Delivery Plan Financial year 2014-15

Accelerating economic growth Contents

Contents

Foreword 4 Our strategy 6 Delivery plan executive summary 10 Key actions 2014-15

In detail: 17 How we help business

19 Access to funding and finance

26 Access to knowledge, skills, equipment and partners

28 Access to entrepreneurial expertise, mentoring and advice

29 Access to lead customers

32 Making connections

36 Investing in priority areas based on potential

70 How we operate Continuously improving our capability 72 Our tools, from A to Z

Any questions about the contents of this delivery plan? Email [email protected]

Cover image: Asha Peta Thompson, co-owner of Intelligent Textiles Ltd. Read how the Technology Strategy Board and Ministry of Defence have helped the company succeed at www.innovateuk.org/success-stories

2 Technology Strategy Board Foreword

Foreword Welcome to our delivery plan for 2014-15.

The Technology Strategy Board is the Under sector-based leadership councils, focus on supporting SMEs with high- UK’s innovation agency. We have a which include government, business growth potential. vital role in UK economic development and organisations such as ours, a set – helping to accelerate growth by of strategies has been created to plan As the Technology Strategy Board has stimulating and supporting business-led the way forward and give business developed in strength and maturity, our innovation. Taking our 2011-15 strategy, the confidence to invest. Many of our portfolio has grown. And it is set to grow Concept to Commercialisation, as the programmes are also helping to deliver further; the announcement in June 2013 start point, this delivery plan explains what on the strategies. To complement of an additional £185m budget for the we are doing to achieve this during the this, in 2013 Universities and Science year 2015/16 will allow us to achieve financial year beginning April 2014. Minister David Willetts identified ‘eight more in a number of important areas. great technologies’ in which the UK is This is good news for us but also makes After a difficult period, the economic strong and which have great potential to the current year a challenging one, as we situation is improving – but long-term disrupt current models or underpin other ramp up towards a significant growth in growth is as big a priority as ever. UK plc developments – and generate growth. activity next year. now has an opportunity to capitalise on There has also been a strong and the improved climate and invest strongly growing recognition of the vital role of We have clear objectives, a range of in innovation to lay the foundations for our small and medium-sized businesses, as highly effective tools and mechanisms future competitiveness and growth. expressed in Lord Young’s 2012 report, to support business and accelerate Make business your business: Supporting innovation, and a team of over 200 highly A new analysis published by the the start-up and development of small skilled and committed people dedicated Department for Business, Innovation business. Together, this aligned thinking to our cause. But we can only achieve and Skills in January 2014 benchmarked across government is creating renewed success through business and with the the UK science and innovation system momentum for innovation and growth. help of our strong partner relationships – internationally. It found that we have so I encourage you to study this delivery world-class strengths in many areas As well as contributing at a strategic plan and the activities it describes, and such as research, higher education level, we have formed close working look at the part you and your business and the business environment, but also relationships with many central or organisation can play in this great historically a long-term pattern of under- government departments – from energy purpose – accelerating economic growth investment in public and private research and climate change, to health, to through innovation. and development and publicly funded transport. We act as delivery partners innovation. for their innovation programmes, and link policymakers with the businesses The Technology Strategy Board’s role that actually develop and commercialise addresses this directly. But our work to innovative products and services. identify the market and technology areas Working with all our other partners with the greatest potential for growth has in the innovation ‘ecosystem’ is also been complemented by new strategic vital. But key to all innovation is the thinking in central government on growth role of business, driving forward the drivers. In 2012 the Government, led by development and commercialisation of Iain Gray CBE the Department for Business, Innovation ideas. In this plan you will discover the Chief Executive and Skills, began to develop a new long- range of ways we have to help business term approach to industrial strategy. innovate – and particularly a renewed

Delivery Plan 2014-15 3 Our strategy: Concept to commercialisation

Our Strategy: Concept to commercialisation Our 2011-15 strategy sets out how we stimulate and encourage innovation and drive economic growth.

