Key Insight Business Briefing

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1 Promoting physics, supporting physicists Key Insight Business Briefing The role of government in promoting innovation Chairman: Peter Saraga The Institute of Physics 28 April

2 Promoting physics, supporting physicists Key Insight Business Briefing Iain Gray Chief executive, The Technology Strategy Board The Institute of Physics 28 April

3 Connect & Catalyse The Role of the Technology Strategy Board in Promoting Innovation A Presentation to the Institute of Physics Iain Gray Chief Executive 28 April 2008

4 Technology Strategy Board UK R&D spend as % GDP has fallen France Germany Japan UK US EU15 OECD China Source: Main Science and Technology Indicators, OECD, 2007

5 Technology Strategy Board And China is catching up! France Germany Japan UK US EU15 OECD China Source: Main Science and Technology Indicators, OECD, 2007

6 Technology Strategy Board The timing is right The policy environment is favourable The science and technology pipeline is strong: Computing, digital technology, new media Genetics New materials New business models Companies more flexible, more entrepreneurial Open Innovation Broad innovation R&D no longer a good measure

7 Technology Strategy Board The Technology Strategy Board: A national body supporting business innovation for business benefit for economic growth for quality of life

8 Technology Strategy Board How it fits An arm s length executive body, sponsored by DIUS Working across government... and in partnership with research councils, regional development agencies, devolved administrations Above all, focused on business innovation and the application of technology

9 Technology Strategy Board Roles Delivering support to encourage business investment in technology and innovation across all sectors Providing leadership to Government organisations on technology and innovation of importance to UK business Advising Government on barriers to innovation and recommendations for removing these barriers Investing over 1billion over next three years, to support business innovation

10 Technology Strategy Board More facts Independent: business led 610 years of business experience Invest strategically Work with grain of the market Services as well as manufacturing International Willing to challenge, take risks Making it simpler

11 Connect & Catalyse

12 Technology Strategy Board Three themes Challenge-led innovation Technology-inspired innovation The innovation climate

13 Technology Strategy Board Challenge-led innovation Addressing major societal and market challenges Focus on Healthcare Energy generation and supply Transport Environmental sustainability Built environment Creative industries High value services Challenges = market opportunities

14 Technology Strategy Board Innovation Platforms Intelligent Transport Systems and Services Network Security Low Carbon Vehicles Assisted Living Low Impact Buildings (launching Spring 08)

15 Technology Strategy Board Government procurement 150 billion annually Harness at least some of that to promote innovation Biggest gain: if suppliers develop products they can market more widely Taking lead responsibility for Small Business Research Initiative But intend to do much more than that

16 Technology Strategy Board Challenge-led innovation Maintaining world leading businesses and sectors

17 Technology Strategy Board Technology-inspired innovation Build on UK strengths academia and business Maintain core capabilities and create future technologies and industries Focus on global market opportunities.. in key technology areas: Advanced materials Bioscience Electronics, photonics & electrical systems Information and communication technologies High value manufacturing Nanotechnology and in emerging technologies and industries

18 Technology Strategy Board The innovation climate Culture Create an environment which encourages innovation Networks Bringing people together to build communities, exchange ideas and create new opportunities; e.g. Knowledge Transfer Networks Knowledge Exchange Recognise importance of human capital investment for innovation Increase number and flexibility of Knowledge Transfer Partnerships

19 Technology Strategy Board Bioscience for Business Chemistry Innovation Sensors & Instrumentation Cyber Security Electronics Food Processing Intergrated Products Manufacturing Knowledge Transfer Networks Aerospace and Defence UK Displays & Lighting Resource Efficiency bioprocessuk Materials Photonics Healthcare Technologies Industrial Mathematics Digital Communications Grid Computing Now! Environmental Nanotechnology Modern Built Environment Intelligent Transport Systems Location & Timing Creative Industries Low Carbon & Fuel Cell Technologies

20 Technology Strategy Board International aspects Benchmarking against and learning from other countries Promoting involvement in EU programmes: Framework Programme (FP7) JTIs, A169s, ERANETs etc EUREKA and Eurostars Supporting UK global companies Helping businesses look outward

21 Technology Strategy Board Innovation mechanisms now under one roof Collaborative R&D Knowledge Transfer Networks Knowledge Transfer Partnerships Centres Access to European programmes and more in future

22 Technology Strategy Board An innovation journey Developing a range of technologies based on uses of carbon Applicable in a variety of fields From solvent vapour removal in print works to cleaning contaminants from blood.

