5803-Dti-EIGT Report-3

Total Page:16

File Type:pdf, Size:1020Kb

5803-Dti-EIGT Report-3 ELECTRONICS 2015 – ELECTRONICS 2015 Making a Visible Difference – ELECTRONICS INNOVATION AND GROWTH TEAM REPORT Difference – ELECTRONICS INNOVATION Making a Visible Making a Visible Difference ELECTRONICS INNOVATION AND GROWTH TEAM REPORT A full electronic version of the EIGT 2015 report can be accessed from: www.dti.gov.uk/ Printed in the UK on recycled paper with a minimum HMSO score of 75. First published December 2004. Department of Trade and Industry. http://www.dti.gov.uk/ © Crown Copyright. DTI/Pub 7653/2k/12/04/NP URN 04/1812 The DTI drives our ambition of ‘prosperity for all’ by working to create the best environment for business success in the UK. We help people and companies become more productive by promoting enterprise, innovation and creativity. We champion UK business at home and abroad. We invest heavily in world-class science and technology. We protect the rights of working people and consumers. And we stand up for fair and open markets in the UK, Europe and the world. A large number of senior people from electronics companies, Government departments, Trade Associations, universities and research bodies have been involved in the Electronics Innovation and Growth (EIGT) team. This report reflects the broad consensus of their views, though not necessarily those of the Government, nor individuals, companies or organisations. Contents FOREWORDS Minister’s foreword 5 Chairman’s foreword 6 EXECUTIVE SUMMARY Building a successful future for the UK electronics industry 9 Key EIGT Recommendations 3.1 Establish an Electronics Leadership Council (ELC) 12 3.1.1 Create ELC workstreams for technology, skills, supply chain and public procurement 12 3.1.2 Establish ELC representation as a UK Electronics Alliance (UKEA) 12 3.2 Press for a more relevant structure for SIC codes 13 3.3 Establish an Electronics Regulatory Group (ERG) 13 3.4 Establish public procurement as a future workstream of the ELC 14 3.4.1 Allocate 2-4% of Government procurement budget for technology development 14 3.4.2 Sustain progress in Office of Government Commerce (OGC) reforms 14 3.4.3 Improve signposting by Government procurement departments of opportunities for partnership between SMEs and large companies 14 4.1 Use public sector purchasing as a driver for innovation 15 4.1.1 Encourage closer dialogue between Government and electronics industry 15 4.1.2 Boost opportunities for SMEs to participate in publicly procured projects 16 4.2 Replicate ability to succeed in Asian markets, and best practice in IPR protection 16 4.3 Promote a national enthusiasm for new technology 16 4.3.1 Set aspirational visions that engender enthusiasm for new technology 17 5.2 Encourage growth of successful indigenous UK electronics SMEs 18 5.4 Treasury should simplify and broaden scope of R&D tax credit 19 5.5 Develop core competencies, incubators and clusters 19 5.6 Encourage DTI Technology Strategy Board to adopt disruptive technologies as a priority technology area 19 5.8 Encourage global electronics companies to establish UK R&D centres 20 5.9 Protect UK design base by encouraging integration of related activities into core-competency clusters 20 6.1 Create a toolkit as a single access point to source information on which to base supply chain management decisions 20 6.2 Encourage training provision of global supply chain management skills 21 6.2.1 Encourage benchmarking of supply chain management 21 6.3 Promote common open standards to facilitate e-business uptake 22 1 ELECTRONICS 2015 – Making a Visible Difference 6.4 Encourage participation in an Electronic Regulatory Group (ERG) to influence the detail of regulation more effectively 23 7.6 Align training provision closer to the needs of the electronics business 23 7.1 Create a mechanism for recognising outstanding leadership 24 7.2 Review recruitment and employment practices for more diversity 24 7.4 Present more exciting career opportunities in the electronics sector 24 KEY RECOMMENDATIONS (Tables) 25–32 Chapter 1: The EIGT approach 33 Chapter 2: What is the UK electronics industry? 35 Chapter 3: Building Government and Business engagement 45 Representation and networking 45 Measurement 53 Legislation and influence 55 Intelligent public procurement 59 Investment decisions 62 Accessing UK Government and EU support 64 Priorities for DTI 70 Recommendations 3.1 Establish an Electronics Leadership Council (ELC) 51 3.2 Press for a more relevant structure for SIC codes 55 3.2 Establish an Electronics Regulatory Group (ERG) to increase industry influence on EU regulation 58 3.4 Establish public procurement as a future workstream of the ELC 61 3.5 Monitor and where necessary challenge state aids that distort competition and investment decisions 64 3.6 Identify and signpost all existing support initiatives that are appropriate to the electronics industry 70 3.7 Resource and restructure DTI electronics Unit to support implementation of the EIGT report 71 Chapter 4: Global market sector and technology opportunities 73 Market sectors and technologies 73 Global markets 83 Emerging technologies 