LEEDS CITY REGION ENTERPRISE PARTNERSHIP INNOVATION STRATEGY · economy requires a comprehensive evaluation of the area’s current innovation system. The Leeds City Region Innovation

LEEDS CITY REGION ENTERPRISE PARTNERSHIP INNOVATION STRATEGY

A SMART SPECIALISATION APPROACH 2014

TITLE1

2

OUR VISION IS TO HAVE THE STRONGEST INNOVATION SYSTEM IN THE UK.

THIS IS OUR PLAN:

TO CREATE THE BUILDING BLOCKS FOR A THRIVING INNOVATION SYSTEM, ENABLING THE LEEDS CITY REGION TO COMPETE GLOBALLY TO ATTRACT TALENT AND INVESTMENT AND MAINTAIN OUR COMPETITIVE ADVANTAGE. TOGETHER WITH OUR PARTNERS, WE WILL TAKE ACTION TO TURN INNOVATION POTENTIAL INTO AN INNOVATION POWERHOUSE.

#INNOVATELCR

CONTENTS

1. Foreword 4

2. Ourinnovationvision 5

3. Thecaseforaction:LeedsCityRegion’sinnovationsystem 9

4. LeedsCityRegion:astrategicframeworktoimproveourinnovationperformance 30

Priority1:drivingupinnovationappetiteacrosstheCityRegion 32

Priority2:strongerinnovationperformance 39

Priority3:newsourcesofinnovation 50

5. Whatsuccesslookslike 57

6. Thewayforward 64

LeedsCityRegion:SmartSpecialisationStrategy 3

1

4 Leeds City Region: Smart Specialisation Strategy

FOREWORD

Innovation: a term that’s become a buzzword in 21st Century business, yet one that’s often difficult to define in practice. It’s a concept that applies clearly to the businesses and entrepreneurs who are breaking new boundaries to develop tomorrow’s inventions, today. Yet it is one with which some firms in our region struggle to identify.

Innovationisawordwithmanymeaningsandmanydifferentpracticalapplicationsbut,putsimply,itisabouthavingimpactbyputtingideasintopractice.Forbusinessesthiscouldmeannewproducts,processesortechnologiesthatimproveproductivityorcreatenewmarketopportunities.Foroureconomy,itmeansnewsourcesofgrowth,jobsandcompetitiveadvantageonthenationalandinternationalstage.

InLeedsCityRegionwehavetherawingredientstobeanengineofinnovationthatcandriveforward,notjustourregion’seconomy,butthenation’s.WehaveoneofthelargestconcentrationsofuniversitiesinEuropeproducingworld-leadingskillsandresearch,andalarge,fast-growingworkforceprovidingthetalentforideastoflourish.

OurproudhistoryofmanufacturingandengineeringinnovationhasledtothelargestconcentrationofmanufacturingbusinessesintheUK.Ourfinancialservicesinnovationhasmadeusthelargestregionalfinancialcentreinthecountry.Andourcapabilitiesincutting-edgeindustriesincludingthedigital,healthandlowcarbonsectorsareprovidingsolutionstoglobalproblems,aswellasnewmarketsforjobsandgrowth.

But how can we work with businesses, universities and the public sector to turn this innovation potential into an innovation powerhouse?

WeknowthatsuccessfulregionsarethosethatcreateacultureofinnovationthatenablesSMEs,largerfirms,entrepreneursandinstitutionstocreate,accelerate,championandretaininnovation.WewantLeedsCityRegiontohavethestrongestinnovationsystemintheUK;onethatenablesbusinessestocompetesuccessfullyontheglobalstage,andattractstalentandinvestment.

Thisstrategyisourroadmaptoachievingthatgoal.Itsetsouthowweandourpartnerswillworktogethertosupportall106,000businessesintheLeedsCityRegiontoinnovateandgrow.ItmovesforwardfromourpreviousInnovationCapitalProgrammetoensurethatthissupportisrelevanttowhatbusinessesneedasourCityRegionreturnstogrowth,withastrongfocusonpartnershipsbetweenthepublic,privateandeducationsectors.Criticallyithasbeendevelopedinclosecollaborationwiththosepartners,androad-testedwiththebusinessesthataretherealdrivingforcesofinnovation.

Innovationisintegraltoourvisionforsustained,above-trendeconomicgrowthinLeedsCityRegion.ThisistheCityRegionthatledtheIndustrialRevolution,andthefactoriesthatoncebillowedsmokeacrossourskylinesarenowhometoanewgenerationofwealthcreators,whoseenterprisingzealisdrivingtheCityRegionforwardathomeandabroad.Weneedtogofurtherandfasterhowevertofulfilourinnovationpotential.

OurInnovationStrategyisacriticalfirststeponthisjourney.Nowwemustworktogethertoturninnovationintoaction.

Prof. Bob Cryan Vice-ChancellorofHuddersfieldUniversity,andChairofLEPBusinessInnovationandGrowthPanel

Ian Sharp Director,KhemeiaConsulting,andLEPinnovationlead

TURNING INNOVATION INTO ACTION

Leeds City Region: Smart Specialisation Strategy 5

OUR INNOVATION VISION

Leeds City Region: Smart Specialisation Strategy

OUR INNOVATION VISION

1TheOsloManualOECD

The Leeds City Region Enterprise Partnership’s (LEP) vision is ‘to unlock the potential of the City Region, developing an economic powerhouse that will create jobs and prosperity. Innovation has a critical role to play in helping the City Region economy achieve these objectives and must be embedded in everything we do.

Innovationoccurswhennewortechnologicallyimprovedproductsandprocessesareintroducedtothemarketbybusinesses,orusedwithinaproductionprocess1.Orputanotherway,innovation is having impact by implementing new ideas.Successfulcitiesmustprovideanenvironmentforsmallandmedium-sizedenterprises(SMEs),largerfirms,entrepreneursandinstitutionsthatfacilitates,accelerates,championsandretainsinnovation.PartnersacrossLeedsCityRegionmustworktogethertoensurewearedoingeverythingwecantocompeteforthecapital,peopleandideasneededtodriveinnovationandeconomicgrowth.

Driving up innovation performance requires a wide ranging approach based around a set of hallmarks:

• focusonmaintainingandenhancingthephysical,intellectualandcommunicationconnectionswithintheCityRegionandoninternationalsourcesofknowledgeandinsight

• reinvigorateourentrepreneurialculturebyanimatingbusinesses,communitiesandinvestorswithacompellingsenseofpurpose,whichchallengesperceptionsandchartsaclearcourseforwhereweareheading

• driveuptheappetiteforinnovationacrosstheboardwhilefocussingcloseattentiononthosebusinesses,organisationsandcommunitieswiththegreatestprospectsforinnovation-ledgrowthandwherewehaveadistinctadvantageoverourcompetitors

• buildonthepeopleassetswealreadyhaveamongourstudents,academicsandentrepreneurs,andcontinuetoharnessthescaleanddiversityofourworkforce

• adoptabalancedapproachwhichsecurestheinfrastructureandassetsweneedtostaycompetitiveoverthenext20years,whilealsoshapingtheattitudesandbehavioursneededtodrivechangeinourbusinessesandcommunities

LEEDS CITY REGION AIMS TO HAVE THE STRONGEST INNOVATION SYSTEM IN THE UK OUTSIDE THE SOUTH EAST, AND TO BE SUCCESSFULLY COMPETING GLOBALLY TO ATTRACT TALENT AND INVESTMENT INTO OUR PRIORITY SECTOR BUSINESSES AND INSTITUTIONS.

• strivetodevelopliveablesmartcitiesandworkingenvironmentswhichattractandretaintalentedpeople

• getmuchbetterattellingourstoryandshoutingaboutourinnovationsuccesses.

2

6

Leeds City Region: Smart Specialisation Strategy 72 InnovativeCityRegions,TimLatham,2012 • 3MITnews,June2013

To drive up innovation we need to blend the traditional building blocks of economic growth with a commitment to mould the culture and attitudes around us.

Learningandresearchfacilities,accesstoinvestment,attractivepropertyandgoodqualityskillswillbemorefullyexploitedwheretheunderlyingcultureholdsentrepreneurialrolemodelsinhighregard,wherefailureisseenasanaturalprecursoroffuturesuccess,andwherestronglinksexistbetweenfirmsandtoothercities2.

Perhaps,thesinglemostimportantfactorforfosteringinnovationistheconnectionsandrelationshipsbetweenpeople3.LeedsCityRegionhassetitssightsonsecuringmoreoftheessentialbuildingblocksforathrivinginnovationsystem:

• Global institutions:togenerateintellectualproperty,knowledge,andinsightandanimatehowpeoplecanplaytheirpart

• High level skills:amongresearchers,entrepreneurs,businessleaders,learnersandworkerstogenerateandexploitinnovationopportunities

• 21st century connectivity:whichcanefficientlybringpeopleandideastogether,sustaincollaborationamonginnovators,eitherdigitallyorinperson,and generatevalue

• Agile investment:toprovidetheresourcesneededtogeneratenewideasandcommerciallyexploittheirpotential,withalongtermandclearfocusthatbringseconomicgrowthandwidercommunitybenefit

• Better networkingwhichbringtogethercollaboratorsandsustaintheinnovationprocessthroughsharedproblemsolvingandjointlearning

• Creative culture:aneconomicandsocialbackdropwhichchampionsinnovation,promoteschangeandencouragesgreaterlevelsofambitionamongstemployers,learners,employees,communitiesandleaders.

THE BUILDING BLOCKS FOR A THRIVING INNOVATION SYSTEM

“ INNOVATION THRIVES IN CITIES DUE TO THE NUMBER OF PEOPLE A RESIDENT WILL INTERACT WITH IN PERSON…IT’S ALL ABOUT FACE TO FACE.”

SO WEI PAN, MIT HUMAN DYNAMICS LAB

2

Leeds City Region: Smart Specialisation Strategy 4HalyconInnovationconsultationstudywith15non-academicinnovationdeliverybodies

To develop the Leeds City Region Innovation Strategy, we have consulted extensively with partners and businesses and engaged in substantial analysis of conditions and trends. We have made clear choices about the crucial short and long term opportunities and challenges facing the City Region’s institutions, businesses and communities. We have identified areas where the City Region has marked strengths on which to build and endeavoured to better prepare the economy for the rapid waves of innovation and technological change which will shape our growth opportunities over the coming years and decades.

Toachieveourvision,wemustconcentrateourinnovationeffortsonthreecorepriorities.Ourchoiceofprioritieshasbeeninfluencedbyanextensiveevidencebaseanddevelopedthroughconsultationandstatisticalanalysis(Chapter2).

PRIORITY 1: DRIVING UP INNOVATION APPETITE ACROSS THE CITY REGIONWemustcreateanenvironmentwhichencouragesandsupportsinnovationacrossalltheCityRegion’sbusinessesandinstitutions.InnovationneedstobebroadlyembracedandvigorouslypursuedthroughoutLeedsCityRegionifwearetomaintainandenhanceourcompetitiveness.

Manyofourpartnershaveunderscoredtheneedtosignificantlydriveupthelevelof

ambitionamongourorganisations,businessesandcivicbodies4.

OUR THREE PRIORITIES FOR INNOVATION ACTION IN LEEDS CITY REGION

PRIORITY 2: STRONGER INNOVATION PERFORMANCETargetedattentionisneededamongourprioritysectorstoensurebusinessesarebetterabletoexploittheknowledgeintheCityRegion’sinstitutionsandtobuildonoureconomy’sdistinctivestrengths.SpecificactionstargetingtheSMEcommunitymustensuretheyhaveaccesstothenecessaryknowledgenetworksandfinanceneededtosuccessfullyinnovate.WewantourCityRegiontobethenaturalplacewherehigh-growth,high-riskventurestakeroot,particularlythosethatareabletotakeadvantageoftheinnovationassetswearecommittedtofurtherdevelopingaroundbio,health,andbigdata.

PRIORITY 3: NEW SOURCES OF INNOVATIONWeknowthattheCityRegioncannotrestonitslaurels.Ourambitionsrequireustolookforwardtothelongertermandensurewearegrowingandretainingtheinstitutions,peopleandbusinessesneededtocapitaliseontheneweconomicopportunitiesaroundthecorner.Atthesametimeasweaddressourimmediatechallenges,wemustalsodevelopthedigitalandphysicalinfrastructureplatformforeconomiccompetitiveness,enterpriseandgrowthintothelongerterm.

Eachofourprioritieshasasetofobjectiveswhichsupportsaseriesofactionstodirectinvestmentandresourcesinordertoachieveourlongterminnovationgoal.

2

8

THE CASE FOR ACTION: LEEDS CITY REGION’S INNOVATION SYSTEM

Leeds City Region: Smart Specialisation Strategy 5TheCityRegions(LEPareas)arereferredtoasthemaincitieswhichliewithintheCityRegionthroughoutthefollowingsection,

i.e.BristolrepresentsWestofEnglandLEParea,etc.

Understanding the performance, trends and opportunities facing the Leeds City Region economy requires a comprehensive evaluation of the area’s current innovation system. The Leeds City Region Innovation Strategy has drawn upon a wide range of analysis and consultation including:

• The City Region’s economic and innovation performance:usingpubliclyavailabledataaswellastheUKInnovationSurveyandLeedsCityRegionQuarterlyEconomicSurvey(Quarter22013)

• Knowledge and innovation institutions:assessingtheCityRegion’sinnovationandknowledgebaseassetsandtheirroleinsupportingfuturegrowthandinnovationinourprioritysectors

• The voice of our citizens:dialoguewithinnovation-engagedcitizensviathe‘RoadmaptoamoreinnovativeLeedsCityRegion’event(26November2013)anda‘whisperstudy’interactingwithcitizensviaTwitter(November2013)

• Lessons from international innovation-supportive cities:in-depthcasestudiesoflessonstobelearnedfromotherinnovativeCityRegions.

LEEDS CITY REGION ECONOMIC AND INNOVATION PERFORMANCE

WehaveselectedasetofcomparatorUKCityRegions5tobenchmarkourselvesagainstandwhichwearecommittedtoout-performing.Ourambitionultimatelyisglobal.Thediagramoverthepagesetsoutninecategoriesofindicatorwhichtogetherareusedtoassessthestrengthofanarea’sinnovationenvironment,innovationinputs,andinnovationoutputs.ItillustratestheCityRegion’srelativepositioncomparedtotheselectedbenchmarklocations.ThecomparatorgeographiesaredependentuponthedataavailableandthusvarybetweenCityRegionlevelandfullregionalcomparisons.

ThissummaryisfollowedbyamoredetailedanalysisofthedataandourperformanceagainsttheseimportantUKcities.

WE HAVE SELECTED A SET OF COMPARATOR UK CITY REGIONS TO BENCHMARK OURSELVES AGAINST AND WHICH WE ARE COMMITTED TO OUT-PERFORMING . OUR AMBITION ULTIMATELY IS GLOBAL.

3

10

THE CASE FOR ACTION: LEEDS CITY REGION’S INNOVATION SYSTEM


LEEDS CITY REGION’S COMPARATIVE INNOVATION PERFORMANCE IN OVERVIEW

INNOVATION ENVIRONMENT

RANK HUMAN CAPITAL EMPLOYMENT BUSINESS BASE BUSINESS INVESTMENT

R&D INVESTMENT

INNOVATION ACTIVE

INNOVATION PROTECTION

LABOUR PRODUCTIVITY

INNOVATION INPUTS INNOVATION OUTPUTS

1 London London

London

London

London

London

London

London

2 Bristol Bristol

Bristol

South West

South West

South West

South West

Bristol

3 Newcastle

NewcastleNewcastle Newcastle

North East North East

North East North East

4 Nottingham

Nottingham

Nottingham Nottingham

East Midlands

East Midlands

East Midlands

East Midlands

5 Leeds

LeedsLeeds

Yorkshire & Humber

Yorkshire & Humber

Yorkshire & Humber

Yorkshire & Humber

Leeds

6 Manchester

Manchester

Manchester

Manchester

North West

North West

North West

North West7 Liverpool

LiverpoolLiverpool

Liverpool

8 Sheffield

SheffieldSheffield Sheffield9 Birmingham

Birmingham

Birmingham

West Midlands

East of England

East of England

East of England

East of England

West Midlands

Birmingham

South East South East

South East

South East

West Midlands

West Midlands

3

Leeds City Region: Smart Specialisation Strategy12

6BroadInnovatorsisdefinedintheUKInnovationSurveyasanyfirmwhichpartakesinanyofthefollowingactivities:introductionofaneworimprovedproductorprocess;engagementininnovationprojectsnotyetcompleteorabandoned;newandimprovedformsoforganisation,businessstructureorpracticesandmarketingconceptsorstrategies;

andactivitiesinareassuchasinternalresearchanddevelopment,training,acquisitionofexternalknowledgeormachineryandequipmentlinkedtoinnovationactivities.

INNOVATION ENVIRONMENT

HUMAN CAPITAL

Encouraging and celebrating entrepreneurial success (and acknowledging failure) is an essential ingredient of the innovation environment. Leeds City Region benefits from having a large population on its door-step (2.95m people, Census 2011), more than all our comparator LEP areas with the exception of London. Our working age population has grown by 8.9% between 2001 and 2011. This is slightly lower than the English average, but the City Region ranks 4th out of core city LEPs, and significantly higher than other northern core cities (with the exception of Manchester.)

The City Region also has a well-educated workforce.Atthetimeofthe2011Census,aquarteroftheCityRegion’sworkingagepopulationwasqualifiedtodegreeorabove(Level4+),higherthanmostcomparatorcitieswiththeexceptionofBristol(31%),andLondon(38%).However,whenlookingattheproportionoftheworkforcequalifiedintheimportantscience,technology,engineeringandmaths(STEM)subjects,thewiderYorkshire&Humberregioncompareslessfavourably.AccordingtotheUKInnovationSurvey(BIS,2010)(UKIS)whichpresentsitsfindingsataregionallevel,theaverageproportionofSTEMgraduatesacrossYorkshireandtheHumberinbroadinnovatorfirmsis6%,belowtheUKaverage(8%).

