Delivery Plan Financial year 2013-14 [ Delivery Plan 2013–14 ] How we support innovation The Technology Strategy Board is the UK’s innovation agency. We help business on the innovation journey with a range of tools, each focused on helping to solve specific innovation challenges. We support businesses, from startups to large multi-nationals, and work with a wide range of partners in the public and private sectors to help make the UK’s innovation system work more effectively to support future economic growth. Most of our support is offered on a competitive basis where we are looking to help only the best ideas with the most economic potential. Our main innovation-support tools are outlined, in alphabetical order: Catalyst Aims to accelerate early-stage ideas more rapidly towards commercialisation through different phases of funding provided within the same programme. The Biomedical Catalyst supports SMEs and academia to explore early-stage commercial and technical potential through to development prior to commercialisation. Catapults A new network of physical centres designed to advance innovation in specific fields. Catapults enable business to access the best research and technical expertise, infrastructure and equipment. Each centre focuses on a field of technology or technology application in which the UK has particular academic and business strength. Collaborative R&D Aims to help companies tackle specific technical or societal challenges by working collaboratively to create new products, processes and services. It encourages knowledge exchange, supply chain development and parallel working on complex system challenges. Collaborative R&D cofunds innovative projects involving partnerships between businesses and between business and academia. 2 Demonstrators Help to accelerate the introduction of new products, systems and services by enabling demonstration, testing and validation in the real world and on a large scale. We invest in business-led demonstrator projects through competitions in defined priority areas. Engagement events Bringing businesses together with each other and with researchers to explore opportunities, form collaborations and develop projects is a powerful means of promoting innovation. Such events include a major annual innovation showcase and forum, consortium-building days linked to funding competitions, and events enabling the project participants we support to meet with the investment community. We also support a range of third-party innovation events with similar aims. European and international activities Support for businesses to access EU programmes for R&D and innovation, for example through National Contact Points, experts who can advise companies on how best to apply to specific programmes. We also support SME participation in Eurostars and fund business involvement in a number of other EU programmes. [ How we support innovation ] Eurostars Aims to help UK high-tech SMEs to develop partnerships with SMEs and knowledge and supply chain partners elsewhere in Europe, to develop their networks and to build up the knowledge to participate in large EU programmes. Feasibility studies Aim to help companies, either singly or in collaboration with others, to assess the potential of ideas in specific thematic areas. Success may position a project well to enter larger programmes funding collaborative R&D, such as those supported by the Technology Strategy Board and the EU. Innovation and knowledge centres IKCs operate at an earlier stage than Catapult centres. They offer a shared space and entrepreneurial environment in which researchers, potential customers and professionals from academia and business can work side-by-side on commercial applications of emerging technologies. Innovation platforms An innovation platform is an approach that brings industry, academia and government together to focus on a specific challenge such as vehicle emissions or disease diagnosis. It is a long-term commitment to a programme of support – using many of the ‘tools’ described in this section. Innovation Vouchers Innovation Vouchers enable innovative SMEs to engage with new partners to access knowledge which could help their business grow. Knowledge transfer networks, special interest groups and _connect These networks accelerate business innovation by enabling people to share knowledge, ideas and opportunities within and between specific sectors. The networks are hosted on the Technology Strategy Board’s online community site, _connect, at https://ktn.innovateuk.org Knowledge transfer partnerships Aim to help improve the competitiveness of a business by drawing on the expertise in UK universities, colleges and other knowledge providers. Knowledge is transferred through placement of a recently qualified individual to work on a challenging innovation project. SBRI (Small Business Research Initiative) Provides business with public sector procurement contracts to research and develop new products and services to address public sector challenges. The business gets finance to develop its ideas, and the public sector gets more innovative ways of meeting its needs. SBRI encourages public sector organisations to take the lead customer role, helping to develop and de-risk innovative solutions for which it is a potential future purchaser. Smart Addresses the funding gap experienced by many small and early-stage companies. It provides pre-start-ups, start-ups, micro businesses and SMEs with grants to enable them to assess potential markets and invest in R&D and innovation. Three types of support are available: proof of market, proof of concept and demonstration of prototype. The scheme, previously called Grant for R&D, is open for applications at any time. Launchpad Aims to support the development and strengthening of clusters of hightech companies. Small and mediumsized companies enter competitions to receive funding for innovative projects in specified theme areas and in specific geographical locations and participate in a structured programme of business support and access to finance with other organisations in and around the cluster. Missions Entrepreneur missions, run in conjunction with UKTI, involve a group of innovative and often earlystage UK companies travelling to countries strong in innovation and enterprise, such as the US, to make new connections and meet potential collaborators, investors, suppliers and customers. [ Delivery Plan 2013–14 ] 3 [ Delivery Plan 2013–14 ] 4 [ The Technology Strategy Board: Some facts ] The Technology Strategy Board: Some facts –We are the UK’s innovation agency –Our role is to accelerate economic growth by stimulating and supporting business-led innovation –We establish and implement national technology strategies in priority areas –Our budget for the year 2013-14 is approximately £440m –With partner and business contributions we have invested about £3bn in innovation projects in our first six years –We awarded over 60% of our R&D investment to small and medium-sized enterprises last year –In 2012-13 we ran more than 70 competitions for R&D funding and offered grants to over 1,000 organisations. In 2013-14 we plan to launch around 75 more competitions across our priority themes, committing almost £300m –Evidence so far shows that we –Since launch in April 2009 we can expect different returns have run 124 SBRI competitions (GVA) for different types of with 40 public sector support programme – £1 grant organisations and over £100m of showing a return from around contracts have been issued £3 for short-term feasibility studies through to £9 for Smart –In two years since the relaunch awards. Business participants of Smart, we have offered over in some of the larger longer 930 grants, committing over term programmes, such as low £90m to SME R&D projects carbon vehicles, estimate returns of over 30 times. –We are working with more than 4,900 companies and 150 research organisations, including 110 universities –The seven new Catapult centres will all be operational in 2013 –Our innovation networks have over 60,000 members –During 2012-13 we ran over 100 events and participated in many more, engaging with thousands of businesses face-to-face and online [ Delivery Plan 2013–14 ] 5 [ Delivery Plan 2013–14 ] Contents Foreword 8 Our strategy: Concept to Commercialisation 10Delivery plan 2013-14: Summary 14Delivery plan 2013-14: Key Actions 16Delivery plan 2013-14: Details 7 How we help business Access to finance Access to knowledge, skills, equipment and partners 24 Access to lead customers inking and leveraging government L support 25Engaging Working with government 27 Investing in priority areas based on potential Thematic programmes Sustainability Identifying potential new areas How we support our thematic areas in priority areas Challenge-led areas Energy, Built environment, Food, Transport, Health Competence areas High value manufacturing, Digital economy, Space applications, Resource efficiency Enabling technologies Advanced materials, Biosciences, Electronics, sensors and photonics, Information and communication, technology Emerging technologies and industries Other opportunity areas 59Continuously with our communities 26 6 30Investing 61 improving our capability Financial summary [ Contents / Foreword ] Foreword The Technology Strategy Board is the UK’s innovation agency. We help to accelerate economic growth by stimulating and supporting business-led innovation. We do this through a range of mechanisms described in this document and which, through competitive processes, identify and support the ideas with greatest potential. Our work in priority areas and our support for business innovation are key parts of the Government’s industrial strategy. We helped to identify the ‘eight great technologies’ at the heart of the UK’s push for growth, working closely with David Willetts. We will continue to work with businesses, academia and government, to support innovation in these areas. We are setting up seven new Catapult technology and innovation centres, and all will be operational this year. They will provide a powerful new force for innovation in the UK. Innovative small and medium-sized businesses (SMEs) are a significant driver of UK growth. Since relaunching the programme, we have doubled investment in Smart grants for high-growth-potential SMEs and are delivering new support such as Innovation Vouchers and Launchpads. Many other organisations support SMEs, including the Intellectual Property Office, GrowthAccelerator, UK Trade and Investment, and UK Commission for Employment and Skills. We will work with them and with the investment sector to ensure the businesses we support get the advice and access to finance they need to help them to take their ideas forward. The strong relationship we enjoy with the research councils will ensure our joint approach turns worldleading research into new products and services for business and drives economic growth. We work on the national stage, but we also know the importance of engaging locally. We will continue to work with the devolved administrations, cities, the developing local enterprise partnerships and other local bodies to connect them to the national innovation agenda. The Catapults and the Launchpad competitions targeted at business clusters are two new programmes that will help us to achieve that. We will help and encourage companies to gain access to the funding and partnership activities it will offer. We will also launch joint programmes with the key emerging economies of India and China and take entrepreneur missions to Brazil and the USA. We passionately support the Government’s goal to become a better lead customer that stimulates innovation through procurement. We want to see SBRI (Small Business Research Initiative) operating on a much larger scale – as its equivalent does in the US – and were pleased to see the Government’s support for this in the announcement of a five-fold increase in the programme made in the March 2013 Budget. Everything we do is driven by the desire to help UK business bring new ideas and technologies to market and support UK economic growth. Our view extends far beyond the UK to European and global opportunities. The next 12 months will see the start of Horizon 2020, the new EU programme Iain Gray for research and innovation. Chief Executive [ Delivery Plan 2013–14 ] 7 [ Delivery Plan 2013–14 ] Our Strategy: Concept to commercialisation In May 2011 we launched our four-year strategy, Concept to Commercialisation. This explained how we set out to stimulate and encourage innovation and drive economic growth. –more product innovation is in turn associated with higher overall productivity in firms The strategic direction we set then remains equally valid now. The economic situation is largely unchanged and growth generation is more of a priority than ever, both in the UK and globally. –productivity growth is the central driver of overall economic growth. Taking our strategy as the start point, this delivery plan explains how we plan to help UK business, what we are doing in this financial year and why. So, innovation investment correlates with higher productivity and economic growth, and is core to creating a competitive position in rapidly changing global markets. Summary However, innovation involves risk, and markets operate imperfectly. There are financial and technical risks in investing in early-stage technologies and markets, and the return on investment is uncertain. Small companies can struggle to raise funds and larger companies can find it hard to justify early-stage investment, tempted instead to wait for the market to become clearer and the uncertainties to reduce. As a result, business investment in innovation is often lower and later than desirable for strong economic growth, and opportunities to capitalise on the UK’s excellent research base and emerging global markets may be missed. The world faces major challenges, not only from economic turmoil but also from societal challenges such as climate change and an ageing population. These challenges are creating global market opportunities for novel solutions. The countries that continue to invest in innovation and can innovate most rapidly will be most likely to benefit from these shifts in markets. In December 2011, the Department for Business, Innovation and Skills (BIS) published an economic paper which concluded: –across business, higher innovation investment is associated with higher levels of new product innovation 8 (Economic paper number 15: Innovation and Research Strategy for Growth.) Innovation can also disrupt existing value chains and business models. In complex systems and supply chains, a ‘disruptive’ innovation can mean that many partners, suppliers and customers need to adapt and innovate concurrently and collaboratively, making it difficult to capitalise on the opportunity. For example, the move to the electrical propulsion systems involved in low carbon vehicles requires new technologies and the formation of new partnerships. Some companies in the value chain, focused on their day-to-day activities, may not even see the opportunities created by new technologies, or technologies with potential to cross over from one market to disrupt another. Information flows imperfectly in what is a complex and organic innovation system; business may need help to identify opportunities, access information and knowledge and respond to disruptive developments. Finally, government influences markets – through how it chooses to buy, how and where it chooses to regulate or set standards, and how it applies fiscal incentives. All too often government action has been taken without a view as to how it can stimulate innovation and maximise the potential benefit for UK industry. It was to help tackle these types of market failures and innovation bottlenecks that the Technology Strategy Board was set up. [ Our Strategy: Concept to commercialisation ] Our role is to help accelerate economic growth through the stimulation and support of businessled innovation. We are businessfocused and business-led; our Governing Board and our staff have strong experience of R&D and innovation and the commercialisation of technology. We work across business, academia and government, helping companies take concepts through to commercialisation. This means: – tackling the barriers to innovation – reducing risk – promoting collaboration –knowledge exchange – open innovation –creating a more effective innovation environment, using our convening power to make connections and to bring different partners together. Our strategy has five key aims: 1 Accelerating the journey from concept to commercialisation The journey of an idea from initial concept to commercial reality is not linear and has many possible entry and exit points. Support available to business is too often fragmented and leaves gaps. We will work with business and other partners to support the innovation journey, developing our tools and programmes to ensure cohesive and co-ordinated support, helping business to commercialise new products and services. 2 Connecting the innovation-support landscape The UK system supporting innovation has many different bodies, organisations and initiatives both public and private. Considerable help and multiple forms of support are available but the innovation ecosystem is fragmented and difficult for business to navigate, particularly for small and early-stage businesses. We are broadening our role to build mutually beneficial relationships with other UK organisations, to help join up all the players in the innovation-support landscape and create a more effective innovation environment. We aim to increase the ability of companies to access multiple forms of support in the UK, EU and internationally. 3 Turning government action into business opportunity Governments can change markets through better regulation, standardisation, fiscal incentives and procurement. We will work with government to identify areas where policy, standards, and regulation can stimulate business innovation, and will help unlock the potential of government to act as a ‘lead customer’, engaging with business to find new solutions to public sector challenges. 4 Investing in priority theme areas based on potential We have to make choices, prioritising investment in areas or themes most likely to generate sustainable UK economic growth. We will develop our thematic programme to focus on areas which address global challenges and market opportunities, complemented and supported by innovation in competences and enabling technologies. We will review opportunities for new initiatives where there is potential for UK commercial success. 