87 2 Contents Recommendations 4.1 Use public sector purchasing as a driver for innovation 82 4.2 Replicate ability to succeed in Asian markets across electronics sectors, with corporate mentoring and best practice in IPR protection 86 4.3 Promote a national enthusiasm for new technology 95 Chapter 5: Supporting a strong environment for innovation and R&D 97 Innovation and R&D performance 97 Finance for innovation and R&D 102 Taxation and fiscal environment 104 Knowledge transfer and collaboration 106 Intellectual property 112 Industry structure 113 Recommendations 5.1 Revise methods of collection of statistics for the R&D Scoreboard 101 5.2 Encourage growth of successful indigenous UK electronics SMEs 101 5.3 Encourage the finance sector to work closer with the electronics industry 104 5.4 Treasury should simplify and broaden the scope of R&D tax credit 106 5.5 Develop core competencies and create incubators and clusters 112 5.6 DTI Technology Strategy Board should consider disruptive electronics as a priority technology area 112 5.7 Commission a study on how to reduce EU patent costs 113 5.8 Encourage global electronics companies to establish UK R&D centres 115 5.9 Protect UK design base by encouraging integration of related activities into core-competency clusters 115 Chapter 6: Operating effectively in a global supply chain 117 New supply chain challenges 117 Strategic supply chain decision-making 118 Supply chain management skills 120 Lack of e-business uptake 122 Environmental legislation impact 125 Recommendations 6.1 Create a toolkit to source information on which to base supply chain management decisions 119 6.2 Ensure appropriate training provision of global supply chain management skills is provided in regions 122 6.3 Promote the cost effective adoption of common open standards to facilitate greater uptake of e-business 125 3 ELECTRONICS 2015 – Making a Visible Difference 6.4 Encourage participation in the Electronic Regulatory Group (ERG) in order to influence the detail of regulation more effectively 130 Chapter 7: Growing skills to meet the challenge 131 Skills challenges 131 Management and leadership skills 132 Business response to the challenges 139 Access to Government funding 140 Engaging with further education 142 Connecting industry and education 145 Recommendations 7.1 Create mechanism for recognising outstanding leadership 135 7.2 Review recruitment and employment patterns and practices to attract and retain a more diverse workforce 138 7.3 Establish a skills working group, which should be led by SEMTA 140 7.4 Electronics Alliance, SEMTA and the professional institutions must work closer together to represent exciting career opportunities 141 7.5 DfES, HSE and teacher representatives should address the barriers to practical science teaching 145 7.6 Consider innovative mechanisms for tackling the market failure in matching training provision to the electronics business cycle 148 Chapter 8: Electronics 2015 – peak and bleak scenarios 149 APPENDICES Annex 1: The electronics supply chain 157 Annex 2: The five stages of the Internet revolution 163 Annex 3: Semiconductor market cycles 164 Annex 4: A question of productivity 165 Glossary: acronyms and terms 169 EIGT Membership & Consultation lists 171 Sources of information 176 4 Ministerial foreword I would like to introduce my remarks on the valuable work done by the Electronics Innovation and Growth Team by first extending my thanks to the wider electronics industry – the businesses, trade associations, employees’ representatives, financiers and others from outside Government – for engaging so constructively with officials in the DTI, the Regional Development Agencies, the Research Councils and UK Trade and Investment in this significant consultation exercise. The EIGT has taken a candid and refreshing look at some challenging issues that must be resolved if we are to secure a bright future for UK electronics and UK plc. The EIGT 2015 review differs from other IGTs in that it had no preconceptions. It took a clean sheet of paper as the starting point, and was not afraid to take criticism from industry or Government circles. The criticism is constructive and the recommendations are designed to strengthen the relationship between Government, industry and the wider stakeholder community. The report findings reflect on the profound changes that are occurring throughout society, business and the global technology environment. Support for the electronics sector is a vital feature of the DTI’s Manufacturing Strategy, and is already delivering an infrastructure to enable UK-based manufacturers to thrive. However, the electronics sector is operating against a backdrop of continuous change, fierce global competition, and a need to generate carefully controlled exploitation of intellectual capital. The skill set required is changing and the EIGT recognises we need greater diversity to bring forward the people with the skills needed for tomorrow’s business successes. Electronics today tends to be invisible but in fact is all pervasive, and is commonly an enabler in most sectors – from retail to defence and healthcare.
