contract research for business • Strongly business focused with a professional delivery ethos • Create a critical mass of activity • Skills development at all levels

26. First Centre Announced Second Centre Competition Technology and Innovation Centres prospectus published • High Value Manufacturing • Cross Sector • Broad Technology base • Embracing all forms of manufacturing • Metals & Composites in addition to process manufacturing incl. bio-processing • Cell Therapies

27. High Value Manufacturing Technology & Innovation Centre Nuclear Advanced Manufacturing Research Centre (Rotherham) Advanced Forming Research Centre (Strathclyde) Manufacturing Technology Centre (Coventry) Centre for Process Innovation (Wilton & Sedgefield) Advanced Manufacturing Research Centre (Rotherham) National Composites Centre (Bristol) WMG (Coventry)

28. European and International • Focus on increasing UK business success in accessingEuropean funding and maximising benefit • Influencing Europe • Bilateral activities which align with our strategic priorities and where there is benefit for UK business • Exchange of information on innovation • KTN European & International activities • Working with Science & Innovation Network and UKTI

29. Eurostars • Support the collaboration between research and innovation-performing SMEs at a European level • Project can address any technological area, but must have a civilian purpose and be aimed at the development of a new product, process or service. • Research and innovation-performing micro businesses and SMEs from a Eurostars member country • Project must involve at least two participants (legal entities) from two different Eurostars member countries (Academics and large companies are welcome to participate but need to fund their own participation)

30. Eureka Supportcollaborative R&D projects between EUREKA member countries. • Micro businesses, SMEs, large companies Universities, RTOs • The UK provides no funding to participate in EUREKA but successful UK companies can use the EUREKA logo.

31. International Missions • Overseas mission providing opportunities for fast-growing technology companies to connect with key investors, potential partners and customers, media and other overseas stakeholders • Start-up, Micro, SMEs (a group of up to 20 participants per mission) • Companies pay their own costs with the Technology Strategy Board (and other sponsors) paying for the organisation • Missions last 1 week

32. EU R&D and Innovation Support • The Technology Strategy Board provides support in accessing specific EU programmes, as well as advice to businesses in accessing EU R&D and innovation funding through a helpline, online resources and a network of National Contact Point experts. • The Technology Strategy Board also supports a number of specific programmes and ERA-NETS.

33. Impact • Across our portfolio we deliver >10:1 ‘Return on Investment’ in terms of additional profit per £ spent • Collaborative R&D • Overall average ROI on the survey figures is c 11:1 • Range from zero to c 20:1, with some high risk programmes having ‘ROI’ opportunities in excess of 80:1 • KTNs • Overall average ‘ROI’ is c 5:1 with added benefits (CR&D etc.) • Underpins TSB strategy development and delivery • KTPs • ROI is c £4.70 - £5.20 of net additional GVA per £1 public money invested.

34. www.innovateuk.org