The world faces major challenges, not As a result, business investment in It was to help tackle these types of only from the recent economic turmoil innovation is often lower and later than market failures and innovation bottlenecks but also from societal challenges such desirable for strong economic growth, that the Technology Strategy Board was as climate change and an ageing and opportunities to capitalise on the set up. population. These challenges are creating UK’s excellent research base and global market opportunities for novel emerging global markets may be missed. Our role is to help accelerate economic solutions. The countries that continue Innovation can also disrupt existing growth through the stimulation and to invest in innovation and can innovate value chains and business models. In support of business-led innovation. We most rapidly will be most likely to benefit complex systems and supply chains, are business-focused and business-led; from these shifts in markets. a ‘disruptive’ innovation can mean that our governing board and our staff have many partners, suppliers and customers strong experience of R&D and innovation Across business, higher innovation need to adapt and innovate concurrently and the commercialisation of technology. investment is associated with higher and collaboratively, making it difficult to We work across business, academia and levels of new product innovation. More capitalise on the opportunity. government, helping companies take product innovation is in turn associated concepts through to commercialisation. with higher overall productivity in firms, Some companies, focused on their and productivity growth is the central day-to-day activities, may not even This means supporting business driver of overall economic growth. see the opportunities created by new innovation through: Innovation investment is core to creating technologies, or technologies with a competitive position in rapidly changing potential to cross over from one market – tackling the barriers to innovation global markets. to disrupt another. Information flows imperfectly in what is a complex and – reducing financial and technical risk However, there are financial and organic innovation system; businesses technical risks in investing in early-stage may need help to identify opportunities, – promoting collaboration technologies and markets, and the access information and knowledge and return on investment is uncertain. Small respond to disruptive developments. – helping knowledge exchange companies can struggle to raise funds and larger companies can find it hard to Finally, government influences markets – encouraging open innovation justify early-stage investment, tempted – through how it chooses to buy, how instead to wait for the market to become and where it chooses to regulate or – creating a more effective innovation clearer and the uncertainties to reduce. set standards, and how it applies fiscal environment, using our convening incentives. All too often government power and connections to bring action has been taken without a view as different partners together. to how it can stimulate innovation and maximise the potential benefit for UK industry.

4 Technology Strategy Board Our strategy: Concept to commercialisation

Our strategy has five key aims:

1 Accelerating the 3 Turning government 5 Continuously journey from concept to action into business improving our commercialisation opportunity capability

Taking a more holistic view of the We work with government to identify We continue to develop our business innovation journey, identifying the areas areas where policy and regulation can processes to be fast, flexible, where government support is justified stimulate business innovation and and focused on the needs of the and can make a difference. Working pursue areas where government can businesses we support, and develop with business and other partners to act as a ‘lead customer’ or market our benchmarks and impact measures develop and deliver cohesive and co- shaper, engaging with business to to ensure that we remain highly ordinated support that helps business find new solutions to public sector effective and deliver value for money. overcome the barriers to innovation challenges. We aim to support and develop our and commercialise new products and staff, and ensure that our organisation services. provides a positive and stimulating 4 Investing in priority environment where they can thrive and theme areas based work effectively together.. 2 Connecting the on potential innovation support Working with all our partners, we translate these aims into a programme of action Working across business, academia landscape to accelerate business innovation. In all and government we identify and we do, we ask ourselves one question: Broadening our role to build mutually prioritise areas where the UK has will it promote UK economic growth by beneficial relationships with other academic and business strengths that helping business to bring new products UK organisations, to help join up can address global challenges and and services more rapidly to market? the players in the innovation support create opportunities for UK economic landscape and create a more effective growth. We work with the community innovation ‘ecosystem’. We aim to to identify barriers to innovation and increase the ability of companies to reduce them through appropriate access multiple forms of support in the support mechanisms. UK, EU and internationally.

Onequestion Will it help UK business to bring new products and services rapidly to market?

Delivery Plan 2014-15 5 Executive summary

Delivery Plan: Executive summary Delivering our strategic aims for 2014-15.