23 Technology Strategy Board Knowledge Transfer Networks Networks and collaborations have helped MAST to find applications in new sectors and markets, and make links with research partners Members of the Materials KTN and the Health Technologies KTN

24 Technology Strategy Board Knowledge Transfer Partnerships Partnership with University of Bath Worked on new solvent recovery process using carbon - lowering energy use by 80% Enabled the company to move from pure R&D to small scale production. Created 10 new jobs University gained MSc projects and new research areas. Now have two more KTPs in the pipeline

25 Technology Strategy Board Collaborative Research and Development Low Energy Solvent Vapour Recovery Process (LEVERS) MAST Carbon Technology Ltd Leading (South East) Wellman Defence Ltd (South East) REMEDX Ltd (South West) University of Bath (South West) Total project cost: 2,328,000 Technology Strategy Board providing: 976,500 Began March 2007

26 Technology Strategy Board Towards commercialisation MAST Carbon estimates the market for this low cost vapour recovery product in Europe alone is 400m.

27 Technology Strategy Board

28 Technology Strategy Board The Technology Strategy Board 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.

29 Technology Strategy Board North Star House North Star Avenue Swindon SN2 1JF Tel:

30 Promoting physics, supporting physicists Key Insight Business Briefing The role of government in promoting innovation Chairman: Peter Saraga The Institute of Physics 28 April

31 Promoting physics, supporting physicists Key Insight Business Briefing Kevin Gell Managing Director, Tessella Support Services The Institute of Physics 28 April

32 Tessella Support Services plc Creating Software for Scientific and Engineering Organisations Kevin Gell Managing Director IOP April 2008 Page 32

33 Agenda Role of Government in promoting innovation Innovation process Example innovative projects Lessons Basic business requirements Government initiatives Suggestions Summary Page 33

34 Innovation Process Page 34

35 Innovation Examples Information or text retrieval e.g. google Peripheral involvement over 35 years ~30+ years RAL ~20+ years UKAEA Neither were wealth creating Now Autonomy, Fast, Google + others, do make money Page 35

36 Innovation Examples Adaptive Clinical Trials What are they? Phase I Safety ~Tens of healthy volunteers Phase II Dose Finding ~Hundreds of patients Phase III Confirm Effectiveness ~Thousands of patients Page 36

37 Phase II Dose Finding Better chance of finding optimal dose Too toxic Response Too weak Include more doses Doses Conventional choice Page 37

38 Innovation Examples Adaptive Clinical Trials First idea 1998 Highly successful Saved 300 patients, $3.5M Still the largest adaptive trial for Tessella Gradually gaining acceptance Small trials for 5 more companies over the last two years Page 38

39 Lessons Inventions do not sell themselves Need requirement as well as idea Market has to be ready Recognised in Innovation Nation but is it truly understood? Page 39

40 Basic Business Requirements Steadily growing economy Low taxes Light regulatory framework Well educated work force What is good for business is good for business innovation Page 40

41 Government Initiatives R&D Tax credits Procurement Page 41

42 Government initiatives Part funded research projects (pre TSB) Past experience: 3 x EU, 1 x DTI 2 x good, 1 x medium, 1 x hopeless Product vs service companies Client & potential client involvement We aim for a small involvement Admin overhead Page 42

43 Government initiatives Part funded research projects (future) No experience with TSB TSB considering high value services in H Part funding Client & potential client involvement Low admin overhead USA: NSF Page 43

44 Suggestions Set mandatory targets for subcontracting to SMEs with large outsourcing deals Let companies keep IPR when working on Government contracts Page 44

45 Summary Basics for business is critical Keep business innovation support simple Selling is as important as ideas Innovation takes time Page 45

46 Tessella Support Services plc End Kevin Gell Managing Director IOP April 2008 Page 46

47 Innovation in Business The classic definitions of innovation include: The act of introducing something new: something newly introduced (The American Heritage Dictionary) The introduction of something new (Merriam-Webster) The successful exploitation of new ideas (DTI) Change that creates a new dimension of performance Peter Drucker (Hesselbein, 2002) In this talk: Change that creates wealth Page 47

48 Promoting physics, supporting physicists Key Insight Business Briefing The role of government in promoting innovation Chairman: Peter Saraga The Institute of Physics 28 April

49 Promoting physics, supporting physicists Key Insight Business Briefing Iain Gray, The Technology Strategy Board Kevin Gell, Tessella Support Services Dolores Byrne, QinetiQ Discussion chairman: Peter Saraga The Institute of Physics 28 April

50 Promoting physics, supporting physicists Key Insight Business Briefing The role of government in promoting innovation Chairman: Peter Saraga The Institute of Physics 28 April

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