The funding landscape

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1 ENGINEERING AND PHYSICAL SCIENCES RESEARCH COUNCIL The funding landscape Recent developments and future prospects Professor Philip Nelson, Chief Executive

2 Performance of the UK research base UK punches above its weight 0.9% of global population 3.2% of R&D expenditure 4.1% of researchers 15.9% of most highly-cited articles Source: International Comparative Performance of the UK Research Base 2013, Elsevier.

3 Performance of the UK research base UK punches above its weight 0.9% of global population 3.2% of R&D expenditure 4.1% of researchers 15.9% of most highly-cited articles Source: International Comparative Performance of the UK Research Base 2013, Elsevier.

4 Research investment: Source: DG Research and Innovation Economic Analysis Unit

5 About EPSRC

6 1000 Resource Funding, showing Impact of GDP Inflation 'Earmarked' Funding 'Flexible' Funding Impact of GDP OFFICIAL - SENSITIVE 6

7 Additional EPSRC budget allocations since 2011 Graphene 50M e-infrastructure 10M 8.5M Capital Investment Resource Investment Mid-range Characterisation ARCHER 43M Fluid Mechanics ( 5M) RCUK Impact ( 2M) 30M Advanced Materials 8M Big Data Energy Storage Autonomous Robots Strategic Capital ( 7.5M) 30M 25M Nuclear User Facility 10M 10M Cyber Security Centres for Doctoral Training 75M 42M 158M Quantum Technologies 31M 75M Turing Allocation values represent announced budget from BIS. Actual spend against these projects cover more than one financial year. In 2013/14 BIS announced the establishment of the Newton Fund. EPSRC has been allocated 14m of funding over five years. In March 2014 BIS announced 42m of funding over five years for the Alan Turing Institute that has been formally allocated to EPSRC. FY 2011/12 FY 2012/13 FY 2013/14 7

8 Technology drives the economy Total Factor Productivity (a measure of technological change) accounted for about 70% of UK economic growth between 1960 and 2000 *.it seems that capital accumulation and technological progress each account for a substantial share of productivity growth somewhere between 30 and 70 per cent each, depending on the details of the estimation. **.in the long run all of the growth in output per worker is caused by technological progress.. ** * Creating the Future: A 2020 Vision for Science and Research. A Consultation on Proposals for Long-Term Capital Investment in Science and Research. Department of Business Innovation and Skills. April ** Philippe Aghion and Peter Howitt, Capital, innovation, and growth accounting, Oxford Review of Economic Policy, Oxford University Press, vol. 23(1), pages 79-93, Spring.

9 Government priorities for science and innovation Eight Great Technologies Advanced materials Agri-science Big data Energy storage Regenerative medicine Robotics and autonomous systems Satellites and space Synthetic biology Key industrial sectors Aerospace Automotive Construction Education Information Economy Life Sciences Nuclear Offshore Wind Oil and Gas Professional and Business Services

10 Curiosity Led vs. Strategically Directed Where have all the great breakthroughs come from?...they came from the unconstrained ideas and observations of scientists and not a programme chosen by committee Curiosity-driven Blue Sky Research: A threatened vital activity? Sir John Cadogan, Learned Society of Wales (2014) The case that is made in these pages is that the role of the government, in the most successful economies, has gone way beyond creating the right infrastructure and setting the rules. It is a leading agent in achieving the type of innovative breakthroughs that allow companies, and economies, to grow, not just by creating the conditions that enable innovation. The Entrepreneurial State. Mariana Mazzucato. Demos (2011).