5 Continuously improving our capability We will continue to develop our business processes to be fast, flexible, and focused on the needs of the businesses we support, and develop our benchmarks and impact measures to ensure that we remain highly effective and deliver value for money. We will support and develop our staff, and ensure that our organisation provides a positive and stimulating environment where they can thrive and work effectively together Working with all our partners, we are translating these aims into a programme of action to accelerate business innovation. In all we do, we ask ourselves one question: will it help UK business bring new products and services rapidly to market? [ Delivery Plan 2013–14 ] 9 [ Delivery Plan 2013–14 ] Delivery plan 2013-14: Summary Our plan of action is directly linked to our strategic aims. Here we explain how, with a summary of the main actions for 2013-14. Accelerating the journey between concept and commercialisation Since our establishment we have been evolving and refining our portfolio of tools and mechanisms to stimulate business innovation. We have progressively improved existing, and added new, tools focusing on tackling specific challenges or targeting specific business segments. Following an announcement by the Prime Minister in October 2010, we have been working to establish seven Catapults – world-leading centres of innovation designed to accelerate commercialisation in specific fields. The first Catapult, in high value manufacturing, opened in October 2011. During 2013-14 we will: –ensure all the Catapults are operational and will work with the management teams to build up the capability of the centres and commission new facilities, laboratories and initial flagship projects –communicate widely the Catapults’ benefits and vision and the value they add to business and to different parts of the innovation landscape –further develop the international profile of the Catapults to ensure effective engagement in EU and international activities to benefit UK business wealth creation. In April 2011, we introduced Smart, which aims to fill the gap in seed funding felt by small and early-stage companies. The scheme was significantly oversubscribed and, having doubled our funding from £20m to £40m last year, we plan to at least maintain this level of funding. In September 2012, we introduced Innovation Vouchers to help businesses access external experts with the knowledge needed to progress an idea or to further support the 10 development of a new product or service. Innovation Vouchers provide an entry point for businesses into the wider support available from the Technology Strategy Board and other partner organisations. To further enhance and clarify our support for small business this year we will: –continue to develop and expand Innovation Vouchers to help companies engage with the knowledge base –work to develop the role of government as a lead customer, increasing the scale of SBRI in line with the announcement in the March 2013 Budget and working to deploy it across government –run at least three Launchpad competitions to support SME cluster development –increase the pipeline of high-quality Knowledge Transfer Partnerships proposals to generate at least 800 active partnerships –run three Missions, with UK Trade and Investment (UKTI), to support SMEs on overseas visits to find collaborators, partners and funders –work with the Economic and Social Research Council, BIS and the British Bankers’ Association to help [ Summary ] the Enterprise Research Centre research the challenges SMEs face in realising their growth potential. Engaging with the community and communication are vital components of innovation. New products and services often arise from combining new ideas with existing technologies, so innovators have to be aware of supply chains, knowledge sources and markets. Connecting individuals and ideas, enabling knowledge flow and partnerships, and highlighting opportunity all play an important part. To support this, over the coming year we will: –launch and implement a new community engagement strategy, defining how we will work nationally on innovation challenges whilst connecting and convening locally with emerging organisations such as local enterprise partnerships (LEPs), and defining the future structure of networks supported by the Technology Strategy Board –improve our overall communications and outreach, developing a clear message of who we are and how we can help, improving our website and enabling better signposting –work with partner organisations to use events strategically, increasing our engagement with and support for innovative businesses and helping them find new collaborations and opportunities. Connecting the innovation-support landscape We only cover part of the overall innovation journey. We support good ideas and innovative companies with funding and networking, connecting companies to partners and knowledge. However, innovative companies also need other forms of support. These include advice on exporting, mentoring, investment readiness training, and help to access seed and growth capital to progress their ideas to commercial reality. To fully support business innovation we will help companies that we are engaged with to better connect to the innovation-support landscape. The EU Horizon 2020 programme is also a major source of new funding and collaboration opportunities for UK business and we will enhance the support provided for companies wishing to engage with it. We also need to look beyond Europe to help companies take advantage of global markets. We will develop deeper relations with a few priority countries including India, Brazil and China and work with UKTI and BIS to identify innovation hotspots around the world where, in specific thematic areas, we can together help UK business take best advantage of the opportunities. To achieve this we will: –continue to develop our excellent relationship with the research base, for example by looking at intelligent brokering that connects companies facing challenges to universities with potential solutions –continue developing our strategic partnerships so that businesses are offered a more complete range of support – for example export advice from UKTI, coaching, mentoring and training from GrowthAccelerator, intellectual property audit and advice from the Intellectual Property Office and links to skills support in conjunction with the UK Commission for Employment and Skills –work closely with the new Business Bank –engage the venture capital, business angel, corporate venturing and lending communities so that we connect companies with good ideas to investors with money –implement changes that enhance the support provided for businesses engaging with EU programmes to take best advantage of Horizon 2020 –develop capability to engage strategically with the European Regional Development Fund programme, specifically the new programme starting in 2014 –develop deeper relations with priority countries including India, Brazil and China and work with UKTI and BIS to identify innovation hotspots around the world to help UK business take best advantage of the opportunities. [ Delivery Plan 2013–14 ] 11 [ Delivery Plan 2013–14 ] Turning government action into business opportunity The actions of government departments and agencies can change markets and create opportunities for innovative businesses. We will work with government to identify areas where policy, procurement, standards, and regulation can stimulate business innovation. We take account, in the individual strategies for our thematic programmes, of the opportunities that regulations and standards can deliver in stimulating innovation (see page 27). value through scale and through providing better and more coordinated support to business. In the area of government procurement, we will continue to promote the role of government as lead customer – articulating challenges, engaging with business in seeking solutions, validating prototypes and providing a route to market for new products and services. We will: –work with, and across, government to champion the role of government as a lead customer –increase the scale of SBRI in Our innovation platforms bring line with the announcement in together the public and private sectors the March 2013 Budget, issuing around major societal challenges £100m of new contracts where government action drives business opportunity, such as the –work with the emerging NHS market for low carbon vehicles and the structure to help the development introduction of more innovative ways of their capability to support to reduce the environmental footprint the creation and absorption of of buildings. innovative solutions We are increasingly being used across government as an effective partner, using our core expertise to deliver programmes jointly with, and on behalf of, a range of government organisations such as the UK Space Agency and the Office for Low Emission Vehicles. We will continue to act as an innovation delivery partner for government departments and other organisations where we can add 12 –continue to develop the role of our innovation platforms (see page 28). –work with the BIS sector teams and industry in developing and delivering the industrial strategy. Investing in priority areas based on potential Our portfolio of theme-based activities focuses on three distinct areas: –those that address global challenges and the resulting market opportunities, such as the built environment –innovation in competences, such as high value manufacturing, that enable the translation of technologies into products and services –specific enabling technologies themselves, such as advanced materials. In each theme area we highlight the opportunities for innovation by publishing strategies, then provide incentives through funding programmes or other activities to help business take up these opportunities. In 2012-13 we published revisions of the strategies for high value manufacturing, energy and enabling technologies and will publish strategies for most of the other areas during 2013-14. During the year we plan to launch about 75 competitions for R&D and innovation across these themes, committing almost £300m of funding. Co-funding from our partners will add to this, with the overall funding from the public sector matched by the private sector. For the rationale and plans in each theme area, see pages 27 onwards. [ Delivery Plan: Summary ] Continuously improving our capability To deliver the programmes of activities outlined in this document we need to be a highly capable organisation. During the year we will: –continue to develop our resources and business processes to be fast, flexible, and focused on the needs of the businesses that we support and continue to introduce an integrated system providing easier engagement for business and a greater ability to easily extract and analyse management information This delivery plan forms a considered and dynamic plan of action, based on our strategy and using approaches that we know work, to continue building a powerful programme of innovation support in the interests of future UK economic growth. This document shows plans as at the start of the financial year 2013-14 and these may change. New developments will be communicated through the Technology Strategy Board website: www.innovateuk.org and through the _connect online networking platform. Access the _connect site at https://ktn.innovateuk.org –ensure we effectively and efficiently meet our customer, stakeholder and organisational needs, enhancing our capability to effectively support business enquiries –develop our benchmarks and impact measures to ensure that we remain highly effective and deliver value for money. [ Delivery Plan 2013–14 ] 13 [ Delivery Plan 2013–14 ] [ Key Actions ] Delivery plan 2013-14: Key Actions page 18 19 Enhancing our support for high-growth SMEs We have introduced several SME-focused tools since the launch of our new strategy, including Smart and Innovation Vouchers. We will develop and expand these and make full use of existing tools such as Knowledge Transfer Partnerships. Realising the strategic vision of Catapult centres All seven Catapults will be operational this year, with clearly defined and resourced business plans. 23 Enhancing support for companies accessing EU programmes In preparing for Horizon 2020, the new EU funding programme, we will develop a more co-ordinated and coherent support package to ensure UK businesses gain maximum benefit from the opportunities it presents. 23 EU and international strategy We are developing partnerships within Europe as well as with India, China and Brazil to help companies develop international partnerships and supply chains. We are working with partners including UKTI, BIS, the Science and Innovation Network and the research councils. 23 24 25 Developing the role of government as a lead customer e are working across government to help develop its potential as a lead W customer and, following the March 2013 Budget announcement, will work to realise the five-fold scale-up of SBRI. Helping businesses to access other sources of support Many companies can benefit from advice on business growth, export and intellectual property issues amongst others. We will develop strategic partnerships to help connect companies to multiple forms of support. Connecting and convening in the new innovation-support landscape We have been redeveloping our engagement strategy with business, academia and local government, taking into account changes in the sub-national landscape and looking at how we can develop our capability to connect and convene around national challenges. We will publish and deploy it this year. Thematic programmes 32 Energy 35 38 14 Built environment Food We will commit up to £35m to business-led projects and Missions, and up to £10m to the Offshore Renewable Energy Catapult, with a focus on new energy technologies that help solve the challenges of sustainability, security, and affordability of supply and supporting the implementation of the Government’s industrial strategies for nuclear, oil and gas, and offshore wind. will commit up to £16m to business-led projects and up to £10m to the We Future Cities Catapult, with a focus on systems integration, users, delivering designed performance, and supporting the implementation of the Government’s Construction Industrial Strategy. e will commit up to £14m to business-led projects, with a focus on engineering W solutions, integrated farming systems and measurement technologies and supporting the implementation of the Government’s Industrial Strategy for Agri-Tech. Transport We will commit up to £35m to business-led projects, studies and workshops and up to £10m to the new Transport Systems Catapult, with a focus on integrated transport systems, low carbon vehicles, rail systems, marine vessel efficiency, aerospace and supporting the implementation of the Government’s strategies for the automotive and aerospace industries, including the delivery of the Aerospace Technology Institute. 43 Health We will commit up to £68m to a range of activities including the Cell Therapy Catapult and the Biomedical Catalyst, with a focus on better disease detection, prevention and management; tailored treatments for disease; potential cures and supporting the implementation of the Government’s Life Sciences Strategy. 45 High value manufacturing We will commit up to £63m to the High Value Manufacturing Catapult, collaborative R&D competitions, Knowledge Transfer Partnerships, special interest groups, and building links with China, with a focus on resource efficiency, manufacturing systems, integration of new materials, manufacturing processes, and new business models. Helping high-growth SMEs We will work with the financial community to develop ways to help companies we are engaged with access seed and capital funding – both public and private – to access complementary help them to grow. financial support 21 40 48 Digital economy We will commit up to £10m to the Connected Digital Economy Catapult and up to £37m to 10 competitions, with a focus on exploiting data, new value models, resilient and interoperable digital systems, linking services to customers, and supporting the implementation of the Government’s Information Economy Industrial Strategy. Space applications e will commit up to £10m to the Satellite Applications Catapult and up to £11m W to TechDemoSat and UKube, Knowledge Transfer Partnerships, special interest groups and competitions, with a focus on satellite data and space-based satellite systems, national and European space programmes, and demonstration. 50 52 Resource efficiency e will commit up to £8m to competitions, special interest groups and Missions, W with a focus on substituting at-risk and high-environmental-impact materials, closing the lifecycle loop, reducing material use, and reducing energy intensity on a lifecycle basis. Enabling technologies We will commit up to £30m to support the collaboration and cross-fertilisation of ideas between sectors and through identified technology challenges in areas such as robotics and autonomous systems, advanced materials, biosciences, electronics, sensors and photonics, and ICT. 54 57 Emerging technologies e will commit up to £7m to special interest groups and an innovation and W knowledge centre in synthetic biology, with the focus on areas of disruptive technology such as synthetic biology, energy-efficient computing, and energy harvesting. Continuously improving our capability 59Understanding impact and using evidence to enhance delivery e will build an impact evidence base and use this, along with evidence from W innovation research and our own management information systems, to develop our strategic toolset, articulate arguments that influence policy and support investment decisions. 59 Developing our systems We will further improve competition, grants, monitoring and claims processes 59 Enhancing business processes e will continue to develop robust processes that ensure scalability, W reproducibility, and performance improvement. 60 Professionalising customer support e will develop our business support team and systems to provide more effective W service to the growing number of business enquiries we receive. within an integrated system. [ Delivery Plan 2013–14 ] 15 [ Delivery Plan 2013–14 ] Delivery plan 2013-14: Details As the UK’s innovation agency, everything we do is focused on helping UK business bring new products, services and processes more rapidly to market. The journey an idea takes from the initial concept to being commercialised and generating income is often uneven and indirect and never the same for any two ideas or businesses. To get an idea from light-bulb moment to a product on a shelf, a service delivering benefit, or an efficient and effective process, requires determination, perseverance, desire and passion. There are many challenges and obstacles to overcome on the journey from concept to commercialisation and not all ideas will stay the course. Our current four-year strategy Concept to Commercialisation, published in 2011, explains our focus on: –ensuring that our tools and programmes offer the best possible support at appropriate stages of the journey This delivery plan sets out where we will focus our attention and activities and explains to businesses, academia and government what they can expect to see over the next 12 months by way of competitions, the support we will provide and the changes we plan to introduce. –working with other partners to connect businesses to appropriate forms of support –using government levers such as procurement –focusing our support on areas where the UK has particular strengths and can take advantage of large global markets –ensuring the support we provide is delivered and can be accessed in the most efficient and effective ways. Our tools and mechanisms to support business innovation Smart Collaborative R&d 16 Missions Innovation vouchers Launchpad Innovation & knowledge centres _connect [ The Details / How we help business ] How we help business The journey from concept to commercialisation, whether involving a start-up or large multinational company, requires access to finance, skills, knowledge, equipment and partners and, ultimately, customers. Our role is to smooth the journey and provide help along the way either through the support we offer or by connecting to the support provided by others. We work with businesses of all sizes and aim to meet their differing needs and requirements. SMEs will be a major source of the UK’s future economic growth. Part of our strategy is to offer a package of support for SMEs that will help them access finance, partners, lead customers and knowledge and skills. Large companies also drive growth, and the support we provide can make a strategic impact on the business as well as help to develop their supply chains, which are an important source of SME innovation. We have at our disposal a range of tools to support businesses on their innovation journey. We are working to ensure that it is clear to businesses when they are planning ahead which of our support tools might be best suited to meet their specific needs. As they make the journey from concept to commercialisation, we need to help them more efficiently and effectively select the right support they need at a point when they most need it. We need to ensure that the tools can be accessed easily and that, where possible, we add value to a business through the contacts we have with them, whether their application is successful or not – for example in producing a business plan as part of the application process. We have developed existing tools such as collaborative research and development funding, refining this into a highly effective tool that supports the exchange of knowledge from academia to business, and encourages innovation in, and development of, supply chains. We have added new tools such as Launchpad, Smart, Innovation Vouchers and Catapults, and have worked on enhancing support for smaller businesses in particular. Applying to a scheme such as Innovation Vouchers or Smart is often the first contact an early-stage business has with us. We will work to offer ongoing engagement following the initial contact, providing holistic support on the innovation journey. We provide support that is open to any idea – such as Smart and Knowledge Transfer Partnerships – and support focused on specific priority themes and challenges – such as collaborative R&D and SBRI. Details of the support provided through our thematic programmes starts on page 27. [ Delivery Plan 2013–14 ] 17 [ Delivery Plan 2013–14 ] Access to finance One of the key issues a business faces when developing an idea is how to best finance that development. Often it is from family or friends or a loan from a