1 Innovation Nation UK Government White Paper on Science and Innovation David Evans Director for Innovation

2 The political ambition - becoming an Innovation Nation To succeed in the global economy Britain must unlock the talents of all of our people Innovation must flourish everywhere in our economy and society Innovation is key to the biggest challenges we face Britain should be the best country in the world to run an innovative business, third sector organisation or public service

3 Innovation is critical to the UK Essential for prosperity and quality of life –Productivity –Social challenges (e.g. climate change, globalisation) Innovation is changing and becoming increasingly important The creation of DIUS gives us the opportunity –to set out a clear narrative about the Government’s role –to lead policy and delivery across Government

4 A broad view of innovation R&D intensive innovation – the model we have been pushing and investing successfully in. Also recognise wider concept of innovation: ‘successful exploitation of new ideas’ –Business models and processes –Design –Marketing –Services and manufacturing –Public sector All supporting and stimulating high value added activities across economy Critical to link demand pull with supply push

5 UK strengths and weaknesses STRENGTHS Science base Technology and non technology sectors Competition and regulatory framework Finance and business services WEAKNESSES Skills Capacity and capability for innovation in public and private sectors Lack of evidence (services, users, public sector)

6 Broad scope for policy proposals New focus on demand side instruments – linking demand pull with supply push Some big challenges –Strengthening our understanding –Influencing non innovation policies –Delivering through others –Maintaining traditional strengths 45 Proposals building on Sainsbury and Leitch reviews Report on progress in Autumn 2008 and annually thereafter

7 Policy proposals covering - Demanding innovation Business innovation Research base international role People Public sector Places and regions

8 Demanding Innovation Innovative Procurement –Departmental procurement plans –Spreading good practice and learning from business experts –Refocusing SBRI to support research on new products and services Regulation –Working with BRE to understand how regulation can best stimulate innovation –Learning from independent regulators Science and Society strategy to support confident users

9 Supporting business innovation Technology Strategy Board support –New Innovation Platforms –Knowledge Transfer Partnerships –Service sector innovation Finance for innovation –Working with BERR/RDAs –Innovation vouchers Standard on management of innovation Intellectual Property research and training for BL advisers

10 A strong and innovative research base Maintain investment in the science base and delivering on Sainsbury Intellectual Property –Helping universities manage IP - Wellings study Measurement of innovation –NESTA Innovation Index –Innovation Research Centre

11 International Innovation DIUS to led the FCO Science and Innovation Network EU innovation – –TSB role to improve business engagement with FP7 and other EU support and –Use opportunities from EU regulation –Working with EU’s lead market initiative EU patents – improved access to European patent court

12 Innovative people Delivering on Leitch review and workforce development programme –Train to Gain –Reform of Sector Skills Councils –National Skills Academies –UK Commission for Employment and Skills FE Specialisation and Innovation Fund Higher Level Skills –Strategy –NCGE regional network STEM skills – understanding needs

13 Public Sector Innovation Overall framework for risk and innovation – work with NAO – study and conference Capacity in Whitehall Departments –Whitehall Innovation Hub –NESTA Public Services Innovation Laboratory –Network of Whitehall Innovators –Trial of Designing Demand for public sector Work with Cabinet Office to examine extension of “Power to Innovate”

14 Innovative places Alignment of National and regional activities –Business Support Simplification Programme –TSB/RDA budget alignment –Develop regional innovation indicators Work with BERR to create new regional University Enterprise network under NGCE Prospectus in Autumn for new Partnerships for Innovation

15 Challenges for Learned societies Engaging in the debate about how to ensure the UK’s future success Building a role in both traditional and non traditional innovation Identifying and contributing to specific challenges Ensuring skills are kept up to date and relevant – specifically the role of STEM skills Using your networks to promote innovation and take advantage of public support

16 What success will looks like UK businesses, public and third sector organisations produce more innovative products and services UK maintains its world-class research base UK continues to lead international policies that promote innovation UK population more skilled and innovative More personalised and effective public services through innovation Innovation activity is more widespread throughout the UK

17 Annex: Strengths and weaknesses

18 Strengths and weaknesses - business StrengthsWeaknesses Open economy and effective framework conditions for innovation Insufficient demand for innovative solutions from procurement and regulation Some successful high tech sectors and a sizeable population of high tech SMEs Significant minority of non- innovating businesses Strong non technology based innovation in high value added sectors Rate of business start-up and SME growth still lag behind US One of world’s leading financial and business services centres Variability in innovation performance and capability across the UK

19 Strengths and weaknesses - research base StrengthsWeaknesses Substantial public investment in high quality UK research base Business investment in R&D (but possibly due to sector mix) Increased exploitation of publicly funded research although limited technology diffusion from the research base

20 Strengths and weaknesses - people StrengthsWeaknesses Excellent universities with rising participation Low business demand for skills in some parts of the economy Strengthened public engagement Overall skill levels of the UK population lag behind international leaders Increasing overall supply of STEM skills but concerns over numbers coming through in some disciplines Management skills and practices

21 Strengths and weaknesses – public sector innovation StrengthsWeaknesses Some world leading examples of new delivery of services and policy making Incentives often work against innovation Builds on strong culture of public management and efficiency Insufficient skills to innovate successfully Weaknesses in spreading good practice