1. Innovate UK Dr. Peter Dirken West Midlands Regional Manager
Presentation to DIT staff
20-25 mins + questions
Good to make it clear at the start that Innovate UK support is available to all businesses based in the UK, including foreign direct investors
Dr. Peter Dirken
West Midlands Regional Manager
Innovation Lead - International Missions
@PeterDirken

2. Summary Who we are 5 point plan Fund & Connect Who we fund Catapults
KTP
Example
UKRI
Industrial Strategy Challenge Fund
Where to go next.

3. We can’t stop thinking about the future
Innovate UK – the UK’s innovation agency
Innovate UK drives productivity and growth by supporting businesses to realise the potential of new technologies, develop ideas and make them a commercial success.
Very quick introduction on Innovate UK’s mission – growth, productivity, jobs, exports.
Innovate UK drives productivity and growth by supporting businesses to realise the potential of new technologies, develop ideas and make them a commercial success.
To stay competitive as an advanced economy, we need to do things that others cannot do, or to do things in different and better ways.
We can’t stop thinking about the future
To stay competitive as an advanced economy, we need to do things that others cannot do, or to do things in different and better ways.

4. And at Innovate UK we are confident in our ability to meet the challenge and take advantage of the opportunity
2017 was the 10 year anniversary of Innovate UK and we have been proud to have looked back at the achievements over that decade
11,000 projects, 8,000 organisations, 70,000 jobs created, £7.30 return on investment
In the last year alone (FY 16/17) we supported nearly 2,900 organisations, across 1,100 projects, 76% SMEs

5. Our 5-point plan
Working with the research community and across Government to turn scientific excellence into economic impact
Accelerating UK economic growth, nurturing small, high-growth companies, with strong productivity and export success
Building on innovation excellence throughout the UK, investing locally in areas of strength
Developing Catapults within a national innovation network
Evolving our funding models; helping public funding go further 1 2 3 4 5

6. & FUND CONNECT The offer to Business
Funding to undertake high-impact and risky projects
To expertise, funding, partners and special facilities
Support businesses in a number of ways – both financial and non financial

7. & FUND CONNECT Single company R&D grants Collaborative R&D
Innovation loans
Funding includes grants between £25,000 and £10 million
Grants for single business
Grants for collaboration between businesses and between businesses and research organisations
Funding between to test the feasibility of an idea and make sure it will work through to creating a new product, process or service, or improve an existing one, through R&D and innovation
Innovation loans (mention more in a moment)
SBRI – providing R&D opportunities to businesses linked to providing innovative solutions to government challenges
Helping businesses access European funding.
Making connections through –
The Enterprise Europe Network – helping ambitious businesses locally to innovate and scale globally through finding partners overseas
Knowledge Transfer Network – providing sector and technology knowledge and helping businesses connect to other organisations in those areas
Catapult centres – already mentioned
Global Business Accelerator programme (delivered through EEN) – taking cohorts of companies through a structured programme to help them explore global opportunities and to build the future pipeline of exporters
SBRI
Global Business Accelerator
Horizon 2020 (including SME Instrument)

8. Who do we Fund? 2,400 projects / year 2,900 organisations / year
≈ 60% of our core grant funding goes to SMEs
≈ 80% of collaborative projects involve at least 1 research base partner
We work with over 140 individual research base organisations (including institutes and RTOs)
2,900 organisations / year

9. Our Catapult Network has partnerships in over 24 countries.
We are very proud of our Catapults - our national technology and innovation centres.
They have a vital role to play in developing the Industrial Strategy.
The Catapults have over £850 million in open access facilities available to companies and universities seeking support in their work.
Catapults and their centres are based all over the UK – from the Digital Catapult’s regional centre in Belfast to the headquarters in South Wales for the newest Catapult in Compound Semi Conductors.
The Catapults have supported 3,000 SMEs in almost 2,500 industrial collaborations
And they have over 600 academic collaborations across the Network.
Catapults are also active in talent development.
For example the Cell and Gene Therapy Catapult has a ‘training through immersion’ policy with a healthy transition of staff to and from the growing industry. I see its CEO Keith Thompson is here with us today.
While the High Value Manufacturing Catapult has trained over 900 apprentices in the past year and is developing new degree level apprenticeships with the University of Sheffield and Sheffield Hallam University.