bank. Sometimes it can be through support from government or the private equity market, where there is a higher level of risk. Private sector finance is at a premium in the current economic climate. This in turn leads to reduced investment in innovation, which often comes too late, if at all. There is a well-recognised seed funding gap for start-ups and early-stage companies as well as for small enterprises that want to invest in their own development and growth. The British Business Bank, announced by Secretary of State Vince Cable in September 2012, reflects the importance that the Government is placing on giving business better access to finance. To help overcome the challenges faced by companies in accessing finance, the Technology Strategy Board provides a range of support to reduce risk and help companies fund innovative projects (see front of document for overview). In addition to our own support, we are linking to that provided by the private sector to help companies raise further finance, including finance to match our financial support for projects or to help fund the business through the commercialisation phase, beyond where we can provide support. Access to finance from the Technology Strategy Board We offer SMEs financial support for ideas through competitive application: –Smart: providing small grants aimed at filling the gap in seed funding felt by small and earlystage companies – E urostars: helping businesses internationalise through collaboration with EU companies and partners and as a first step into larger EU programmes. During 2012-13, we doubled the funding for Smart to meet the high demand from small businesses and to support more of the excellent proposals received. We have developed our understanding of the needs of smaller businesses and will look at how we can better target our support to different segments of businesses – recognising that the term SME covers a wide range of different businesses with different needs. In the Smart programme, around 70% of recipients are micro-companies (with fewer than 10 employees) and over half are younger than five years old. Our financial support is also focused around specific technologies, markets, challenges and clusters and includes: – feasibilit y studies: providing a small level of funding to test out the feasibility of an idea before accessing larger grants such as through the collaborative R&D competitions – collaborative research & development: co-funding innovative projects which involve partnerships between businesses, 18 and between business and academia, to help tackle specific technical or societal challenges by working collaboratively to create new products, processes and services – S BRI: providing business with public sector procurement contracts to research and develop new products and services, addressing public sector challenges and connecting the public sector as a ‘lead customer’ with innovative companies – L aunchpad: offering small grants linked to other forms of support within a geographical business cluster, such as coaching and mentoring and access to finance, to help the company grow. We ran our first Launchpad competition in 2011 to support the growing cluster of digital companies based in Tech City in East London. The competition attracted more than 200 applications from SMEs to work in the digital space in Shoreditch, London, and our funding of £1.25m drew in an additional £1.5m of private sector funding for 13 projects. Three further Launchpad competitions were launched in 201213. The Harwell Space Launchpad encourages engagement with space sector expertise and facilities on the Harwell campus, including those of the European Space Agency, the Science & Technology Facilities Council, RAL Space and the Satellite Applications Catapult. The Materials and Manufacturing North West Launchpad is focused [ Access to Finance ] on the cluster of materials and manufacturing companies around Daresbury and Runcorn Heath, and the Creative and Digital Clyde Launchpad seeks to stimulate the cluster of creative and digital businesses in Glasgow. We see the Launchpad model as a good way of supporting the development and strengthening of existing clusters of high-tech companies in specific priority technology fields, and plan to run further competitions in digital and creative, cyber security, and advanced engineering and manufacturing clusters across different parts of the UK. Accessing financial support from others Financial support from the Technology Strategy Board, such as through the Smart scheme, will only take an idea so far on its journey towards commercialisation because of European state aid rules and the higher levels of funding often required the closer to market the idea gets. Companies sometimes need help in finding the funding to match that on offer from the Technology Strategy Board or to scale up the idea once the project is complete. We therefore need to help businesses access private funding such as from the venture capital and business angel markets. We have found that these private sector investors see companies that have been awarded Technology Strategy Board funding as good investment prospects, carrying less risk because their ideas have been independently assessed and they have the backing of non-dilutive government funding. Building on the experience of the Tech City Launchpad, where we helped companies gain the funding to match our grant offer, we will consider processes and mechanisms for supporting companies engaged across all of our relevant programmes. This will include engaging with: –established sources of equity, particularly business angels, venture capital and corporate venturing –established sources of credit, particularly banks –new forms of ‘alternative finance’, particularly crowdfunding and asset-based finance –public and private sector mechanisms to support investment readiness and business growth, particularly GrowthAccelerator and the new Business Bank. One way we will encourage this engagement is through making information about the businesses we support more readily available to providers of funding, by enhancing the accessibility of our management information through a searchable database. Another way will be to use our support for regional or sector-based events – for example VentureFest – to bring together businesses we support and potential investors and providers of business support services. Throughout 2012-13, we have referred eligible SMEs receiving Smart awards to the GrowthAccelerator programme in order to encourage them to take up the offer of business coaching to help them to realise their growth ambitions. We have also helped to publicise a number of new accelerator programmes to attract innovative businesses to these forms of financial and business support. In 2013, we have begun a pilot programme for SMEs to provide them with specialist business and investment readiness training. We will work towards making delivery of access to finance and business growth support a standard part of our toolset so that businesses we support in our programmes that need assistance are identified and engaged (directly or indirectly) with a relevant provider. We also want to ensure that, where possible, we add value for all applicants, whether their application is successful or not. Evidence shows [ Delivery Plan 2013–14 ] 19 [ Delivery Plan 2013–14 ] that companies often struggle to articulate their value proposition and define the business model through which they will access markets and capture customer value. This may also exacerbate the problem of finding suitable external investment. To add value to all applicants, we will work to improve our application process so that their initial contact with us will help them not only to define their innovation project but will also encourage them to articulate their value proposition and develop a credible business plan for its commercialisation. When put together with business coaching and other support, our processes will encourage the development of core business capabilities required to realise the value of innovation, gain access funding to achieve this and therefore facilitate the delivery of growth. Accessing finance from abroad Europe represents the world’s largest international market with almost 500 million people generating €12tr in economic activity. It is a bigger trading area than the US and Japan combined. As well as being a significant market opportunity, it also represents a significant opportunity in terms of funding for R&D and innovation and for building networks. UK business does not, however, access EU programmes at the same levels as competitor countries and is therefore not taking maximum advantage of the opportunities that exist in terms of funding and the building of new networks – often seen as more important than the funding. We need to ensure that more UK businesses take advantage of the opportunities under the new Horizon 2020 programme when it starts at the beginning of 2014. We have reviewed the support available with BIS and will put in place a more co-ordinated and coherent support package to increase UK business participation. Targets – R un at least three Launchpad competitions to support SMEs within clusters. – P rovide at least £40m for the Smart programme to support SMEs to develop their ideas. – W ork with the Government to realise the five-fold scale-up of SBRI to enable government to act more effectively as a lead customer for more innovative businesses. – P osition our funding as a ‘badge of quality’ to help SMEs raise their profiles and access finance more easily, and support companies who want to use their award to raise equity. – D evelop mechanisms to leverage access to finance and other forms of business support, connecting businesses with identified needs and providers of support. – D eliver a functional ‘searchable database’ to give greater visibility to the private equity community of the projects we are supporting and those seeking additional finance. We will provide support for the key areas of Horizon 2020, including the new societal challenge areas, where the UK has good opportunities. We will – Track and evaluate impact such as: the conversion of maximise the potential of the national the companies we refer to contact points – individuals providing GrowthAccelerator for support, expert advice about EU programmes the amount of funding raised to potential applicants – and following Launchpads, and the organisations such as the Enterprise showcasing of activities or use of Europe Networks. searchable databases. – Implement the findings of the joint review with BIS, enhancing UK support for businesses engaging with EU programmes to maximise the benefit of Horizon 2020. 20 [ Access to Finance / Access to Knowledge, skills, equpment and partners ] Access to knowledge, skills, equipment and partners Businesses can sometimes lack the internal capability to deliver a new product, process or service. This is increasingly true as products and services become ever more complex, requiring a much more multidisciplinary approach. A single company will often find it difficult to maintain the skills, knowledge and equipment necessary to support the introduction of a new product or service. They therefore need to work with a range of different partners. The Technology Strategy Board helps businesses access skills, equipment and partners. These include through the Catapult centres, Knowledge Transfer Partnerships, and the new national Innovation Voucher scheme, which provides small amounts of funding to help SMEs access knowledge from external experts. Catapults Catapults are centres of excellence that bridge the gap between business, academia, research and government. They are a powerful new element in the UK economy, helping businesses develop relevant and exciting ideas in receptive and invigorating environments. By promoting collaboration and knowledge exchange, many progressive businesses and organisations will be able to build new partnerships with reduced risks. Companies in a wide range of markets will see the Catapults as an invaluable resource to develop their businesses. Since the intention to set up the Catapult centres was announced by the Prime Minister in October 2010, we have been working to establish seven Catapults. Successful implementation of the Catapult programme is strategically important and we will ensure that the centres are operating effectively and new ones come on stream as planned. We will work to ensure that the Catapults are developed as an integrated part of the overall support that we provide and have a clear role in the innovation landscape in the UK. To Catapult Location achieve this we will ensure that – High Value Seven partner the Catapult vision and opportunities Manufacturing centres around are communicated effectively to the country both business and other stakeholders. – Cell Therapy Guy’s Hospital, London Targets – D eliver the strategic vision of the Catapults as a network of elite technology and innovation centres supporting UK business to develop long-term sustainable growth, and a key element of our integrated toolkit. This includes SME engagement, outreach events and initiatives, and building links to other UK innovation centres. – C ontinue to build the Catapult centres to meet business plan targets, completing the recruitment of leadership teams and boards and finalising long-term strategic goals, long-term business plans and performance metrics. – C ommunicate widely the benefits and vision and the value they add to different parts of the innovation landscape, raising the profile of the Catapult network to help promote UK business engagement. – F urther develop the international profile of the Catapults to ensure effective involvement in key EU and global research, development and innovation activities to benefit UK business wealth creation. – Offshore Renewable HQ in Glasgow Energy For 2013-14 the Catapults programme moves from – Satellite Applications Harwell Science & Innovation an intensive delivery phase into an operational phase, with Campus, Oxfordshire the aim of having all seven – Connected Digital London centres operational in 2013. Economy – Future Cities London – Transport To be announced Systems [ Delivery Plan 2013–14 ] 21 [ Delivery Plan 2013–14 ] Knowledge Transfer Partnerships Knowledge Transfer Partnerships (KTPs) aim to help improve the competitiveness of a business by drawing on the expertise in UK universities, colleges and other knowledge providers. Knowledge is usually transferred through a recently qualified individual specifically employed to work on a challenging innovation project. During 2012-13, 279 new KTPs were approved to start; we piloted competitions for theme-based KTPs, and we added the Medical Research Council as a new sponsor. All the research councils now co-fund KTPs, as do the devolved administrations and some government departments. During 2013-14, we will introduce at least one new sponsor to enable more projects to be funded. Innovation Vouchers Innovation Vouchers help SMEs access knowledge from external providers such as universities and colleges, research and technology organisations, design advisers and intellectual property advisers. The new national Innovation Voucher scheme was launched in September 2012 and helps to stimulate businesses to bring in new knowledge, enhancing their ability to develop innovative products and services. We have also brought together for the first time in one place details of the other innovation voucher schemes available to business in the UK. 22 Targets – Increase the pipeline of high-quality KTP proposals to generate at least 800 active partnerships. – A dd at least one new KTP sponsor, to increase the number of businesses benefitting. – C ontinue to develop and expand Innovation Vouchers to help companies engage with knowledge suppliers. Knowledge transfer networks, special interest groups and _connect Knowledge transfer networks, special interest groups and _connect help businesses to find partners and access knowledge. These theme-based networks accelerate business innovation by enabling people to share knowledge, ideas and opportunities within and between specific sectors. The networks are hosted on the Technology Strategy Board’s online community, _connect, at https://ktn.innovateuk.org We have been growing the membership of _connect, with over 60,000 members now participating in the networks or special interest groups that it hosts. ‘ConnectMe’ functionality has been developed to help create partnerships by matching people with similar innovation and technology interests. Building international partnerships It is estimated that 90% of R&D and innovation is conducted outside the UK, and many major and lead-marketshaping companies are of non-UK origin. It is therefore important that the Technology Strategy Board is active in helping companies access knowledge and build partnerships with organisations outside the UK as well as in leveraging funding and learning from others. The new EU Horizon 2020 programme is not only an opportunity to access funding but is also a means to develop new relationships with EU companies; businesses consistently tell us that this is the biggest benefit to participation in EU programmes. By supporting more businesses to access EU programmes we hope to build more cross-border partnerships. We also need to look beyond Europe to help companies take advantage of global markets. We will develop deeper relations with a few priority countries including India, Brazil and China and work with UKTI and BIS to identify innovation hotspots around the world where we will work together in specific thematic areas to help UK business take best advantage of the opportunities. We will develop the role the Catapult centres play on the international stage to ensure they achieve global recognition and support the needs of UK business through building strong international links. We will work with [ Access to Knowledge, skills, equpment and partners / Access to Lead customers ] Access to lead customers Research Councils UK (RCUK) to build on investments they have already made in specific countries where they align with our priorities and to develop joint programmes. In 2012, we supported, with UKTI, the second Clean and Cool Mission to the US focused on clean energy technologies, and the Future Health Mission to Boston. Early in 2013, we supported our first mission outside of the US with the Web Mission to India. We will run further Missions to help small companies build up global partnerships. Targets –Develop activities with India, Brazil and China and identify innovation hotspots to prioritise international engagement in specific thematic areas. –Develop a programme with India, including consortia-forming workshops and a collaborative R&D competition working jointly with the Indian Department of Science and Technology and the Global Innovation and Technology Alliance. –Run the first Mission to China enabling UK SMEs to collaborate on sustainable manufacturing processes, with a follow-on collaborative R&D competition to be run jointly with the Chinese Ministry of Science & Technology. –Run the first Clean & Cool Mission to Brazil, enabling UK SMEs to take advantage of the immense opportunities in the sustainability sector and run a Clean & Cool Mission to Colorado looking at clean energy. –Develop the role the Catapult centres play on the international stage and work with RCUK in the development of joint activities. The UK government is the largest single purchaser in the UK but little of that purchasing power is directed at supporting innovation and economic growth. How the public sector behaves towards its suppliers can do much to foster innovation. The potential is widely recognised, but there are major cultural and process issues to overcome. We continue to see this as an area where great impact could be achieved. We have been working to move the agenda forward, away from the simplistic focus on the procurement function and towards a more sophisticated view of the systems and processes around government engaging as a lead customer. To act as an effective lead customer requires the ability to: –identify un-met needs and areas where innovation is necessary and where engagement with industry could lead to better solutions –engage with industry in the articulation of these needs and support the development process through specification, verification and validation –provide a route to market, deploying the resulting solutions. Mechanisms such as innovation platforms and SBRI cover the second of the above requirements, but, without the first and last, it is hard to build a pipeline of challenges or to ensure deployment of solutions. To make SBRI comparable to its