1. Driving Innovation Yorkshire Concept Board Meeting 2 December 2008 Emily Nott Relationship Manager – Research Councils

2. Driving Innovation Background Priorities Competitions Investments Emerging Technologies and Proof of Concept Presentation

3. Driving Innovation Investing around £1bn from 2008-2011 (with partner contributions) Collaborative and aligned activity with Research Councils, RDAs/DAs and government departments Guided by business-led Governing Board Staff of around 75, based in Swindon Key facts

4. Driving Innovation Our vision: for the UK to be a global leader in innovation and a magnet for innovative businesses, where technology is applied rapidly, effectively and sustainably to create wealth and enhance quality of life. To deliver, partnership is key

5. Driving Innovation Investment criteria Can the UK do it? Is there a large market opportunity? Is the idea ‘ready’? Can the Technology Strategy Board make a difference?

6. Driving Innovation It’s all about business We help Maintain the competitive position of our leading businesses against global competition We identify and Grow sectors and businesses with the capacity to be among the best in the world, stimulating them to fulfil that potential We Nurture today’s emerging markets and technologies into the growth sectors of tomorrow

7. Driving Innovation £1 billion investment over 3 years The innovation climate Challenge-led innovation Technology-inspired innovation 2008-92010-11

8. Driving Innovation Our strategy in 2 words

9. Driving Innovation Challenge-led innovation

10. Driving Innovation Challenge-led innovation Key application areas Medicines & healthcare Energy generation & supply * Transport Environmental sustainability Built environment Creative industries * High value services

11. Driving Innovation Challenge-led innovation Innovation Platforms Assisted living Intelligent transport systems and services Low carbon vehicles Low impact buildings Network security Diagnosis and Identification of Infectious Agents - NEW

12. Driving Innovation The challenge UK has committed to 60% cuts in CO 2 emissions by 2050 Transport contributes ~25% of UK CO 2 emissions and is growing Of this, road transport accounts for ~80% Integrated Delivery Programme 5-year £200m programme to help to speed up the introduction of new low carbon vehicles Co-ordination of UK low carbon vehicle activity - initial strategic research through collaborative research and development, leading to the production of demonstration vehicles Current funding partners - DfT, EPSRC, Advantage West Midlands and One North East Low Carbon Vehicles

13. Driving Innovation What’s next? Sustainable Agri-Food Supply Chain Immersive Education Water Waste Stratified Medicine Sustainable Aviation ??

14. Driving Innovation £160 billion annually Harness at least some of this to promote innovation Reforming the Small Business Research Initiative (SBRI) Pilot competitions –Energy and lifetime cost control with MoD (now closed) –Healthcare Associated Infections with DH (now open) Hand Hygiene Pathogen detection in the healthcare environment Government procurement

15. Driving Innovation Technology-inspired innovation

16. Driving Innovation Advanced materials* Bioscience Electronics, photonics and electrical systems* Information and communication technologies* High value manufacturing* Nanotechnology Emerging Technologies* Key technology areas

17. Driving Innovation The innovation climate

18. Driving Innovation We will inspire and enable people to play their part in the innovation economy We showcase successes We celebrate and will build a national confidence in the power of innovation We build networks We support knowledge exchange through individuals The Innovation Climate

19. Driving Innovation 24 current networks >35,000 members (~75% industry) >20 special interest groups ~400 networking events/annum TSB invests some £20m pa in supporting KTNs Knowledge Transfer Networks

20. Driving Innovation Aerospace and Defence bioProcessUK Bioscience for Business Chemistry Innovation Cyber Security Digital Communications Electronics Integrated Products Manufacturing Environmental Food Processing Grid Computing Now! Healthcare Technologies Industrial Mathematics Intelligent Transport Systems Location & Timing Low Carbon & Fuel Cell Technologies Materials Nanotechnology Modern Built Environment Photonics Resource Efficiency Sensors & Instrumentation UK Displays & Lighting Creative Industries Financial Services

21. Driving Innovation Individual Business Research Base Knowledge Transfer Partnerships Successful: For each 43 new jobs, £1 million 190 company staff trained, invested£2.97m increase in profit

22. Driving Innovation Knowledge Transfer Partnerships We will double the number of KTPs by end March 2011 Increase flexibility of the “classic” KTP Introduce a national mini-KTP Develop plans with all sponsors

23. Driving Innovation Competitions

24. Driving Innovation Current and future calls Nov 08 Photonics – Next generation optical internet access Materials – Sustainable materials and products Informed personal travel Jan 09 Energy - Oil and gas recovery High Value Manufacturing – Step changes and value systems Low carbon vehicles – Electric vehicles Mar 09 Low impact buildings Creative industries – Digital content Network security – Interdependency, risk and complexity Energy – Hydrogen and fuel cells

25. Driving Innovation Our investments

26. Driving Innovation Our investment in UK HEIs For CR&D competitions April 04 to Autumn 07 Around 900 projects funded ~£540m in grants Total project costs > £1.2 Bn 3805 partners ~22% of all project partners are from academia

27. Driving Innovation Our investment in UK HEIs Knowledge Transfer Partnerships Total number of partnerships in portfolio – 975 (at 31 March 08) Involving 437 departments across 102 UK Higher Education Institutes

28. Driving Innovation Our investments CR&D calls (April 04–Spring 07) No. applications (lowest) No. applications (highest) Applications involving academics Average success rate Full Stage 9628878%51%

29. Driving Innovation Emerging Technology Perspective

30. Driving Innovation What sort of Emerging Technologies ? Those that drive disruptive innovation and thus new growth sectors through a very different value proposition Our criteria technology with the potential to lead to a completely new value proposition; technology with the potential to disrupt existing markets and industries; UK has a competitive position globally; UK able to develop and realise value from the resulting Innovations

31. Driving Innovation UK Landscape Government support is available but fragmented Investment/Technology Transfer –Research Councils (Follow-On Fund, IKC’s, Translational Grants) –RDA’s/DA’s (Proof of Concept, CIC, Seed Funding) –Funding Councils (HEIF and Scottish, Welsh, NI equivalents) –Technology Strategy Board/Government Depts (SBRI) –Nesta, Royal Society (Early Stage Venture Funding) Customer-led contracts eg –MOD Regulation –BSI

32. Driving Innovation UK Landscape Success factors - how well do we do? Flow of investment POC (~£50-100K) => SEED(~£250K) => VC (£1m+) Entrepreneurs Commercialisation skills Lead customers/early adopters IP An ability to take to scale The right exit strategy Not enough? Equity Gap Not enough Govt could do more Output relatively low Shortage Too many trade sales? Often done overseas

33. Driving Innovation Emerging Technologies – our approach Lead national efforts to find and support emerging technologies with disruptive potential Create a bigger pool of technologies from which to select Develop better ways to evaluate the potential of emerging technologies Explore new ways to accelerate early commercialisation Encourage research into better models We are particularly interested in the space extending from proof-of-concept (technical feasibility or initial commercial potential) to the first stages of commercial development

34. Driving Innovation Proof of Concept – how do we see it? Crucial first step in process Suspect there are gaps in support Want to understand existing support better with partners already working in this space Want to identify how best we can add value Workshop with Unico, RCs and Regional Partners end Jan 09 to consider UK support for pre-investment Proof of Concept

35. Driving Innovation www.innovateuk.org