TheCityRegionhasanemploymentrateof70%,closetothenationalaverage(71%),andbelowonlyBristol(74%)ofthecomparatorareas(AnnualPopulationSurvey,2013).Since2009,theCityRegion’semploymentratehasremainedalmostunchanged(0.2%increase2009-13),consistentwiththenationalaverage.However,somecomparatorareashaveexperiencedagreaterincreasesince2009,suchasLondon(1.5%pointincrease)andLiverpool(2.1%pointincrease),althoughtheystillhavealowerrateoverall.Analysisofemploymentdata(BRES2012)indicatesthatLeedsistheonlycityotherthanLondonthathasaconcentrationofemploymentincompanyheadquartersabovethenationalaverage(Leedslocationquotient=1.1).7ThisputstheCityRegioninastrongposition,sinceR&Dinvestmentanddecision-makingismorelikelytobeconcentratedinplaceswithlargenumbersofheadoffices.

AVERAGE PROPORTION OF FIRM EMPLOYEES THAT HOLD A DEGREE OR HIGHER - 2010

LEEDS CITY REGION BENEFITS FROM HAVING A LARGE POPULATION ON ITS DOOR-STEP, MORE THAN ALL OUR COMPARATOR LEP AREAS WITH THE EXCEPTION OF LONDON

3 THE CASE FOR ACTION: LEEDS CITY REGION’S INNOVATION SYSTEM


7Thelocationquotientisameasureofemploymentconcentrationforaspecificarea;ifalocationquotientisequalto1,theproportionofemploymentinaparticularsectorinthelocalareaisequaltothesameproportionofemploymentinthatsectoratthenationallevel.Alocationquotientabove1indicatesthatemploymentismorehighlyconcentratedinthelocalareacomparedtothenationallevel.

BUSINESS BASE

TheCityRegionperformslesswellintermsofentrepreneurshipandbusinessstart-upsoveritscompetitors.Overtheperiod2009-11,ourstart-upratehasremainedunchangedat34per10,000residents,whichisamongstthelowestacrossourUKcompetitorcities(ONSBusinessDemography).Althoughourtotalnumberofstart-upsincreasedby2%since2009,Bristol(18%),Manchester(11%),andNewcastle(10%)alleclipseourprogress.Theincreaseinstart-upsintheCityRegionhasbeenconcentratedmainlyinYorkandLeeds.

LeedsCityRegionhasanaveragebusinessfailurerateof31per10,000residents,surpassedbythatofBristol(35),Manchester(36)andLondon(53)(ONSBusinessDemography,2011).Highratesofbusinessclosureratesareahealthysignofchurninaneconomyandtendtobeassociatedwithhighstart-uprates.Toavoidstagnationinourbusinessbaseweneedtoseeboththestart-upandthefailureratesrise.

GOVERNMENT FUNDING AND EXTERNAL SOURCES OF INVESTMENT

InnovationinputsintheformofR&Dinvestmentandbroaderinnovationactivitiesoccuracrossanumberofpublicandprivatesectororganisations.Giventheglobaleconomicdownturn,itisnotsurprisingthatgovernmentfundingandexternalsourcesofinvestmentsuchasventurecapitalhavedeclined.

Governmentandhighereducationinstitutions’R&DexpenditureisreportedattheregionallevelbyONS.Overtheperiod2009-11governmentexpenditureonR&D(GovERD)inYorkshireremainedconstantat£60million,thelowestacrossallregionsinEngland.TheonlyregionstohaveexperiencedanincreaseinGovERDoverthesameperiodweretheSouthEast(increasedfrom£800mto£830m)andtheSouthWest(increasedfrom£400mto£410m).

INNOVATION INPUTS

Highereducationalinstitutions’expenditureonR&D(HERD)inYorkshirefellovertheperiod2009-11,from£510mto£500m.OverthesameperiodmostregionsexperiencedanincreaseinHERD,withtheexceptionoftheNorthWest(decreasedfrom£590mto£580m)andtheEastMidlands(decreasefrom£350mto£340m).

TECHNOLOGY STRATEGY BOARD FUNDING

Overthelastthreeyears,theCityRegionhasattractedatotalof£24.1millioninTechnologyStrategyBoard(TSB)funding.Thisrankeditat14thamongallLEPareasintermsofthetotalawardedand19th(outof39)intermsoffundingperbusiness.

AnalysisofdatapublishedbytheTSB(2013)providesabreakdownofthefundingacrossthe12competitiontypesandisprovidedintheEvidenceBaseCompendium.Itisclearthatasnationalbudgetshavecontractedandcompetitionstiffened,wehavenotleveredinasmuchinvestmentasourcompetitors.

Havingsaidthat,theCityRegiondoescomparativelywellinKnowledgeTransferPartnerships,havingsecuredover£4minvestmentfromTSBovertheperiod2010-13.WhenlookingatKTPdrawndown,perbusinessacrosstheLEPs,LeedsCityRegioncomesfourthintherankings.AlthoughtheSmallBusinessResearchInitiativeonlymakesuparelativelysmallproportionofTSBfunding(£1.8moverthreeyears),ourregionhasdonecomparativelywellinthisareatoo.ThebreakdownofTSBinvestmentintheCityRegionbysectorrevealsthatthelargestamountwenttotechnologybusinesses(£2.6m),closelyfollowedbyhealthcare(inbothcaseslargelyviathecollaborativeR&Dscheme).Overthelastthreeyearsonlytheenergysectorhassecuredfundingthrough‘large’competitionroutesfor‘exceptionalprojects’asdefinedbytheTSB.

3


TSB FUNDING IN LEEDS CITY REGION BY SECTOR FOCUS, 2010-2013, (£ 000S)

Competition Type

CollaborativeR&D

European

FastTrack

FeasibilityStudy

Large

SmallBusinessResearchInitiative

TotalperSector

Digital

-

-

150

247

-

-

397

Energy

727

-

-

571

£813

-

2,111

Healthcare

2,247

-

153

182

-

-

2,582

Manufacturing

1,129

-

-

123

-

-

1,252

Space

-

-

-

38

- -

38

Sustainability

1,099

-

-

506

-

£19

1,624

Technology

1,675

825

130

37

-

-

2,667

Transport

1,240

-

-

41

-

-

1,282

Note:Onlyfundingawardedbysectorisreflectedinthistable,thusthefiguresdonotsumtototalLeedsCityRegionTBSfunding.Source:TSB2013

BUSINESS R&D EXPENDITURE

LeedsCityRegionisalsounder-performingintermsofbusinessexpenditureinR&D.AlthoughtheCityRegionhasexperiencedarelativelyhighgrowthrateinbusinessexpenditureinR&Doverthelastdecade(2ndacrossallcomparatorareas),theamountspentisthe2ndlowestamongtheEnglishregions.

ONSdataindicatesthatbusinessR&DexpenditureinYorkshireandHumberwas£540min2011,lessthanhalfthelevelinanyotherregionapartfromtheNorthEast.Yorkshire&HumberwasalsothelowestrankedEnglishregionfortheamountofR&Dtaxcreditsclaimedperbusinessin2012,cominginatlessthanhalfthenationalaverage.

UKIS(2010)surveyedbusinessesonhowtheyallocatedtheirinnovationexpenditure.ResultsshowthatYorkshirebusinesses’innovationexpenditureishighlyconcentratedintwoareas:internalR&D(56%)andacquisitionofcapital(40%).Comparativelylittleisspentonmarketintroductionofinnovation,training,designorontheacquisitionofexternalknowledgeandR&D

3


INNOVATION EXPENDITURE IN 2010, YORKSHIRE REGION, % TOTAL

“ BUSINESSES ARE NOT VERY GOOD AT COLLABORATIVE WORKING, THEY’RE MORE IN A MODE OF COMPETITION THAN COLLABORATION”

LEEDS CITY REGION CITIZEN, 26TH NOV.

COLLABORATION

Openinnovationiscrucialandcriticallyreliesonbusinessesandinstitutionsopeninguptheirprocessesandideastoexternalinputsfromcollaborators(whoatothertimesmayevenbecompetitors).UKIS(2010)aswellastheLeedsCityRegionQuarterlyEconomicSurvey(Quarter22013)surveyedfirmsabouttheircollaborationactivities.

UKISindicatethatcompaniesintheYorkshireregionrelyoneitherclients/endusers(35%)orpeoplewithintheirbusinessorenterprisegroup(36%)forassistance.ButboththesefiguresarealittlebelowtheUKaverage(40%and39%,respectively).OfthoseinformationsourceswhichmaysupportR&Dactivitiesandknowledgecreation,YorkshirefirmsareinlinewiththeUKaverage;2%ofYorkshirefirmsusegovernment/publicresearchinstitutes,2%useuniversities,and4%useprivateR&Dinstitutesandconsultants.

TheLeedsCityRegionQuarterlyEconomicSurvey(Quarter22013)suggeststhatR&Dcollaborationisafunctionofcompanysize:only24%offirmswith1-9employees

collaboratewithuniversitiescomparedto60%offirmsthathave250+employees.Thispatternisreplicatedwhenitcomestocollaborationwithinnovation/researchassociations,withsmallerfirmsrelyingmoreheavilyonin-houseresourcesandbusinessnetworks.

ThesurveyalsoindicatesthatcollaborationwithHEIsisafunctionofbusinessage.OfthefirmsthathavesoughtadviceorsupportfromHEIs,33%hadbeeninoperationforover10years,19%for1-5yearsandonly13%forlessthanayear.Thisfindingisnothugelysurprisingsincemoreestablishedfirmshavehadmoretimeandresourcestobuildlinksexternally.Start-upfirmsareclearlyhardertoreachbutpotentiallycouldbenefitmostfromassistance.

3


LEEDS CITY REGION BUSINESS SURVEY: WHO DOES YOUR ORGANISATION/ BUSINESS COLLABORATE WITH FOR YOUR R&D

Universities

Innovation / research associations

Business networks

Partnerships w/ other companies

In-house resources

Other

Total

28%

16%

31%

42%

87%

8%

1 to 9

24%

16%

32%

45%

90%

6%

10 to 49

28%

14%

31%

36%

82%

12%

Company Size

50+

50%

23%

27%

38%

82%

12%

1 to 249

27%

15%

32%

42%

87%

8%

250+

60%

37%

16%

59%

90%

5%

Source:LeedsCityRegionQuarterlyEconomicSurvey,Quarter22013 Note:Proportionsdonotsumto100%

Asisthecaseacrossthecountry,onlyaminorityoffirmsinYorkshireandLeedsCityRegionparticipateininnovationactivities.Regionally,37%ofYorkshirefirmswereclassifiedasbroadinnovatorscomparedto39%acrosstheUK(UKIS2010).SomeoftheregionswiththehighestlevelsofbroadinnovatorsweretheEastandSouthEast(43%each)andtheNorthEast(42%).TheUKISalsoaskedfirmsiftheyhadabandonedinnovationactivities,towhich6%ofYorkshirefirmsresponded‘yes’.AlthoughthisisabovetheUKaverage(4%),thiscouldbeseenasapositivesignofawillingnesstoembracefailureaspartoftheinnovationprocess.TheLeedsCityRegionQuarterlyEconomicSurvey(Quarter22013)foundthatabouthalfoffirmshadintroducedanewproductsorprocessoverthelast12months(49%).Interestingly,firmsinservicesectorsseemtobeaslikelytobeinnovatorsasthoseinmanufacturing.

PROTECTION OF INNOVATION

Intellectualpropertyperformancelocallyismixed.Acrossthe39LEPareas,LeedsCityRegionranksinthebottomhalfat23rdintermsofEuropeanPatentOfficepatentsper10,000residents.UsingUKISdatawecanseethatattheregionalleveltheproportionoffirmsthatapplyforapatentinYorkshire(2.7%)isslightlyabovethenationalaverage(2.6%).Nevertheless,inotherareasofinnovationprotectionwelagbehindotherregions.

Lookingattheprotectionofinnovationandintellectualproperty,7%ofYorkshirefirmsusesecrecyincludingnon-disclosureagreements,comparedto8%inLondonand10%intheSouthEast.Similarly,just2%ofYorkshirefirmsproducematerialseligibleforcopyright,comparedto5%inLondonand4%intheEastandSouthEast.

INNOVATION OUTPUTS

3

16


PRODUCTIVITY

Labourproductivityisafundamentalmeasureofinnovationandakeyfactorwhichallregionsstrivetoimprove.Themostrecentsub-regionalfiguresindicatethatGVAperworkerwas44,920in2012,belowtheEnglishaverage,althoughonlyWestofEnglandhadaboveaverageproductivityin2012amongcorecities.LeedsCityRegion’sGVAperworkerwassimilartoothercorecities,thoughconsiderablybetterthantheworstperformers.OurGVAperworkerhasgrown7.7%since2009,aboutthesameasEngland

GVA PER WORKER

LEP Area

Leeds City Region

England

D2N2

Greater Birmingham and Solihull

Greater Manchester

Liverpool City Region

London

North Eastern

Sheffield City Region

West of England

GVA per worker

2009

41,695

46,970

37,748

42,656

41,736

41,145

67,210

37,874

37,082

45,571

2012

44,920

50,527

42,310

45,112

44,293

43,600

69,578

41,764

40,168

51,209

7.7%

7.6%

12.1%

5.8%

6.1%

6.0%

3.5%

10.3%

8.3%

12.4%

GVA per worker change 2009-12

LEEDS CITY REGION SECTORS IN THE INNOVATION CONTEXT

SixkeysectorshavebeenidentifiedbytheLEPforpriorityattention:financial,professionalandbusinessservices;advancedmanufacturing;healthandbioscience;creativeanddigital;foodanddrink;andlowcarbon&environmentalindustries.Anewreport8analysesthesesectorsindepth,identifyingthekeystrengthsandopportunitiesacrosstheCityRegion.

Forthisreport,wehaveexploredtheinnovationdriverswithinthesesectorsandwhatassetswehavelocallythatcansupportbetterinnovationoutcomesandtheiralignmentwiththeKeyEnablingTechnologies(KETs)andthegovernment’sEightGreatTechnologies.Ourtwin-trackfocusonprioritysectorsandkeytechnologiesunderpinourcommitmenttoSmartSpecialisation

BasedonONSLEPGVAdataandBRES2012data(NOMIS.)

PRIORITY SECTORS

“ WE HAVE THE HUGE FLEXIBILITY TO BE ABLE TO MOVE WITHIN THE MARKETPLACE, SO WHETHER IT’S AUTOMOTIVE OR DEFENCE OF WIND ENERGY, WE HAVE THE KEY COMPONENTS OF THAT.”


8KeySectorsPolicyforLeedsCityRegion,Ekosgen,2014.

3

Leeds City Region: Smart Specialisation Strategy18 9Adetailedbreakdownofsub-sectorsinHealthandBiosciencecanbefoundintheEvidenceBaseCompendium.

FINANCIAL, PROFESSIONAL AND BUSINESS SERVICES

The financial, professional and business services sector is the largest of the City Region’s priority sectors, with a total of 256,000 jobs in 2012. Although the number of jobs here has increased by 4% (9,100 additional) since 2009, our growth is behind the 6% national average in the sector.

PreliminaryfindingsfromtheWittyReview(July2013)indicatethatwhileLondonisthesector’sleadingworldcentre,thereareotherstrongUKclustersinBirmingham,Manchester,LeedsandLiverpool.TheCityRegion’sperformanceagainsttheseareashasbeenbelowpar.EmploymentgrowthhasbeenstrongestinLiverpool(17%increase)andLondon(10%increase),whiletheotherareasalsomanagedtogrowinlinewithorfasterthanthenationalaverage.

BigDataisanextremelyimportantKeyEnablingTechnologywhichwillsupportfuturegrowthandinnovationinthissector.ThisalignswellwithLeedsUniversity’srecognisedstrengthinthisarea,whichweexplorelater.

FINANCIAL AND PROFESSIONAL BUSINESS SERVICES EMPLOYMENT, 2009-12

Leeds City Region

Birmingham

Manchester

Liverpool

London

England

Total Jobs 2012

256,100

203,000

270,000

106,700

1,465,00

7,157,300

LQ v. England

0.8

0.8

0.9

0.7

1.2

1.0

Change 09-12

9,100

15,700

15,900

15,300

135,100

384,800

4%

8%

6%

17%

10%

6%

Source:BRES2012

HEALTH AND BIOSCIENCE

Although it is the smallest of our sectors in terms of employment (36,000 jobs), Leeds City Region has a concentrated base of health and bioscience R&D activities. In particular, City Region employment within this sector is most highly concentrated in human health activities (20,000 jobs), a sub-sector in which we have a LQ of 1.1.9 Nevertheless, employment in this sector has decreased by 14% (6,100 job losses) since 2009, while nationally the sector has only shrunk by 6%. The drop was concentrated in our big human health sub-sector, whereas the important manufacturing of pharmaceutical products and scientific R&D sub-sector actually increased.

PreliminaryfindingsfromtheWittyReview(July2013)indicatethatthereareseveralhealthrelatedclustersthroughouttheUKwithspecificsub-sectorspecialisms.WhiledrugdiscoveryanddevelopmentisclusteredaroundtheLondon/Cambridge/OxfordtriangleandManchester,manufacturingisclusteredinTeesside,TynesideandSpeke(Merseyside).Meanwhile,medicaltechnologysub-sectorsareconcentratedinYorkshire(orthopaedicdevices),SouthEastandEast(in-vitrodiagnostics)andtheMidlandsandYorkshire/Humberside(woundcare).

WhenLeedsCityRegionismappedagainstotherareas,performanceismixed.ToouradvantagewehavethelargestclusterintermsofemploymentoutsideofLondon,withalevelofspecialisationthatisinlinewithEngland.However,ouremploymentlossessince2009havebeenfasterthaninallthecomparatorareasapartfromManchester.