sister scheme in the US demands a much more ambitious approach. The Government acknowledged this in the March 2013 Budget with the announcement of a five-fold scale-up of the programme which should help establish a more systemic approach. We will continue to develop this theme and look to take a role as delivery partner with organisations such as the NHS. Government agreed in the response to Lord Heseltine’s Review that there should be a single source of expertise for innovation procurement and that the Technology Strategy Board is uniquely placed to fulfil that role. SBRI SBRI helps government act as a lead customer and work with innovative SMEs. The business gets finance to develop its ideas, working with a potential purchaser, and the public sector gets more innovative ways of meeting its needs. In 201213, we continued the programme’s expansion, achieving growth in the number of competitions but, more importantly, increasing support and financial commitment. Since April 2009, over £100m of contracts have been issued to businesses. SBRI continues to represent a significant opportunity both to support innovative businesses to develop new products and services and for central government and the wider public sector to stimulate and have access to novel solutions to the challenges they face. During 201314 we will work with the Government to deploy the five-fold increase in scale and longer term sustainability of SBRI. Target –Work with, and across, government to champion the role of government as a lead customer. –Increase the scale of SBRI in line with the March 2013 Budget announcement, with £100m of new contracts issued. [ Delivery Plan 2013–14 ] 23 [ Delivery Plan 2013–14 ] Linking and leveraging government support The public sector support system – GrowthAccelerator: ensuring has many useful components but for companies get appropriate businesses it can be complex and mentoring and coaching support to difficult to navigate. Many partner facilitate growth organisations have an important role to play in the innovation journey, and the – the devolved administrations of Technology Strategy Board, as the UK’s Scotland, Wales and Northern innovation agency, is in a position to Ireland and local enterprise help businesses to leverage the multiple partnerships in England: creating forms of government support available. the links between the national and the local We will work to develop strategic relationships that enable us to improve – the UK Commission for the support infrastructure and to deliver Employment and Skills: better multiple forms of support to companies aligning skills provision to support we are working with. innovative companies We will continue to work with a number of partner organisations where we feel there are the biggest opportunities to provide coherent support for the benefit of UK business: – the research councils and the Higher Education Funding Council for England: working closely with the research base. We have a strong and well-developed relationship with the research councils and the Higher Education Funding Council for England, including some aligned activity and joint programmes. There is opportunity to improve and look at more structural alignment driven by our strategy and a more systemic approach to our toolset. We are also looking at how we provide brokerage between business and academia –Nesta: working to understand the evidence base around innovation support and supporting its activities on prizes – UKTI: better connecting companies with UKTI support for exporting – the Intellectual Property Office: linking companies with intellectual property support provided by the IPO and others 24 – the British Standards Institution: supporting the development of standards, particularly in emerging areas of technology – the Design Council: helping businesses understand how design can play a key part in the development of their business. We recognise the importance of local business engagement and of understanding how our support can be best accessed locally and the impact it can achieve. The review by Lord Heseltine, No Stone Unturned, published in October 2012, emphasised the importance of that engagement. We continue to develop strong links and grow activity with the devolved administrations, focusing on priority areas where we see mutual benefit. The local enterprise partnerships (LEPs) and the GrowthAccelerator scheme are two new structures and activities in place where we need to create effective engagement to ensure we are achieving maximum benefit for business. LEPs, although still at an early stage, should be well-placed to help raise awareness of, and signpost local businesses to, our programmes. While the majority of our interventions have historically not had a particular geographic focus, it is also evident that they can have an important impact at a local level. The introduction of Catapult centres and the greater use of Launchpads in support of specific clusters bring more of a local dimension to our work. Targets – Implement a programme of joint activities with key strategic partners that leverages public sector support and provides multiple forms of support to help innovative companies to grow. – Work with key partners such as research councils and funding councils to improve national co-ordination of strategies and investments for business/university collaboration and broaden research base engagement including strengthening our relationships with key research base groups/alliances. – Look at how we more effectively use intelligent brokering to help businesses work with the research base. – Strengthen innovation engagement locally including with the LEPs and with the devolved administrations. [ Linking and leveraging government support/ Engaging with our communities ] Engaging with our communities An important aspect of our work is engaging a wide range of organisations – business, academia, government, investors and business support intermediaries. We need to both listen and learn from what the community is telling us and broadcast our messages effectively to the community so they are aware of the opportunities that exist and the latest developments happening in their areas. We also need to enable businesses to engage more easily with each other and with the knowledge base, to identify and pursue innovative wealth-creating opportunities. We have a number of outreach and connectivity channels such as the 15 knowledge transfer networks (KTNs) that enable people to share knowledge, ideas and opportunities within and between sectors. Much of this is online, on our virtual network platform _connect, where people with ideas and resources come together. We also have innovation platforms, special interest groups, national contact points and the Catapults, all providing different ways of engaging with our communities – through challenges, markets and technologies, sectors or locally. We need to enhance our capability for fast, flexible and effective UK-wide engagement on our key thematic priorities (challenges, markets and technologies) and more widely, drawing on the most effective use of the wide range of channels currently or potentially available – international, national and local. The support we provide operates within a complex environment of networks operated by organisations such as trade associations and professional groups as well as other publically funded activities and bodies such as GrowthAccelerator, Enterprise Europe Network and the Northern Innovation Forum. Communications also play an important role. Dialogue enables us to understand business priorities and innovationsupport needs, to discuss technology directions and opportunities for growth, explain the support and help available, and facilitate the collaboration that enables faster development of new ideas, products and services. Events are a key tool – helping our target companies to receive and share information and to begin and deepen collaborations. Innovate UK brought together the best of the Technology Strategy Board’s annual Innovate and UKTI’s TechWorld events – creating the UK’s leading multi-sector innovation and trade networking event for business and academia. We also participated in many other existing regional and national events run by third parties, for example reaching out to SMEs through events for early-stage companies and investors, and working with science parks and incubators. We will continue to develop our concept of a national network of innovation events. The Technology Strategy Board website at www.innovateuk.org is the main way of communicating with all our audiences and a main delivery channel for our programmes. This year, we will continue to work on our online presence to provide the clarity, support and inspiration for business that is required to fulfil our objectives. We also need to ensure we are reaching as wide an audience as possible so that businesses across the UK understand the support that is available from the Technology Strategy Board. We will therefore do more to ensure UK businesses are aware of the Technology Strategy Board and the support we can provide to help them to innovate. Targets –Publish, communicate and implement the community engagement strategy by March 2014, embracing all aspects of Technology Strategy Board engagement with the broader business community and promoting enhanced cross-community networking. –Identify the contribution to be made by existing or potential sub-national organisations and/or networks and how they may be adapted to contribute to the delivery of the Technology Strategy Board’s mission. –Consistent with overall strategy, decide the way ahead for the network of KTNs, with consequent contractual changes for individual KTNs in place by March 2014. –Deliver regional innovation events through the VentureFest concept. –Further improve the clarity of our website and support our online presence with signposting and intelligent brokerage for corporate, SME and research-base connections. Deliver an outreach strategy in which web content, _connect, direct communication and the events programme work together. –Work with other agencies to raise our profile amongst SMEs and small business groups, so that the opportunities we offer are more clearly and widely appreciated. [ Delivery Plan 2013–14 ] 25 [ Delivery Plan 2013–14 ] Working with government We work with government departments, both centrally and in the devolved administrations, helping them to develop policy and strategies and to identify where business innovation is needed and how it can be best stimulated. We work closely with BIS in a range of areas, including the development and now implementation of the Government’s Innovation and Research Strategy and the development of its industrial strategy and sector strategies. We will continue to provide input to the strategies and support their implementation. We also act as an effective, proactive and trusted delivery partner to government organisations, helping them to maximise the impact of their support for innovation. We have in place a service level agreement with the UK Space Agency (UKSA) as its delivery partner for telecoms, navigation and integrated projects funded through the European Space Agency, running activities such as the Space for Growth collaborative research and development competition. We are also the delivery partner for the innovation work of the Department for Transport and the Office for Low Emission Vehicles. Other partnerships included working with BIS and Birmingham City Council on the delivery of the Advanced Manufacturing Supply Chain Initiative, and participating in the NHS innovation and procurement review. During 2013-14 we will further develop such relationships, including supporting the emerging NHS structure and working with organisations such as the Department for Energy and Climate Change (DECC) and the MoD Defence Science and Technology Laboratory (DSTL). 26 Targets –Work closely with BIS on the development and implementation of the overall industrial strategy and individual sector strategies and the continuing implementation of the Innovation and Research Strategy. –Develop and embed established relationships with government departments, in particular the NHS, DECC and DSTL. [ Working with government/ Thematic programmes ] Investing in priority areas based on potential Thematic programmes Our thematic programme focuses on: – S ocietal challenges: that are driven by the demands of society and the resulting market opportunities – C ross-cutting competences: that enable the translation of technologies into products and services – E nabling technologies: technologies providing underpinning capability –Emerging technologies: high-potential technologies just emerging from the research base. challenges We have identified five potential markets where innovation is led by societal challenge: – – – – – energy healthcare built environment food transport. It is always difficult to predict the future of markets and what products and services will be required, but since these are driven by societal need, they are almost certain to grow and will require innovative solutions to meet demand. They are also all areas where the markets are influenced by government action, so we can specify aspects of the future products and services. Competences Underpinning the challenge-led areas and markets, and linking them to the technologies we support, are the competences: – h igh value manufacturing: by linking technologies to markets and by focusing on high value aspects, UK businesses can differentiate themselves from the global competition – d igital economy: with the increasing digitisation of markets, digital services are an opportunity for the UK to compete globally – r esource efficiency: it is necessary to find a way to use the Earth’s resources efficiently in ways that do not compromise the planet’s ecosystems while providing a high standard of living for the population – s pace: space applications are a focus area where future markets can drive innovation in technology. Enabling technologies The areas on which we focus, and which are an important link to the knowledge base, are: – – – – advanced materials biosciences electronics, sensors and photonics information and communication technologies. Single developments in any one of these may unlock several market opportunities across multiple sectors. Emerging technologies and industries This area of our work identifies highpotential technologies just emerging from the research base and helps to accelerate their commercialisation. It includes areas such as synthetic biology, energy-efficient computing and energy harvesting. Investment criteria In making investments, we apply four key criteria: – is there a large (global) market opportunity? – does the UK have the capability to develop and exploit the technology? – is the idea ‘ready’ – is the timing right? – can the Technology Strategy Board make a difference? Thematic strategies Over the last couple of years we have been reworking our strategies for our thematic focus areas. Within each area, we analyse available data and consult with industry, academia and government to ensure we have identified how innovation support could make a difference, and we then plan our investments and activities for the greatest impact. So far we have published updated strategies for high value manufacturing, energy, and the enabling technologies (advanced materials; biosciences; electronics, sensors and photonics, and ICT). We are working to ensure that these strategies align with and complement the BIS industrial strategies as they are developed. Target –To publish revised strategies in 2013-14 for the built environment, digital, food, healthcare, transport, creative industries and emerging technologies and industries. We work to ensure that our portfolio reflects synergies between these areas. [ Delivery Plan 2013–14 ] 27 [ Delivery Plan 2013–14 ] Sustainability Sustainability underpins everything we do. The effective use of resources, energy and social capital is a pre-requisite for longterm economic success. Those businesses that can manage these successfully are likely to have the most staying power. The challenge is to introduce the ‘triple bottom line’ of environmental, social and financial sustainability from the start. Many of our programmes have a clear theme of environmental or resource sustainability as a driver of innovation, and about two-thirds of projects we fund have a sustainability objective. In 2012-13 we rolled out the use of the Sustainable Economy Framework, together with Forum for the Future, and will continue to use that framework to help in refreshing our strategies and evaluating potential new areas of investment under development. Target –In 2013-14, roll out the Horizons tool for companies to use in shaping their own strategies and identifying new opportunities for innovation. Identifying potential new areas Innovation platforms It is not possible to invest in every good idea from business or the science base. We have to be selective, identifying significant new business opportunities for the UK and, where appropriate, turning them into robustly argued and coherent programmes. An innovation platform is an approach which uses government action to stimulate innovation. For each innovation platform we bring business, academia and government together to focus on a specific societal challenge, such as vehicle emissions or disease diagnosis, and identify the opportunities for innovation. We evaluate the potential of new ideas and look for global markets with more than £1bn potential, where UK business and science strengths can provide long-term competitive advantage. We identify emerging technologies with high potential and societal challenges where government action creates a market opportunity. How we support our thematic areas We support our thematic areas with the most appropriate response to the needs of the challenge, market or technology area. The main ways in which we provide support are innovation platforms, largescale demonstrators, thematic competitions and support through community engagement. We then offer the necessary support to develop new solutions, products and services to address the challenge and, at the same time, build UK economic growth. We have five innovation platforms: –Low carbon vehicles: established 2007 –Assisted living: established 2007 –Low impact buildings: established 2008 –Sustainable agriculture and food: established 2009 –Stratified medicine: established 2010 (and incorporating the detection and identification of infectious agents). The earlier platforms in particular have already made significant impact. In low carbon vehicles we have leveraged over £200m of innovation investment and run Europe’s largest real-life trial of ultralow carbon vehicles. 