Recommended publications
  • 6405 ARM AR04 Master
    Annual report and accounts 2004 and accounts Annual report ARM Holdings plc Annual report and accounts 2004 Contents 2 ARM at a glance 4 Chairman’s statement 6 Chief Executive Officer’s review of operations 8 Review of operations/at home 10 Review of operations/at work 12 Review of operations/on the move 14 Operating and financial review 18 Directors and advisers 20 Corporate governance/UK GAAP 23 Corporate social responsibility/UK GAAP 25 Directors’ report/UK GAAP 27 Remuneration report/UK GAAP 34 Statement of directors’ responsibilities 35 Independent auditors’ report to the members of ARM Holdings plc/UK GAAP 36 Consolidated profit and loss account/UK GAAP Statement of Group total recognised gains and losses/UK GAAP 37 Consolidated balance sheet/UK GAAP 38 Company balance sheet/UK GAAP 39 Consolidated cash flow statement/UK GAAP 40 Notes to the financial statements/UK GAAP 64 Selected consolidated financial data/US GAAP 65 Operating and financial review and prospects/US GAAP 70 Consolidated statements of income and comprehensive income/US GAAP 71 Consolidated balance sheets/US GAAP 72 Consolidated statements of cash flows/US GAAP 73 Consolidated statements of changes in shareholders’ equity/US GAAP 74 Notes to the financial statements/US GAAP 91 Report of independent registered public accounting firm/US GAAP 92 Group directory The ARM® architecture lies at the heart of advanced digital products: it enables leading electronics companies to develop reliable total systems solutions for a wide range of applications which are used at home, at work and on the move. During 2004 we increased our ability to meet our Partners’ needs when we acquired Artisan, a designer of physical intellectual property (IP), and Axys, which provides electronic system level design tools.
    [Show full text]
  • Annual Review 2013-2014
    ANNUAL REVIEW 2013/2014 Strategic priorities Contents As the UK’s national academy for engineering, we bring together the most successful and talented ANNUAL REVIEW engineers from across the engineering sectors for a shared purpose: to advance and promote excellence in engineering. We provide analysis and policy support to promote the UK’s role as a great place from Strategic priorities inside front cover which to do business. We take a lead on engineering education and we invest in the UK’s world class research base to underpin innovation. We work to improve public awareness and understanding of Forewords 2 engineering. We are a national academy with a global outlook and use our international partnerships to ensure that the UK benefits from international networks, expertise and investment. Drive faster and more balanced economic growth 4 The Academy’s programmes are driven by four strategic challenges, each of which provides a key contribution to a strong and vibrant engineering sector and to the health and wealth of society. Foster better education and skills 8 Lead the profession 12 Drive faster and more balanced Foster better education and skills economic growth The strategic challenge is to create a system of Promote engineering at the heart of society 16 The strategic challenge is to improve the capacity engineering education and training that satisfies of UK entrepreneurs and enterprises to create the aspirations of young people while delivering Building organisational capacity 20 innovative products and services, increase wealth the high-calibre engineers and technicians that and employment and rebalance the economy in businesses need.