Bigdata,syntheticbiology,advancedmaterialsandnanotechnology,andregenerativemedicineareallimportantKeyEnablingTechnologieswhichcansupportfuturegrowthandinnovationinthissector.

36,000HEALTH & LIFE SCIENCES JOBS

3

18


CREATIVE & DIGITAL

Creative and Digital is Leeds City Region’s second largest priority sector, with a total of 72,000 jobs in 2012.

Although the sector’s location quotient does not indicate a level of specialisation above the national level, employment has increased by 13% since 2009 (8,200 additional jobs), surpassing the national trend (4% increase).

72,000CREATIVE & DIGITAL JOBS

HEALTH AND BIOSCIENCE EMPLOYMENT, 2009-12

Leeds City Region

Liverpool

London

Manchester

Newcastle

Sheffield

England

Total Jobs 2012

36,400

20,700

85,800

23,200

10,200

19,700

801,400

LQ v. England

1.0

1.2

0.6

0.7

0.9

1.4

1.0

Change 09-12

-6,100

-1,200

-8,600

-6,900

-1,800

2,500

-52,700

-14%

-5%

-9%

-23%

-15%

15%

-6%

Source:BRES2012

PreliminaryfindingsfromtheWittyReview(July2013)indicatethattheinformationeconomyactivitiesareclusteredinseveralareasincludingLondon,Manchester,Bristol,andSunderland.Comparingtheseareas’creativeanddigitalsectorstothatofLeedsCityRegion,weseethatafterLondonwehavethelargestclusterinemploymentterms.LondonistheonlyothercomparatorareathatexperiencedhighemploymentgrowthsimilartothatofLeedsCityRegion,whileothersexperiencedemploymentlossesoronlymodestgrowth.Bigdata,isanimportantKeyEnablingTechnologieswhichwillsupportfuturegrowthandinnovationinourinformationeconomy.

CREATIVE AND DIGITAL EMPLOYMENT, 2009-2012

Leeds City Region

Bristol

London

Manchester

England

Total Jobs 2012

71,600

33,100

492,700

62,800

2,108,300

LQ v. England

0.7

0.8

1.4

0.7

1.0

Change 09-12

8,200

-3,100

60,200

3,500

77,700

13%

-9%

14%

6%

4%

Source:BRES2012

3


ADVANCED MANUFACTURING AND ENGINEERING

Advanced manufacturing and engineering includes aerospace, automotive, life sciences, and agri-tech and is one of BIS’ Industrial Strategy Sector priorities. This is a strong sector for Leeds City Region, with a total of 29,000 jobs in 2012.

We have a strong concentration of this sector in Leeds City Region (LQ =1.1) and have experienced high levels of employment growth since 2009, increasing by 18% (4,400 additional jobs), faster than all other key comparators and in contrast to the static national employment total.

ComparatorareaswithhighconcentrationsofadvancedmanufacturingandengineeringincludeBirmingham,BristolandSheffield.Since2009theseareashaveallexhibitedstrongemploymentgrowthabovethenationallevel,butslowerthanourimpressiveexpansion.

ThereareanumberofimportantKeyEnablingTechnologiesforAdvancedManufacturingsub-sectors.

Forlifesciencemanufacturing,thesearebigdata,syntheticbiology,advancedmaterials,andregenerativemedicine;foraerospace,KETsarebigdataandadvancedmaterials;forautomotive,itisadvancedmaterialsandenergystorage;andforagri-tech,theimportantKETsaresyntheticbiologyandagri-science.

ADVANCED MANUFACTURING AND ENGINEERING EMPLOYMENT, 2009-2012

Leeds City Region

Birmingham

Bristol

Manchester

Sheffield

England

Total Jobs 2012

29,300

35,100

15,200

16,400

16,000

577,100

LQ v. England

1.1

1.6

1.3

0.7

1.6

1.0

Change 09-12

4,400

3,000

1,700

-5,900

1,200

1,000

18%

9%

13%

-26%

8%

0%

Source:BRES2012

FOOD AND DRINK

The food and drink sector in Leeds City Region sustains 37,000 jobs, making it the third largest of the region’s priority sectors. Although employment is more concentrated here than nationally (LQ =1.1), since 2009 City Region employment has not grown despite an 8% increase nationally.

FoodanddrinkisnotoneoftheUKGovernment’sIndustrialStrategy(BIS,2012)keysectors,butitdoeshavelinkswithagri-techwhichisincludedintheStrategy.

29,000ADVANCED

MANUFACTURING ENGINEERING

JOBS

37,000FOOD AND

DRINKS JOBS

3

Leeds City Region: Smart Specialisation Strategy 2110EstimatesbasedonRegenerisin-houselowcarbongoodsandenvironmentalservicessectormodel.

FOOD AND DRINK EMPLOYMENT, 2009-2012

LOW CARBON & ENVIRONMENTAL INDUSTRIES

The low carbon & environmental industries sector is the second largest priority sector in the City Region. In 2012 Leeds City Region had 39,000 jobs in this sector with an estimated growth of around 18% since 2009, compared to a 2% increase at the national level 10

Therearestronglinksbetweenthissector,theIndustrialStrategysectorsofnuclear,offshorewindandoilandgas,aswellasenergystoragewhichisoneoftheEightGreatTechnologies.LeedsCityRegionisworkingtobecome‘resourcesmart’bysupportinginnovationthatwillallowmoretobedonewithlessresourcesacrossallsectorsoftheeconomy,i.e.reducingbusinesscostsandraisingefficiencyintheuseofenergy,waste,water,andminerals.AwidenumberofKeyEnablingTechnologieswillsupportfuturegrowthandinnovationinthesesectors.

Bigdatawillbeneededtosupportoilandgas,whileadvancedmaterialsandnanotechnologyandroboticswillbefundamentalacrossallthreeoftheIndustrialStrategySectors.

Energystoragewillbeavitaltechnologyforarangeoflowcarbon&environmentalindustries.ThekeyopportunitiesforLeedsCityRegiontocapitaliseoninthissectorarebio-renewablesandcarboncaptureandstorage.Bio-renewableswillbesupportedbyBioVale(additionaldetailspage19)andDrax,soontobecomethelargestbiomassco-firingpowerplantinEurope.CarboncaptureandstoragewillbesupportedbydemonstrationplansandgovernmentfundingtoCityRegionplantswhichareemployingthistechnology.

ImportantKeyEnablingTechnologiesforagri-tech,includesyntheticbiologyandagri-science,aswellasbigdata.AdditionalKETsrelevanttoadvancedmanufacturingwillalsohelptosupportfuturegrowthandinnovationinthissector.

Leeds City Region

Bristol

Birmingham

Manchester

Sheffield

England

Total Jobs 2012

37,000

8,800

21,300

26,500

19,100

713,200

LQ v. England

1.1

0.6

0.8

0.9

1.6

1.0

Change 09-12

0

-1,200

3,200

-3,100

-500

50,800

0%

-12%

18%

-10%

8%

8%

3

Leeds City Region: Smart Specialisation Strategy22 11Source:HEBusinessandCommunityInteractionSurvey2011/12,HigherEducationStatisticsAgency

OUR KNOWLEDGE & INNOVATION INSTITUTIONS

Educational institutions and particularly those that are research intensive, are critical elements of the innovation ecosystem. They contribute new intellectual property, facilitate networks and relationships between people, act as hubs of information and knowledge exchange and act as go-betweens for industry, government and the wider community11. Across Leeds City Region, we have innovation assets of the highest quality.

Wehaveeighthighereducationinstitutions,oneofthelargestconcentrationsinEurope,producing36,000graduateseachyear.Leedsisthe8thlargestuniversitybyresearchpowerintheUK(outof161HEIs)andislistedinthetop100globallybyQSRanking.YorkUniversityisalsorankedinthetop100worlduniversitiesbytheTimesHigherEducationWorldUniversityRankings.BothTheUniversityofLeedsandLeedsMetropolitanUniversityfallintheUKtop20bystudentnumbers,andallouruniversitieshavesolidtrackrecordsofindustrialandcommunityengagement.

OtherkeyinnovationassetsinLeedsCityRegionincludeScienceCityYork(oneofsixsciencecitiesintheUK),theYorkSciencePark(whichhostsalmost150independentcompaniesandorganisations),andtheFood&EnvironmentalResearchAgency(FERA)atSandHutton.WearealsohometoMedipex,ahealthcareinnovationhubworkingwiththeNHS,industryandacademiatoimprovepatientcarebyacceleratingknowledgetransferandprovidingmarketaccesssolutions.

Overonethird(36%)ofLeedsCityRegion’scombineduniversityresearchisrankedasworld-class,andafurther10%isworld-leadinginfieldssuchasbusiness&management,medical&healthcaretechnologies,pharmaceuticalsandbiotechnology,nanotechnology,advancedengineeringandadvancedtextiletechnology.

ThesheersizeoftheresearchpowerintheregionfocusedaroundMedicineandHealth–particularlythenationalexpertiseandindustrialengagementinRegenerativeMedicineatLeedsandinPharmaceuticalInnovationandCancerTherapeuticsatBradford-meanswehavecriticalmasswhichcanbereadilycombinedwithrealindustrialengagement,andwhichisbasedontrulyexcellentmultidisciplinaryresearch.

ThishotspotofexcellencehasalreadyledtosomeofthelargestinvestmentsinUKuniversityspinoutcompanies,startingfromBradfordParticleDesign,andmostrecentlyTissueRegenixPLC(Leeds).

Morewidely,ourresearchpowerandstandingwhenmappedagainstindustrialengagementalignswithourprioritiesandrecognisedstrengths,particularlyaround:FoodScience,FoodManufacturingandFoodHealth(atLeeds,YorkandLeedsMetropolitan),AdvancedMaterials(aroundPlasticsatBradford,andNanotechnologyatLeeds),aroundColourChemistryatLeedsandGreenChemistryatYork;andaroundtransportandmaterialsattheHuddersfieldInstituteforRailResearch.LessobviousassetsexistinAutomotive,AerospaceandSatellitestechnologythatreflectsectoralstrengthsintheregion.However,theseareareasforlongertermambitions.

LevelsofconsultancyactivitywithinHEIsareausefulmeasureofhowrelevantresearchistobusinesses.ConsultancytrendsareincreasingsignificantlyacrosstheCityRegion’sinstitutions,asisincomegeneratedfromintellectualproperty.LeedsMetropolitanhasrapidlyincreasedconsultancyperformance,leadingalltheCityRegion’suniversities,whiletheUniversityofLeedshasdrivenupitslicensingactivity.Sinceanincreasingamountofconsultancyisbeingundertakenbycommercialcompaniesestablishedbyuniversities,itisnotpossibletocaptureallthevaluecreatedthroughconsultancyengagement.

However,itappearsthatLeedsUniversityisstillonlyapproachingthenationalmeanwhileLeedsMetconsultancyincomecontinuestobelowerthanmost.

OVER ONE THIRD OF LEEDS CITY REGION’S COMBINED UNIVERSITY RESEARCH IS RANKED AS WORLD-CLASS, AND A FURTHER 10% IS WORLD-LEADING.

3


ThepositionofouruniversitiesinrelationtotheEightGreatTechnologiesissummarisedinthetable.TheCityRegionhasstrengthsinsixofthem:advancedmaterials,agri-science,bigdata,regenerativemedicine,roboticsandsatellites.

LEEDS CITY REGION KNOWLEDGE ASSETS RELATED TO THE EIGHT GREAT TECHNOLOGIES

AdvancedMaterials

Agri-Science

BigData

• TheUniversityofLeedsranks8thintheUKforAdvancedMaterialsresearchandishometotheCentreforMolecularNanoscience.

• ProctorandGamblesignedastrategicresearchalliancewithLeedsUniversityinOctober2013todevelopnewproductsintheareaofmaterialsandparticles.

• TheNanofactorylocatedinLeedsalsosupportspartnershipsbetweenuniversitiesandtheprivatesectorinmicroandnanotechnologies.ThisisfurthercomplementedbytheEPSRCCentreforInnovativeManufacturinginAdvancedMetrologybasedattheUniversityofHuddersfield,whichisanationalcentreofexcellencewithsignificantautomotiveindustryengagement.

• UniversityofYorkranks4thintheUKforAgri-Techresearch.

• Linkingitsstrengthinenvironmentalandbio-renewabletechnologiesScienceCityYorkhaslaunchedtheYorkEnvironmentalSustainabilityInstitute(YESI)whichincludestheInitiativeforAgriFoodResilience,theCentreforNovelAgriculturalProducts(CNAP),theCentreforCropProtection(CCP),andtheBioscienceTechnologyFacility.

• TheBioValeschemeiscurrentlybeingdevelopedincollaborationwithindustrybytheBiorenewablesDevelopmentCentre,theCentreforNovelAgriculturalProducts,andtheGreenChemistryCentreattheUniversityofYork.BioValewillbeamajorassetandfocalpointofindustrialengagementbetweentheUniversityofYorkandFERAaimedatbuildingabroadbasedinnovationhubforthebio-basedeconomyinourcity-region.

• TheUniversityofLeedsranks1stintheUKforBigDataresearchandtheUniversityofYorkranks1stintheareaofInformationEconomy.BigdataisahugelyimportantacrossotherLeedsCityRegionresearchstrengthsandsectorsincludinglifesciences,bioinformaticsandtransport.

• TheUniversityofLeedswasawarded£6millionfromtheMedicalResearchCounciland£5mfromtheEconomicandSocialResearchCouncilinFebruary2014tofundaConsumerDataResearchCentrethatisjointlywithUniversityCollegeLondon.TheCentrewillbeanationalresourcethatwillmakedata,routinelycollectedbybusinessandlocalgovernmentorganisations,accessibletoacademicsandoffernewMasterslevellearningtoaddressnationalskillsshortagesinbigdataanalysis.

ContinuedOver

3


RegenerativeMedicine

Robotics

Satellites

• WelmecisaCentreofExcellenceinMedicalEngineeringfundedbyEPSRCandtheWellcomeTrustwhichisdevelopingnewwaystoextendhumanjointandcardiovascularhealth,andsoimprovequalityoflife,for‘50activeyearsafter50’.

• TheInnovationandKnowledgeCentreRegenerativeTherapiesandDevices(IKCRTD)atLeedsUniversityprovidesrealcommercialengagementandcollaborationbetweenacademia,industryandtheNHStoacceleratethecommercialdevelopmentofnewmedicaltechnologyproductsandservices.

• NationalFacilityforInnovativeRoboticSystemsatUniversityofLeedsannouncedinJuly2013isa£4mnationalfacilitywhichwillmaketheUniversityaworldleaderinrobotdesignandconstructionsupportedbytheEngineeringandPhysicalSciencesResearchCouncil.

• InFebruary2014theUniversityofLeedswasawarded£180kfromNERCtoenableresearcherstoexpandaprocessingfacilityforradardatafromtheESAsatelliteSentinel-1,duetobelaunchedinMarch.

THE VOICE OF OUR CITIZENS

Extensive consultation was undertaken to help refine our understanding of the City Region’s sector strengths and the barriers standing in the way of better innovation performance. We engaged with partners and stakeholders through a variety of ways, including an online ‘whisper study’ via Twitter which posed daily questions about Leeds City Region’s innovation environment, giving anyone the opportunity to respond with their opinion. This exercise was organised as a lead-up to the major innovation consultation event on the 26th November in Leeds supported by AGFA. This workshop event was attended by 93 people and brought together people in a series of structured group sessions to tease out stakeholders’ views of our strengths and weaknesses.

WHISPER STUDY

TheobjectiveofthewhisperstudywastostimulateandanalyseasetofTwitterconversationsaroundinnovationintheLeedsCityRegionintheleaduptotheworkshopon26thNovember.ThedialoguethathasdevelopedoverTwitteristhestartofaconversationwhichtheCityRegionneedstocontinue.

Thisplatformforengagementhasbeenasuccessfulvehicletoidentifyinfluentialpeoplewhoaretalkingaboutinnovation,whattheirsentimentsmaybe,andhowtheCityRegioncanplaneffectiveengagementstrategiestoincludethesepeopleinfuturework.Thekeypointsfromtheconversationsareasfollows(adetailedreportontheoutcomeofthisstudyisincludedintheEvidenceBaseCompendium):

• International Perspective.Therewasastrongfocusintheconversationoninternationalexamplesofinnovativecitiesthatwecanlearnfrom.ThosewhichwerementionedthemostincludedNewYork(focusonautonomouscars),Barcelona(SmartCityExpo),Toronto/Ottawa(Ottawa’sbidtoopenanInnovationCentrein2016),DenverandChicago(Chicago’stechcitystart-ups).Ourinnovatorshaveaglobalperspective.

3


• Local Innovation Influencers.Basedontheanalysisoftheconversationsurroundingtheinnovationeventonthe26th,thestudyrevealedanumberofindividualswhoarekeyinnovatorsandinfluencersintheCityRegion.ThegroupincludesindividualsinthegamesindustryinLeeds,localinvestorsandentrepreneursandotherprivatesectoractorspassionateaboutinnovation.Theirpassionfordrivingforwardinnovationandtheirconnectionstothelocalcommunityshouldbeharnessedtosupportthegoalsofthisstrategy.

INNOVATION WORKSHOP, 26TH NOVEMBER

ThewhisperstudyleadinguptotheInnovationWorkshopallowedtheeventtohaveawidereachinthenumberofpeoplewhoparticipatedintheconversation.Inadditiontothosewhoattendedtheevent,theTweetReachoftheeventwasmeasuredusing#innovatelcr(thehashtagusedthroughoutthewhisperstudy).Atotalof125,000twitteraccountswerereachedusingLeedsCityRegion’suniqueinnovationhashtag,while404tweetsweremadeby68uniquecontributorsoverthecourseofeightdaysleadinguptoandincludingtheevent.