28 [ Thematic Programmes ] The Low Impact Buildings Innovation Platform has galvanised the sector with the Retrofit for the Future programme for social housing, underpinned by the targets set by government in the Code for Sustainable Homes. In 2012-13, the Assisted Living Innovation Platform launched dallas, a largescale demonstrator programme for independent living products and services. Evaluating whether to set up an innovation platform involves defining the magnitude and scope of a particular challenge, establishing that a range of new technology solutions are needed to resolve it, understanding the impact on the future market of government action, and ensuring that the UK is wellplaced to develop and commercialise the necessary solutions, and that a Technology Strategy Board programme would add value. Over the next year, we will evaluate the case for, or against, establishing an innovation platform in personal security. Although any programme we launched would be clearly focused, the scope of the study will be very broad, encompassing all aspects of the safety and security of the individual, in order to identify the areas where our action could have most impact. Target –In 2013-14 we will carry out mid-term reviews of the Assisted Living Innovation Platform and the Low Impact Buildings Innovation Platform and assess the potential for establishing an innovation platform in personal security. Large-scale demonstrators Thematic competitions Large-scale demonstrators bring partners together to validate ideas, overcome barriers and move new products closer to wider application. We have enabled effective demonstrators in areas such as low carbon vehicles, retrofitting of buildings, and digital products, and in 2012-13 developed a major four-year programme within the Assisted Living Innovation Platform: dallas (delivering assisted living lifestyles at scale). Thematic competitions – competitions for R&D and innovation funding focused on a specific theme or area of challenge, technology or application – form the bulk of our funding programmes. dallas involves thinking beyond traditional health and social care to consider new ideas to improve the way people live. By summer 2015, 169,000 people across the UK will benefit from new products, systems, and redesigned services, to transform their choices as they age. Four communities are now in full swing, showing how innovative technologies and services can be used to promote wellbeing and provide top-quality health and care – enabling people to live independently and to expect a better future. During 2012-13 we ran more than 70 thematic competitions for R&D and innovation funding using a number of our tools, whether collaborative R&D, feasibility studies, SBRI, demonstrators or Launchpad competitions. The details of competitions planned for 2013-14, and the anticipated funding commitments, are shown in the following sections. In December 2012, we announced that Glasgow had won the competition to host the £24m Future Cities Demonstrator. We are also supporting smaller demonstrator projects totalling £9m in Bristol, London and Peterborough and plan to follow up the feasibility studies carried out with 30 cities. In 2013-14 we will be launching new demonstrators in energy and transport. Targets –Launch a £10m demonstrator in energy that draws together the UK supply chain and reduces CO2 emissions through affordable and secure sources of supply. –Launch transport demonstrators in light rail, integrated mobility and autonomous vehicles. [ Delivery Plan 2013–14 ] 29 * Note that the figures quoted in this illustration are indicative only, subject to change over the spending period, and represent budgets under Technology Strategy Board control only. Updated April 2013. [ Delivery Plan 2013–14 ] 30 [ Investing in priority areas ] Anticipated in-year expenditure in 2014-15, by priority area* [ Delivery Plan 2013–14 ] 31 [ Delivery Plan 2013–14 ] Challenge-led areas: Energy Energy underpins almost every aspect of our day-to-day lives. We have learnt to take energy for granted as a commodity that will always be able to meet our increasing demands. However, global legislation and domestic energy policies are now making us appreciate the complexity and value of energy in a way we have not before. We therefore believe UK domestic policy and legal requirements offer real opportunities for UK business to develop innovative new products and services. In 2011, the energy supply industry in the UK contributed approximately 4% of GDP (£60bn), 10% of total investment, and 52% of industrial investment, directly employing around 173,000 people and more indirectly (source UK Energy In Brief 2011, DECC). We are aiming to help UK industry profit from the changes the world will have to make to address the ‘trilemma’ of energy security, affordability and sustainability. Against this background and within the sustainability framework developed with Forum for the Future, our response is to focus our strategy on three overarching strategic opportunities where we believe UK business can really make a difference and generate wealth: –reduce CO2 emissions through affordable and secure sources of supply –integrate future demand and energy supply into a flexible, secure and resilient energy system –reduce emissions at point of use. 32 The barriers to innovation Focusing our investments The future energy system will need to be flexible, resilient and affordable to integrate the changing mix of energy supply and demand technologies. There are a number of key challenges to overcome but they also offer businesses an opportunity: Against our three overarching strategic opportunities, we have analysed how – when the policy landscape, global market and UK capability are all taken into account – we can make a difference and stimulate innovation leading to UK wealth creation. We have prioritised our work under each opportunity. –cost: new energy technologies are often costly to implement and need to be competitive with existing provision in terms of reducing the cost of operation –supply chains: new technologies need capable supply chains which take time to form –skills: a skilled workforce is needed with an understanding of how to implement new technologies –infrastructure: innovation needs a capable infrastructure to manage, transmit and distribute new energy technologies, both in terms of supply but also on the demand side – s table policy: to invest in new infrastructure, new generating capacity, new supply chains and new skills, industry needs certainty regarding regulation, planning and capacity targets. –Reduce CO2 emissions through affordable and secure sources of supply Reduce the cost of energy from offshore renewables; develop technologies for new civil nuclear build programmes, and work with the research base to pull through next-generation photovoltaics, bioenergy and carbon abatement technologies. –Integrate future demand and energy supply into a flexible, secure and resilient energy system Integrate intermittent supply, storage and new demand technologies (such as electric vehicles and heat pumps) into a resilient energy system; pilot innovations within the UK oil and gas industry, and ensure fuel systems for current and future demand-side applications are secure and sustainable. –Reduce emissions at point of use Find novel ways of using and capturing CO2 at point of energy use and develop new energy systems for demand-side applications. [ Challenge-led areas: Energy ] Energy action plan 2013-14 Challenge Action Timing & Budget –Offshore Renewable Energy Catapult: Provide a world-class centre of expertise to support the rapid commercialisation of cuttingedge technologies that address the key challenges to innovation in offshore renewables with the potential to have a global impact Catapult Q1-Q4 Up to £10m – O ffshore energy: Cost reduction and the development of a UK supply chain. Address cost reduction and innovation in offshore infrastructure, and create collaborations between the UK’s excellent offshore engineering industry and those companies developing novel devices and supply-chain technologies Collaborative R&D competition Q3 Up to £7m –Nuclear: Ensure UK SMEs are able to offer innovative solutions to the business needs of tier 1 suppliers in the civil nuclear new build supply chain. In particular, this activity aims to establish business collaborations across a UK-led supply chain in key areas such as construction, manufacturing, materials, sensors, robotics and decommissioning Feasibility studies and collaborative R&D competitions Q4 Up to £7m – U K energy supply chain at scale: Demonstrating an energy innovation system at scale is expensive and requires collaboration across the supply chain. This programme will establish a large-scale demonstrator that draws together the UK supply chain and addresses the priority of reducing CO2 emissions through affordable and secure sources of supply Large-scale demonstrator competition Q4 Up to £10m –Alternative energy vectors: Ensure a systems approach to addressing key market barriers for the adoption of hydrogen as an alternative energy vector, namely storage (on vehicle and stationary) handling, logistics, and safety issues Collaborative R&D competition Q2 Up to £5m –Community energy systems: Establish collaborations between businesses working in energy supply and energy demand at the community scale. Collaboration will be vital as community-scale innovations will be highly distributed within the energy system with the potential to significantly disrupt business models and the security and resilience of energy networks Feasibility studies and collaborative R&D competition Q3 Up to £3m –Emerging energy technologies: The challenges of integrating emerging technology options into practical systems that deliver practical benefits to the infrastructure owner, user and final consumer are not yet receiving the attention and innovation support they require. We will test the feasibility of emerging technologies such as energy storage within the broader energy system Feasibility studies competition Q1 Up to £2m –Photovoltaics European engagement: The UK is developing significant capability in dye-sensitised and organic solar cells, particularly within supply chains. This Europe-funded ERANET activity will connect pan-European expertise and supply chains to further develop UK innovation in this area European ERANET competition Q1 Up to £1m continued over page… [ Delivery Plan 2013–14 ] 33 [ Delivery Plan 2013–14 ] Energy action plan 2013-14 Challenge –Bioenergy: Encourage and de-risk the development of novel processes for the extraction of energy and/or fuels from biomass sources (joint with high value manufacturing programme), supporting the development of UK bioenergy solutions through European collaboration –Clean & Cool Mission: To understand how the US approaches innovation in this area and how UK companies can benefit from international collaboration, partnership and financing, we will take a small cohort of UK SMEs to one of the US’s leading clean-energy clusters in Colorado. The Mission will visit companies and facilities and take part in a number of events including the prestigious Industry Growth Forum Budgets shown refer to funding commitments in the year, which may be spent over several years. 34 Action Timing & Budget EU competition Q1 Up to £500k Mission Q3 Up to £200k [ Challenge-led areas: Energy / Built environment ] Challenge-led areas: Built environment The UK construction industry is a large part of the economy: –annual output in 2011 was £107bn (over 90% from buildings) –7.6% of UK GVA –employs approximately two million people –a third of all UK construction is procured by the public sector. Within the UK, some of the largest environmental impacts are from buildings. Around 45% of total UK carbon emissions come from buildings – domestic buildings 27% and non-domestic 18%. The UK has demanding targets, backed up by policy and legislation, to reduce carbon emissions by 80% by 2050, which will require a revolution in the design, construction, operation and refurbishment of all buildings. In domestic retrofit alone there is estimated to be a £200bn new market over the next 40 years. The barriers to innovation These include the following factors: –globally and in the UK, construction has a strong subcontracting culture. The market is dominated by a few large organisations, with a very large number of very small players who do most of the individual tasks on site. This means that information, and innovation, spreads slowly –contracting practice limits novel approaches or technologies due to concerns over product and professional liability –both the industry and the consumer are conservative and risk-averse. Focusing our investment There are three overarching principles that influence all our activities: –systems integration: encouraging whole-building approaches at every stage, and extending that approach to neighbourhoods and cities – accounting for the interactions The goal is to enable built environment between buildings and users: providers and their clients to recognise making sure that the importance of the business opportunities and the user behaviour is recognised and innovation requirements in delivering the user is at the centre of design the carbon reductions required by and innovation 2050, whilst preparing for future climate resilience. –realising the designed The Low Impact Buildings Innovation Platform was set up in 2008 to support UK industry in supplying the growing market for low-impact domestic and non-domestic new-build and retrofit buildings. A rapidly emerging driver for innovation is the need to lift the focus from individual buildings to groups of buildings, and ultimately cities. performance in practice: obtaining building or sub-system performance evaluations from all projects where it is practical. With these principles in mind and following consultation with business, government and the knowledge base, the Low Impact Buildings Innovation Platform is focusing on six challenges where we can effectively support innovation. 1 Design for future climate change: We need to be able to design buildings that meet the performance targets, are resilient to climate change, and which people want to live and work in. This requires whole new building designs, not piecemeal adoption of bolt-on technologies. 2 Design and decision tools: We cannot currently predict how a building design will actually perform when built, or how the usage patterns of occupiers will influence performance, and consequently it is difficult to effectively integrate new low-impact technologies into buildings. 3 Build process: We need to be able to build low-impact buildings fast, at volume, cost-effectively and with very low levels of defect. The existing supply chain and build process need to be re-thought to be able to deliver. 4 Management and operation of buildings: We can design and construct low-impact buildings, but unless we can create systems that enable the users to operate the building in a way that both meets their needs and is environmentally efficient, the benefits of the design will be lost. 5 Materials and components for sustainable buildings: There are still challenges in the materials and components that we use in construction. Many solutions fail in the market because they do not perform well enough, they are not costeffective, or are not ‘buildable’. 6 Integrating with sustainable infrastructure: As part of extending the focus to buildings in context, we need to ensure that low-impact buildings integrate seamlessly with other aspects of infrastructure to deliver more effective and more sustainable cities. [ Delivery Plan 2013–14 ] 35 [ Delivery Plan 2013–14 ] Future cities The barriers to innovation Focusing our investment Cities are vital to the future global economy. In 2008, for the first time in human history, more people lived in urban areas than rural. By 2050, more than 70% of the global population will live in cities. Barriers to innovation include: We have involved many groups in understanding the challenges of future cities, including nine of the UK’s largest cities, more than 50 companies and 25 innovation groups. Areas for focus include: Cities are more economically productive and have a lower environmental footprint per head than the country average. But cities are also struggling with climate change, changes in population and demographics, congestion, healthcare and pressure on key resources. –no individual company has all the skills necessary to deliver the requirements of cities in the future. Even the largest ones find it difficult to build broad enough collaborations to meet the challenge. This is a particular problem for smaller innovative companies –developing integrated systems that add significant value to cities To succeed in the future, city governments have to deliver economic activity, quality of life and a lower environmental footprint. This cannot be done by optimising the separate components of the city infrastructure. Innovation in integrated and city-wide solutions is required. –there is nowhere for city governments, business and the knowledge base to collaborate to develop new integrated solutions –exploiting the social and behavioural science knowledge base. The potential market is large. Over £6.5tr will be invested globally in city infrastructure over the next 10-15 years, and the accessible market for integrated city systems is estimated to be £200bn a year by 2030. The UK already has considerable strengths. World-leading companies in project management, engineering, architecture, finance, legal services and insurance make the UK a key centre for large infrastructure projects. The UK’s world-class science and research base provides a talent pool for UK and global firms. The Technology Strategy Board already has programmes in areas important to cities such as energy generation and supply, transport, the digital economy and healthcare. We will be working to pull these together with our low impact buildings work to enable solutions. 36 –most innovation is in specific city subsystems with very little work on integration by business or academics –there is a lack of facilities for demonstration and validation at scale and in use –current activities do not take account of the role of people in cities. The social and behavioural sciences are not sufficiently involved. –demonstration of integrated citywide systems at scale and in use –bringing together city government, business and the knowledge base in collaborations These will be delivered through the Future Cities Catapult and the Future Cities Demonstrator. [ Challenge-led areas: Built environment ] Built environment action plan 2013-14 Challenge: Low impact buildings Action Timing & Budget –Management and operation: Ensuring that buildings can be operated efficiently; reducing energy use and costs Competition format TBD following consultation Q3 Up to £3m ow-carbon non-domestic new buildings: Enabling business to – L deliver Government targets of zero-carbon non-domestic buildings from 2019 Competition format TBD following consultation Q4 Up to £4m – B uildings better connected: Enabling business opportunities from delivery of a decentralised infrastructure fit for the future in small clusters of buildings or major urban expansions through interconnected heating, cooling and power systems at a building and community scale Collaborative R&D competition Q4 Up to £4.5m –Future Cities Catapult: Provide a world-class centre of expertise in future cities to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact. The Catapult will create and demonstrate integrated city-wide systems, bringing together city governments, business and the knowledge base Catapult Q1–Q4 Up to £10m –Developing strategies for future cities: Build on work undertaken in Competition format TBD following consultation Q1 Up to £5m Challenge: Future cities future cities demonstrator feasibility studies; enabling groups of cities to work together to build integration strategies in collaboration with business Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 37 [ Delivery Plan 2013–14 ] Challenge-led areas: Food The UK’s food supply chain is worth some £85bn and employs more than 3.5 million people, with recognised centres of excellence across the agrifood supply chain. Food and soft drink manufacturing is the UK’s largest manufacturing sector, contributing GVA estimated at over £20bn. Global population will increase from 7bn today to over 9bn by 2050, and the UK population is forecast to increase from around 61m to 70m over the next 20 years. Increased wealth will create demand for a more varied, high-quality diet requiring additional resources to produce. The World Bank estimates that global production of cereal needs to increase by 50% and meat production by 85% by 2030. Global climate and environmental change will also place increasing pressure on food production. Food security is becoming a serious concern, and we need to develop ways to deliver more food from the available land without long-term environmental damage. The barriers to innovation Barriers to innovation include: –a fragmented supply chain with many small players with low capacity for innovation and the slow spread of ideas –skill shortages –conservatism, particularly among many small and medium-sized primary food producers –insufficient applied research on the key challenges identified in the strategic research and innovation agenda –slow uptake of ideas from other areas of industry and from the knowledge base. 38 Focusing our investment Our programme seeks to increase the productivity of crops and animals and, simultaneously, decrease the environmental impact of the industry. It will focus on four interlinked areas: 1 Crop productivity Within the scope of productivity we are looking at two areas. Crop protection: solutions to threats posed to UK cereal and horticulture output by withdrawal of plant protection products (including pesticides, herbicides and fungicides) under EU legislation and by climate change including water stresses. Crop nutrition and management: mechanisms and technologies for providing crops with nutrients without current levels of loss to the atmosphere and water. 2Sustainable livestock production (including aquaculture) Development of livestock production solutions that are environmentally and commercially sustainable and meet regulatory requirements. 3Waste reduction and management Farm storage and food processing: a whole-chain approach to waste reduction, from innovative technologies for pre and post-farm-gate storage to farm-scale waste management facilities, post-gate food processing and packaging for retail and food distribution. 