2014-15 will be another year – Access to entrepreneurial expertise, of intensive activity for the mentoring and advice: specifically for Technology Strategy Board, as small and medium-sized enterprises, see page 28 New we work to stimulate and support SME growth business-led innovation. – Access to ‘lead customers’: programme particularly in the public sector, through These are our main plans for the SBRI programme, see page 29. the year, as they link to our five strategic aims. New support for innovative high-growth-potential SMEs – bid to run the Enterprise Europe Accelerating the Innovative small and medium-sized Network in England, Wales and innovation journey enterprises (SMEs) with high growth Northern Ireland to help SMEs better potential are a foundation of the future access support (see international and connecting the economy. We have been increasing partnerships on page 8) landscape our focus on these companies and the support they need – and this year we are – expand Venturefests into a linked We have a growing armoury to support taking a major step to build up the help series of national events, helping business in taking their ideas towards we provide on their innovation journeys. SMEs highlight their ideas to potential commercial reality. Over the years we partners and investors have improved our existing programmes These firms need more than for supporting innovation, and put in place grants to bring their ideas towards – partner with GrowthAccelerator, the new ones – and this will continue in 2014- commercialisation. After a successful British Business Bank and the UK 15. We will also prepare for increased pilot, we are working with partners to set Business Angels Association to activity and budget in up a new programme offering a package develop a new online platform to 2015/16. of skills, mentoring and coaching showcase innovative companies to support – giving micro and small potential investors Our help for business includes: companies the capability to progress, attract potential investors, and grow – partner with the Intellectual Property – Access to innovation funding and their businesses. In 2014-15 we will help Office (IPO) and UK Trade & finance: whether from ourselves and more of these high-potential companies Investment (UKTI) to help SMEs access our partners, EU innovation funding, or succeed. We will: intellectual property and export advice other sources such as investors, see page 19 – embed entrepreneurial training and – run at least five Launchpad access to coaching and mentoring competitions supporting developing – Access to knowledge, skills, into the support we provide to SMEs, clusters of SMEs equipment and partners: such as the working with GrowthAccelerator and Catapult centres, sectoral networks, others – run at least three overseas Missions, Knowledge Transfer Partnerships, and with UKTI, to support high-tech SMEs overseas entrepreneur missions, see – increase funding for our successful in finding partners, investors and page 26 Smart programme to at least £50m markets abroad. (from £40m last year) so we can support more of the good ideas proposed

6 Technology Strategy Board Executive summary

Helping companies connect, Access to centres of Linking and leveraging raising awareness and expertise, skills and public sector support creating dialogue equipment We have established strong collaborative Engagement between the business and Catapults are world-leading centres of working with many key partners such research communities, and between innovation which form a major long- as the research councils, which has businesses, is essential to drive term investment in the UK’s innovation paid dividends, joining up innovation innovation. An important part of this is capability. They bring the best of UK support for business benefit. More the knowledge transfer networks we have businesses, scientists and engineers recent partnerships, such as those with built up, which have more than 90,000 to work together and transform ideas GrowthAccelerator and UKTI, are already members in specialist communities. We into commercially viable products and showing good results. know that innovation increasingly happens services. The first seven Catapults are at the boundaries between sectors, and up and running, and we will grow the This year we will continue to build effective that bringing together different groups (or network this year. partnerships with organisations whose people from different sectors who would work complements or enables business not normally meet) often stimulates unique We also invest with the research innovation. As well as the work with UKTI, ideas. In April 2014, we transformed the councils in a number of innovation and IPO and Growth Accelerator mentioned 15 separate networks into one single knowledge centres, and will continue above, we will: dynamic, fluid and flexible network where this work during the year. people can interconnect better both within – continue pilots with the British and outside the current communities. In 2014-15 we will: Standards Institution to help use standards to support UK business Part of our work to accelerate innovation – set up two new Catapults, focusing innovation is building awareness of opportunities, on precision medicine and energy talking to business, and creating face-to systems – work with the devolved administrations face opportunities for businesses and of Scotland, Wales and Northern researchers to work together. This year – develop and expand the existing Ireland, and the local enterprise we will: Catapults partnerships (LEPs) in England

