ESO Industry Information Day. The UK Experience. 26 March 2015, Trinity College, Dublin

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1 ESO Industry Information Day The UK Experience 26 March 2015, Trinity College, Dublin Dr Colin Vincent (Head, Astronomy Division; STFC ESO Council Member, Chair ESO Finance Committee)

2 Funding Mechanism HM Government (and HM Treasury) RCUK Executive Group

3 UK Astronomy Technology Centre Edinburgh Daresbury Laboratory Daresbury Science and Innovation Campus Warrington, Cheshire Polaris House Swindon, Wiltshire Rutherford Appleton Laboratory Harwell Oxford Science and Innovation Campus Chilbolton Observatory Stockbridge, Hampshire Isaac Newton Group of Telescopes La Palma

4 Funding Funding for ESO is provided from HMT to BIS to STFC. It is part of the Science vote; STFC is the lead agency for the UK and provides the delegation to ESO Council and Finance Committees; ESO is the second largest commitment by STFC, below CERN; Exchange rate and inflation changes in the ESO operations budget have to be within the CSR settlement; Additional programmes (E-ELT) require separate approval by BIS.

5 Why did we decide to join ESO? UK had actually been in discussions at start of ESO, but then chose to develop interests in South Africa, Australia and Hawaii; Community recognised the global strength of ESO and the excellence of its facilities; Community wished to be part of ALMA; Government wanted us to focus our resources; Government keen enhance links with Europe; Potential for economic return and timeliness; Partial funding available

6 What did we pay? ESO has a fixed model for joining, although some scope for negotiation within this, at discretion of DG and Council; UK agreed to pay an entrance fee made up of part cash and part in-kind (VISTA and staff effort); Needed to take account of exchange rate issues as ESO payments in Euros; Wanted immediate access to time and Wanted immediate access to contracts, particularly in relation to ALMA R&D.

7 STFC science and technology delivers real benefits to people s lives, and contributes to the prosperity and security of the UK

8 Government Support The Chancellor of the Exchequer George Osborne gave his annual Autumn Statement to Parliament on 03 December He said to the House of Commons, today we boost our skills, our exports, our science, our infrastructure, and described science as a personal priority of mine as Chancellor.

9 Science Return ESO capabilities are fundamental to the delivery of the STFC science strategy for astronomy; They contribute to our understanding of the origin of the universe, the evolution of its stars and galaxies, the nature of our own solar system and the discovery of other Earths; Our community routinely wins more than our national share of time on ESO facilities; Access to ESO keeps the UK in the top 3 of global astronomy publications and citations; ESO provides a route for UK students and fellows to receive world class training.

10 What drives our priorities? Government Challenges Global uncertainties Digital economy Ageing and wellbeing Living with environmental change Energy Global food security So we work hard to fit pure science into this mix and delivering Impact is a very high priority

11 UK Industry return ESO spent around 100MEuro on contracts to third parties in 2013 and of this around 13.3MEuro was returned to UK industry. The largest return went to Germany as host country of the ESO Headquarters and Chile; Just over 50% went to support Operations, 21% for ALMA and 2% for E-ELT; The UK is the third largest member of ESO after Germany and France at about 16%; UK ranked with the third largest return and a coefficient (% payments/% subscription) of 0.81; ESO does not have juste retour but relies on a fair georeturn of work.

12 UK industry return - coefficient Since joining ESO in 2003 our return coefficient has fluctuated according to the new projects which ESO has developed when ALMA was being built we had an excellent return, and this is expected to be true as E-ELT construction ramps up when ESO is just supporting Operations then our return is poorer since more of the routine contracts are won by firms in the host nations (Germany and Chile). However, the long-term average is still over 0.9.

13 Example annual large contract return 2012 Ove Arup & Partners Durham University e2e Technologies Ltd. STFC and MOS consortium STFC as co-contractor with IRAM STFC on behalf of RAL SELEX Galileo Ltd SELEX Galileo Ltd Shepton House Associates (Michael Bowman) Consultant study on interface between E-ELT main structure and dome SLODAR Paranalization CCD detectors MOS Delta Phase A study for the E-ELT Study ALMA Band 2 and combined Band 2 and 3 receivers Fabrication, assembly and tests of ALMA cryostats 4 SAPHIRA science grade arrays Heterojunction MOVPE optoelectronics Activity manager for the E-ELT dome and main structure development

14 What is successful, and what not so We have been very successful with high tech/ high value deliverables, based on competitive pricing or niche markets work based on strong heritage, backed up by strong UK science interest supported by investment by STFC in medium term returns, and sound planning We have been less successful in new business areas or in competition with local German/Chilean markets Or where UK industry (e.g. construction) does not see repeat business or deems the risk/return to be unattractive

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16 Strategy We have a part time Industrial Liaison Officer primarily responsible for promoting E-ELT opportunities in the UK; We have worked closely with UK Trade and Industry (UKTI) to promote awareness of ESO; ESO itself has supported a range of industry days and roadshows; STFC has a range of Innovation and technology development schemes to help foster links between research and development

17 Summary We have been very pleased with our experience with ESO and the overall return both scientifically and financially Joining at a time when a new project was getting underway was beneficial Engaging researchers and industry early on pays dividends Strong future foreseen into the era of the E-ELT

18 Questions? tel: +44 (0)