Driving Innovation Yorkshire Concept Board Meeting 2 December 2008 Emily Nott Relationship Manager – Research Councils.

Driving Innovation

Yorkshire Concept Board Meeting

2 December 2008

Emily NottRelationship Manager – Research Councils

Driving Innovation

• Background

• Priorities

• Competitions

• Investments

• Emerging Technologies and Proof of Concept

Presentation

Driving Innovation

• Investing around £1bn from 2008-2011(with partner contributions)

• Collaborative and aligned activity with Research Councils, RDAs/DAs and government departments

• Guided by business-led Governing Board

• Staff of around 75, based in Swindon

Key facts

Driving Innovation

Our vision:

for the UK to be a global leader in innovation

and a magnet for innovative businesses,

where technology is applied rapidly,

effectively and sustainably

to create wealth and enhance quality of life.

To deliver, partnership is key

Driving Innovation

Investment criteria

Can the UK do it?

Is there a large market opportunity?

Is the idea ‘ready’?

Can the Technology Strategy Board make a

difference?

Driving Innovation

£1 billion investment

over 3 years

The innovation climate

Challenge-led innovation

Technology-inspiredinnovation

2008-9 2010-11

Driving Innovation

Our strategy in

2 words

Driving Innovation

Challenge-led innovation

Driving Innovation

Challenge-led innovation

Key application areas

• Medicines & healthcare• Energy generation & supply *• Transport• Environmental sustainability• Built environment• Creative industries *• High value services

Driving Innovation

Challenge-led innovation

Innovation Platforms• Assisted living

• Intelligent transport systems and services

• Low carbon vehicles

• Low impact buildings

• Network security

• Diagnosis and Identification of Infectious Agents - NEW

Driving Innovation

The challenge

• UK has committed to 60% cuts in CO2 emissions by 2050

• Transport contributes ~25% of UK CO2 emissions and is growing

• Of this, road transport accounts for ~80%

Integrated Delivery Programme

• 5-year £200m programme to help to speed up the introduction of new low carbon vehicles

• Co-ordination of UK low carbon vehicle activity - initial strategic research through collaborative research and development, leading to the production of demonstration vehicles

• Current funding partners - DfT, EPSRC, Advantage West Midlands and One North East

Low Carbon Vehicles

Driving Innovation

What’s next?

• Sustainable Agri-Food Supply Chain

• Immersive Education

• Water

• Waste

• Stratified Medicine

• Sustainable Aviation

• ??

Driving Innovation

• £160 billion annually

• Harness at least some of this to promote innovation

• Reforming the Small Business Research Initiative (SBRI)

• Pilot competitions

– Energy and lifetime cost control with MoD (now closed)

– Healthcare Associated Infections with DH (now open)

• Hand Hygiene• Pathogen detection in the healthcare

environment

Government procurement

Driving Innovation

Technology-inspired innovation

Driving Innovation

• Advanced materials*

• Bioscience

• Electronics, photonics and electrical systems*

• Information and communication technologies*

• High value manufacturing*

• Nanotechnology

• Emerging Technologies*

Key technology areas

Driving Innovation

The innovation climate

Driving Innovation

• We will inspire and enable people to play their part in the innovation economy

• We showcase successes

• We celebrate and will build a national confidence in the power of innovation

• We build networks

• We support knowledge exchange through individuals

The Innovation Climate

Driving Innovation

• 24 current networks

• >35,000 members (~75% industry)

• >20 special interest groups

• ~400 networking events/annum

• TSB invests some £20m pa in supporting KTNs

Knowledge Transfer Networks

Driving Innovation

Aerospace and Defence

bioProcessUK

Bioscience for Business

Chemistry Innovation

Cyber Security

Digital Communications

Electronics

Integrated Products Manufacturing

Environmental

Food Processing

Grid Computing Now!