11 Quest for fundamental understanding? Stokes Quadrants Yes Pure basic research (Bohr) Use inspired basic research (Pasteur) Donald E. Stokes, Pasteur's Quadrant Basic Science and Technological Innovation, Brookings Institution Press, 1997 Pure applied research (Edison) No No Consideration of use? Yes

12 Our strategy 12

13 One vision Our vision is for the UK to be the best place in the world to research, discover and innovate Two goals.. RESEARCH and DISCOVER RESEARCH and INNOVATE Three strategies.. Balancing capability Building leadership Accelerating impact

14 Building Leadership 9,000 DOCTORAL STUDENTS SUPPORTED 115 CENTRES FOR DOCTORAL TRAINING

15 Accelerating Impact

16 Balancing Capability

17 Strategic Plan feedback Over 40 organisations provided feedback Broadly supportive of direction and sense of plan Consistent themes mentioned: Links and partnerships with universities, research users, particularly Innovate UK, and other Research Councils; The value of bottom-up funding opportunities and the need for balance with user-facing investment; The internationalisation of research; Research infrastructure needs; Diversity. Opportunity to input to our more detailed delivery planning in early 2015.

18 The next 12 months Delivery Plan published March 2016 Government EPSRC Strategic Plan published Nov 2014 Jan 2015 May 2015 Sep 2015 Dec 2015 Autumn Statement Stakeholder engagement on plans and priorities Budget Election Spending review bidding process Spending review announced SR results Budget allocation Autumn Statement Science budget allocations

19 Building a Compelling Case Excellence with Impact is a given Council and the Strategic Advisory Network have posed questions for further discussion with the community: Future Big Research Challenges? Focussing on Critical Mass? Enhancing the Partnership between HEIs and Innovate UK/Catapults? Enabling the University Ecosystem? Others What are we missing?

20 Potential Big Research Challenges Currently under discussion in RCUK Energy and Climate Change Technology Touching Life Urban Living Data-driven Discovery Internet of Things Sustainable Development Food-Water-Nutrition Bioscience for Industry Antimicrobial Resistance Animal and Plant Health..

21 The future: detecting high gradient subjects The map is based on citation relations between clusters; the colour of a cluster indicates the growth rate of the cluster ( ) Physical chemistry Inorganic chemistry Electrochemistry Organic chemistry Analytical chemistry 21

22 Issues of Critical Mass Comments on: Integrated investment combining research, training, development of leaders with a focus on outcomes/impact? Greater use of hub and spoke models? Greater concentration of resource in EPSRC-branded institutes? Integration of capability and challenges? Individuals vs. teams? Current examples: Turing Institute, Quantum Technology/Digital Economy Hubs (top down), Catalysis Hub (bottom up), Grand Challenges (Physical Sciences/ Engineering/Healthcare), Innovative Manufacturing Centres, IRC/IRN, CDTs/Industrial Doctorates,

23 Quantum Technology Hubs

24 Hub-Industry Links

25 Manufacturing the Future: Partner Universities Lead Universities Brunel Cambridge Cranfield Huddersfield Heriot Watt Leeds Loughborough Nottingham Southampton Strathclyde UCL Partners Bath Birmingham Bradford Bristol Durham Edinburgh Glasgow Imperial Keele Liverpool Manchester Newcastle NPL Oxford Sheffield SFTC Swansea

26 Large-Area Electronics Through-Life Engineering Macromolecular Therapies Continuous Manufacturing and Crystallisation EPSRC Centres for Innovative Manufacturing Regenerative Medicine Ultra Precision Laser-Based Production Liquid Metal Engineering Industrial Sustainability Photonics Intelligent Automation Medical Devices Advanced Metrology Composites Additive Manufacturing Food

27 EPSRC and Innovate UK What are the key opportunities for EPSRC/Innovate UK to better support the translational pipeline for generic research that does not fit targeted competitions? What is the role for EPSRC and Innovate UK to help address Recommendation 6 of the Hauser Review? Catapults should develop a stronger more coherent engagement model for working with Universities (national and international), building on best practice, with a view to drawing on and commercialising knowledge to help UK industry gain competitive advantage

28 The Evolving University Ecosystem This matters as universities are our overwhelmingly dominant delivery partner Any comments on The impact of tuition fee-led core funding and associated marketisation of the sector Cost-recovery of university activities repeated matched funding requests Shrinking public expenditure: research/teaching balance and the differentiation between universities

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