1. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Opportunities for Supply Chains and Innovation in Lincolnshire Katy Thomas Team Leader Research and Information Team Lincolnshire County Council

2. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Introduction Gaps in knowledge identified through the Local Economic Assessment and Local Enterprise Partnership. Cross cutting themes recognised around supply chains and Innovation. 3 research projects conceived and commissioned through the LRO. Work carried out in the early part of 2012

3. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Research Programme Our Place in the Global Economy Opportunities for Greater Lincolnshire Supply Chains Opportunities for Innovation within the Greater Lincolnshire Traditional Industries

4. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Aims of the Research Programme To investigate barriers and opportunities for growth with an emphasis on key sectors, with cross cutting themes Building on available evidence bases such as the Local Economic Assessment To identify potential roles for the LEP (and other acting locally) in supporting existing priority sectors and emerging sectors and in enabling Lincolnshire to take advantage of future opportunities

5. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Key Findings – Our Place in the Global Economy Developing and utilising our natural resources Co-operation between key food hubs – importance of ancillary businesses Growth of Logistics - driven by development of infrastructure and maximising potential of location Potential of the energy corridor Importance of the potential of developments such as the engineering hub in promoting Greater Lincolnshire as a centre of excellence

6. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Consolidation of suppliers, issues associated with international ownership, access to the supply chain by SMEs Short-term contracts and influence of large retailers Issues of engaging with businesses Availability of skilled labour Funding for R&D Potential for further development of established clusters Opportunities in the fresh produce sector, emerging renewable energy supply chain, health and care Key Findings – Supply Chains

7. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Key Findings – Opportunities for Innovation Re-active – driven by supply chain pressures, competition, environmental factors e.g. water shortages Uncertainty – impact of government legislation in some sectors Funding for R&D leading to polarisation of producers (innovation in large international companies) Issues of knowledge transfer in a competitive market place – potential for building knowledge transfer nationally, internationally and cross-sector Diversification to achieve greater return on investments e.g. renewable energy

8. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Cross Cutting Challenges Consolidation of suppliers Issues of international ownership SME access into the supply chain Availability of skilled labour Funding for R&D Gaps in local supply chains Issues around legislation Innovation is reactive

9. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Key Priority Sectors for the LEP Manufacturing and Engineering Agri-Food Renewables / Green Technologies Ports & Logistics Visitor Economy Health & Care

10. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Consolidation of suppliers International ownership SME access into the chain Availability of skilled labour Funding for R&D Gaps in local supply chains Legislation Innovation reactive

11. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Specific Challenges SectorSpecific challenge Manufacturing and Engineering Limited true clustering e.g. agri-engineering Agri-FoodInternational competition; influence of large retailers Renewables / Green Technologies Uncertainty around government legislation Ports & LogisticsIncreasing transport costs Visitor EconomyExternal influences e.g. weather Health & CareSupply chain dominated by large international companies; Influence of NHS Commissioning

12. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Cross Cutting Opportunities Potential for Greater Lincolnshire to be promoted as a centre of excellence Buying groups/ joint purchasing/ collaboration Immediate opportunities for growth in the sector Potential for business co-operation / knowledge sharing Strong links with other priority sectors

13. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Cross Cutting Opportunities Potential as centre of excellence Buying groups/joint purchasing/ collaboration Immediate opportunities for growth Potential for co-operation / knowledge sharing Links with other priority sectors

14. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Cross Cutting Opportunities SectorSpecific Opportunities Manufacturing and Engineering Build on current successes Agri-Food Specialist providers of expertise exist in the area e.g. the Seafood Institute and National Centre for Food Manufacturing Renewables / Green Technologies Potential of the energy corridor; Potential for diversification from other sectors Ports & LogisticsRole of logistics in the energy corridor Visitor Economy Fantastic natural resources; major development of some large sites taking place e.g historic Lincoln Health & CareGrowing demand from an ageing population; Already local growth in medical/dental practices, complementary health activities, and retail sales of medical and orthopaedic equipment

15. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Potential Cross Cutting Actions for the GLLEP Leading, influencing and lobbying Communication with our large producers/employers Dialogue with SMEs to understand, and help others to understand, opportunities Identification of emerging opportunities, driving partnership reaction, facilitating joint actions Promotion of Greater Lincolnshire and its priority sectors Identification and securing of LEP directed finance to support activities in Greater Lincolnshire

16. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Create common message on promotion of GL and its priority sectors Promotion of Greater Lincolnshire as a centre for excellence based on the engineering hub The need for R&D funding in particular sectors Issues of transport infrastructure and fuel costs as a barrier to growth Impact of visa restrictions on availability of very specialist workers and subsequently knowledge transfer into some sectors Changes to national policy (particularly agri-food, renewables) Potential Leading, Influencing and Lobbying Actions

17. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Potential SME Actions knowledge transfer – business model innovation as well as technical, promotion of specialist providers of expertise (eg. the Seafood Institute and National Centre for Food Manufacturing) facilitation of networks accessing supply chains – facilitation of buying groups/joint purchasing/collaboration, promotion of emerging supply chains such as those in the renewables sector Encouraging engagement with support programmes and ensuring business needs are understood by providers

18. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Specific Opportunities in Agri-food Promotion of innovation and added value knowledge transfer, improving SME knowledge of programmes and initiatives that they could target Sector concentration through North East GL to South east GL – sectors very different but some similarities, specifically opportunities for ancillary businesses, need for workers and seasonal staffing, requirement for workspaces, transport and storage Facilitation of collaboration between large businesses Engagement of smaller ancillary businesses with large businesses and groups of collaboration businesses Identification and promotion of funding opportunities

19. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Potential for Building on Successes Using the example of engineering: Strong sector with recent developments such as the engineering school, however limited true clustering for example in Agri-engineering How do we build on successful activities to make these sectors even better? Supply chain gaps/issues - dialogue with large and small businesses to increase awareness of local supply chains, understand needs and work with partners to support filling of local supply chain gaps Graduate level engineering skills – work with large and small businesses to understand needs and to influence provision and supply of skilled labour Facilitating collaboration and knowledge transfer on innovation to address international freight and national transport costs Lobbying government on issues such as transport and fuel costs as a barrier to growth and visa restrictions which impact on the availability of very specialist workers and subsequent knowledge transfer into the sector

20. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire Potential Further Work Exploration of how the energy corridor currently functions and how Greater Lincolnshire could benefit Further consideration of the strategic importance of all ports in the area including Boston and Sutton Bridge along with the new freight facilities in south Lincolnshire Consideration to how Agri-engineering and innovation can specifically be supported e.g. encouraging and lobbying for demonstration activities on farms, technical centres etc. Further understanding on issues of international ownership of businesses; impacts of ageing population.

21. Lincolnshire Research Observatory www.research-lincs.org.uk Opportunities for Innovation and Supply Chains in Lincolnshire