4Greenhouse gas reduction technologies and methodologies By far the biggest sources of greenhouse gas in agriculture are nitrous oxide from microbial transformation of nitrogen fertilisers in soil and methane from enteric fermentation in livestock. [ Challenge-led areas: Food ] Food action plan 2013-14 Challenge Action Timing & Budget –Engineering solutions and precision agriculture technologies: Enhance resource-use efficiency in the arable, livestock and food processing environments using advanced engineering and precision agriculture across the agrifood supply chain Collaborative R&D competition Q2 Up to £8m plus £5m co-funding –Integrated farming systems: Economic geographic and climatic pressures have led to a high degree of specialisation within UK agriculture. This competition will stimulate the development of a more efficient and integrated approach to food production, with closer cooperation between sub-sectors Competition format TBD following consultation Q4 Up to £6m plus £3.75m co-funding –Circular agricultural economy: Investigate the opportunity for utilisation of co-products from plant and animal production and processing across the whole agrifood system Study Q3 Up to £100k –Feeding the Future: Innovation Requirements for Primary Food Production in the UK to 2030. An industry-wide report to outline what innovation is needed in the industry to be published in May 2013 Study Q1 Up to £100k Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 39 [ Delivery Plan 2013–14 ] Challenge-led areas: Transport The way that we use transport today is unsustainable in terms of energy use, impact, efficiency and costeffectiveness. Together with growing demand, this requires a major transformation in performance to deliver a sustainable transport system. Our specific objective is to help UK industry profit from developments that improve vehicle efficiency and reduce emissions and also improve transport effectiveness and efficiency. The UK has a strong transport industry especially in the aerospace, road, rail and marine sectors as well as newer capabilities in intelligent transport systems. Transport is important to the UK economy as it provides employment for over 1.3 million people and nearly £40bn of GVA. It also provides a great challenge as it currently generates about 25% of UK carbon emissions. Growth in transport is also leading to increased congestion which is set to cost the economy £22bn by 2025. UK business can make a significant difference and generate wealth by: –reducing carbon and other environmentally harmful emissions from all vehicles and increasing their efficiency –supporting the acceleration of new vehicle technologies in line with national priorities –improving the efficiency and cost-effectiveness of the transport system –integrating different energy sources into transport systems and vehicles –developing a longer-term strategy towards sustainability of transport to include the overall system and vehicles. 40 To benefit from these opportunities, the key players will need to continue to engage with the UK supply chain as well as the growing SME base to develop and commercialise new technologies. The barriers to innovation The barriers to innovation include: –short-term demands on particular forms of transport can divert businesses and academics from addressing the longer-term opportunities of integration –automotive manufacturing supply chains need to be re-engineered to provide the components for new electric, hybrid and fuel cell vehicles –in the marine sector there is a need to share capabilities between the major shipbuilders, the leisure sector and their supply chains –in aerospace, the long-term nature of investments in new aircraft can generate specific challenges to innovation –in rail, innovation is hampered by the relative lack of processes and capabilities in clients and the supply chain to collaboratively bridge the gap between research and procurement –innovation can be hampered by the lack of facilities for demonstration and validation at scale and in real-world situations. Focusing our investment There are great gains to be made if we can enable industry to consider transport systems as a whole. We need to develop a forum where the issues and opportunities can be discussed and reviewed by the many parties involved. We continue with our delivery of the Transport Systems Catapult centre, which will be operational in 2013, where these ideas can be pursued and tested. On the roads, new emission regulations will require new technologies and a new automotive supply base. We have been supporting the development of lowcarbon road vehicle technologies for over five years; we need to take these closer to production, while continuing to develop technologies which reduce carbon emissions. This year we will focus on cost reduction and capability demonstration so that new technologies can move rapidly into production. We will work closely with the Automotive Council to identify key needs across its five strategic technologies, and will explore how relevant developments in fuel cells and hydrogen that we support can be integrated with our low carbon vehicle programme. The mainline rail sector is strengthening its capabilities and resourcing of innovation and has published its 30-year vision in the Rail Technical Strategy. We will continue to work with the industry to better understand the opportunities and the developments needed, building on analysis of UK capabilities. To broaden our [ Challenge-led areas: Transport ] support and engagement with rail businesses we will work with UK Tram and the Enabling Innovation Team to demonstrate UK capabilities relevant to light rail markets. We will continue to work with the UK marine industry to identify specific areas for intervention following the outputs of last year’s vessel efficiency competition, to build UK capabilities in key areas to support the national Marine Growth Strategy. We will maintain our presence on the EU Marine Industry Leadership Council’s Technology and Innovation Group, and the marine science group of the Department for the Environment, Food and Rural Affairs (Defra). Additionally, to build on the success of the EU Marine Technologies (MARTEC) activity, we will seek to develop a longer-term engagement with Europe to position the UK in future maritime activity. There is an immediate need to respond to the challenge of moving to low-sulphur fuels and improving vessel efficiency. In aerospace, the medium-term focus is on improving manufacturing systems to increase capacity and deliver innovative technologies to aircraft programmes. We will continue to work with the industry, in particular to understand the implications of the update of the UK Aerospace Technology Strategy (UKATS) roadmaps and the outputs of the Aerospace Growth Partnership activities including the newly established UK Centre for Aerodynamics and the planned Aerospace Technology Institute. Transport action plan 2013-14 Challenge Action Timing & Budget –Transport Systems Catapult: Provide a world-class centre of expertise in transport systems to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact Catapult Q2-Q4 Up to £10m – A erospace III: Further accelerate innovation in the aerospace supply chain to ensure the UK is positioned to support future aerospace programmes Collaborative R&D competition Q1 Up to £5m – Integrated Delivery Programme 10: Development of advanced technologies to support the low carbon vehicles agenda and the growth of SMEs and enhanced opportunities within the UK supply chain Collaborative R&D competition Q2 Up to £10m and significant co-funding – N iche vehicle research and development: Support UK SMEs engaged in the ‘high-value’ niche vehicle sector, developing and extending their networks, working with larger and more established automotive supply chain partners. Managed by the Niche Vehicle Network Collaborative R&D competition Q2 Up to £1m – Optimising vessel passage through enhanced human/machine interface: Operational costs and fuel efficiency (and therefore reduced emissions) can be aided by advanced information Collaborative R&D competition Q3 Up to £3m – M aritime technologies (MARTEC): Support UK businesses to take their technologies to a new market and help them work in new Europewide collaborations EU competition Q2 Up to £1m continued over page… [ Delivery Plan 2013–14 ] 41 [ Delivery Plan 2013–14 ] Transport action plan 2013-14 Challenge Action – L ight rail demonstrator: Challenge the UK rail sector to act as an intelligent lead customer to accelerate deployment of innovative rail solutions and enable global market access SBRI competition Q3 Up to £3m – T ransport systems and integrated mobility demonstrators: Real-world demonstration of multimodal integrated transport will allow vehicle manufacturers and systems developers to trial and prove out new technologies – helping overcome barriers Feasibility studies Collaborative R&D competition Q1 Up to £1m Q4 Up to £2m – M otorsport cluster development: Broaden and create new business opportunities for UK motorsport to collaborate with other adjacent vehicle sectors. Driving new technology development, affording unique engineering consultancy services and commercial growth Launchpad competition Q2 Up to £1m – V ehicle to grid: Electrification of the mass vehicle fleet is a major infrastructure challenge. Investigate gaps and market failures in this key area for the successful deployment of electric vehicles Feasibility studies competition Q3 Up to £1m – U nderstanding global supply chain in rail: Study to understand the routes to global rail markets and gain industry support for an innovation strategy to address opportunities Study and workshops Q2 Up to £200k – Strategic roadmapping and economic analysis of integrated transport: Roadmapping, capability and gap analysis of and review of economics of integrated transport solutions Study and workshops Q1&2 Up to £500k – T owards autonomous transport: Real world demonstration of autonomous systems will allow vehicle manufacturers and systems developers to trial and prove out new technologies – helping overcome barriers Feasibility studies Collaborative R&D competition Q1 Up to £2m Q4 Up to £5m – Integrated mobility special interest group (SIG): Enabling sustainable economic growth through the movement of people and goods by instilling intelligence into transportation, increasing the UK’s capabilities and competiveness in this area. Special interest group Q1 Up to £100k Budgets shown refer to funding commitments in the year, which may be spent over several years. 42 Timing & Budget [ Challenge-led areas: Transport / Health ] Challenge-led areas: Health Healthcare providers are facing greater challenges from a growing, ageing population and an increasing burden of disease. The Organisation for Economic Co-operation and Development (OECD) countries spent over $4.6tr in 2008 on healthcare, and, for many, this has been increasing as a proportion of GDP. The barriers to innovation The barriers to innovation are: –innovation in medicines and healthcare technology must be carried out within a regulatory environment designed to protect patients, meaning the development timelines are longer when compared to some other technology sectors and the risks and costs can deter investment in innovative solutions –the conservative nature of patient care can limit the adoption of new technologies as can the fragmented nature of procurement –the pace of technology innovation is outstripping the ability of users to adapt to the way healthcare is delivered. Focusing our investment Current healthcare models are facing greater challenges, both physically and financially, in providing for a growing, ageing population with an increasing burden of disease. For companies to devise solutions to these challenges, they must recognise the drivers behind the healthcare challenges and look at models of: –disease prevention and proactive management of chronic disease –earlier and better detection and diagnosis of disease leading to marked improvements in patient outcomes –highly effective treatments that are tailored to patients’ needs and either modify the underlying disease or offer potential cures that deliver improved patient outcomes in increasingly efficient and costeffective ways. We are addressing these challenges through the following activities: –Assisted Living Innovation Platform: helping businesses to deliver products, systems and services to We must ensure that innovators are help people live independently for working towards users’ needs and longer – how they want and where think about how adoption of technology they want will require changes in patient care pathways, or the way that services are –Stratified Medicine Innovation accessed. Platform: supporting companies to create cost-effective solutions for delivering the right treatment to the right patient at the right time –regenerative medicine and cell therapy programme: helping UK businesses take advantage of the next generation of treatments to deliver long-term relief or cures for diseases –the Biomedical Catalyst, in partnership with the Medical Research Council: to cover the three challenges in a more holistic way, allowing a more open approach to innovation to bridge academic and commercial activities in therapeutic development, medical devices, diagnostics and e-health/mhealth solutions. Our Detection and Identification of Infectious Agents Innovation Platform enabled companies to address the need to reduce mortality, morbidity and the economic burden of infectious diseases. Given the platform’s strong synergies with the Stratified Medicines Innovation Platform, we have rolled the humanhealth-related activities into the Stratified Medicines Innovation Platform. Alongside the new activities we are launching this year, we will be working with the evolving dallas programme to capture and share its outputs and will explore its longer-term legacy for the Assisted Living Innovation Platform. The ‘long-term care revolution’ will continue and we will identify what the next phase of our activity should be to help create and develop new and exciting services and systems that will be fit for long-term care in the 21st century. Managing and understanding data is a critical piece of the jigsaw puzzle that enables stratified medicine and supports assisted living. Measuring health outcomes is a crucial component of understanding which treatments and services work. The benefits touch on all areas of preventing illness, early diagnosis and better treatments but also provide companies with a better understanding of what impact they are having in delivering more efficient and effective health systems. This convergence brings together our health and digital areas to develop a programme to explore how digital technologies enable healthcare. [ Delivery Plan 2013–14 ] 43 [ Delivery Plan 2013–14 ] Health action plan 2013-14 Challenge Action –Cell Therapy Catapult: Providing a world-class centre of expertise in cell therapy to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact Catapult Q1-Q4 Up to £12m –Regenerative medicine and cell therapy: Addressing commercial challenges in developing next-generation therapies Collaborative R&D competition Q4 Up to £8m –Ambient assisted living call 6 and 7: Enabling UK business to exploit EU opportunities in the development and application of assisted living technologies EU competitions Q1 Up to £1m Q4 Up to £1m –Biomedical Catalyst: Bridging the ‘valley of death’ for healthcare solutions with a particular focus on SMEs Ongoing Catalyst competition Q1-Q4 Up to £30m –Stratified medicine in vitro imaging: Enabling earlier and better diagnosis and treatment of disease through in vitro diagnostic technology to support patient stratification Collaborative R&D competition Q2 Up to £5m –Stratified medicine: Developing solutions for patient stratification within selected therapeutic areas Collaborative R&D competition Q2 Up to £7m –Digital technologies for health: Enabling companies to understand what impact they could have to help deliver more efficient and effective health systems and to connect with providers. We may consider areas such as: early diagnosis, prevention and better treatments. Joint programme with digital economy team and shown in both areas Collaborative R&D competition Q4 Up to £5m –Health knowledge exchange: Connecting new entrants and existing businesses with opportunities in the health sector Special interest groups Q1-Q4 Up to £1m Budgets shown refer to funding commitments in the year, which may be spent over several years. 44 Timing & Budget [ Challenge-led areas: Health / Competence areas: High value manufacturing ] Competence areas: High value manufacturing Our high value manufacturing programme aims to grow the contribution of manufacturing to UK GDP by investing in innovation that will maintain or improve its competitiveness and the commercialisation of new manufacturing technologies. Manufacturing contributes £6.7tr to the global economy and the UK is a major player; in terms of manufacturing GVA it is in the world’s top 10. Manufacturing makes up 10% of UK GVA and 54% of UK exports, and directly employs over 2.5 million people. Despite the decline from the 1970s, when manufacturing was 25% of UK GDP, we rank second globally in aerospace, the UK-based auto industry exported a record-breaking 84% of production in 2011, and our chemical and pharmaceutical industries add £20m per day to the balance of trade. As well as these strong industry positions and world-leading capabilities, there are emerging technologies where the UK is scientifically strong and has the potential to make a global impact through manufacturing. These include composite materials, plastic electronics and industrial biotechnology. The Institute for Manufacturing’s Future Landscape Study, published in February 2012, identified 22 national competencies, which, if effectively developed and/or grown over the coming years, will ensure that the UK is well-positioned to grow its manufacturing base significantly. The barriers to innovation Focusing our investment Manufacturing innovation requires new knowledge to generate entirely new products, processes or services, or new technology to improve existing processes. This often involves bringing together more than one novel technology and components of separate supply chains to secure future competitive manufacture and through-life service. Very few enterprises can address these challenges alone. The five strategic themes where there is strong potential for innovation to make a difference across multiple sectors and generate wealth for UK plc are: – resource efficiency – manufacturing systems –integration of new materials with manufacturing technologies – manufacturing processes Manufacturing new products or adopting new processes requires demonstration at commercial scale, which is often expensive and risky. This so-called ‘valley of death’ – where many innovations fail – is a significant barrier to manufacturing innovation. Small and mediumsized enterprises are important for economic growth, and it can be difficult for them to connect with global players who offer routes to market. We will help to address this challenge. – manufacturing business models. To tackle the challenges and exploit the opportunities for innovation in these areas, businesses will need to develop within some of the 22 national competencies. Our programmes will set out to support industry in developing these competencies, through feasibility studies, collaborative R&D competitions, and, where appropriate, special interest groups. The High Value Manufacturing Catapult, which opened for business in October 2011, will continue its development to provide a transforming resource for innovation and rapid commercialisation. We incorporated these competencies, grouped under five strategic themes, into our High Value Manufacturing Strategy, published in May 2012, which forms the framework for our delivery plans in the area to at least 2015, including those of the High Value Manufacturing Catapult. [ Delivery Plan 2013–14 ] 45 [ Delivery Plan 2013–14 ] High value manufacturing action plan 2013-14 Challenge Action –High Value Manufacturing Catapult: Provide a world-class centre of expertise in high value manufacturing to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact Catapult Q1-Q4 Up to £35m –Bioenergy ERANET: Encourage and de-risk the development of novel processes for the extraction of energy and/or fuels from biomass sources (joint programme with energy area) and/or using biocatalysed processes EU competition Q1 Up to £500k –Bioenergy Sustaining the Future (BESTF) ERANET: Enable commercial availability of advanced bioenergy at large