1. Chemistry Innovation Chemistry Innovation October 2007 Chemistry Innovation Driving the innovation agenda for UK chemistry-using industries

2. Chemistry Innovation Chemistry Innovation Contents Background/History Aims/Objectives Priorities Projects Innovation Leadership An Innovation Support Network in Europe?

3. Chemistry Innovation Chemistry Innovation Background Chemistry-using industries and chemical sciences are critical to both UK prosperity and meeting societys needs Annual turnover of the sector > £50 billion (11% of UK manufacturing sector) Biggest UK export sector (£2.8 billion from chemicals alone) Underpins competitiveness of most other manufacturing sectors Key contributor to solutions for societys sustainability issues e.g. climate change, energy supply and efficiency, water use, waste, aging population, finite resources UK Government & industry recognise need to focus on innovation Future is highly dependent upon innovation – not just technology UK cannot lead technologically in all areas – we have to prioritise resources to compete effectively

4. Chemistry Innovation Chemistry Innovation History 2002CIGT2003CLC2005 CLC – ITF 2006CIKTN2007 Chemicals Innovation & Growth Team (industry + DTI) identify 4 key areas for action: Innovation, Reputation, Sustainable Development and Skills Chemistry Leadership Council formed to progress CIGT recommendations CLC Innovation Task Force (industry + trade associations + learned societies) set up to address innovation issues. Key outputs: the formation of Chemistry Innovation Knowledge Transfer Network identification of priority technology platforms Chemistry Innovation KTN launched with £4.6M funding from DTI Crystal, Impact & Insight Faradays partnership merged with CIKTN (operational integration from June 06 - legal entity integration from April 07) Chemistry Innovation strategy & priorities launched – June 07

5. Chemistry Innovation Chemistry Innovation Mission To stimulate and support product and process innovation in the chemistry-using industries in order to enhance bottom line performance, deliver GDP growth for the UK and ensure sustainability, through a coherent national strategy and action plan Chemistry-using industries = traditional chemical industry, pharmaceuticals, personal care, coatings and parts of other sectors i.e. energy, food and drink

6. Chemistry Innovation Chemistry Innovation What Chemistry Innovation Offers Coherent Strategy & influential voice Catalyst for project identification & collaboration Unique networking opportunities

7. Chemistry Innovation Chemistry Innovation Strategic Connections Chemistry Innovation Department For Universities, Innovation & Skills Department for Business Enterprise & Regulation Reform SusChem European Sustainable Chemistry TSB UK Technology Strategy Board Britest CPI The Centre for Process Innovation CIA Chemical Industries Association Other UK KTNs Regional Cluster Initiatives SCI Society for Chemical Industry RSC The Royal Society of Chemistry IChemE The Institution of Chemical Engineering EPSRC Engineering & Physical Sciences Research Council INDUSTRYINDUSTRY ACADEMIAACADEMIA

8. Chemistry Innovation Chemistry Innovation Priorities Priorities for the chemistry-using industries have evolved from extensive consultation with industry and academia and alignment with UK and European technology strategies

9. Chemistry Innovation Chemistry Innovation Innovation Leadership Measurement Science and Technology Catalysis and Synthesis for Effect Modelling for Chemistry Sustainable Technologies Chemistry for Product Design Manufacturing Design Priority Areas for UK chemistry-using industries The leadership and management skills required to transform new ideas into profitable business. The modelling of chemical behaviour, material interactions and process performance to increase the productivity and value of research and innovation. The detection, measurement and characterisation of products and processes, to solve problems and create new opportunities. The design and production of new products and processes that can meet the needs of the present without compromising the ability of future generations to meet their own needs. The reaction routes to manufacture new or existing products with lower energy, material consumption and hazards. The design and production of new materials with novel properties that offer significant benefits in fields such as the environment, health and security. A holistic approach to the design of processes, formulations and facilities leading to world competitive production of new and current products.

10. Chemistry Innovation Chemistry Innovation Priorities will be used to….. Raise awareness of issues of strategic importance to the sector Focus industrial collaborations and the resources of Chemistry Innovation and its partners: Establishing and facilitating events Technology project bids Facilitating and developing Special Interest Groups Creating new partnerships and connections Focus/influence government policy and public funding Set goals for academic research and skills development Provide input for European policy and international collaborations

11. Chemistry Innovation Chemistry Innovation Projects overview Chemistry Innovation directly involved in projects totalling £52m, funded by: Projects cover wide spectrum from basic science through to demonstration of new science and technology Directed by the needs of industry Under continuous development and renewal £14m projects awarded since February 2006 EPSRC £23m UK Govt £5m Industry £15m EU £9m

12. Chemistry Innovation Chemistry Innovation A European Innovation Support Network for the Chemistry-Using Industries ?

13. Chemistry Innovation Chemistry Innovation Innovation Leadership Measurement Science and Technology Catalysis and Synthesis for Effect Modelling for Chemistry Sustainable Technologies Chemistry for Product Design Manufacturing Design Priority Areas for UK chemistry-using industries The leadership and management skills required to transform new ideas into profitable business. The modelling of chemical behaviour, material interactions and process performance to increase the productivity and value of research and innovation. The detection, measurement and characterisation of products and processes, to solve problems and create new opportunities. The design and production of new products and processes that can meet the needs of the present without compromising the ability of future generations to meet their own needs. The reaction routes to manufacture new or existing products with lower energy, material consumption and hazards. The design and production of new materials with novel properties that offer significant benefits in fields such as the environment, health and security. A holistic approach to the design of processes, formulations and facilities leading to world competitive production of new and current products.