10. Knowledge Transfer Partnerships
The Knowledge Transfer Partnership (KTP) scheme helps businesses in the UK to innovate and grow. It does this by linking them with an academic or research organisation and a graduate.
A KTP enables a business to bring in new skills and the latest academic thinking to deliver a specific, strategic innovation project through a knowledge-based partnership.
The academic or research organisation partner will help to recruit a suitable graduate, known as an Associate. They will act as the employer of the graduate, who then works at the company for the duration.
The scheme can last between 12 and 36 months, depending on what the project is and the needs of the business.
More from Mark Matchett, Knowledge Transfer Asccociate for the WM at our Knowledge Transfer at 3 pm.

11. Example - Lontra – Blade compressor
Lontra’s Blade Compressor® was developed with support from Innovate UK. It is a revolutionary new design for an air compressor devised by chief executive Steve Lindsey – hailed as the next Dyson by the Carbon Trust.
In a trial at Severn Water, the Blade Compressor® led to energy savings of 21.2%. Compressors are used to pump air into sewage. Use of compressors in sewage treatment accounts for 1% of all UK electricity usage. Other advantages of the Lontra compressor are that it is very reliable and oil-free.
Lontra has signed a multi-million pound licensing deal with Sulzer, a global leader in pumping equipment, to supply into the municipal and regulated wastewater market. It will see its compressor increasingly used in aeration equipment for the treatment of wastewater across the world.
Lontra recently opened a new technology centre that will help it to efficiently and quickly adapt the compressor to new markets.
It now employs around 20 people and has entered a partnership with one of the UK’s large manufacturers, Shield Group Engineering, and the two are looking at the potential for a manufacturing facility in the near future.
Just announced investment of £65M, £15m for further development and £50 for a new manufacturing facility in the Midlands creating 75 jobs.

12. UK Research & Innovation

13. What is UK Research and Innovation?
Wider Scientific community:
Universities, Businesses, Institutes, Charities,
National Academies, Strategic/Business Partners
UK Research and Innovation, launching in April 2018, will be the new funding organisation for research and innovation in the UK.
It brings together the seven UK research councils, Innovate UK and a new organisation, Research England, working closely with its partner organisations in the devolved administrations.
UKRI Board and Corporate functions
MRC
NERC
ESRC
EPSRC
BBSRC
AHRC
Innovate UK
Research England
Scottish Funding Council
HEFCW
Northern Ireland Executive
STFC

14. Research and innovation spending
After declining through the 80s and 90s, since 1998 the level of R&D expenditure in the UK has fluctuated and in 2014 it was 1.67% for the second year running.
With no additional funding we would expect this percentage to fall in future, however, with the additional funding announced in the 2016 Autumn statement we estimate the percentage will rise to ~1.75% of GDP by 20/21
Public (including HE, Research Councils and government departments) spend on R&D has fallen in recent years to 0.5% of GDP
Source: GERD, ONS, 2014; Source: OECD Main Science and Technology Indicators;

15. £4.7 billion more for R&D
In the 2016 Autumn Statement £4.7bn of additional funding for R&D was announced over the period 2017/18 to 2020/21 with a rising profile This increase in funding, if baselined at an additional £2bn per annum, is likely to halt the decline in R&D investment as a percentage of GDP (currently around 1.7%)

16. Working towards 2.4%
The Government has committed to reaching 2.4% of GDP investment in R&D by 2027, and to reaching 3% in the longer term. As a first step it will invest an additional £2.3bn over what was previously planned in 2021/22. UKRI will work with the Government to develop a roadmap for meeting this target to be published in 2018.
ISWP line – “Increasing investment in R&D to 2.4 per cent of GDP in a decade is ambitious and will require concerted effort by the government and business. As a first step we will invest an additional £2.3bn over what was previously planned in 2021/22, raising total public investment in R&D to approximately £12.5bn in that year alone… We will work with industry in the coming months to develop a roadmap for meeting this target, to be published alongside the 2018 Autumn Budget.”
UK Research and Innovation welcomes the Government’s commitment to raising investment in R&D to 2.4% of GDP by 2027 and to reach 3% of GDP in the longer term, earning the UK a place in the top quartile of OECD countries in terms of R&D investment.
Reaching this target could result in up to £80bn of additional public and private R&D being invested in the UK over the next decade, compared to what would have been invested without the target.
This target is ambitious and reaching it will require a concerted and long-term effort by the Government, UK Research and Innovation, and business.
In order to help drive private sector investment and reach the target, the Government is investing an additional £2.3 billion in R&D in 2021/22 to ensure that public investment continues to rise, reaching a total of approximately £12.5 billion in 2021/22. UK Research and Innovation expects that we will deliver a significant proportion of this new money.
This step change in investment will help transform the UK economy and drive a long-term change in the use of R&D by industry, ensuring that the next generation of innovative technologies that create thousands of high-skilled jobs, revolutionise productivity and improve living standards, are produced in Britain
The Government, supported by UK Research and Innovation, will be working with industry to develop a roadmap to reach the target, which will be published next year.
Leading R&D investors Austria, Sweden, Japan, South Korea and Israel all spend over 3%.
The UK’s relative performance improves once business expenditure on R&D is adjusted for economic structure – but remains significantly behind France, Japan and the US.
Part of the UK’s lower R&D is due to the high level of services in our economy, as these business sectors tend to invest less in R&D.
OECD: Gross domestic spending on R&D is defined as the total expenditure (current and capital) on R&D carried out by all resident companies, research institutes, university and government laboratories etc. in a country. It includes R&D funded from abroad, but excludes domestic funds for R&D performed outside the domestic economy. This indicator is measured as percentage of GDP and in million USD.
In 2015 UK’s expenditure on R&D represented 1.7% of GDP – below the OECD average R&D intensity of 2.4%.