    [Show full text]
  • DEPARTMENT of ENGINEERING NEWS Cambridge Engineers Break Superconductor World Record Page 3
    AUTUMN 2014 ISSUE 16 DEPARTMENT OF ENGINEERING NEWS Cambridge engineers break superconductor world record Page 3 Google Award for the Automatic Statistician Page 8 The James Dyson Foundation donates £8m to University of Cambridge Page 18 In this issue Welcome Cambridge engineers break 3 superconductor world record From Graduation to the Crossrail project 4 Lifting the lid on silicon batteries 5 Solar powered home-lighting in India 6 Royal Academy backing for 7 Department research Google Award for the Automatic 8 Statistician Robogals 9 Professor William (Bill) Fitzgerald 9 The ‘visuomotor binding’ mechanism 10 Carbon nanotubes find real 11 world applications Professor David Cardwell takes over from Professor Dame Ann Dowling who led the Institute of Manufacturing 12-13 Design Show Department for five years. Ann is now President of the RAEng, while continuing in the Department with her research and teaching. International mobile ticketing success 14 3D printing – The shape of things 15 “Ann Dowling is a hard act to follow. She has left the Department in excellent shape on all fronts. to come? Our rankings, financial performance and growth have been outstanding,” says David. “Trojan horse” treatment 16 New Centres for Doctoral Studies 17 The Department now has over 180 academics and principal investigator status researchers, over 1200 undergraduates, over 800 graduate students, over 260 postdoctoral researchers and Backing Britain – The James Dyson 18 Foundation donates £8m a turnover exceeding GBP70m. It is one of the world’s top ranked engineering departments jockeying for leadership at the top of the board. Teaching has also stormed forward winning New James Dyson Building 19 for Engineering to be a live accolades from reviewers in the accreditation process.
    [Show full text]
  • Honorary Graduates
    Honorary Graduates EVERY YEAR THE UNIVERSITY OF YORK CONFERS HONORARY DEGREES ON DISTINGUISHED PEOPLE. The recipients come from many walks of life and all have made a significant contribution to society. Honorary graduates are selected from nominations by members of the University and very often have links with departments or are alumni. At these ceremonies, the honorary degree of Doctor of the University will be conferred on: Sir Robin Saxby Professor John R Beddington CMG FRS Sir Robin Saxby is a founder and Professor John Beddington is the Chairman of the film, media and Government’s Chief Scientific Advisor production company Arolla Partners and Head of the Government Office for Ltd. He was the founding CEO and Science. Chairman of ARM Holdings plc, one A former lecturer in population biology of the foremost British engineering at the University of York, Professor successes of recent times. He led ARM Beddington’s main research interests from its start-up in 1990 to flotation in 1998 before are the application of biological and economic analysis retiring from the company in 2007. to problems of natural resource management. Sir Robin is an Honorary Fellow and past President He has advised numerous Government departments of the Institution of Engineering and Technology and Parliamentary committees in this country as well which awarded him the 2002 Faraday Medal for his as overseas governments and international bodies outstanding contribution to the electronic engineering including the European Commission, the United industry. He is also a Fellow of the Royal Academy of Nations Environment Programme and the Food and Engineering.
    [Show full text]
  • Fst Journal the Journal of the Foundation for Science and Technology (Formerly Technology, Innovation and Society)
    fst journal The Journal of the Foundation for Science and Technology (formerly Technology, Innovation and Society) Volume 18, Number 10, November 2005 Science policy and management Sir Keith O’Nions: Towards 2.5 per cent of GDP on R&D Sir David Wallace: The costs and the priorities Dr Mark Walport: Asking the right questions The education of 14-19 year olds Julie Bramman: The Government response to Tomlinson Pauline Cox: The view from the chalk face Lord May: Good science teaching matters Biotechnology Dr Doug Yarrow: From science base to market place Martin Wales: A view from the City Dr David Chiswell: A glass half full or half empty? Dr Andy Richards: Barriers to early growth Flu pandemic Baroness Finlay: The frontline is in community care Dr Jeremy Farrar: An incredibly virulent disease Dr David Harper: The vital importance of communication