scale by 2020, aiming at production costs which allow competitiveness with fossil fuels at the prevailing economic and regulatory market conditions and to contribute to advanced biofuels covering up to 4% of EU transportation energy needs by 2020 EU competition Q3 Up to £1.5m –Driving cross-sector collaboration in formulation technologies: Encourage the transfer of world-class formulation technologies between the many sectors (from coatings to food and pharmaceuticals) that use these Feasibility studies and collaborative R&D competition Q1 Up to £5m –Industrial biotechnology ERANET: Encourage and de-risk the development of industrial biotechnology processes for the production of chemical intermediates, exploiting the strengths of other European players in the process EU competition Q4 Up to £1m –Industrial biotechnology catalyst: Encourage and de-risk the development of industrial biotechnology processes for the production of chemical intermediates. Feasibility studies and collaborative R&D competition Q2 Up to £2.5m –Industrial Biotechnology Special Interest Group: Continue to encourage and support the transfer of industrial biotechnologies from the science base and biotech SMEs into the chemical industry over the next two years Special interest group Q1-Q4 Up to £600k –Materials Chemistry Special Interest Group: Enhance UK capability to develop and commercialise novel materials to meet future requirements across multiple sectors by building on the success of the North West’s Knowledge Centre for Materials Chemistry nationally Special interest group Q1-Q4 Up to £750k –Towards zero prototypes: Develop and extend the use of novel modelling and simulation technologies to target zero physical prototyping across multiple sectors Feasibility studies and collaborative R&D competition Q3 Up to £3.5m –Intelligent systems and embedded electronics: Integrate new materials with manufacturing technologies through application of intelligent systems and embedded electronics Feasibility studies and collaborative R&D competition Q3 Up to £2.5m 46 Timing & Budget [ Competence areas: High value manufacturing ] High value manufacturing action plan 2013-14 Challenge Action Timing & Budget –Nutrition for life: Develop manufacturing technologies that enhance nutrition for life, building on success of earlier programme. Joint programme with enabling technologies team and shown in both areas Feasibility studies and collaborative R&D competition Q1 Up to £3m –Additive manufacturing: Inspire new freedoms in additive layer manufacturing, helping to maintain UK’s leading position Knowledge Transfer Partnerships competition Q3 Up to £500k –Mission to China and joint collaborative R&D competition with MOST: Mission to enhance the sustainability of manufacturing processes, and facilitate access of UK SMEs to Chinese market opportunities. Followed by joint collaborative R&D competition with the Chinese Ministry of Science & Technology (MOST) Mission and collaborative R&D competition Q4 Up to £2m (matched by MOST) –Material and weight efficiency: Drive material and weight-efficient technologies across sectors Collaborative R&D competition Q4 Up to £5m Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 47 [ Delivery Plan 2013–14 ] Competence areas: Digital economy Our digital programme addresses the adoption and exploitation of information technologies by businesses. The internet, computing and mobile communications have a transformative effect on how businesses succeed throughout the economy. By innovating in the UK, and establishing new ways to use this technology in all business sectors of the economy, we have the opportunity to position UK companies to grow and to succeed on a global stage. The barriers to innovation Focusing our investment The pace of change in informationhandling technology creates many risks: We are concentrating on four challenges: –there are risks to businesses adopting the technology, because they require business models and supply chains to be entirely rethought. Moving an established business onto radically new and uncertain foundations requires confidence, and it may also need cooperation between many organisations to effect the change –there are risks to users and customers, because the free flow of data can invade privacy and personal security and because unequal access to technology can lead to unequal access to services and commerce –there are risks to new businesses entering the market. Whilst the low need for set-up capital encourages experimentation and an abundance of micro businesses with which the UK internet sector is blessed, growing these businesses to a critical scale requires support not only for their innovative ideas, but also for the companies themselves. However, the risk to those that do not engage with this new technology is far greater. There is a chance they will watch the digital economy pass them by, whilst their competitors find new ways to take value from the marketplace, critically undermining incumbent ways of working. Our programme aims to help UK companies to experiment and build their confidence in digitallyenabled business, developing new technologies and new ways to exploit them, and re-establishing a profitable route to their digitally-empowered customers. 48 –data: creating and exploiting a supply of clean, structured, accessible and usable data –value: new ways to manage ownership, trading and commerce –systems: helping established businesses to set up interoperable and resilient digital systems –places and people: linking services to their customers, in their context ‘here and now’. For each of these, we will link digital expertise to the market needs, in one or more sectors where the issue is high on the innovation agenda. We will therefore frequently target the creative industries, where the impact of digital technologies on value and the user experience continues to be keenly felt. We will also partner with those working across a much broader sweep of the progressively digitising economy, both in sectors dealing with information assets, such as education or finance, and those grounded in the physical world, such as health, transport, energy or retail, developing digital expertise for use within these sectors and helping to transfer it between them. To complement this thematically targeted activity, we will also direct support into the ‘innovation climate’ of the digital innovators themselves. We will connect small and micro businesses with strategically significant ideas, to resources, investment, knowledge and partnerships. We will then help them link to one another, to establish technical ecosystems to supply their capabilities into the commercial marketplace. [ Competence areas: Digital economy ] Digital economy action plan 2013-14 Challenge Action Timing & Budget –Connected Digital Economy Catapult: Provide a world-class centre of expertise in the digital economy, to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact Catapult Q1-Q4 Up to £10m –Systems – new digital media business systems: Developing visual effects capabilities and work processes to allow audiences to be reached across multiple platforms Feasibility studies and collaborative R&D competition Q2 Up to £15m –Value – frictionless commerce: Making it easier for traders and their customers to establish a relationship online Collaborative R&D competition Q2 Up to £2.5m –Value – valuing and pricing digital assets: Developing ways to agree value and price Collaborative R&D competition Q4 Up to £2.5m –Data – uses of environmental data: Enabling the commercial exploitation of the rich UK collection of environmental data to provide practical decision support tools for industry - joint programme with resource efficiency team and shown in both areas Feasibility studies competition Q2 Up to £1m –Data – establishing clean data supply: Continuation of the LinkedGov project Procurement Q2 Up to £1m –Data – digital technologies for health: Enabling companies to understand what impact they could have to help deliver more efficient and effective health systems and to connect with the providers. We may consider the following areas: early diagnosis, prevention and better treatments. Joint programme with health and shown in both areas Collaborative R&D competition Q4 Up to £1m –Places & people – enterprise and employee information systems: Helping businesses to establish secure, resilient and reliable connections with their staff working remotely Collaborative R&D competition Q4 Up to £4m –Places & people – location-based services: Helping businesses to engage with their customers in their ‘here and now’ context Collaborative R&D competition Q4 Up to £4m –Places & people – local media systems: Developing a marketplace for information and services of local interest Collaborative R&D competition Q3 Up to £1.5m –IC tomorrow: Developing innovation for small digital businesses through a programme of small business support contests IC tomorrow Q1-Q4 Up to £3m –Supporting and developing clusters: Developing innovation for small digital businesses through two Launchpad competitions: Creative North-West and Cyber South-West Launchpad competitions Q2 Up to £500k Q3 Up to £500k Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 49 [ Delivery Plan 2013–14 ] Competence areas: Space applications The UK’s space capability is world class. We have advanced manufacturing capabilities, worldleading satellite operators and one of the world’s largest satellite broadcasters, as well as a global services sector delivering systems integration and software to support new space applications. The UK Space Innovation and Growth Strategy (IGS) set ambitious targets for the UK to grow its global market share from 6% to 10% by 2030 and to create 100,000 new high-value jobs. The worldwide space market was worth £160bn in 2008 and is forecast to grow to £400bn in 2030. In the UK, the space sector has grown 9% per year on average over the last decade and continued to deliver similar levels of growth in the last sector review up to 2011. The IGS recommendations are currently under review as part of a ‘restack’ exercise and the output from this exercise, due mid-2013, will be factored into our delivery actions. In the last four years, the creation of the UK Space Agency, and the presence and growth of the European Space Agency (ESA) facility at Harwell have also contributed to a dynamic environment in which the UK space industry can flourish. Top-level developments have included an increased funding of space through the ESA, to a total of £1.2bn. Of this, 37% (around £180m) of the ‘optional’ element (programmes of interest to only some member states which are able to decide on their own level of funding) of this is managed by the Technology Strategy Board on behalf of the UK Space Agency, in the areas of integrated applications, telecommunications (ARTES) and satellite navigation (EGEP). 50 The UK is the single largest contributor in Europe to telecommunications and integrated applications and the second largest to the ESA navigation programme. These subscriptions are managed independently to this delivery plan under the leadership of the UK Space Agency but the same principles and objectives set out by the Technology Strategy Board are applied. The barriers to innovation The two sectors within the space industry – upstream, such as satellites and supporting infrastructure, and downstream, such as data users, receiver terminal manufacturers and enduse data applications developers – face different barriers. We aim to help business address four key barriers facing the UK space industry that will enable it: –to demonstrate the value and efficiency of using space data –to reduce risk by demonstrating that new space-based solutions are feasible and robust, in order to leverage investment, attract new players and open new markets –to tackle long lead times for the provision of new spacecraft components and services –to get new applications and products to market quickly. Focusing our investment Our space programme aims to support innovation in new applications using satellite data and space-based satellite systems. During 2013, we will see the opening of the Satellite Applications Catapult, a transforming resource that will drive economic growth through new commercial space activities and productivity and efficiency gains in other market sectors. It will give UK industry the end-to-end infrastructure needed to link innovative ideas from existing space sector players with new collaborators from outside the sector. Our space programme also aims to connect existing space companies with other innovators to drive growth across the economy. It has six key areas of activity: –R&D and innovation programmes in conjunction with the UK Space Agency for both national and ESA programmes –the Satellite Applications Catapult centre –investment in open innovation to accelerate commercialisation of R&D, guided by the National Space Technology Strategy and roadmaps. –promotion of business opportunities for the UK space industry within other growth sectors, focusing on satellitebased applications and services –technology demonstration opportunities both in-orbit and terrestrially for new applications, services, components, systems, and instruments –Space Special Interest Group to represent the interests of SMEs and non-space players and to facilitate the delivery of the National Space Technology Strategy and roadmaps. [ Competence areas: Space applications ] Space applications action plan 2013-14 Challenge Action Timing & Budget –Satellite Applications Catapult: Provide a world-class centre of satellite applications, to support the rapid commercialisation of cutting-edge technologies with the potential to have a global impact. Helping UK business develop new satellite-based products and services and stimulate growth across the UK economy Catapult Q1-Q4 Up to £10m –Solutions from space: Development of cross-cutting themes utilising satellite applications and services in new markets and addressing identified government needs. This challenge will mainly be addressed through co-funding in other parts of the thematic programmes Feasibility studies competition SBRI competition and co-funding with other thematic programmes Q2 Up to £1m –Space foundations: A joint competition with the UK Space Agency to deliver flagship activities under the National Space Technology Programme Collaborative R&D competition Q2 Up to £2m (with additional co-funding) –In-orbit validation: Demonstrate innovative satellite payloads and services by developing the TechDemoSat and UKube models into a long-term regular programme in partnership with the UK Space Agency and the Satellite Applications Catapult centre Procurement Q1-Q4 Up to £3m (with additional co-funding) –Entry to the space sector: A portfolio of activities to attract new players and start-ups to the space sector and foster cluster activity around Harwell and other centres of excellence Feasibility studies Launchpad competition Innovation Vouchers Q2-Q4 £1m –Partnering for European Space Agency: Ensuring UK businesses are well positioned to engage and succeed with the ESA Feasibility studies and workshops Q2 Up to £1m –Knowledge transfer in space: Encourage more space industry Knowledge Transfer Partnership projects and knowledge exchange through the Space Special Interest Group Knowledge Transfer Partnerships special interest group Q4 Up to £1m Q2-Q4 Up to £2m Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 51 [ Delivery Plan 2013–14 ] Competence areas: Resource efficiency The driver for this programme is a major societal challenge: how to provide a high standard of living for our population while making use of the Earth’s resources in ways which do not profoundly compromise the ecosystems that support life on the planet. The World Business Council for Sustainable Development estimates that by 2050 the world will need a four-to-ten-fold increase in resource efficiency, with significant improvements needed already by 2020. The barriers to innovation Focusing our investment The UK economy is still predominantly linear in terms of its use of resources. Meeting the societal challenge with which we are faced will require a marked increase in the circularity with which we use resources of all kinds. The nature of the innovations required will span not only new design approaches, technologies and business models but will also require approaches operating at a systems level across multiple value chains. There are four broad approaches to extending the productive use of resources and reducing their environmental impact: Resource efficiency measures could add $2.9tr to the global economy by 2030, with returns on investment of over 10%. Across the European Union, the opportunity is £220bn£400bn a year. We estimate the UK market opportunity to be in the range £50-75bn a year. A transition to a more resource-efficient economy will also provide a wide range of opportunities for new businesses and create many new jobs. The barriers to innovation in resource efficiency are: Global resource extraction and use has grown substantially over the last century, driven both by a growing population and increases in per capita usage. At the same time, the availability and accessibility of a broad set of resources – minerals and metals, biomass, food and water – is subject to increasing constraints. This has resulted in price inflation and volatility for a wide range of resources. For a subset of these, the risk to business extends further, namely in that the supply of key materials might at times be substantially constrained or even interrupted. Many of these ‘critical raw materials’ are important for the production of consumer items and for technologies supporting a lowcarbon economy. 