17. Industrial Strategy Challenge Fund
As part of the £4.7 billion R&D uplift the ISCF aims to exemplify a new way of working, bringing together the UK’s world-leading research base with business to meet the major industrial and societal challenges of our time. Focusing on challenges where:
the UK has a world-leading research base and businesses ready to innovate
there is a large or fast-growing and sustainable global market
Approximately £1bn up until 2020/21 was announced for 6 challenges in April 2017:
Healthcare and medicines
Robotics and artificial intelligence
Clean and flexible energy
Driverless vehicles
Manufacturing and materials of the future
Satellites and space technology
Industrial Strategy White Paper announced £725m for a second wave of challenges:
Prospering from the energy revolution
Transforming construction
Transforming food production
Data and early diagnosis in precision medicine
Healthy ageing
Audience of the future
And two Pioneer Challenges to build industry engagement:
Next generation services
Quantum technologies
Priority verbal communication – “proposals for challenges to be included in wave 3 will open in January 2018”
Decisions on challenges were evidence-based and informed by a range of data and analysis, together with views from stakeholders in businesses and academia
Challenge proposals were assessed against several selection criteria including their strategic fit to the ISCF’s overarching goals.
TOP Q&A
Q: How have the challenges been chosen?
A. The challenges have been selected based on expert input from: the Prime Minister’s Council for Science and Technology, the UK Research and Innovation Board, Innovate UK and the Research Councils, and a series of seminars with industry and academia across the UK bringing together over 600 people. Specifically the challenges have been chosen where:
There is evidence of a potential global market that could be created or disrupted by new innovation which is potentially large, or fast growing and sustainable
there is evidence that accelerating advances in this field can generate significant social and economic benefits;
there is evidence that the UK has capabilities to meet market needs in terms of research strength and business capacity,
there is evidence of a business commitment to work with government to achieve this; and
there is evidence that government support will make a difference.
Q. How do these challenges align with the Industrial Strategy?
A: Challenges are aligned to the four ‘Grand Challenges’ that have been outlined in the Industrial Strategy. The ISCF will support the Industrial Strategy by enabling world-class R&D delivered in collaboration between researchers and business in key sectors across the economy. Feedback from the Industrial Strategy, along with further engagement with academia and industry has shaped the next set of challenges announced today.
Q. How do I apply to one of these Challenges?
A. The challenges that the Government has announced through the Industrial Strategy White Paper are still being finalised ahead of launch in the next financial year (2018/19). Once finalised, details will be available at the Industrial Strategy Challenge Fund website.
Q. When will Wave 3 be announced? How do I get involved?
A. The Government will launch an expression of interest early in the New Year inviting ideas for challenges to fund in Wave 3 with funding starting in financial year 2019/20.
Q. Why is the amount of funding for three of the Challenges not announced?
A. We are still working through some of the detail. As part of the business case process we will agree and announce the funding level.

18. Where to go next
Competitions pages:
Industrial Strategy Challenge fund: ISCF
UK Research and Innovation: UKRI
Knowledge Transfer Partnerships :
Catapults :
Knowledge Transfer Network:
Our local Enterprise Europe Network team:
Your local GrowthHub -

19. We can’t stop thinking about the future
Innovation knows no boundaries…
We can’t stop thinking about the future
Peter Dirken
@PeterDirken
Thank you