Theeventinvolvedawiderangingexplorationofmanyaspectsofinnovationperformanceandtheeco-systemunderpinningit.AdetailedtranscriptoftheeventhasbeenincludedintheEvidenceCompendium.OurdistilledanalysisoftheinsightshasledustoidentifyelevenkeydemandsfromourbusinessesandinnovationcommunitieswhichneedtobeaddressedifLeedsCityRegionistodriveupinnovationambitionamongitsorganisations,businessesandcivicbodies:

• Raisedambitionssetoutinaseriesofachievablegoalswhichprovideaclearmeasureofsuccessforimprovingtheinnovationculture

• Greaterinternationalfocusandcompetitiveness,throughbenchmarkingtheregion’ssuccessagainsttherestoftheworld

• PromoteandamplifyLeedsCityRegion’ssuccessesandassets

• Drivehomethemessagethatinnovationisessential;notinnovatingisahigh-riskstrategy

• Usefutures&foresightknowledgetosignpostbusinessestoopportunitiesandmega-trends

• Aclearfocusonsecuringasmallbutsignificantnumberofworld-classsectors

• Better,business-ledandbusiness-focusedsupportwhichissimplertoaccess

• Supportexistinginnovationnetworkstoexpandtheirreachandinfluence

• Boostlocalsupplychainsbyprocuringinnovativesolutionsandinvestingintheinfrastructureneededtounderpinfuturecompetitiveness

• Leadershiptomanagetheflowofskillsintotheinnovationprocessandtransferbestinnovationpractice

• Drivingcollaborationthroughthedevelopmentofthenewworkingspacesthattoday’swayofworkrequiresanddemands,networkinganddevelopinganenvironmentthatnurturesbusinessinteractions

• Networkedcivicbodiesthatengagewiththeprivatesectortocollaborateonthechallengesfacingthepublicsectorandrequireinnovativeapproachesandresponsestodriveeconomicgrowth.

EXTENSIVE CONSULTATION WAS UNDERTAKEN TO HELP REFINE OUR UNDERSTANDING OF THE CITY REGION’S SECTOR STRENGTHS AND THE BARRIERS STANDING IN THE WAY OF BETTER INNOVATION PERFORMANCE.

3


LEEDS CITY REGION’S INNOVATION OFFER

LeedsCityRegionalreadyoffersitsbusinessesarangeofservicesandassistanceaimedatdrivingupinnovationperformance.WehaveengageddirectlywithandconsultedarangeofbusinessesandsupportproviderstohelpdevelopaSWOToverviewofthecurrentinnovationofferandtoidentifyareaswherefurtherattentionisneeded.TheinsightsgainedfromthisexercisearesynthesisedbelowandsetoutinmoredetailintheEvidenceCompendium.

• Strengths:LeedsCityRegionislargeandisrecognisednationallyandinternationally.Thesizeofoureconomyallowsustotapintoalargeandstrongskill-setamongourlocalcommunities,businesses,networksandinstitutions.Theregionhasanembeddedcultureofindustry,hard-workandinnovationdatingbacktotheindustrialrevolutionwhichunderpinsastrongsenseofpassionabouttheplaceandidentity.Therelativelylowcostofdoingbusinessandtheeasyreachtoknowledgeassetsandkeymarketsarerealstrengths.

• Weaknesses:despiteastronglocalculture,itsmoreconservativetendenciescanmanifestthemselvesasalackofambition.Localinnovationinvestmentisinshortsupplyandthishasbeenweakeningourinnovationpotentialandledtoastuntedtechstartupandinnovationcommunity.Wemustwidenourperspectivetogainabetterunderstandingofwhatothersaredoinganddrawinideaswhichcanbeadoptedandadaptedinourregion.

STRENGTHS

• Size of region and City Status

• Accessiblelocationandgood transport links to UKcities

• Brand Yorkshire

• Hard-working Industrious Culture

• Sector assets

• Academic assets

• Changing civic ethos

• Competence,capabilities,skills

• Quality of place & known reputation

• Cost of doing business

OPPORTUNITIES

• People and community assets

• New markets

• New sectors

• New products and services

• Export markets

• Technology development

• Public sector austerity

• Disruptionwithexistingbusiness models

• The Grand Départ

WEAKNESSES

• Narrowscaleofambitionandconservativeculture

• Reluctance to celebrate success

• Limited exposure to what others are doing

• Too few sector-focussed innovationassets

• Skills

• Small Tech - start up community

• Limited investment community

• Weak transportaion and connectivity

• Patchy start-up, investment readinessandincubationsupportoffer

• Failure to capitalise on existinggovernmentinitiatives

THREATS

• Young people’s ability to engage with businesses

• Innovationfinancetoothinly spread across initiatives

• Poor ability to retain top quality graduates

• Limited tendancy to collaborate

• Too few co-working spaces

• Fear of risk taking

• Globalcompetition

• Parochialattitudes

• Complexity vs organisationalcapacity

• Absenceofcrosscuttinginnovationhubs

• Austerity

• External tech and start-up investment community

3


• Opportunities:amongthepeopleandcommunitiesofLeedsCityRegionthereareclearopportunitiestoextendnetworksandbusinessconnections.Aroundusthereisavibrantworldofnewmarketsandsectorsemergingwherewearewell–placedtoprosper,suchasopendata,energyandsmartmeters,healthandmedicaldevicesandcivicinnovation.Theseopportunitiesallhaveinternationalgrowthpotentialandcanhelpchartacoursetowardsgrowtheconomiesaroundtheworld.Weknowthatdisruptivetechnologyandnewbusinessmodelswillcontinuetotransformthenatureoftheeconomy.Weneedtobereadytosupportourleadinggrowthbusinessestocapitaliseonthesetrends,particularlyinourtechstartupaccelerators.Flagshipeventssuchasthe2014GrandDépartfortheTourDeFrancecanbeusedtoarticulateourplansandhelpusbettertellourinnovationstorywhilewehavetheattentionoftheoutsideworld.

• Threats:therapidpaceoftechnologicalandeconomicchangepointstoadifferentinstitutionallandscapethatismorefleetoffootandbetterattunedtotakingrisks.ThecomplexityofthemarketplaceandthebackdropofausterityacceleratethechallengetotheagenciesintheCityRegionseekingtosupportanddriveinnovation.Universitieshavetraditionallybeentheprincipalsourceofknowledgeforinnovation.Weneedtomaintaintheirstrengthsandbetterharnessthemforthebenefitofourlocalbusinesses,whileboostingthecapacityofotherinstitutionsandbusinessestoplaytheirpartinrebalancingourinnovationfocustowardscommercialopportunitiesbetteralignedwithgrowthoutcomes.

OUR KNOWLEDGE & INNOVATION INSTITUTIONS

We know that the competition for investment and talent is high. We also know that lessons can be learned from other City Regions around the globe which have enhanced their innovation credentials. We have taken time to explore, experience and develop a set of guiding insights, from a series of cities with a strong presence in the global innovation system.

Wehavelookedindetailatsevencomparatorcities(andCityRegions)thatarenotcapitalcities,whicharemakingsignificantstridesinembeddinginnovationintotheirgrowthplans.

We have considered the following questions for each city:

1) WhatcanLeedsCityRegionlearn?

2) WhatshouldLeedsCityRegionadapt?

3) Whatisnot relevanttoLeedsCityRegion?

4) WhereelseshouldLeedsCityRegionlook for inspiration?

5) WhoisLeedsCityRegioncompetingwith?

6) WhoshouldLeedsCityRegionbecollaboratingwith?

“WE NEED TO BE MORE INTERNATIONALLY COMPETITIVE, NOT NATIONALLY COMPETITIVE. DON’T WORRY ABOUT WHAT MANCHESTER’S DOING, WORRY ABOUT WHAT THE REST OF THE WORLD IS DOING.”


3


THE FOLLOWING LESSONS HAVE BEEN DRAWN FROM OUR REVIEW OF WHAT OTHER CITIES ARE DOING TO SUCCEED:

Lessons Learned

1. Anengagingstoryandastrong,sharedsenseofidentity,culture&purpose,builtaroundinnovationvaluescancreatestrongpublicityandmomentum

2. Physicalspacesdedicatedtoinnovatorsandthefacilitiestheyneedcanprovideafocusforconcentratedaction

3. Astrongbaseandgoodflowofinternationalstudents&migrantsrefreshesanddiversifiestheknowledgebase

4. Attractivecitiescanbeastrongmagnetfortalent

5. Afocusonestablishedindustrialstrengths,especiallywhereyouhaveHQpresence,cangeneraterapidchange

Implications

NeedforaninnovationfigureheadtoarticulateLeedsCityRegion’sinnovationprioritiesandtheprogresstheCityRegionismakinginternallyandexternally.

Identifyphysicalareasthatcanactashubswhichdrawinentrepreneursandinnovatorsandwherehotspotsofcreativecollaborativeinnovationcantakeroot.

TheyounglearneranduniversitypopulationneedstobetterencouragedintoSTEMsubjectsandhavemorereasonstostayworkinglocallyupongraduation.

TheculturalandcreativeaspectsofLeedsCityRegionthatgiveitsuchahighqualityoflifeneedtobechampionedtothebusinesscommunity.

TheCityRegion’sexistinginfluentialinnovationdecisionmakersneedtobecomemoreactivelyengagedinsupportingtheinnovationprocessamonglocalSMEs.

Relevance to Leeds City Region

LeedsCityRegiondoesnotperformwellintermsofbrandingandcommunicationsofitsinnovationassets.Thisweaknesseswasfurtherhighlightedduringtheworkshopon26thNovember.TheCityRegioncouldlearnagreatdealfromMedellín&GrandRapids,Michigan.

LeedsCityRegionappearstolackflexibleandcollaborativespacestoworkandmeet.TherearenumerousmodelsofspacesinthelikesofEindhoven&Torontothatcouldformthebasisofnewinvestmentinphysicalinfrastructure.Barcelona’s22@Barcelonaisanotherexampleofasuccessfulinnovationdistrictwecanlearnfrom.Thisneedwasrepeatedlyhighlightedduringtheworkshopon26thNovember.

LeedsCityRegionperformsextremelywellintermsofHEIsandattractingstudentsbutfailstoconnecttheseeffectivelyintothelocaleconomicecosystem.MorecouldbelearnedfromEindhoven,MedellinandTorontowhohaveshownstrongcityleadershipinthisspace.

LeedsCityRegionandYorkshiremoregenerallyiswellknowntobeawonderfulplacetoliveandcouldbuildonthattoattractinnovativetalentandorganisationstocometoandstayintheregionthesamewayasZurich.Thisstrengthwasacommonviewamongsttheworkshopparticipants.

LeedsCityRegionhasastrongbaseofCorporateHQsandcouldlearnfromEindhoven&GrandRapids,Michiganabouthowbesttousetheseasmagnetsforothertalentandassets.TheconcentrationofHQsisidentifiedintheEvidenceBaseCompendium.

ContinuedOver

3


Implications

LeedsCityRegionneedstofocusonbuildinguponthestrengthsintheEightGreatTechnologiesanditsprioritysectorstobestpositionitselftotakeadvantageoffuturemarketopportunities.

LeedsCityRegionneedstousethishighqualityoflifetofosterinformalinteractionsbetweenitscitizensandbettersellitselfwhenattractinginwardinvestment.

InfluentialpublicandprivatesectorleadersneedtoworktogethertosupportlocalfirmsandalsosendclearmessagestoinnovatorsoutsideourCityRegion.

AstrongerstoryneedstobetoldaboutLeedsCityRegionbyafigureheadwhoischampioningtheregionas‘openforinnovation’.

EmbracingtheprinciplesofaSmartCityandSmartTransport

Relevance to Leeds City Region

LeedsCityRegionalreadyhasastronganddiverseeconomyanditsSMEbaseoffersscopeforflexibilityandagilityashashappenedinrecentyearsinEindhoven,Medellín&GrandRapids.Crosspollinationofideasbetweensectors&disciplinescangeneratenewsolutionsandhelpidentifychallengeswhilehelpingdevelopdistinctivedifferentiatorsfortheregionaleconomy.

LeedsCityRegionhasagreatqualityoflifeandshouldseektolearnfromVienna,Medellin&Torontoabouthowtocombineeconomic,socialandculturalinstitutionstobesteffect.

LeedsCityRegioncurrentlylacksinnovationleadershipandcouldbenefitfromstrongerco-ordinationashashappenedinViennaandZurich.Thispointwashighlightedbyparticipantsoftheworkshopon26thNovember.

LeedsCityRegionperformspoorlycurrentlyintermsofcorporatephilanthropyduetothelackofbigemployersintheregion,butcouldlearnfromthelikesofGrandRapids,MichiganastohowbesttoharnesstheconcentrationofcorporateHQsintheregion.

LeedsCityRegioninternaltransportconnectionsaregenerallyperceivedtobeverypoorandthepopulation,whilstlarge,isquitedisconnected.LeedsCityRegioncouldbetterlearnhowtobetterexploitacriticalmassofinnovativetalentfromZurich&Medellín.

Lessons Learned

6. Newscopeforgrowthanddiversificationcanbeexploitedfromadversedevelopments

7. Integratingcultural,social,economicandtechnologicalcapitalgivesacitybetteraccesstoadistinctivesetofinnovationfactors

8. Regional,nationalandgloballeadershipandcommitmenttopublicsectorinnovationcanopenuplocalcommercialopportunities

9. Tappingintocorporatephilanthropycanhelppropelchangeandprovideleadership

10. Transportinvestment&thelinkstheygeneratecanbeacatalystforwiderinnovation

3

TITLE1

30

LEEDS CITY REGION: A STRATEGIC FRAMEWORK TO IMPROVE OUR INNOVATION PERFORMANCE


LEEDS CITY REGION: A STRATEGIC FRAMEWORK TO IMPROVE OUR INNOVATION PERFORMANCE

Drawing on the wide and deep body of evidence and insight we have generated, Leeds City Region has identified a set of long term priorities for action on which partners will focus effort and investment. Taken together this framework of actions will:

• spreadacommitmenttoinnovationacrosstheCityRegion

• stimulategloballycompetitiveinnovationinourprioritysectors

• developthenextgenerationofinnovatorsandsmartcityinfrastructuretocompetetomorrow.

Thisisalongtermstrategicplanwhichrequiresconcertedeffortbypublicandprivatesectorsandwhichreachesoutintotheacademic,commercialandcommunityarenas.Ourevidencetrawlhasflaggedupthatinnovationisabroadrangingagendawhichrequiresafocuson:

• hard and soft interventions:providingphysicalspacesandinfrastructureforinnovatorsalongsideeffortstoaddressunderlyingculturesandbehaviours

• top-down and bottom-up perspectives:leadershipandvisionfromthekeyplayersneedstobematchedwithbroadbasedchangeamongthelearners,SMEsandresidentsofLeedsCityRegion

• near & longer term agendas:immediateopportunitiesneedtobequicklyexploitedwhilewealsoprepareourselvestobebetterabletocapitaliseon,asyetuncertain,down-streamchallenges

• requires a focus on supply and demand:balancingthepotentialintheLeedsCityRegion’sideas,peopleandinstitutionsagainstthecommercialrealtiesandmarketopportunitiesintheglobalmarketplaceandourbusinesses’abilitytocompete.

Wehaveconcentratedourprioritieswherewecanseeanalignmentofourdistinctivebusinessstrengthsandresearchexcellence.Wehavedeliberatelybeenselectiveinfocusingonthoseplaces,technologiesandsectorswherewebelievewecanmakeadifferenceandseegenuineinnovation-ledeconomicgrowthemerge.Throughouttherestofthissection,wesetoutourthreestrategicprioritiesandasetofactionsandproposalswhichwillhelpLeedsCityRegionrealiseitsinnovationVision:

PRIORITY 1: DRIVING UP INNOVATION APPETITE ACROSS THE CITY REGION

Our Objectives

1A Innovation Leadership:Boostinnovationleadershipbybetterco-ordinatingactionsandinvestment,andbringingtogetherpeopleandideastocollaborativelyexploitinnovationopportunities.

1B Innovation Know How:Developastrongpoolofpeoplewiththeskillsandinsighttooverseeandimplementinnovation-ledchangeinourbusinesses,publicsectororganisationsandcommunities.

1C New Platforms:Betterconnectinnovationchallengeswithinnovationsolutions.

OUR VISION: TO SPREAD A COMMITMENT TO INNOVATION ACROSS THE CITY REGION

4

LEEDS CITY REGION AIMS TO HAVE THE STRONGEST INNOVATION SYSTEM IN THE UK, OUTSIDE THE SOUTH EAST, AND WILL BE SUCCESSFULLY COMPETING GLOBALLY TO ATTRACT TALENT AND INVESTMENT INTO OUR PRIORITY SECTOR BUSINESSES AND INSTITUTIONS


INNOVATION ANIMATEUR

Aims

Rationale

Critical Activities

TocatalyseandstimulateactiononinnovationacrossLeedsCityRegionbydevelopingandcuratingintelligence,insightandstories.Althoughtherearemeritsinafigure-head,theanimateurroleshouldn’tjustbefilledbyasinglepersonorevenanorganisation;thatistoomuchtoexpectasinglepersonorentitytoachieve.Instead,LeedsCityRegionshouldnurtureanetworkofInnovationAdvocates/Animateurstobuildthebuzzandwhocanfacilitateconnections,tellthestoriesandarticulatethevision.CruciallytheAnimateurwillprovideleadershipinbringingtogetherinvestorsandagencies,challengepeopletostriveformoreandsowingtheseedsofchangeintheCityRegion.

• Ourworkshopeventuncoveredaclearviewthatdespitehavingrealstrengths,theCityRegiondoesnotsuccessfullycommunicatewhatithasandwhatcouldbeachieved.ThereisstrongsentimentfocussedonmakingLeedsCityRegionamoresupportiveinnovationenvironmentwhichrecognisesourinfluentialpeoplemustworktogetherinordertorealiseourpotential.