52 –poor links between people developing new approaches to resource efficiency and the markets that need them –weak information flow along supply chains –lack of understanding and exploitation of life-cycle thinking –lack of visibility of projected resource crunches, especially for smaller players –poor understanding of the importance of system-level thinking and the way that choice of materials and resources used can affect the overall efficiency of the product throughout its life. –substitute at-risk or highenvironmental-impact materials –close the life-cycle loop to allow multiple product lives from the same material resource –reduce the amount of material necessary to deliver consumer benefit –reduce energy intensity on a lifecycle basis. Our programmes in this area promote these strategies and ensure that life-cycle thinking is at the heart of projects. Our programme has a focus on promoting the design-led and system-level changes necessary to deliver markedly increased circularity in the use of resources to deliver customer benefits in different product areas and industry sectors. Because resource efficiency only produces real benefits in the context of a particular market or application, the programme is divided into application activities delivered in co-operation with other themes in the Technology Strategy Board programme, and tools and techniques delivered through specific resource efficiency programmes. [ Competence areas: Resource efficiency ] Resource efficiency action plan 2013-14 Challenge Action Timing & Budget –Circular economy – rethinking product design: Enabling greater collaboration between designers, product designers and service companies to enable key materials to be re-used productively, rather than disposed of at end of life. This competition will be developed and delivered with support from the Design Special Interest Group run by the Creative Industries KTN Feasibility studies competition Q1 Up to £1.5m –Circular economy – building the supply chains: Developing new supply chains that can increase the productive re-use of materials in the economy; building on work in the circular economy feasibility studies Collaborative R&D competition Q3 Up to £5m –Materials Security Special Interest Group: Build the UK community and influence development of EU programmes which will be investing in high value and critical raw materials Special interest group Q1 Up to £100K –Environmental data: Enabling the commercial exploitation of the rich UK collection of environmental data to provide practical decision support tools for industry – joint programme with digital economy and shown in both areas Feasibility studies competition Q2 Up to £1.5m –Clean and Cool Mission to Brazil: Enabling SMEs in the UK clean technology sector to undertake an entrepreneur mission with a focus on customer, partner and supplier opportunities in one of the world’s quickest-growing economies with substantial ambition for sustainable development Mission Q1 Up to £200k Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 53 [ Delivery Plan 2013–14 ] Enabling technologies Our enabling technologies programme –information and runs in parallel with our challengecommunication technology led activities because we recognise enables process, product that technological developments can and service innovation inspire innovation across a range of across all sectors, leading to market sectors, generating wealth increased competitiveness for the UK and meeting societal and sustainability. The UK challenges. ICT sector comprises over 116,000 companies with We focus on four large and revenues of more than £137bn multidisciplinary areas. and contributes £66bn to UK GVA. Our programme seeks –advanced materials underpin to stimulate innovation in many key business sectors software-intensive technologies, including general manufacturing, processes and systems. construction, clean tech and transport. The interdependency In all these areas, the UK benefits between advanced materials from a strong research base and high value manufacturing, in from which to pull through new particular, offers a large opportunity technology developments to for innovation and growth in the UK. support current and future sectors, Businesses in the UK that produce, leading to economic growth. process, fabricate and recycle materials form a critical element in high value manufacturing. They The barriers to innovation have an annual turnover of around £197bn and contribute GVA of Private investors are finding it £53bn difficult to invest in higher-risk, early-stage innovation across the – biosciences continue to play four enabling technology areas a vital role in the development of in the current economic climate, products and processes that are making it hard for innovators to an integral part of our lives, from take their initial ideas to a level of the food we eat to our medical maturity that will attract later rounds care. The UK has a diverse of investment or the engagement of range of businesses developing potential users. and exploiting cross-cutting technologies based on a foundation Our recently published strategy has of strong academic science. identified the following barriers that Between them, the UK biosciences are specific to the sectors: sectors of pharmaceuticals and industrial biotechnology represent –advanced materials: more than 13,000 companies and uncertainties in the availability generate a turnover of over £134bn of energy and raw materials, and a contribution to GVA of £41bn and competition from lowcost manufacturing overseas, – electronics, sensors and present major challenges to photonics underpin activity in UK industry. However, the UK healthcare, energy, transport, can use its strong R&D base environmental sustainability, to enhance existing materials construction and consumer through design, and to bring new goods. The UK’s electronics sector products to market faster than generates approximately £29bn a the competition year in revenues contributing over £12bn to GVA 54 – b iosciences: advancing a novel product or process often involves long and expensive development requiring high-value capital equipment. The route to exploitation can also be complicated by regulation. The transformative potential of technology advancement in this area, particularly in genetic technologies, also brings with it moral and ethical considerations. There is a lack of cross-disciplinary working required to accelerate advancements, in particular working with ICT, engineering and design – electronics, sensors and photonics: the cost of product development and manufacturing can be prohibitive (particularly for early-stage companies), and there is a fragmented supply chain dominated by innovative SMEs with some larger systems integrators and manufacturers who are more risk-averse. In the UK, we no longer have large, vertically-integrated companies providing internal supply chains and a route to a home market –information and communication technology: low barriers to entry into software development and lack of engagement with end users throughout the process often means that software is not dependable or sympathetic to the needs, preferences and values of the user. New approaches to software engineering, data exploration and user interaction are required. [ Enablling technologies ] Focusing our investment We will focus our innovation support between proof-of-concept and commercial demonstration, where collaboration and the cross-fertilisation of ideas can happen within and between sectors. One of the mainstays of our activity has been our ‘technology-inspired’ competitions, open to businesses working on these enabling technologies. We will continue to run these competitions in 2013-14 and also invest in activities focused on identified technology challenges. Enabling technologies action plan 2013-14 Challenge: Across all enabling technologies Action Timing & Budget –Technology-inspired innovation: Accelerating the development of underpinning technologies through collaboration, science-to-business knowledge transfer and participation across the supply chain, helping to scale up ideas from previous technology-inspired competitions Collaborative R&D competition Q2 Up to £8m –Technology-inspired innovation: Enabling small and micro businesses to demonstrate the feasibility of innovative underpinning technologies Feasibility studies competition Q4 Up to £4m –Lightweighting: Stimulating innovation in lightweight materials applied to transport, structures and devices to reduce energy consumption and emissions and to increase efficiency Collaborative R&D competition Q4 Up to £2m –Materials for energy: Stimulating innovation in materials for cheaper and more efficient energy storage and management Collaborative R&D competition Q4 Up to £1.5m – M ERANET: Stimulating innovation and transnational partnerships in materials science and engineering EU competition Q3 Up to £630k Feasibility studies and collaborative R&D competition Q1 Up to £4m Challenge: Advanced materials Challenge: Biosciences –Nutrition for life: Stimulating innovation in technologies that enable nutrition for life. Joint programme with high value manufacturing team and shown in both areas continued over page… [ Delivery Plan 2013–14 ] 55 [ Delivery Plan 2013–14 ] Enabling technologies action plan 2013-14 Challenge: Electronics, sensors and photonics Action Timing & Budget –Sensor systems: Stimulating the design, development and integration of new sensor systems with intelligence and optimised control Collaborative R&D competition Q3 Up to £1.5m –Photonics: Stimulating innovation in lasers for industrial processes Collaborative R&D competition Q2 Up to £1m –Electronic systems: ARTEMIS Joint Technology Initiative focused on embedded systems EU competition Q2 Up to £2.25m –Big data exploration: Stimulating development and demonstration of new ways to explore data to extract value from it Collaborative R&D competition Q4 Up to £3.5m –Software engineering Stimulating development of new methodologies for multi-disciplinary software engineering Feasibility studies competition and Knowledge Transfer Partnerships Q1 Up to £1m –Robotics and Autonomous Systems special interest group: Building an integrated community of entrepreneurs, innovators, researchers, investors and end users and developing a robotics and autonomous systems vision for the UK to stimulate innovation and collaboration Special interest group Q1-Q4 Up to £200k –Robotics and Autonomous Systems mission: Giving small UK companies the opportunity to understand how robotics and autonomous systems technology is being developed and successfully commercialised elsewhere Mission Q3 Up to £200k –High-performance computing: Raising awareness in UK businesses of the high-performance computing resources and expertise available and highlighting opportunities for innovation to ensure the UK’s world-class position Special interest group Q1-Q4 Up to £100k Challenge: Information and communication technology Budgets shown refer to funding commitments in the year, which may be spent over several years. 56 Delivery Plan 2013-2014 [ Enablling technologies / Emerging technolgies and industries ] Emerging technologies and industries An emerging technology is a technology that has only recently emerged, or is still emerging, from the science base. It allows something to be done that was not previously possible or was possible only in theory. It creates a totally new value proposition, and consequently has the potential to disrupt existing markets. Emerging technologies might be adopted by existing businesses or form the basis of new enterprises. This programme identifies highpotential technologies just emerging from the science base and helps accelerate their commercialisation through the early engagement of business. This activity will link to and complement the investment being made by the research councils in the eight great technology areas through the £600m allocated in the Government’s 2012 Autumn Statement. The barriers to innovation Focusing our investment The barriers to innovation are: Working with business, the research councils and DSTL, we are currently investing in feasibility studies in three highpotential areas: synthetic biology, energyefficient computing and energy harvesting. We will monitor progress in these areas, and use what is learned to inform further investments in areas such as the ‘eight great technologies’. We will continue to support the work of the Synthetic Biology Leadership Council and will play our part in helping responsible innovation in this area, including through our funding of the Synthetic Biology Innovation and Knowledge Centre. –it is difficult for companies to see how they can benefit from technologies when they are completely new, and potentially disruptive – and for academics to find the best routes to market –the potential value of a disruptive technology must be judged at individual business level as well as sector level and this rarely happens of its own accord –getting investment for these riskier, early-stage technologies can be hard –it is not easy to generate the critical mass needed for the development of new industries, which requires many parties working together with easy access to expertise and facilities. We will update our assessment of other emerging technology areas with a view to creating a pipeline of potential emerging technology investments. Working with the Engineering and Physical Sciences Research Council, we will continue to explore the innovation opportunities arising from the additional science investments in graphene. Emerging technologies and industries action plan 2013-14 Challenge Action –Understanding and exploring early the commercial potential of disruptive technologies: Special interest groups to build communities of practice in the emerging areas of synthetic biology, energy-efficient computing and energy harvesting. Consider establishing a SIG in graphene Special interest groups Q2 Up to £400k – Realising the value of disruptive technology: Monitor progress of the existing feasibility studies in target emerging technology areas and make investments in demonstrators if justified by business opportunity Collaborative R&D competition TBD Q3 Up to £4m Innovation and knowledge centre Q2 Up to £2.5m –Building early-stage critical mass in an area of strategic importance: Building early-stage critical mass in synthetic biology, in partnership with the research councils to enable development of new industries in the UK Timing & Budget Budgets shown refer to funding commitments in the year, which may be spent over several years. [ Delivery Plan 2013–14 ] 57 [ Delivery Plan 2013–14 ] Other opportunity areas Whilst those areas where Technology Strategy Board programmes can add most value to UK innovation are our thematic priorities, there are other sectors where the UK capacity is strong and where we are able to help and encourage business innovation where not already encompassed in our thematic programmes. These are currently the creative industries and financial services sectors. Creative industries: During the year we will update the creative industries strategy and continue to offer support to businesses in the sector. The exciting digital opportunities for the creative industries will continue to be taken forward through our digital economy programme. More broadly across the organisation, we will increase our support for the early use of design across our programmes, through the use of Innovation Vouchers, the Design Option and the work of the Design Special Interest Group. The aim is to counter the tendency to consider usability and desirability aspects of design towards the end of R&D projects and avoid revisiting earlier decisions that can result in increased time to market, more cost, and less commercial success. Financial services: We will continue to implement our strategy in this area. The financial services industry is well resourced in respect of its use of technology, and our contribution here remains to encourage and increase the level of knowledge-sharing through the Financial Services KTN. Other opportunity areas action plan 2013-14 Challenge Action –Connecting design and technology communities: Ensuring that design thinking is incorporated early in the project life cycle to improve commercial outcomes by building up the Design Special Interest Group and running a third Design Option pilot Special interest group Design Option Budgets shown refer to funding commitments in the year, which may be spent over several years. 58 Timing & Budget Q1 Up to £150k [ Other opportunity areas / Continuously improving our capability ] Continuously improving our capability To deliver our programmes as efficiently and effectively as possible to best meet the needs of our customers we need to be a highly capable organisation. We will continue to develop our resources and business processes to be fast, flexible, and focused on the needs of business, and our benchmarks and impact measures to ensure that we remain effective and deliver value for money. During 2013-14 we will work with our sponsor department BIS on the implementation of the recommendations of the triennial review of the Technology Strategy Board, a standard process for public bodies such as ours, which is due to report during the financial year. Business improvement Over the last five years the organisation has grown, requiring a more robust approach to how we manage our processes to ensure capability, scalability and performance improvement. We need to develop the cross-functional business processes that allow us to effectively and efficiently meet our customers’ needs and drive continuous improvement. During 2012-13, we undertook an assessment against the EFQM® Excellence Model to help us identify and address areas for improvement, we continued to review our processes to ensure we added value for business, and we made some operational improvements. We have brought the administration of most of our grants into one system and are consolidating all our support into this ‘one-platform’ system to improve processes and reporting. This work includes embedding the Knowledge Transfer Partnerships application and grant payment processes. We are increasing the access to our project information and working with the research councils on the Gateway to Research, providing access to grant information. Developing our IT and management information capability Targets –Develop a clear and consistent framework of processes that will inform and support decision-making, performance improvement and change. –Implement new management information and reporting systems and continue to improve the grant processes across all our programmes. –Complete integration of Knowledge Transfer Partnerships. We will continue to improve our ability to manage competitions, grants, contracts and claims through an integrated IT system. We will unify databases to enable the simple extraction of the management information needed to respond to requests and to enable more detailed portfolio analysis. Professionalising customer support The changed innovation landscape and our new strategy have resulted in an increased engagement with small and young companies and an increased volume of engagement. We need to enhance our business support group and improve our customer query and complaint tracking and support. [ Delivery Plan 2013–14 ] 59 [ Delivery Plan 2013–14 ] Resource planning With an ambitious plan and new responsibilities, we need to make sure we are adequately resourced. Our headcount plan for last year was 215. In order to deliver our programme for 2013-14 – which includes many new challenges set by government – we aim to increase this to 235. Organisational values We rely on our people to achieve our goals. Having clearly articulated values is important for trust, clarity of purpose and delivery. We identified five values as core to our evolving organisation and we will continue to ensure these are embedded over the coming year: – solution-focused – passionate about innovation – curious and creative – one dynamic team –committed to helping one another. Impact and evaluation An important part of our work is evaluating the impact of our programmes and using the findings to help steer future investments. In 2012-13 we carried out evaluations of: –how Knowledge Transfer Partnerships create value for business –the impact of the innovation and knowledge centres co-funded with the research councils –the impact of our support for feasibility studies We have also set out an impact evaluation framework for the Catapult centres, which will ensure that each creates an evaluation plan. We are collecting baseline information to assess the impact of the whole Catapult network, for example on the current size and composition of the sectors targeted by Catapults, on awareness of the brand, and on the network’s influence at home and abroad. –Build and apply a portfolio analysis tool that applies to both thematic areas and our use of different tools to reach different target audiences (and addresses our strategic intents). –Devise an impact measurement plan for our new community engagement strategy, the Biomedical Catalyst programme and our EU and international engagement (including our involvement with EU programmes). –Deliver the first annual report on the development and impact of the Catapult programme. –Deliver impact evaluations covering: the Assisted Living and Low Impact Building Innovation Platforms; Launchpads, and Smart (interim evaluation at end 2013 – including on administration processes). Looking to the future, we will use a range of innovation research sources to inform the development of our programmes and will work with BIS to –Evaluate the way our different kinds of support work together within build a full picture of impact evidence innovation platforms to deliver from our activity and that of other their overall objectives, looking relevant bodies. This will include: across the innovation platforms in low carbon vehicles, low impact –engaging with innovation buildings and assisted living. research and using it to inform our decisions –having a plan of evaluations of our various interventions –developing portfolio analysis We need to build an impact capability evidence base and use this, along with evidence from innovation –developing a methodology to track research and our own management companies’ development. information systems, to develop our strategic toolset, articulate arguments that influence policy and support investment decisions. 60 Targets [ Continuously improving our capability / Financial summary ] Financial Summary Estimated breakdown of Technology Strategy Board expenditure by activity (core budget) 2013-14 Breakdown of estimated expenditure £440m Smart Eurostars Launchpads Innovation Vouchers KTP KTN SBRI Thematic areas Admin/Programme support Catapults This chart shows anticipated actual expenditure in 2013-14. It does not represent funding commitments to be made during the year, which may be spent over several years. NB. Our programmes attract significant levels of funding from other organisations, both public and private sector, which is not included in the above. [ Delivery Plan 2013–14 ] 61 [ Delivery Plan 2013–14 ] Notes 62 [ Notes ] Notes [ Delivery Plan 2013–14 ] 63 North Star House North Star Avenue Swindon SN2 1UE T: 01793 442 700 E: [email protected] www.innovateuk.org © Technology Strategy Board T13/37 The Technology Strategy Board is the UK’s innovation agency. Our goal is to accelerate economic growth by stimulating and supporting business-led innovation. We are a non-departmental public body sponsored by the Department of Business, Innovation and Skills.
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