Healthcare Technologies

Industrial Mathematics

Intelligent Transport Systems

Location & Timing

Low Carbon & Fuel Cell Technologies

Materials

Nanotechnology

Modern Built Environment

Photonics

Resource Efficiency Sensors & InstrumentationUK Displays & Lighting

Creative Industries

Financial Services

Driving Innovation

Individual

Business Research Base

Knowledge Transfer Partnerships

Successful:

For each 43 new jobs,

£1 million 190 company staff trained,

invested £2.97m increase in profit

Driving Innovation

Knowledge Transfer Partnerships

• We will double the number of KTPs by end March 2011

• Increase flexibility of the “classic” KTP

• Introduce a national mini-KTP

• Develop plans with all sponsors

Driving Innovation

Competitions

Driving Innovation

Current and future callsNov 08• Photonics – Next generation optical internet access• Materials – Sustainable materials and products• Informed personal travel

Jan 09• Energy - Oil and gas recovery • High Value Manufacturing – Step changes and value systems • Low carbon vehicles – Electric vehicles

Mar 09• Low impact buildings • Creative industries – Digital content• Network security – Interdependency, risk and complexity• Energy – Hydrogen and fuel cells

Driving Innovation

Our investments

Driving Innovation

Our investment in UK HEIs

For CR&D competitions April 04 to Autumn 07

• Around 900 projects funded

• ~£540m in grants

• Total project costs > £1.2 Bn

• 3805 partners

• ~22% of all project partners are from academia

Driving Innovation

Our investment in UK HEIs

Knowledge Transfer Partnerships

• Total number of partnerships in portfolio – 975 (at 31 March 08)

• Involving 437 departments across 102 UK Higher Education Institutes

Driving Innovation

Our investments

CR&D calls (April 04–Spring 07)

No. applications (lowest)

No. applications (highest)

Applications involving academics

Average success rate

Full Stage

96 288 78% 51%

Driving Innovation

Emerging Technology Perspective

Driving Innovation

What sort of Emerging Technologies ?

• Those that drive disruptive innovation and thus new growth sectors through a very different value proposition

Our criteria

• technology with the potential to lead to a completely new value proposition;

• technology with the potential to disrupt existing markets and industries;

• UK has a competitive position globally;

• UK able to develop and realise value from the resulting Innovations

Driving Innovation

UK Landscape Government support is available but fragmented

• Investment/Technology Transfer– Research Councils (Follow-On Fund, IKC’s, Translational

Grants)– RDA’s/DA’s (Proof of Concept, CIC, Seed Funding)– Funding Councils (HEIF and Scottish, Welsh, NI equivalents) – Technology Strategy Board/Government Depts (SBRI)– Nesta, Royal Society (Early Stage Venture Funding)

• Customer-led contracts eg– MOD

• Regulation – BSI

Driving Innovation

UK LandscapeSuccess factors - how well do we do?

• Flow of investment

POC (~£50-100K) => SEED(~£250K) => VC (£1m+)

• Entrepreneurs

• Commercialisation skills

• Lead customers/early adopters

• IP

• An ability to take to scale

• The right exit strategy

Not enough? Equity Gap

Not enough

Govt could do more

Output relatively low

Shortage

Too many trade sales?

Often done overseas

Driving Innovation

Emerging Technologies – our approach

• Lead national efforts to find and support emerging technologies with disruptive potential

• Create a bigger pool of technologies from which to select

• Develop better ways to evaluate the potential of emerging technologies

• Explore new ways to accelerate early commercialisation• Encourage research into better models • We are particularly interested in the space extending

from proof-of-concept (technical feasibility or initial commercial potential) to the first stages of commercial development

Driving Innovation

Proof of Concept – how do we see it?

• Crucial first step in process

• Suspect there are gaps in support

• Want to understand existing support better with partners already working in this space

• Want to identify how best we can add value

• Workshop with Unico, RCs and Regional Partners end Jan 09 to consider UK support for pre-investment Proof of Concept

Driving Innovation

www.innovateuk.org