• Throughthewhisperstudywelearnedthatwealreadyhaveastrongnetworkofinnovationinfluencerswhohaveavoice.Networkssuchasthisneedtobeanimatedandscaled-upsothatourplansareheardacrossourcommunitiesandbeyondtheLeedsCityRegionarea.

• Atpresentonly37%offirmsinYorkshireandTheHumbercanbeconsideredbroaderinnovators(thewidestdefinitionofinnovation)comparedtoanationalaverageof39%(UKIS2010).TheInnovationAnimateursneedtoencouragefirmstomoreproactivelyadoptinnovationbehaviours.

• BirminghamScienceParkatAston(Feb2013)recentlystartedasimilarinitiativewiththreeleadingentrepreneurialfigureheads,andViennaandZurichhavebothsetgoodpracticeexamples.

• Championinnovationacrosstheprivateandpublicsectorsandsupportinnovativeinvestment,withaparticularfocusonchangingprocurementbehaviourstosupportmoreintelligentworking/purchasing/investmentdecisions

• Co-ordinatepromotionofinnovation,collatecompellingstoriesthatcanberetold,andembedcoreinnovationmessagesinmarketingcampaigns,especiallybuildingonopportunitiesfromevents,togeneratepositiveinnovationperceptionsofLeedsCityRegion

• DevelopanddisseminateinnovationsuccessstoriesinternallyandexternallytosupportinwardinvestmentandengagewithnationalinnovationinvestorstochannelmoreattentiontowardsLeedsCityRegion

• Assistinwardinvestment,particularlyfocussingonattractingHQsandnewagenciesundertakingresearch&innovation

PRIORITY 1: ACTION AREAS

4


Critical Activities

Target Beneficiaries

Public and private sectors across Leeds City Region, as well as investors across the UK and globally

Target Outcomes

• Increasedinnovationappetite

• BetterunderstandingofLeedsCityRegion’sinnovationoffer&plans

• Enhancedcollaborationamongtheinnovationactivecommunity

• Increasednumberoffirmsthatinnovate.

Potential Investment Sources

LocalAuthority,ERDF,LGF,PrivateSector

• Establishapanelofinnovationadvocateswhocanleadthepushforastrongerandwiderappetiteforinnovation,andwhowillactivelystimulatepublicandprivatesectorcollaborationoninnovation

• Buildonthewhisperstudytoestablishalastingandcuratednetworkoflocalinnovationleaderswhocandisseminateinsightsandrallyotherstogetmorecloselyinvolvedindrivingforwardourinnovationplans

• Pushpublicandprivateagenciestoaggressivelyopenuptheirdataforexploitationbylocalbusinessesandinnovators,andencouragelocalbusinessandagenciestocompeteforinnovationawards

• DriveforwardandmonitorimplementationoftheInnovationPlanforLeedsCityRegion

INNOVATION FORESIGHT

Aims

Rationale

TogenerateabodyofstimulatinginsightsandintelligenceonmarketopportunitiesandglobaltrendstoguideinvestmentandstimulatecollaborativeexplorationofemergingmarketandtechnologicalopportunitiesandtobetterprepareLeedsCityRegiontorespondtothreatsandchallengesdowntheline.

• ConsultationshaveuncoveredconcernsthatLeedsCityRegionmaynotbesufficientlyextrovertandinquisitive.LeedsCityRegionmustberisktakinginitsapproachinordertomakethemostofitsexistingassetsandtotakeadvantageoftheopportunitiescomingitsway.

• LeedsCityRegionhasclearstrengthsacrosstheEightGreatTechnologiesthatUKgovernmentexpectstodrivefutureeconomicgrowthandmanyofthesealignwellwithouridentifiedprioritysectors.LeedsCityRegionhasarealchancetobuildonthisstrongalignmentanddevelopalongertermandmoredetailedunderstandingoftheemergenttrendsandopportunitiesopeningupglobally.

• LowlevelsofgovernmentandHEinvestmentinR&DsuggestwemaynotbefullypreparingtheLeedsCityRegioneconomytocapitaliseonthesebreakingopportunities.

4


INNOVATION FORESIGHT

Critical Activities

• Developeasytodigestpackagesofeconomicforesightandintelligencetostimulatebusinessunderstandingoftheproductivitybenefitsfrominnovationandtobetterunderstandhowotherbusinessesandcitiesaremakingprogress.

• DetailedinvestigationtoidentifyhowtrendswithintheEightGreatTechnologiesareexpectedtocreatemarketopportunitiesforSMEsinourprioritysectors.

• Continuallyshowcasehowothercitiesandbusinessesareexploitingandbuildingtheirinnovationpotential.

• Secureresourceformoredetailedmarket/productarearesearchinvestigationstodevelopabetterunderstandingofLeedsCityRegion’spotential,includinganearlywarningsignaltokill-offideaswhicharenotdevelopingintocommercialopportunities.

• DriveforwardacommitmentamongLeedsCityRegion’sbiggeragenciesandbusinessestoopenupdataandallowlocalSMEsandresearcherstoexperimentandinnovatewithnewanalyticaltoolsandtechniqueswhichcouldberolledoutnationallyandinternationally.


Businesses, public bodies, HEIs, innovators and entrepreneurs

Target Outcomes

• WiderunderstandingofopportunitiesandthreatsfacingLeedsCityRegion,especiallyamongtheGreat8&ourprioritysectors

• BetterintelligencetoshapeLeedsCityRegion’sinnovationservicesandinvestments

• Greatercollaborationwithandlearningfromothercitiesandmarketsglobally.

• Astrongerappetiteforlongertermrisktaking,guidedbyexcellentforesightintelligence


Privatesector,HEIs,ResearchCouncils,privateinvestors

4


INNOVATION LEADERSHIP

Aims

Rationale

Critical Activities

ToensurethatLeedsCityRegionhasacoreandgrowingcadreofbusinessandpublicleaderscommittedtodrivinginnovationforwardintheirworkplaceandcommunities.

• AlthoughYorkshirehasoneofthehighestgrowthratesofbusinessR&Dexpenditure,inrealtermsitisthesecondlowestoutofallregionsinthecountry(£543m)andsuggestsLeedsCityRegion’sbusinessleadersarenotdevelopingtheproductsandprocessesneededtocapitaliseonnewmarketopportunitiesortofaceuptonewcompetitivepressures.

• OurconsultationsandresultsfromtheLeedsCityRegion’sBusinessSurveyindicatethatSMEsinparticularrelyheavilyonin-houseresourcestodrivetheirinnovationandsoareperhapsnotasfullyengagedinknowledgesharingastheircompetitors.

• Mentoring&businessangelstoadviseandnurtureearly-stageentrepreneursinthenascentbusinessplanningphasesofstart-upsbyprovidingsageguidanceandmotivationalinspiration,whilestimulatingambitiousgrowthtrajectories.

• AnenergisingandchallengingleadershipprogrammetobuildalocalnetworkofSMEandpublicsectorleaderswithaclearunderstandingofthetoolsandsolutionsneededtoassessandovercomebusinesschallenges.Aprogrammeofworkshops,studyvisits,networkingandreflectionwouldhelpmanagerscreatevalueforcustomersandstakeholders,drawingoninsightfromthefieldsofbusinessmodelengineering,technologydevelopment,neuroscienceandpracticalthinkingskills.

• Acompetitivepoolofupto(say)fivebursariesperannumtofinanceplacesongloballyrecognisedinnovationprogrammesforoutstandinginnovatorsinSMEsacrosstheLeedsCityRegionwithacommitmenttoshareinsightsbackinLeedsCityRegionnetworks.

• ForgepublicandcommunitysectorpartnershipswithinnovativecitiesoutsidetheUKtoinspireambition,stimulatelearning,generateideas/solutionsandforgecollaborativerelationshipstohelpsetLeedsCityRegion’scollectivesightshigherandwider.


Business and public sector senior managers and leaders

Early stage entrepreneurs

Target Outcomes

• Enhancedmanagementcommitmenttoinnovationinbusinessesandpublicsectoragencies

• IncreaseintotalamountofbusinessexpenditureonR&D,particularinlongertermproduct&processdevelopment

• IncreaseSMEengagementinexternalnetworksandwithcollaborators.


Direct:Privatesector,ERDF

Indirect:GrowthAccelerator,GrowthHub

4


INNOVATION SKILLS

Aims

Rationale

Critical Activities

ToensurethatagrowingbaseofpeopleworkinginourbusinessesandinstitutionsareempoweredtocontributetodrivingupinnovationoutcomesandthatinnovationprinciplesareembeddedintoskillsdevelopmentprogrammesacrosstheLeedsCityRegion.

• Despitealargepopulation,LeedsCityRegionhasanarrowerpoolofworkingagepeoplewiththeSTEMskillsoftenassociatedwithhigherlevelsofinnovationinaneconomy.Weneedtorespondtothischallenge,andtheviewexpressedanecdotallythatourbusinessculturecanbetraditionalandriskaverse,bybetterempoweringandup-skillingourcurrentworkforcewiththeknow-howandinsightswhichwilltriggertheirinvolvementandcommitmenttoinnovationintheworkplace

• AbelowaverageproportionofLeedsCityRegionfirmsarebroadinnovators(UKIS2010),atermwhichincludesinnovationacrossawidespectrumofbusinessactivitiesincludingR&D,productdevelopmentandmarketing.ByequippingmoreemployeesinourCityRegionwiththetrainingandknow-howofinnovationanditsimportance,theLeedsCityRegionwillbebetterabletomorequicklydrivechangefromwithin(andmitigatethepressureonthewiderandmorecomplexchallengeofamorefundamentalrestructuringofthelabourmarket).

• Develop(&potentiallydeliver)ageneralpurposemoduleoninnovationprinciplesandpracticewhichcanbeadoptedforarangeofdifferentContinuousProfessionalDevelopment(CPD)coursesandwhichisaimedatencouragingallstafftounderstandtheimportanceofcontinuousinnovationandwhichwillbetterpreparethemtoproactivelyinnovateatwork.

• WorkwithandsupportCPDproviders(incColleges)onstepstoembedinnovationintoestablishedtrainingprogrammesandcoursesonofferacrosstheLeedsCityRegion,drawinginpracticefrominternationallyrecognisedcourses.

• PromotetheimportanceofCPD(withaninnovationfocus)uponbusinessesandexploreopportunitiestomakeiteasierforemployeestoattend.


Leaders and employees in organisations seeking to broaden innovation across the workforce, in their services and in their approach.

Target Outcomes

• DriveupinnovationawarenessandaptitudeintheLeedsCityRegionworkforce

• Increaselevelsofproactive,self-starterinnovationintheworkplace

• Achieveanoverallincreaseinthenumberofbusinessesthatareinnovationactive.


ESF,HEIs,FEIsandprivateprovidersofCPD

4


INNOVATION CHALLENGE COMPETITIONS

Aims

Rationale

Critical Activities

Tocreateaplatformwhichsupportscollaborativeopeninnovationinvolvingbusinessesandinstitutionswiththeexpresspurposeofcross-fertilisingideasandsolvingchallengesacrosssectorsandbetweeninstitutions.

• LeedsCityRegionneedsmorechurninitsbusinessbase.Oureconomyistooreliantonlong-establishedcompanies(44%oftotalbusinessbaseaged10+years)andhastoofewnewfirms(16%oftotalbusinessbaseestablishedforlessthantwoyears)(ONS,2013).InLondononly34%offirmsareover10yearsold.

• LeedsCityRegion’sbusinessstart-uprateandtheaccompanyingfailureratearecomparativelylowtoo,suggestingwearenotdrawinginasufficientlystrongandvibrantfeed-stockofnewideasandentrepreneursneededtoconstantlyrefreshourcompetitiveedge.

• BusinessesinLeedsCityRegionhaveattractedtoolittleoftheTSB’sownchallengecompetitionresource,inpartbecausetheirfocusisnotalwaysgreatlyalignedtoourSMEstrengthsandinterests.

• TheInnovationCommonsandinitiativesliketheOpenLivingportalbeingpursuedbytheLiverpoolLEPprovideexamplesofhowtooperatethesecompetitions/challengesandtogetrealcrowdentrepreneurialinput,ratherthancommittee/panelinput.

• EstablishanInnovationChallengePortal(buildingontheGeniusYorkmodel)whichcancommissionenquiriesintokeyinnovationchallengesfacingthebusinessandcommunitiesoftheLeedsCityRegion.Openinvitationswouldbeissuedtogenerateproposalsforchallengeideaswhichcanthenbeshort-listedandselectedbytheChallengePanelwhowouldoverseeshortenquiriestogeneratepotentialsolutions.Thestrongestideasshouldbesupportedtoprogressthroughtofeasibilitytestingandearly-stageimplementation.

• ChallengeCompetitionsofferinghigherrisk,smallinvestments(£10,000to£30,000)tofundmoredetailedexploratoryprojectswiththestrongestpotential(includingthoseemergingfromtheInnovationChallengePanel)totestanddevelopinnovationsolutionstobusinesschallenges.ThesecompetitionsshouldbedesignedtoaligncloselywiththeLeedsCityRegionprioritysectorandtheirsupply-chains.


SMEs, entrepreneurs, innovator, inventors, the community and researchers.

Target Outcomes

• Channelsmallpackagesofinvestmentintohighriskexploratoryinvestigations

• Stimulatecollaborativepartnershipsbetweensectorsandorganisations

• IncreaselevelsofentrepreneurialactivityandtheLeedsCityRegionbusinessstart-uprate


LGF,ERDF,HEIs,PrivateSector

4


KNOWLEDGE ACCESS POINT

Aims

Rationale

Critical Activities

ToallowSMEstomoreeasilyidentifyresearchexpertiseandsupportandbetterre-orientatetheHEIofferaroundtheneedsofLeedsCityRegionbusinesses.

• Smallerfirmspredominatelydependonin-houseresourcesforR&D(87%offirmssurveyed),withonly24%interactingwithuniversitiesand16%withresearchassociations,inpartduetothecomplexchallengeoffindingappropriatesupportinourHEIs.

• AlthoughLeedsCityRegionHEIshavegrownthelevelofconsultancyworktheydo,weappeartobesomewaybelowthehighestlevelsofperformanceandhavescopetodelivermoreandbetterexploittheknowledgeembeddedinourresearchorganisations.

• Developnewintelligenttools(perhapsaspartofaChallengeCompetition)forharvestingintelligenceonHEIcompetence,researchprogrammesandcapacitieswhichusethelatestdataanalyticstoidentifyexpertiselocallyandgloballyforSMEstotapinto.

• ProvideSMEsintheLeedsCityRegionwithprivilegedreadyaccesstorealtimeintelligentwebbasedinsightintothecapacities,supportandexpertiseavailableontheirdoorstep.

• CreateafacilityforSMEstopublishtheirresearchenquiriesandallowourresearchinstitutionsworkouthowbesttoservethisneedorsignpostthemtobettersourcesofassistance.


SMEs & Researchers

Target Outcomes

• BetteralignLeedsCityRegionHEIserviceswithlocalSMEdemand

• DriveupLeedsCityRegionHEIconsultancyincome

• IncreasetheproportionofSMEsthatengageexternalsupportfromHEIs


HEIs,SMECommunity

4


PRIORITY 2: STRONGER INNOVATION PERFORMANCE

Our Objectives

2A Innovation Support for SMEs:IncreasethequalityandvolumeofinnovationsupportavailabletoandusedbySMEs

2B Innovation Hot Spots:Establishphysicalcentreswhereconcentrationsofinnovationactivitycanoccur

2C Innovation Assets:StrengthenourknowledgeassetswhichsupportfouroftheEightGreatTechnologiesandalignwithLeedsCityRegiongrowthprioritysectors

OUR VISION: TO STIMULATE GLOBALLY COMPETITIVE INNOVATION IN OUR PRIORITY SECTORS

INNOVATION ADVICE & GUIDANCE

Aims

Rationale

Critical Activities

ToprovideSMEswithacomprehensivepackageofadviceandguidancetohelpbringforwardinnovativesolutions,enhancecompetitivenessinnewmarketsanddrivediversification.

• Toofewofourexistingbusinessareclassedasbroadinnovatorsforustoremaincompetitiveandtoofewseekexternalhelpintakingforwardtheirinnovationcommitments.

• Thesupplyofbusinesssupporthasbecomecentralisedandcomplicated,makingitharderforSMEstoeasilyidentifyappropriateinnovationsupportconfiguredaroundthegrowthandsectoropportunitiesprioritisedbyLeedsCityRegion.

• InnovationAdvisorSupport:on-siteandwebbasedonetoonesupportadvisingSMEsonhowtoimplementinnovationsolutionsintheirworkplaceandexploittheinnovationpotentialofnewprocessesandprojects.ThissupportcouldlargelybedrawnfromexistingservicesbutwithsomeaddedfocusontheidentifiedLeedsCityRegionprioritysectorsandtheirspecificneedsandopportunities.

• InnovationVouchers:multi-purposeresourcetohelpfundthecostsofsmallpackagesoftechnicalreviewandadviceforSMEs.ThesevoucherswouldcomplementthenationalTechnologyStrategyBoardscheme,butbededicatedtobuyinginexpertisefromaroundtheworldforaspectsofIPexploitationandregistration(eguseofPatentBox),ratherthangeneralsupport,whichshouldbesoughtthroughtheTSBscheme,andhaveanemphasisonbusinessesintheCityRegion’skeysectors.

4



SMEs with an appetite for innovation and growth potential

Target Outcomes

• IncreasethenumberofSMEsusingexternalsupporttohelpimplementinnovation

• Increasedlevelsofopencollaborativeinnovation

• IncreasethenumberofSMEsthatinnovate


Direct:ERDF

Indirect:nationalservices,egGrowthAccelerator,MAS,UKTI,etc

INNOVATION FINANCE

Aims

Rationale

Critical Activities

ToensureacomprehensiveportfoliooffinanceisavailabletoSMEslookingtoinnovate,andthatLeedsCityRegionbusinessesdrawdowntheexistingnational(andregional)resourceswhichbusinesseselsewhereappeartobeattractingmoresuccessfully.Theprimaryfocusshouldbetoensurefinanceforinnovativebusinessesisreadilyavailablefromexistingsourcesofinvestmentratherthantoestablishnewmechanisms.