14. Chemistry Innovation Chemistry Innovation Innovation Leadership: what does it mean? Innovation: not just about R&D, but the whole business model and organisation Leadership: not just about management, but the inspiration to release peoples potential

15. Chemistry Innovation Chemistry Innovation Innovation Leadership: why is it important? Innovation is a major driver of returns - how much is it worth to penetrate a new market? Leadership is the main barrier to innovation success – how many CEOs know what they want in innovation and how to achieve it?

16. Chemistry Innovation Chemistry Innovation What marks out innovation leaders? Involve the whole organisation Have the right people and mindset Dont rely on traditional measures of innovation performance (e.g. R&D spend) Not afraid to share ideas with others – have diverse links outside the company

17. Chemistry Innovation Chemistry Innovation Innovation Leadership: what is Chemistry Innovation doing? 1.Build a core programme for innovation leaders to enhance their performance 2.Raise awareness and share best practice throughout community 3.Input on policy issues e.g. supply of skilled people with right mindset

18. Chemistry Innovation Chemistry Innovation Core programme for innovation leaders Work in groups of 6-12 companies Learn from each other and from leaders outside industry Chemistry Innovation facilitates and helps members to gain the value in their own company Topics include: intangible assets, behaviour, creativity, risk taking, measurement, business First programme to start September 2007

19. Chemistry Innovation Chemistry Innovation A European Innovation Support Network ? Concept discussed at SusChem Horizontal Issues Group meetings in April and July 2007 Proposal for discussion….

20. Chemistry Innovation Chemistry Innovation Why do we need an innovation support network? Lisbon agenda Chemistry and biochemistry-using industries are vital to Europe chemistry impacts on sustainability of many downstream sectors economic impact of EU Chemical and biotech industries Rates of innovation vary considerably across sectors and countries Innovation happens at the interfaces and requires knowledge, contacts, leadership – technology is necessary but not itself the answer, e.g. construction industry & energy-efficient buildings new dyes to enable more recyclable fabrics packaging requirements for bio-degradability, functionality, and sustainable sources of material electronics Where a knowledge transfer network or similar exists, it accelerates innovation, drives best practice and attracts industry support

21. Chemistry Innovation Chemistry Innovation Existing landscape Innovation Relay Centres 71 linked IRCs in 33 countries, ~1000 staff Vital information source but does not actively stimulate SME innovation on our priorities Range of international networks mainly focused on R&D and technology, e.g. EIRMA National (e.g. Chemistry Innovation) and regional networks SusChem: any network should be linked to SusChem and its related activities

22. Chemistry Innovation Chemistry Innovation Potential Benefits A managed activity in this area would deliver accelerated and more effective commercial innovation through: New partnerships between companies, universities and public sector organisations throughout Europe Best practice sharing Improved access to finance (public and private) An expanded and more cohesive Chemistry using community with greater participation of industry, including SMEs Continual refreshment and updating of the SusChem agenda based on experience to ensure private and public funds focused on critical targets

23. Chemistry Innovation Chemistry Innovation What would it do? Projects to improve co-ordination between existing and new national networks Share best practice Build consortia for collaborative projects, leveraging additional funding Build links with key supply chains Secondments

24. Chemistry Innovation Chemistry Innovation How would it work? Distributed model using existing network organisations Contract the programme co-ordination to one of the partners Develop in stages Initial pilot on a smaller scale (2-4 organisations) Roll out to the rest of Europe later At least one Eastern or Southern European country from the start? Funding say 10M over 3 years – perhaps 2M in the first year on the pilot?

25. Chemistry Innovation Chemistry Innovation Some possible projects Create specific supply chain network with e.g. construction, renewable energy Create integrated communication tools (e.g. web conferencing) Build consortia for collaborative R&D projects under FP7 in line with SusChem IAP Deliver training for SMEs in access to appropriate finance Develop plan for engagement of new countries Provide case studies to the Commission List to be extended and prioritised

26. Chemistry Innovation Chemistry Innovation Next Steps? Discuss at Ad Hoc Group on Innovation and HR Prepare a proposal Involving the SusChem national platforms Submit to appropriate programme (CIP, Europe-Innova) Begin network activities in 2008