Greater Manchester/ Cheshire East Science and Innovation Audit

Context Themes: Core capabilities around Health Innovation and Advanced Materials. But also fast growth opportunities in Digital, Energy and Biotechnology. Hypotheses: That the regional innovation system is constrained by less than optimal key expertise and infrastructures which need to be addressed. That the unique synergies across the 5 areas of strength can be used to accelerate innovation/ productivity growth.

Leading Edge Science & Innovation Capabilities (ii) Demonstrated scientific excellence – UoM 5th in UK for research power in all health, second highest publications in top 10% cited in advanced materials. A dynamic highly trained workforce – nationally significant concentration in clinical healthcare, one of largest graduate pools in Europe, concentration of STEM graduates/ post-graduates. City region Governance – First Combined Authority., four devolution deals, Health devolution. Public and private business support environment – Business Growth Hub, Manufacturing Champions Network, 4 Enterprise Zones, Incubator space. Physical infrastructure – Manchester Airport, developed digital connectivity, Rail/ Roads, Lower location costs.

Vision: Health Largest concentration of excellence in health research outside South East. Large and stable population exhibiting significant health challenges. Health devolution to GM (£6bn p.a.) creates opportunity for push towards innovation. Health Innovation Manchester (HInM) provides platform to focus priorities around system and place. Synergies with digital sector support drive towards globally leading centre for clinical trials.

Vision: Materials Building on ‘Graphene City’ to highlight unique world- leading science and engagement with business. Systematise pathways through TRLs to turn discoveries to applications (e.g. GEIC). Contribution of training programme. Sir Henry Royce Institute help to overcome long lead- times and act as “rapid accelerator” through TRLs to application, notably in manufacturing sector.

Vision: Test-bed Excellence in research/ facilities (digital/ energy) combined with competence mounting large-scale projects in the community. Illustrated by large-scale demonstrators – CityVerve, Triangulum. Potential to test “whole systems” and therefore drive business opportunities. Biotech supports move away from fossils fuels and offers solutions to disease pandemics and anti- microbial resistance.

Gap Analysis Globally competitive MNES and clusters of innovative SMEs. High proportion of workforce employed in STEM that England average. But significant share of local people have no qualifications at all. More firms in EC engaged in product/ process innovation, and level of business R&D spending per person among highest. But half of firms not “innovation-active”, with productivity below potential – GVA per capita in GM and full-time pay behind national average. Access to one of largest private equity pools. But venture capital levels lag the south east. Finance needed to bridge equity gap. Strong examples of collaboration and networking. But more work needed to align science base with business base, and build absorptive capacity of SMEs. Issues around knowledge production, development of talent, and business support if got right can increase productivity, raise skills/ qualifications and extend benefits of growth to less favoured parts.

1. Strategic investment to capitalise on key intersections (i) Extract maximum value from existing assets but continue to invest to maintain world-class excellence. Remaining at forefront of international developments in areas of smart specialisation. Exploiting synergies between areas of key strength.

2. Strengthening Innovation Support System Nurturing talent – ensuring right skills mix in place to drive innovation, reinforce strengths, attract/retain talent: Establish Institute of Technology to enable progression from FE and driven by business demands. Invest in Business Schools to support leadership/ management capacity and champion diversity in the workforce. Improving business support: Ensuring access to diverse finance support to help scale-up. Realise benefits of “absorptive capacity” in SMEs including more space for start-up and scale-up. Leveraging smarter procurement practice (e.g. through GMConnect).

Value from undertaking Audit Better collective understanding of key strengths in science, research and innovation – and priorities for specialisation/ investment. Held business-facing workshops that have stimulated on-going discussions to bring academics together with private sector. Further reinforced collaboration between Greater Manchester and East Cheshire – building on work around Life Sciences and Alderley Park. Supported wider collaborations across the North – e.g. N8 and LEPS. Mentoring role for Wave 2 audits. Discussions with Sheffield/ Lancashire to deepen links e.g. around NAMRC and Royce. Promoted the work during hosting of European City of Science/ ESOF. Supported closer working between universities – e.g. UoM, MMU and Salford now working together on health education and innovation. Supporting discussions around Industrial Strategy and LGF.

Messages for Government Audit shows potential for strengths/assets to address global and societal challenges – e.g. keeping people healthy & economically productive, climate change, energy security, anti-microbial resistance. Approach in GMEC audit offers potential to form core of UK industrial strategy linking market opportunity, science/innovation and place. Govt needs to recognise/ reward places that demonstrate stable governance and strong, long-term, collaborative partnerships e.g. universities, LAs, business. Need investment to ensure assets remain world-class & at forefront. But especially to reinforce the synergies between strengths. But not just about money – things like support for standards (e.g. graphene) gives business confidence to engage/ invest. Govt structures need to recognise/ support inter-connectedness of strengths and avoid reinforcing sector silos. More work needed to understand R&D strengths/ data gap within the private sector and how they work collaboratively with smaller firms.