Bruce Mann: Addressing all contingencies Obituary Sir Hermann Bondi THE FOUNDATION FOR SCIENCE AND fst TECHNOLOGY THE FOUNDATION The Foundation for Science and Technology FOR SCIENCE AND 10 Carlton House Terrace TECHNOLOGY London fst SW1Y 5AH Telephone 020 7321 2220 THE FOUNDATION FOR SCIENCE AND TECHNOLOGY Registered Charity No: 274727. A Company Limited by Guarantee No: 1327814 Fax 020 7321 2221 VICE PRESIDENTS e-mail The Earl of Shannon [email protected] The Lord Flowers FRS The Earl of Selborne KBE FRS Editor Sir Brian Jenkins GBE Sir John Maddox FRS Viscount Runciman of Doxford CBE PBA Sub-editors COUNCIL Wendy Barnaby, Simon Napper, CHAIRMAN Charles Wenz The Rt Hon the Lord Jenkin
    [Show full text]
  • Trustees' Report and Financial Statements 2015-2016
    TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 1 Trustees’ report and financial statements For the year ended 31 March 2016 2 TRUSTEES’ REPORT AND FINANCIAL STATEMENTS Trustees Executive Director The Trustees of the Society are the Dr Julie Maxton members of its Council, who are elected Statutory Auditor by and from the Fellowship. Council is Deloitte LLP chaired by the President of the Society. Abbots House During 2015/16, the members of Council Abbey Street were as follows: Reading President RG1 3BD Sir Paul Nurse* Bankers Sir Venki Ramakrishnan** The Royal Bank of Scotland Treasurer 1 Princes Street Professor Anthony Cheetham London EC2R 8BP Physical Secretary Professor Alexander Halliday Investment Managers Rathbone Brothers PLC Foreign Secretary 1 Curzon Street Sir Martyn Poliakoff CBE London Biological Secretary W1J 5FB Sir John Skehel Internal Auditors Members of Council PricewaterhouseCoopers LLP Sir John Beddington CMG* Cornwall Court Professor Andrea Brand 19 Cornwall Street Sir Keith Burnett** Birmingham Professor Michael Cates B3 2DT Dame Athene Donald DBE* Professor George Efstathiou** Professor Brian Foster** Professor Carlos Frenk* Registered Charity Number 207043 Professor Uta Frith DBE Registered address Professor Joanna Haigh 6 – 9 Carlton House Terrace Dame Wendy Hall DBE London SW1Y 5AG Dr Hermann Hauser Dame Frances Kirwan DBE* royalsociety.org Professor Ottoline Leyser CBE* Professor Angela McLean Dame Georgina Mace CBE Professor Roger Owen* Dame Nancy Rothwell DBE Professor Stephen Sparks CBE Professor Ian Stewart Dame Janet Thornton DBE Professor Cheryll Tickle** Dr Richard Treisman** Professor Simon White** * Until 30 November 2015 ** From 30 November 2015 Cover image Tadpoles overhead by Bert Willaert, Belgium. TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 3 Contents President’s foreword ...............................................
    [Show full text]
  • Annual Review Annex 2015-16
    Annual Review Annex 2015/2016 Annex to the Annual Review Contents Fellows elected in 2015 2 Engineering Leadership Advanced Awards 27 International Fellows 2 Ingenious Public Engagement Awards 30 Fellows 2 Visiting Professors 31 Sainsbury Management Fellowships 32 Trustee Board 4 Aerospace MSc Bursary Scheme 33 Academy Governance Committees 5 Petrofac Fellowships 34 Academy Operating Committees 8 Panasonic Trust Fellowships 34 Awards 11 Hertha Marks Ayrton Fellowship 34 Sir Angus Paton Bursary 34 Grants, fellowships and programmes 12 Research Chairs 12 Queen Elizabeth Prize for Engineering 35 Research Chairs in Emerging Technologies 14 Panel of judges 35 Senior Research Fellowships 14 Queen Elizabeth Prize for Engineering Foundation Trustees 35 RAEng/EPSRC Research Fellowships 14 Donors 36 Leverhulme Trust Senior Research Fellowships 15 Search group 36 Daphne Jackson Trust Fellowships 15 Development and fundraising 37 RAEng Research Fellowships 16 Development Advisory Board 37 RAEng/Lloyd’s Register Foundation Research Contributors to Academy programmes 37 Fellowship 18 Royal Academy of Engineering RAEng/Ministry of Defence 2015 Annual Fund 38 Research Fellowship 18 Enterprise Fellowships 18 Blavatnik Family Foundation Enterprise Fellowship Alumni Awards 19 Pathways to Growth 19 Launchpad Competition 19 RAEng-ERA Foundation Entrepreneurs Award 20 Distinguished Visiting Fellowships 20 Newton Research Collaboration Programme 22 Leaders in Innovation Fellowships 25 Africa Prize for Engineering Innovation 25 Industrial Secondments Scheme 26 1 Fellows Fellows of the Academy are leading engineers in the UK drawn from academia, industry and the not-for-profit sectors. Fellowship is a national honour, awarded for outstanding personal engineering achievements. Election to the Fellowship is managed by current Fellows of the Academy.
    [Show full text]