• Overtheperiod2009-11governmentexpenditureonR&D(GovERD)inYorkshireremainedconstantat£60million,thelowestacrossallregionsinEngland.Similarly,highereducationalinstitutions’expenditureonR&D(HERD)inYorkshiredecreasedovertheperiod2009-11,from£510mto£500m.

• TheLeedsCityRegionhasnotbeenassuccessfulascompetitorLEPareasinattractingTSBinvestments–werank17thoutof39LEPsintermsofourper-businessdrawndownfromTSBinvestmentopportunities.

• Sincetheeconomicdownturn,availableseedfundingfromventurecapitalistshasstronglydeclined,limitingfundingsourcesforSMEs.

• Advice&InvestmentReadiness:promotingexistingfinancialsolutionssuchasTSBgrants/competitions,EUAgenda2020schemes,privateresources,governmentincentivessuchasR&DTaxRelief,andemergentsolutionssuchascrowdfunding.Thispackageofsupportshouldprovidebusinesseswithadviceonmakingcompellingproposalsforinvestmentandpreparingbusinessestodrawdownexternalinvestment(andtheobligationswhichwillgowithit).

INNOVATION ADVICE & GUIDANCE

Critical Activities

• StaffPlacements:resourcetohelpreduce/coverthetransactioncostsofsettingupsecondmentsbetweenorganisationsseekingtojointlydevelopnewinnovationprojects.Thismayinvolvebusiness-academiaarrangementsaswellasbusiness-businessarrangementswherethereisasoundrationale.ThisresourceshouldbeusedinparttobringexpertiseintoLeedsCityRegionfromelsewhereintheUKandabroad.

4


INNOVATION FINANCE

Critical Activities

• ReplicationofTSBandNESTAinvestment:theseinvestmentprogrammesareanexampleofbestpracticealthoughtheyonlyreachasmallsegmentofthosewhoapply.Therearemanyviableapplicationsthatdonotreceivefunding,butwhichcouldbesupportedthroughasimilarprogrammeledattheregionallevelbytheLEPBIGpanel.Thesecouldincludegrantfundingtoapplicantsaswellascompetitions.

• RegionalInnovationInvestment:LeedsCityRegionbusinessesalreadybenefitfromaccesstoJEREMIEandpartnersshouldcontinuetosupportthesefacilitiestoensuresupportisavailableforimprovedinnovationoutcomesandthatthereisanemphasisonstart-ups,innovationandthecrosscuttingthemes,suchasopen&bigdata,socialinnovation,sustainability&resilience,health,energy,housing,connectedpeople&places.

• InnovativeLocalInvestmentSolutions:LeedsCityRegionpartnersshouldformallyexplorethegapsinthemarketforinnovationfinanceaimedatSMEs.Therearearangeoflocalinnovativesolutionsthatusenewtechniquessuchascrowdsourcingandpeer-to-peerlending,andwhichcouldbeexpandedtogenerategreaterlocalmomentum.


SMEs with an appetite for innovation and growth potential.

Target Outcomes

• IncreasedealflowforinnovationtoLeedsCityRegionSMEs

• IncreaseLeedsCityRegionSMEs’successrateinsuccessfullylandingnationalinnovationinvestmentsupport


PrivateSector,HEIs,ERDF

132013SeedAcceleratorRankings,YaelV.Hochberg,SloanSchoolofManagement,http://yael-hochberg.com/rankings.htm14http://techcrunch.com/2014/02/25/bye-bye-demo-day/

INNOVATION ACCELERATOR

Aims

Rationale

Toworkwiththeprivatesectortodevelopaseriesofinnovationworkspacehotspots(orImpactHubs)withthefacilitiestohousecollaborativeprojects,incubatenewstart-ups,anddriveforwardinter-companyandcross-sectorcollaboration.Theseinnovationhubswouldbethefocusfornewhighgrowthandhighriskstart-upsandprovideaplatformtoshowcasetheexcitingenvironmentLeedsCityRegioncanoffertobuddingentrepreneursandpotentialinvestors.

• ConsultationsamongtheLeedsCityRegion’sbusinessandinnovationcommunityhavehighlightedashortageofflexiblespacethatcanaccommodateinnovativestart-upsandactasamagnetforthosewanttoengagewiththem.

• OurreviewofothercitieshasshownexamplesinEindhoven&Torontothatcouldformthebasisofsuccessfulnewinvestmentinstart-upworkspaceandweknowcompetitorcitiessuchasManchesterarealreadybetterservedthanweappeartobe.

4


INNOVATION ACCELERATOR

Rationale

Critical Activities

• AcceleratorprogrammesarewidelyacknowledgedasafundamentalcomponenttoacompetitiveCityRegionattractingandretainingentrepreneurialactivity.RecentlypublishedresearchbyMITSloanSchoolofManagement(2013)13rankedtheUS’stopacceleratorprogrammeswhichprovidesplentytoguideLeedsCityRegion.Thenumberoneseedaccelerator(YCombinator)isbasedonamodelwhichtwiceayearinvestsinaround70start-ups,whichthenmovetoSiliconValleyfora3monthperiodduringwhichtheydeveloptheirpitchtoinvestors.ThismodelhasalreadybeenadaptedbyIgnite100,oneofthefewacceleratorsintheUKtorunoutsideofLondoninNewcastle14.

• Workspace:flexibleandsmallunitdeskfacilitiesofferingtheverybestultra-fastbroadbandanddatastorage/processingfacilities,aswellasstandardbusinessneedslikereceptionandsharedmeetingrooms.

• Mentoring:aprogrammeofon-sitesupportavailabletoentrepreneurs,includinggroupworkshopsadviceandguidanceonthebusinessstart-upprocess.

• InvestmentAccessSupport:aseriesofinvestorshowcaseeventsallowingearlystart-upstopresenttheirideastopotentialinvestorsandgetearlyinformaladvice,plusbuildrelationshipswhichcouldquicklymatureintocommercialarrangements.Plusalsoareadyhomefortechnologyinvestmentfunders.

• HostedStartUpAcceleratorProgrammes:adoptingtheestablishedlessonsfromthebestinthefieldidentifiedbyMIT.

• Meetingspacetohosteventsandstimulatewiderinterestandengagementininnovationincludingamongourpublicsectororganisationsandcommunities.

132013SeedAcceleratorRankings,YaelV.Hochberg,SloanSchoolofManagement,http://yael-hochberg.com/rankings.htm14http://techcrunch.com/2014/02/25/bye-bye-demo-day/


Micro Businesses, SMEs and Large & Corporate business with innovation teams with an appetite for innovation growth potential.

Target Outcomes

• GenerateattentionandinterestinLeedsCityRegion’scommitmenttoinnovation

• Attractbusinessstart-upsandbetterconnectthemtosourcesofinvestment& mentoringadvice

• Driveupthesurvivalrateandgrowthprospectsofhighrisk


Direct:PrivateSector

Indirect:SeeBusinessSupportSourcesabove

4


INNOVATION QUARTERS

Aims

Rationale

Critical Activities

Todevelopalimitednumber(twoorthree)ofcentrallocationsacrosstheregionwiththeculturaloffer,workspace,infrastructure,publicrealmandprofileneededtoattractandexciteinnovators.Learningfromtheprogressmadebyothercitiesandthelessonsfromsuccessfulinnovation-ledclusters,weplantoconcentrateonthemixoffactorswhichprovidecreativespaces,drawinginterestandinvestmentininnovationamongyoungentrepreneurs.

• InnovationQuartersshouldbespecialanddistinctive,whichimmediatelypointstothembeingfewinnumber.Firstpriorityshouldbegiventocity-centrelocationsclosetoalargeuniversity,withgoodconnectionstothetransportnetwork,anexistingculturalofferandasolidbaseofstart-upsonwhichtobuild.LeedsandYorkwouldbethetwologicalplacestoexploreinitially.OtherlocationsacrossLeedsCityRegionmayalsobeencouragedtolookatestablishinganInnovationQuarter,butpartnersshouldbewaryofdilutingtheconceptandinsteadtrytoconcentrateonscarceassets.LeedsDock-EnginerepresentsanimmediateopportunityasAlliedLondonhassubmittedaplanningapplicationtodevelopEngineLeeds,amirrorofTechHubLondonandtheirTechHubinManchester.

• AlthoughinnovationneedstohappenacrosstheCityRegion,lessonsfromelsewherehavealsopointedtothevalueofidentifyingalocationforconcentratedattentionandequippingitwith(andbeingnearto)thefacilitiesneededtohelpbusinessesstartupandgrowandthewidersupport/infrastructurewhichattractsnewcreativefirms.TheseincludethemuchvauntedLondonTechCityClusterand22@Barcelona-whichhasnowattracted4,500firmsinthelastdecadewithlinksto10universities,12R&Dclustersandnewspacesforstart-ups.

• Since2009,onlyLeedsandYorkhaveseenarealincreaseintheannualnumberofstart-ups,whichisalmostcertainlyinpartdrivenbytheiraccesstomarketsandlabour.Competitiveknowledge-basedclustersareunderpinnedbyconcentratingessentialresourcessuchastalent,ideas,capitalandtechnologyintoclearlyidentifiableplacessotheyareeasytoaccessandcollaborationsaremorereadilyestablished.

• Thefootloosenatureoftheseentrepreneursallowsthemtobehighlyselectiveaboutwheretheyworkandlive.Thisputsapremiumonensuringtherightmixofworkandleisureareavailable(eventhoughthedistinctionmaybeblurred)andthereisareputationalcachetassociatedwiththeplace.

• Ourconsultationworkshoprevealedastrongdesirefordesignatedphysicalspaces,bothformalandinformal,thatfacilitatethecoming-togetherofpeopletospeak,shareideas,andinteractandwhereserendipitycangerminatenewprojects.ResearchfromMITemphasisesthatdespitetheimportanceoftechforcommunicating,face-to-faceinteractionsarethebestwaytodeveloprelationshipsintheinnovationecosystem.

• Planning:uselocalauthorityplanningpolicytodesignate(initiallyuptotwo)quarterswheredevelopmentactivitycanbefocusedonsecuringamixofworkspace,barsandentertainmentvenues.Criticaltothemixiscreatingspaceswherechanceencounterscanleadtounplannedcollaborations.

4


INNOVATION QUARTERS


Innovators & entrepreneurs

Target Outcomes

• GenerateexternalattentionandinterestinLeedsCityRegion’scommitmenttoinnovation

• Channelinvestmentinterestandentrepreneursintohighqualitydestinationequippedtosupportandrewardinnovationledstart-ups.


Direct:PrivateSector

Indirect:PublicSector(viaplanning)

BIO ASSETS

Aims

Rationale

Critical Activities

TosecurenewinnovationandresearchcapacitytobetterexploitLeedsCityRegion’sexpertiseinarangeofbio-relatedagendas.TheprincipalfocuswillbedevelopedunderthebannerofBioVale,aone-stopshoponbio-renewablestohelpbusinessnavigatefrominitialR&Dthroughtocommercialexploitationofproducts.

• TheLeedsCityRegionhasaclearresearchadvantageinthebio-arenawiththepresenceofYorkUniversity’sexcellenceinagri-techandthenearbySandHuttonAppliedInnovationCampusrunbytheFood&EnvironmentResearchAgency.ThereisalsofoodrelatedresearchexpertiseatLeedsandacomplimentarylinkwithourresearchstrengthsinthewiderhealthagendaandthebigdataexpertisewealsohaveinLeeds.

• Agri-ScienceisalsorecognisedbyUKnationalgovernmentasoneoftheEightGreatTechnologieswhichwillunderpinabroadrangeofinnovationdevelopmentsacrossawidesetofsectorsglobally.

• LeedsCityRegionpartnershavealreadycommittedtofurtherdevelopingFoodandDrinkasaprioritygrowthsectorandbuildingonourexistingemploymentconcentration,andpresenceofsomeimportantHQs,andtoaddressrecentcontractionintheemploymentbase.

• DevelopingSupplyChains:aBio-basedSupplyChainInitiative(BBSCI)schememodelledontheAdvancedManufacturingSupplyChainInitiative(AMSCI)toprovidegrantsorloanstoaddressbarriersthatholdbackbio-basedsupplychains(e.g.SMEinvestmentorresearchanddevelopment).

• R&D&Innovation:afundedinnovationprogrammetosupportopenaccesstechnologyfacilitiessuchastheBiorenewablesDevelopmentCentre(BDC)andtheGreenChemistryIndustrialEngagementFacility.Thisinitiativewillbridgethesubstantialgapbetweentheregion’sagriculture,industryanditsR&Dknowledgebase,anddrawnewindustriesintothebio-basedinnovationenvironmentwhilealsopromotingmovementofstaffbetweentheacademicandprivatesectorsciencebase.

4


Critical Activities

• BusinessGrowth:BioHub,amixeduse,highprofilebio-renewablesbusinessescalatorwhichwouldsupportbusinessestoprogressfromincubatorspacetolargescalemanufacturingandutiliseexistinglargerscalelaboratoryspaceclosetotheUniversityofYork.

• Training:aself-supportingprogrammeofapprenticeshipsforyoungerpeopledevelopedincollaborationwithindustryandlocaltrainingproviders.Aseriesofshortcoursesformorematurestafffocusedontechnology,leadershipormanagementskillssuchasaccesstofinance,policyoverviewsanddevelopmentsinlegislation,standardsandIP.

• Trade&Investment:promotingYorkshireasahubforthebio-economy,workingwiththeregionalbusinesssupportservicesandinwardinvestmentorganisations(e.g.UKTIandtheSINnetwork)todevelopanonlineportal,socialmedia,publicspeakers,trademissions,andhostingorexhibitingatinternationalconferences,aswellasparticipatinginco-operativeactivitieswithotherinternationalclusters.


Bio-SMEs and larger businesses & investors in the Food and Life Sciences Sectors

Target Outcomes

• Betterexploitresearchandintelligencetodriveinnovation-ledgrowthinourfoodand drinksector

• Furtherstrengthenresearchexpertiseacrossthebioagenda

• Betterexploitcross–disciplineopportunitiestointegrateagri-science,bioandhealthresearch


ERDF,privatesector,HEIs, ResearchCouncils,LGF

HEALTH ASSETS

Aims

Rationale

DevelopnewinnovationandresearchfacilitieswhichwillpositionLeedsCityRegionastheUK’sfirstHealthandInnovationCityRegionbuiltonanetworkofbusinesses,innovators,entrepreneursandacademicsacrossahealthecosystemandwhichdrivesinnovationamongourbusinesseswhilesecuringbetterhealthandwealthoutcomesforourpeople.

• LeedsCityRegionhasanenormousestablishedbodyofresearchpowerfocusedaroundmedicineandhealthincludinginternationalexpertisearoundRegenerativeMedicine(atLeeds)andinPharmaceuticalInnovationandCancerTherapeuticsatBradford.WealsohaveWelmec,aCentreofExcellenceinMedicalEngineering,andtheInnovationandKnowledgeCentreforRegenerativeTherapiesandDevices(IKCRTD),whichprovidesrealcommercialengagementandcollaborationbetweenacademiaandindustry.

• LeedsishometotheNHSCommissioningBoardaswellbeinghometoanumberofmajorteachinghospitals.

4


HEALTH ASSETS

Rationale

Critical Activities

• RegenerativeMedicineandBigDataarebothamongtheEightGreatTechnologiesidentifiedbynationalgovernment,andwehaveexistingstrengthsthatareexpectedtounderpininnovationinglobalmarketsoverthecomingyears.ThepreliminaryWittyReviewalsorecognisesourmedicaltechnologiessub-sectoraroundorthopaedicdevicesandfurtherhotspotactivityaroundwoundcare.

• LeedsCityRegion’sbusinessbasealsohousesaconcentratedsetofhealthandbio-scienceR&Dactivities.

• Physicalspaceforinnovation:adedicatedInnovationExchangeHub(Leeds),whichprovidesaphysicalspaceforentrepreneurs,SMEsandinvestors(whichcouldbeanearlyInnovationAccelerator).

• Communicateindustrydemandtotheresearchcommunity:aTrainingandSimulationCentre(Leeds)wouldharnesstheexpertiseoftheCityRegion’shealthandsocialcareecosystemtoassembleinvestmentandleadnewproductinnovationinmedicaltechnologiesanddevelopcollaborativetie-upswithbusiness.

• DeveloptheSupplyChain:aprogrammetolinklocalmanufacturingfirmstoinnovationknowledgeassetstoensuretheyareabletocapturenewdemandformedicaldevices.ThiswouldbuildonthenewCentreforInnovativeManufacturinginMedicalDevices,agovernment-backedinitiativewhichwillbringtogetherfiveUKcentresofexcellenceinmedicaltechnologyandmanufacturingatLeeds,NewcastleUniversity,andtheUniversitiesofNottingham,Sheffield,andBradford.

• Commercialisation:furtherdevelopingthespin-outofnewfirmsstimulatedbytheInnovationandKnowledgeCentreforRegenerativeTherapiesandDevices,andtheexcellentworkattheInstituteofCancerTherapeuticswhichspawnedamajornewanti-cancerdrugspin-out.Workinginconcert,centressuchasthesecangenerateacriticalmassofcommercialengagementandcollaborationbetweenacademia,industryandtheNHSwhichwouldmaketheLeedsCityRegionthelogicalplaceforthenextgenerationofhealth-techstart-ups.


Life Science Sector (including related manufacturing) & potentially digital & creative sector

Target Outcomes

• Betterexploitresearchandintelligencetodriveinnovation-ledgrowthinourlife sciencessector

• Developstronglinksbetweenourlifesciencessectorandadvancedmanufacturingplusbigdataexpertise.

• Furtherstrengthenresearchexpertiseacrossthehealth


ERDF,privatesector,NHS,HEIs,ResearchCouncils,LGF

4


DATA ASSETS

Aims

Rationale

Critical Activities

Newinnovationandresearchfacilitiesofferingbusinessesbetteraccesstocomputingpower,researchexpertise,dataandcommercialopportunitiestoexploitthehugepotentialofbigdataanalyticsfortheLeedsCityRegion.OpportunitiestoexploitthehugepotentialofbigdataanalyticsfortheLeedsCityRegion.

• TheUniversityofLeedsranksfirstintheUKforBigDataresearchandYorkfirstinInformationEconomy,anditisacross-cuttingthemeformanyoftheotherCityRegionresearchstrengthsintheareasoflifesciences,bioinformaticsandtransportoptimisation.LeedshasalsorecentlybeenawardedfundingtoestablishtheConsumerDataResearchCentreaswellasaMastersprogrammeinbigdataanalytics.

• Wehaveclearpotentialtobecomeanationalleaderinthisfield,whichtheUKgovernmentrecognisesasoneoftheGreatEight,withhugescopeforfurthergloballydriveninnovationandexpansion.

• theCityRegion’sbaseofhealth,financeandofcoursecreative/digitalbusinessarerecognisedprioritysectorswhichcanbenefitfromfurtherinnovationandbetteralignment/collaborationwithourexistingresearchfacilities.

• BuildSectorNetworks:amplifyandanimatetheemergingopendataenablersthathavebeenrecentlyestablishedforthebenefitoftheCityRegion,i.e.theOpenDataInstitute(ODIandtheLeeds(CityRegion)DataMill.

• Developingskills:supportdataanalyticstrainingthroughLeeds’CentreforExcellencetogeneratethehighlyskilleddataanalystsneededtocomputemassiveamountsofinformation.TheCityRegionmustensurethat:1)universitieshavecoursesonofferthatup-skillstudentstoworkinthefieldofopendata;and2)thatopendataispromotedasahighgrowthindustrywithpracticalapplicationlocally.

• Crosssectorapplication:bigandopendatacreatesopportunitiesinarangeofsectors,butindustrymustbeawareofwhatinformationisavailabletothem.TheUniversityofLeedsistheleadingUKacademiccentreinbigdataandanalyticsandthisexpertiseshouldbeharnessedtoexploitthepotentialinthreekeyareas:health/informatics(highgrowth),manufacturingmodelling(largesector),andfinance(lowgrowthpotentialbutlargemarket).

• Industryadoption:providelocalbusinesseswiththeopportunitytocommercialiseandtest-beddataservicesbeforerollingoutbusinessmodelsacrosstheUKandglobally.ABigDataInstituteatLeedsUniversitywouldprovidethisrangeofsupportanddevelopformaldatasharingarrangementstodriveanalysisofinformationthatexistsandflowswithinthecity,beginningwithhealth,socialcareandwell-being.

• Supportinginfrastructure:therearekeysectoropportunitiesforbigandopendatainhealth,genomics,epidemiology,satellite,robotics,syntheticbiology,manufacturingandfinance.AssetssuchastheCreditandRiskManagementResearchCentreatUniversityofLeeds,theNationalConsumerDataResearchCentre(Leeds&ULC)andtheCentreforResearchinElectronicHealthRecords(withhighvolumemoleculardata,suchasgenomesequences)clearlymapagainstsomeofouridentifiedopportunities.LeedsCityRegionneedstoexplorehowthefullrangeofexpertiseandcapacitycanbeharnessedtosupportandexploittheseotheremergentmarketareas.

4


DATA ASSETS


Sectors including health and life sciences, satellite and robotics, manufacturing, and finance & potentially the digital & creative sector

Target Outcomes

• Becomeanationalleaderinbigdataandworktodevelopnationalandinternationallinkagesbetweenwithcommercialgrowthopportunities.

• FurtherstrengthenresearchexpertiseacrossthebigdataspectruminLeedsCity RegionHEIs

• Betterexploitresearchandintelligencetodriveinnovation-ledgrowthinourdigital,financeandhealthsectors.


Privatesector,HEIs,TSB,NHS,ResearchCouncils,LGF

ADVANCED MANUFACTURING & ENGINEERING

Aims

Rationale

Critical Activities

Furtherexplorescopefornewinnovationandresearchfacilitiestobetterengagewiththelocalbusinessbase,toidentifyopportunitiestobetteraccessnewresearch,developmentcapacity,workspaceandsupport.Theadvancedmanufacturing&engineeringagendaislesswelldevelopedinLeedsCityRegionandtheopportunitiesfornewinnovationassetsarelessclearlyidentifiedatthisstage.However,thematchbetweenthelocalbusinessbase,theglobalopportunitiesforadvancedmaterialsandtheexistingengineeringresearchcapacityinourHEIssuggestthereisasyetuntappedpotentialtobeexploited.

• LeedsCityRegionhasalongtraditionofmanufacturingindustryandhasidentifiedadvancedmanufacturing&engineeringasoneofitsprioritygrowthsectors,buildingonrecentexcellentjobgrowthperformance.

• AdvancedmanufacturingisrecognisedasaprioritysectorintheUKIndustrialStrategyandadvancedmaterialsisrecognisedoneoftheEightGreatTechnologieswithfarreachingglobalgrowthpotential.

• ThesectorunderpinsgrowthandinnovationinotherimportantpartsoftheLeedsCityRegioneconomysuchaslifesciencesandfood&drink.

• LeedsUniversityranks8thnationallyforadvancedmaterialsandishometotheCentreforMolecularNanoscienceandNanofactory.

• SupplyChainDevelopment:theRailResearchCentreatHuddersfieldUniversityisalreadywellestablishedandresourced,andoperatesneartomarket.Thereisscopetobuildonthisplatformconnectedtoinnovationandcrowdfunding

4


Critical Activities

• AdvancedmanufacturinganditsinnovationpotentialcutsacrossseveralofLeedsCityRegion’sprioritysectors.Thereareearlysignsofactivitiesatthesectorlevelwhichhavethepotentialtodevelopintofutureopportunities.Thesectorspecificactivitiesbelowshouldbecloselymonitoredandbetterunderstoodinordertoensuretheirimpactismaximised:

➜ Healthandcare:CentreforInnovativeManufacturinginMedicalDevicesandHealthCentresforPiezoelectrics(UniversityofLeeds)andcrossoverwiththeself-organisingMolecularSystemsandtheNanofactoryatUniversityofLeeds.ThetechnologytransferinitiativesatNanofactoryareastepintherightdirectionandshouldbestudiedtodetermineifitisareplicablemodelforengagement.

➜ Materials:CentreofPolymerMicroandNanotechnology(UniversityofBradford)andPlastics,PolymersandMetals,andCentreforInnovativeManufacturinginAdvanceMetrology;UniversityofHuddersfield(inpartnershipwithNPL&STFC).TheCentreforInnovationManufacturingandAdvancedMetrologyhasengagedinanumberofknowledgetransferpartnerships,butitisimperativethatLeedsCityRegionhasarelevantbusinessbaseinthisareathatiscapableofengaginginsuchpartnerships.Here,thePriority1ActionAreaswillbeneededtosupportourbusinessbase.ThereappearstobescopeinHuddersfieldtofurtherexploitcolourchemistryexpertisetoo.


SMEs and corporates working in the wide field of advanced manufacturing and engineering.

Target Outcomes

• BetterunderstandscopetobuildLeedsCityRegion’sadvancedmanufacturingandengineeringknowledgeassets.

• EncourageHEIstocomeforwardwithambitiousplanstobettersupportthesectorlocallytogrowandinnovate.


Privatesector,HEIs,TSBand ResearchCouncils

4


PRIORITY 3: NEW SOURCES OF INNOVATION

Our Objectives

3A) Grow Our Next Generation of Innovators:ensuringtoday’sschoolanduniversitylearnershavetheappetitefordrivinginnovationthroughoutoureconomy.

3B) Smart Cities:Prioritiseasmartagendaforourcitieswhichusesopendataandinformationtoimproveenergy,travel,andinfrastructureefficiency.

OUR VISION: TO DEVELOP THE NEXT GENERATION OF INNOVATORS AND SMART CITY INFRASTRUCTURE TO COMPETE TOMORROW

YOUNG INNOVATOR

Aims

Rationale

Critical Activities

Tonurtureanewcadreofyounginnovativeentrepreneursworking,livingandcreatingintheLeedsCityRegioneconomy;alsotoensureourgraduatesandcollegeleaversareequippedtoplaytheirpartinpushinginnovationboundariesforwardintheworkplaceandtheircommunities.

• ThereareeightHigherEducationInstitutions(HEIs)inLeedsCityRegionthateducatearound120,000studentsatanyonetimeandproduce35,000graduateseachyear,manyintheimportantSTEMsubjects.

• Despitethis,Yorkshire’sbusinesseshaveabelowaverageproportionofgraduateemployeeswithSTEMrelateddegrees(UKIS,2010),i.e.5%comparedtohighsof11%inLondonand7%intheSouthEast.

• Levelsofstart-upperformanceintheLeedsCityRegionsuggestthatwearelosingoutintermsofgraduateentrepreneurslookingtosetupandgrowtheirbusinessesinthecity-region.

• Establishamatchingservicetobetterhookupgraduate&studententrepreneurswithsupportschemeswhichengageglobalcompaniestoincubateandguidenewideasbysharingtheircapacityandexpertise,suchastherecentlyannouncedProctor&Gamblepartnership&nationalschemessuchasCollider.

• Offerrotationalinnovationinternshipstoalimitednumberofexceptionalstudentsbasedonayear-longinvestigation-ledMasterslevelprogramme.ThiswouldofferthemthechancetoworkandexploreinaseriesofhighlyinnovativeSMEswhiledevelopingayear-longinnovationprojectandsecuringanaccreditedqualification.

• Createacompetitivegrantpottooffersmallamountsofstart-upfinance(upto£10,000)totakeinnovativefinalyearprojectideasintoprototypingandcommercialtesting.Thegrantincentivewouldbepromotedbyparticipatingcoursestodriveupinterestinenterpriseandinnovationamongstudents.

4


Critical Activities

• Uptotwoyearsofbusinessstart-upmentoringadviceforyoung(under25)entrepreneursseekinglight-touchguidancetohelpthemnavigatethroughtheearlystagesofestablishingabusiness.Theofferwouldincludehelpwithmakinglinkswithpotentialcollaborators,preparingforfinance,makingintroductionstopotentialclientsandbasicbusinessplanning.


Young innovative entrepreneurs 16-25 years old

Target Outcomes

• IncreasethenumberofSTEMgraduatesworkinginLeedsCityRegionbusinesses

• IncreasetheretentionrateofSTEMgraduates

• Raisegraduateenterpriselevels


HEIs,localcolleges,privatesector

SCHOOL LEARNER INNOVATION

Aims

Rationale

ToensureLeedsCityRegion’sschoolsareproducingbrightyoungpeoplewiththecoreattributestoequipthemforworkingininnovativeorganisationsandhelpguidethemtofulfiltheirpotentialinafastmoving,challengingbusinessenvironment.

• GCSEattainmentisimproving,butskillslevelsvarymarkedlywithintheCityRegion.TheproportionoftheworkingagepopulationwithgoodGCSEorhigherqualifications(NVQlevel2+)rangesfrom62%-63%inBarnsley,WakefieldandBradfordtoaround80%inYorkandinthenorthoftheLEParea.Thereisundoubtedlyastronglinkbetweenschoolperformance,levelofambitionamongstyoungpeople,anddevelopinganentrepreneurialcultureamongstouryounggeneration.NotallschoolchildrenwillprogresstoobtainLevel4+qualifications,butitisimportantthatweequippupilswiththeknowhowthatwillallowthemtoadaptandcontributetochangingworkpracticesandpatterns,whetherasself-startersorvaluableemployeesinourlocalbusinesses.

• ThenumberofapprenticesintheCityRegionisincreasing.Moreyoungpeoplebeganapprenticeshipsinbusinessinformationtechnologyandcommunicationthananyothersectorin2010/11.

• LeedsCityRegioncitizensexpressedstrongconcernsduringtheworkshopthatourschoolleaversarenotpreparedforentryintotheworkforce.Itwasalsoacknowledgedthatwedonotyethavethecultureofenterpriseneededtodriveupinnovationandthatschoolshaveacriticalroletoplay.

4


SCHOOL LEARNER INNOVATION

Critical Activities

• Financialsupporttocovercostsinvolvedinembeddinginnovationintotheschoolcurriculum.ThiswouldprovidecoursecostsandcovertoallowteachersinschoolsacrossLeedsCityRegiontolearnhowtoensurechildrenareabletoplaytheirfullpartintheinnovationchallengeahead.Thissupportcouldalsoincludeestablishinganetworkofinnovatorleadsinschoolsacrosstheregionwhocanlearnfromeachotheranddevelopeffectiveapproachestomarryinguppupilsupwiththeinnovationagenda.

• AYoungDragonscompetitiontoencouragepupilstodevelopandpresentbusinessideasinpursuitofawardsand/orsmallpotsof investmentmoney.

• GiftedInnovator–offeringworkplacementsinexcitinghighgrowth,hightechinnovation-ledcompaniestoaselectgroupoftalentedschool-agepupilswhoshowpotential.Therelationshipsforgedbetweenbusinessesandschoolsshouldbeusedtoprovideawiderlongertermplatformforon-goingengagementandpartnershipswhichmorecloselyinvolvethebusinesscommunityinsupportingtheschool’scommitmenttoproducinginnovation-ablepupils.


School age learners

Target Outcomes

• Increasethenumberofschoolleaverslookingtosetupinnovativenewbusinesses

• BoostnumbersofschoolleaversstudyingappliedSTEMsubjectsatuniversityandFE

• Enhancethework-readinessandinnovationappetiteamongschoolleavers.


HEIs,localschools,privatesector

SMART INFRASTRUCTURE

Aims

Rationale

ToensurethatLeedsCityRegionkeepspacewithemergentmarketrequirementsbyproactivelysecuringwidespread,affordableaccesstodigitalinfrastructureforhouseholdsandbusinessesandpositiontheCityRegiontocapitaliseonopportunitiesfromtheInternetofThings.

• Thepotentiallysignificantmarketsupplychainopportunitiesfromthehugesmartcityagendawillonlybeunlockedoncethesmartinfrastructureisinplacetoconnectdevicesandsharedata.

• TheLeedsCityRegion’sdigitalandcreativesectorsanditsestablishedtrack-recordinbigdataresearchputitinastrongpositiontocaptureearlymoveropportunities,butonlyiftheyareaccompaniedbyultra-fastdigitalinfrastructureandaccesspointsareavailableacrossthe CityRegion.

4


SMART INFRASTRUCTURE

Rationale

Critical Activities

• Newbusinessmodelsandinnovativestart-upsincreasinglydemandreadyaccesstoultrafastbroadbandtofacilitatetheirbusinessoperations.Widecoverageofthishigh-speedinternetwillbenecessary.

• Thegovernment-sponsoredSmartCitiesForum(partoftheInformationEconomyStrategy,2013)willseelocalauthoritiesandbusinessesworkingtogethertosupportthisdigitalagenda.

TheLeedsCityRegionDigitalInfrastructurePlansetsoutourdetailedplansfordevelopingourdigitalsmartinfrastructureanddrawsonarangeofinterventionoptions:

• ConnectionVouchers:smallgrantsofupto£10ktoensureultra-fastfibretotheproperty(FTTP)broadbandisavailabletoprioritySMEs,buildingonthenationalvoucherscheme

• Concessioncontracts:engagingincommercialdealswithnetworkoperatorstousepublicsectorownedassets(buildingstreetfurnitureetc.)toextendanddevelopnetworkinfrastructureacrosstheLeedsCityRegion

• PlanningStandards:developingandenforcingplanningpoliciestoensureallnewcommercialpremisesareequippedwithfutureproofdigitalnetworkingcapacity.

• InvestmentModels:adoptinganddevelopingnewmodelsforinvestmentininfrastructurealongsidemarketinvestorsandoperatorstoensureLeedsCityRegionisattheforefrontofnewsolutionsfromtheCityandEurope.

• CompetitiveSectorFocus:LeedsCityRegionhassectorstrengthsinhighvaluesectorswhich,withaccesstofasterbroadbandandtheICTserviceswhichrunonit,cangeneraterealcompetitiveadvantageandshouldbetargetedtoencourageadoption


SMEs and households

Target Outcomes

• Increasethereachofultrafastbroadband

• ExtendcitycentreWi-Ficoverage

• Driveupadoptionoffastbroadbandandexploitationoffastdatadriventechnologies

• PositionLeedsCityRegionasatest-bedforfuturesmartcitydemonstratorprojects


Privatesector,TSB,LGF,BDUK,localauthorities,HEI

4


SMART TRANSPORT

Aims

Rationale

Critical Activities

ToputinplacethetechnologicalinfrastructureneededtoensureLeedsCityRegionhasanefficient,responsiveandintelligentlocaltransportnetworktomaintainoureconomiccompetitivenessandexploitsupplychainopportunitiesforourSMEs.

• ConnectivityisacriticalelementofLeedsCityRegion’seconomicoffer.TheCityRegioniswell-connectedtoothermajorcitiesandhasalargelabourmarketonitsdoorstep,butthelocalconnectionsareunderpressureandtheCityRegioneconomyanditsresidentsrisklosingoutifwedonotimproveinternaltransportoptions.

• Smarttransportrepresentsalongtermagendaforexploringnewwaystomanageflowsindenselypackedeconomiesandoffertravellersaccesstothecommunicationsnetworkwhiletheytravel.

• LeedsCityRegion’sexpertiseinbigdataanalyticsalongsidestrengthsinengineeringandtransportpositionitwelltobeattheforefrontofinnovativeapproachestotransportinourcities.Pro-activeexplorationofthislongertermagendacouldimprovethecompetivenessoftheLeedsCityRegionoffer,attractinterestfromothercities,innovators&investorsandcapturesupplychainopportunitiesforlocalbusinesses.

• Advertisingtheproblems:thereisscopeinthisareaforinnovationinthepublicsectorbylaunchingpre-commercialprocurementinsmarttransportsolutions.Insteadofprocuringasolution,thepublicsectoradvertisestheproblem,openingthedoorfortheprivatesectortoformulatesolutions.ThisopencompetitionmodelwasdevelopedinSwedenandfirstusedbytheSwedishTransportAuthorityandisagoodpracticemodelworthexploringinLeedsCityRegion.

• IntelligentTransportSystems:arealreadyoperationalinBradford,Calderdale,Kirklees,LeedsandWakefield.InLeedscitycentre,aStrategicTrafficManagementSystemisinplacetocontrolsignalsonprioritybusroutes.Partnerswillcontinuetodeployintelligenttransportsystemtechnologiestomanagecongestionandparkingandproviderealtimetrafficandtravelinformationtothepublic.

• SmartCommuterTravelInformation:ForumfortheFutureistakingforwardafeasibilitystudydevelopedinconjunctionwithO2through TSBfundingforanappwhichwouldproviderealtimetravelinformationacrossLeeds.InvestmentshouldbefocusedonscalingupitscoveragetotherestoftheLEParea,whichwillputLeedsCityRegiononthemapwithtransportintelligenceinotherglobalcitiessuchasLondonandSingapore.

• SmartTransportCards:allowinguserstoaccessandpayformultipletransportprovidersusingonecard.TheWestYorkshireCombinedAuthorityisrollingoutthisinitiativein2014,whichwillcreatetimesavingsforcommutersandfurtherintegratethearea’stransportinfrastructure.ThisinitiativeshouldbeimplementedthroughouttheCityRegion.

• PlanningStandards:developinginitiativesthroughtheplanningsystemtopromoteandencouragecyclingasapreferredmeansofcommutertransportthroughouttheCityRegion,inpartthroughusingbestpracticeknowledgeofcyclingschemeselsewhere.

4



Transport users, plus local SMEs in the supply chain.

Target Outcomes

• ImprovetransportefficiencyandreducepeakflowtraveltimeswithinLeedsCityRegion.

• Exploitsupplychainopportunitiesinengineeringbigdataanddigitalinfrastructure

• EnhanceLeedsCityRegion’sreputationasaleadingUKSmartCityRegion.


Privatesector,TSB,LGF,BDUK,localauthorities,HEI

SMART ENERGY

Aims

Rationale

Critical Activities

ToputinplacethetechnologyneededtoensureLeedsCityRegionhasanefficient,responsiveandintelligentlocalenergyproductionandmanagementinfrastructure.

• Energyefficiencyisvitallyimportanttokeepdownbusinesscostsandensurewereduceourenvironmentalfootprintastheeconomygrows.Businessesneedtotakeeveryopportunitytheycantoreducetheirriskofmissioncriticalfailuresintheirenergysupply.

• PublicsectorbodiesspendenormoussumsonenergyandthecostofheatinghomeshasaprofoundimpactonpoorerhouseholdsintheCityRegionwhichcouldbealleviatedwithmoreenergyefficientapproachestomanagingsupply.

• Newtechnologiesforenergyproduction,distributionandmanagementoffergreatinnovationpotentialtosmart,switched-oninnovatorsandtheeconomiesinwhichtheyarelocatedwhichcouldbenefitlocalbusinessesandresidents.

ThisisalongtermagendainwhichLeedsCityRegionclearlymusthaveastronginterest,althoughtheopportunitiestocreatevalueandadvantagearenotyetfullyunderstood.LeedsCityRegionneedstomonitorandcapitaliseonopportunitiesemerginginthisarenaoverthecomingyearsbycontinuingtosupportarangeofexploratoryinitiativessuchas:

• Projectdevelopmentanddeploymentfinancing:fundingsourcesareneededtosupportnewideasandproductdevelopmentinheatingandelectricityconsumption.ThesetechnologiesarenecessaryinorderforsmartmetersandsmartheatsystemstobeusedintheCityRegion.TheproposedLeedsCityRegionEnergyHubwillprovideacentralresourceforpartnerstocometogetheranddevelopsuchideas.

• Explorealocalenergydeliverymodel:Leedsisoneof11localauthoritiestoworkwiththeEnergyTechnologyInstituteandconsultancyBaringaPartnerstodesignanddevelopthesoftwaremodellingtoolEnergyPath,whichwilldemonstratethescopetoprovidecosteffectiveandenergyefficientheatinresidentialandcommercialbuildings.ThisisapartnershipbetweenEnergyElement,HitachiandUniversityCollegeLondon.Oncethemethodologyandsolutionsareidentified,partnerswillbeneededtobringsolutionsforward.

4


SMART ENERGY

Critical Activities

• EnergyMapping:LeedsCityRegionhasreceivedfundingfromDECCtoundertakenenergy/districtheatmapping,withtheaimofidentifyingsmartenergyopportunitiesattheverylocallevel.Thefindingsofthisexerciseshouldbemadepublictoallowpartnerstheopportunitytobringforwardsolutions.


Business and residential consumers of energy, plus SMEs in the supply chain

Target Outcomes

• ExploreoptionstoimproveenergyefficiencyandsavingsamongstLeedsCityRegion’shomesandbusinesses

• EnhanceLeedsCityRegion’sreputationasaleadingUKSmartCity

• BetterunderstandmarketandresearchopportunitiestodevelopLeedsCityRegion’ssmartenergyreputationandoffer.


Privatesector,localauthorities,energycompanies.

4

57

WHAT SUCCESS LOOKS LIKE


Our innovation agenda is broad and long-term. It will take many years of hard concerted effort to change the behaviours of our businesses and the assets at our disposal.

LeedsCityRegiondoesnothavetheresourcestoimmediatelyembarkuponeveryActionAreasetoutinthestrategy.Wehavemadesometoughchoicesaboutourimmediateprioritiesandtheinvestmentswhichwebelievewillmakethegreatestcontributiontorampingupourofferandlayingthefoundationsforthefuture.

Thereareasetofkeylandmarkinvestmentsthatwillservetheregionwelloverthelongtermandwheretheresourceimplicationsaresignificant.Andwehaveidentifiedasetofveryimmediateearlywinswhichcanquicklydemonstrateourcommitmentandstarttoforgethesupportandinteractionsneededtosustaininnovationperformanceinthelongerterm.

Key Landmark Investments

• BioAssets:supportYorkUniversity’splanstorealisetheBioValeinitiativewithdirectinvestment

• HealthAssets:supporttheLeedsInnovationHeathHubwithbusinessplanningadvicetofurtherrefinetheplansoitisreadyfordirectinvestment

• InnovationAccelerator:identifythekeylocationswhereinnovationassetscanbeconcentratedandlayfoundationsforInnovationAccelerators

• YoungInnovator:secureresourcetoestablishapackageofsupporttostimulategraduateandstudententrepreneurshipandinnovation,focussingimmediatelyonforgingrelationshipswithmajorcompaniesinthearea.

Early Wins

• InnovationAnimateur:appointafigureheadleadforinnovationtodrivethestrategyforwardandco-ordinatearangeofactivity

• ChallengeCompetitions:establishanInnovationChallengePanelandassembleapotofmoneytofundsmallscaleChallengeCompetitions

• InnovationAdvice&Guidance:ensuretheinnovationsupportneedsofLeedsCityRegionbusinessesarereflectedintheemergentEUStrategicInvestmentFrameworkandnationalopt-inprogrammes

• InnovationFinance:developaninvestmentsupportservicewhichcanhelpbusinessesinLeedsCityRegionimprovetheirapplicationstoexistingsourcesofinvestmentfinancesupport,suchastheongoingregionalJEREMIEfunds,andrefinetheoffertoensureitalignswiththeCityRegion’sinnovationagenda.

DELIVERY SEQUENCING

OvertimeallActionAreasintheplanwillbeprogressed.Werecognisethatitwilltaketimeforinitiativestobeplannedandinvestmentsecured.Wearecommittedtogivingschemesspacetoexperimentandadaptintheirearlystagesbeforetheyshiftintofullblownhighimpactrollout.ThetablebelowgivesanoverviewofhowweplaneachoftheActionAreastocomeonstreamoverthenextsixyears.

THERE ARE A SET OF KEY LANDMARK INVESTMENTS THAT WILL SERVE THE REGION WELL OVER THE LONG TERM AND WHERE THE RESOURCE IMPLICATIONS ARE SIGNIFICANT.

WHAT SUCCESS LOOKS LIKE5


Action Areas

InnovationAnimateurInnovationLeadership

InnovationKnowHow

InnovationSupportforSMEs

InnovationHotspots

InnovationAssets

SmartCities

GrowingOurNextGenerationofInnovators

NewPlatformsforEngagement&Experimentation

InnovationForesight

InnovationLeadership

InnovationSkills

ChallengeCompetitions

HEIAccess

InnovationAdvice&Guidance

InnovationFinance

InnovationAccelerator

InnovationQuarters

Bio

Health

BigData

Engineering&Materials

YoungInnovators

SchoolLearnerInnovation

SmartInfrastructure

SmartTransport

SmartEnergyInfrastructure

Planning&Preparation EarlyDelivery&Refinement Impact&Roll-Out

Our Objectives 2014 2015 2016 2017 2018 2019 2020

5

60

MEASURES OF SUCCESS

Wearecommittedtolearningfromourinnovationchallengeandeagertomakeintelligentchoicesabouthowbesttousetheresourcesatourdisposal.ThiswillrequireinsightintotheprogresswearemakingandanagreedsetofperformanceindicatorstocapturechangeovertimewithineachofourActionAreas.Toreflectthedifferentaspectsofourstrategicobjectives,weplantodeployfivedifferentmeasuresofsuccessacrosstheInnovationPlan.

1) Awareness & attitudes

Commitmenttoinnovationamong

• Students

• Entrepreneurs

• Managers

• CommunityLeaders

• PublicSector

3) Foundations laid

• Businesspremisesservedbyfibre

• Sq.metresofinnovationworkspace

• £minvestedinR&D/innovation

• £mofinnovativeproducts/servicespurchased

2) Behaviours & collaborations

• STEMgraduatesretained

• Businessesassisted

• Entrepreneurs/innovatorsadvised

• Collaborationssupported

• Innovation-focussedtrainingprovided

• Projectsinvestedin

4) Economic effects

• Jobscreated

• GVAgenerated

LeedsCityRegion:SmartSpecialisationStrategy

WE ARE COMMITTED TO LEARNING FROM OUR INNOVATION CHALLENGE AND EAGER TO MAKE INTELLIGENT CHOICES ABOUT HOW BEST TO USE THE RESOURCES AT OUR DISPOSAL.

5

61

The fifth strand of success measures the overall composite innovation performance of Leeds City Region. We are committed to propelling the Leeds City Region up the comparative rankings. To monitor our progress we will focus on a key set of indicators (published nationally) which we will monitor and for which we have set ourselves targets to achieve by 2020:

• Business Investment in R&D:toplayourpartinincreasingbusinessR&DinvestmentinYorkshire&Humberfrom£540min2011to£1.2bnin2020,bymaintainingourstrongrecentannualgrowthrateof9.5%perannum(2009-2011)throughto2020.

• Innovation Active Businesses:toincreasetheproportionofLeedsCityRegion’sbusinessbasereportingbeinginnovationactiveto50%by2020.IfreplicatedacrossYorkshireandtheHumber,thiswouldequatetoanincreaseof26,300innovationactivefirmsby2020(a14percentagepointincrease).

• Business Start-Up Rate:doublethenumberofstart-upsperyearfrom10,000in2011to20,000by2020.Thiswouldrequirean11%increaseperannumbutwouldputusinlinewithLondon,theleadingregionforgrowthinbusinessstart-ups.

• Proportion of EmployeesfromSTEMSubjects:toincreaserepresentationofSTEMgraduatesinourbusinessesto11%ofemployeesby2020;ifreplicatedacrossYorkshire,thiswouldequatetoanincreaseof140,000 STEMgraduates(increasingfrom5%ofemployeesatpresent)puttingusinlinewithLondon,thehighestperformingregion.

• Innovation Protection:toincreasetheaverageproportionoffirmsreportinguseofinnovationprotectionto7%inourCityRegion.ReplicatingthisacrossthewiderYorkshire&Humberregionwouldequatetoa4%pointincreaseabovethe2010level,anincreaseof75,000firms.ThiswouldputexceedtheSouthEast’sleadingaverageof4%.

• Labour Productivity:assumingeachofourcomparatorCityRegionsmatchtheir1998to2011annualGVAgrowthrate,forLeedsCityRegiontobeonparwiththeleadingcomparatorLEP(afterLondon),i.e.WestofEngland,LeedsCityRegionwouldneedtoachievean82%increaseinGVAperhead,whichwouldinvolvea7%growthratecomparedtothe2.6%achievedfrom1998to2011.ThiswouldtakeGVAperheadinLeedsCityRegiontoaround£32,000.

LeedsCityRegion:SmartSpecialisationStrategy

5

1

62

THE WAY FORWARD


Driving up our innovation performance is a shared endeavour which will require imagination, commitment, fortitude, creativity and investment. The Leeds City Region Enterprise Partnership will play the lead role in owning the Innovation Plan and encouraging partners to support our vision. We cannot, however, do it alone, and there needs to be clear understanding of the different roles each of our core partners is expected to play.

THE LEP (INCLUDING THE BUSINESS INNOVATION & GROWTH PANEL)

• Ownandoverseethestrategyandprogresstowardsitsimplementation

• Endorseandpromotemajorstrategicinvestmentswhichhelpsecureour innovationgoals

• Reporttostakeholdersandinvestorsonoverallperformanceagainstmilestones andtargets

• ChampionLeedsCityRegionasadestinationforinnovation

INNOVATION ANIMATEUR

• RallysupportanddriveupenthusiasmfortheLeedsCityRegioninnovationvision

• DrivepartnerstoimplementinnovativeprocessesandtosupportwiderprogrammesofinnovationacrossLeedsCityRegion

• Stimulatenewpartnerships,servicesandfacilities

• PromoteLeedsCityRegionasaninnovationdestination

• Generateinsightandforesighttoboostawarenessoftheinnovationchallengeandopportunitiesfacingbusinessesandthelocaleconomy

PUBLIC SECTOR PARTNERS (INCLUDING LOCAL AUTHORITIES, NHS, EMERGENCY SERVICES)

• SecuretheinvestmentresourcesfromEurope,centralgovernmentandinternallytoputinplacenewinnovationsupportandfacilities

• Alignlocalinvestmentdecision-makingandprocurementofgoodsandservicesbehindourinnovationprioritiesandprovideaccountableprocessestoadministerpublicsectorresources

• Developpolicyandplanningwhichsupportsthedevelopmentofinnovationhotspotsandsecuresthelongterminfrastructureneededtosustaincompetitiveinnovationperformance

KNOWLEDGE CENTRES (INCLUDING UNIVERSITIES, COLLEGES, SCHOOLS & RESEARCH ESTABLISHMENTS)

• DevelopnewinnovationfacilitiesandserviceswhichalignwiththeneedsandopportunitiesoflocalprioritysectorsandtheSMEstradinginthem

• CommittofullyexploitingnationalfundingopportunitiesaroundtheidentifiedkeyknowledgeassetsintheInnovationPlan(bio,health,bigdata&engineering/materials)

• Participateinschemestogeneratetherightmixoftechnicalskillsandinnovationcommitmentsamongstudents,peopleandlearnersinwork

THE WAY FORWARD 6


BIG BUSINESS

• GetactivelyinvolvedindevelopingpartnershipswithprioritySMEs,outstandingstudents,emergentinnovatorsandourInnovationChallengePanel

• HelppromoteLeedsCityRegionasahighlyattractivedestinationforinvestmentamongknowledgebasedhighinnovationbusinesses

• Sponsorinnovationandnewbusinessdevelopmentamongyoungentrepreneursbyopeningupaccesstocapacityandexpertise

GOVERNMENT AND FINANCE COMMUNITY

• CometotheLeedsCityRegionandlearnmoreaboutourexcitingoffer(s),theprogresswearemakingandtheplansforthefuture

• TakeseriouslyourconsideredInnovationInvestmentPlanandsupporttheroll-outofourActionAreas

SMES, INNOVATORS & ENTREPRENEURS

• Takeheart,remainfocussed,buildrelationships,collaborate,embraceriskandworkwiththepartnersaroundyoutogrowyourbusinessesideas.

6

65

WE ARE COMMITTED TO UNLOCKING THE INNOVATION POTENTIAL OF THE LEEDS CITY REGION AND ACCELERATING OUR INNOVATION PERFORMANCE.

THROUGH OUR PLAN WE WILL CREATE THE BUILDING BLOCKS FOR A THRIVING INNOVATION SYSTEM, ENABLING THE LEEDS CITY REGION TO COMPETE GLOBALLY TO ATTRACT TALENT AND INVESTMENT INTO OUR BUSINESSES AND INSTITUTIONS.

THE INNOVATION AGENDA OUTLINED IN OUR PLAN IS BROAD AND LONG-TERM BUT NOW IS THE TIME TO WORK WITH BUSINESSES AND OUR PARTNERS TO DELIVER.

#INNOVATELCR

CONTACT US

LeedsCityRegion EnterprisePartnership 1stFloorWest WellingtonHouse 40-50WellingtonStreet LeedsLS12DE

01133481818 [email protected] www.the-lep.com Twitter:@LeedsCityRegion

#INNOVATELCR

ProducedbyRegenerisonbehalfofLeedsCityRegionEnterprisePartnership

LEEDS CITY REGION ENTERPRISE PARTNERSHIP INNOVATION STRATEGY · economy requires a comprehensive evaluation of the area’s current innovation system. The Leeds City Region Innovation

Documents