– bring over 2,000 business people – work with Hermann Hauser on his – continue to build strong collaborations and innovators together in November review of the future direction and with the research councils, including 2014 to find new ideas, partners and scale of the Catapult programme the potential for taking a more co- inspiration at the Technology Strategy ordinated and stage-gated approach Board/UKTI annual event, InnovateUK – explore the potential for an innovation to the emergence of commercially and knowledge centre focusing on exciting new technologies – further develop the ways we research technologies avoiding the communicate with our customers – use of animals. – work with the Higher Education through the internet, _connect, social Funding Council for England and the media, direct communications and Innovators need many kinds of support SetSquared group on a pilot scheme events. at different stages of the journey – and to facilitate the commercialisation the Technology Strategy Board only of academic research and the provides part of it. But we also connect development of high-potential spin-out the various resources that can help companies. companies innovate, and so make the journey easier and quicker. Two new Catapults

Delivery Plan 2014-15 7 Executive summary

International partnerships SBRI

Horizon 2020, the EU innovation and We promote the role of government research funding programme, has a Exploiting as a ‘lead customer’ for businesses – €79bn funding budget and is a huge EU opportunities in articulating problems and challenges, opportunity for UK business. We provide Horizon2020 engaging with business to find solutions, advice to help business access this and providing a route to market. The main funding and to build collaborations and tool for this is SBRI (the Small Business partnerships overseas. Research Initiative), which since 2009 has provided more than 1,500 contracts, This year we will further boost this by: helping small companies to develop new products and services. This year we will: manufacturing or digital – to help UK – developing the Horizon 2020 website business take best advantage of the (www.horizon2020uk.org) as a source – further champion SBRI across opportunities. Will we also play a part in of UK-centred information on the government – helping departments supporting the delivery of the Newton programme and its opportunities solve their challenges and helping Fund, which provides £375m over the innovative smaller businesses grow as next five years to strengthen links between – building up our team of specialist a result the UK and a number of emerging National Contact Point staff, who economies. give expert advice on Horizon 2020 – continue to provide these departments opportunities, and integrating them with expertise and help, to support the more closely with our programmes Turning government Government’s drive to increase the use of SBRI five-fold, to £200m in a year. – establishing a permanent office in action into business Brussels to better support UK business opportunity Other government actions in accessing opportunities. The actions of government departments There are many other ways in which we The Enterprise Europe Network is a and agencies can have dramatic effects help government become a force for multi-country network part-funded by on markets and create opportunities for innovation. This year we will: the European Commission. In the UK, it innovative businesses, whether through can be a powerful resource for SMEs in policy, procurement or new regulations – work with the emerging NHS structure, accessing support for business growth, and standards. We work with and helping develop its ability to encourage including building overseas partnerships, across government to maximise these the creation of innovative products and enabling access to funding programmes opportunities in many ways (see page 29). services – and to rapidly adopt them such as Horizon 2020, and developing supply chain partnerships and export Innovation Platforms – work with the BIS sector teams and opportunities. industry to help deliver the industrial Our innovation platforms are a powerful strategies through innovation. This year we will lead a consortium bid to approach to innovation and are having deliver the Enterprise Europe Network in a major impact for businesses in many England, Wales and Northern Ireland – fields. They bring together the public aligned with a bid by Scottish Enterprise and private sectors to work on societal for Scotland – to provide a nationally challenges, where government action consistent and appropriately resourced creates global business opportunity – set of local networks that will help connect such as the need to reduce transport Driving SMEs in their areas to EU and national emissions. This year we will: government innovation support. use of SBRI to – continue to maximise the opportunities £200m a year Beyond Europe, we will help businesses created by our five existing innovation to take advantage of global markets. We platforms will continue to develop deeper strategic relations with India, Brazil, China and – establish three new innovation the US, and identify innovation hotspots platforms, working with business and globally where we will develop activities government, to focus on urban living, in specific thematic areas – such as energy systems and transport systems.

8 Technology Strategy Board Executive summary

Investing in priority Continuously areas based on improving our potential capability See The bulk of our investment is in our We see 2014-15 as a key year for our www.innovateuk.org ‘thematic’ priority areas – areas we organisation, with a primary focus on our for all the latest identify as having the greatest potential for people and our operational development. opportunities innovation to drive UK economic growth. for business During 2014-15 we will launch around Since 2007 our scope and responsibilities 88 competitions for R&D and innovation have increased, as has the need for across these 12 thematic priority areas, people with varied skills and capabilities. committing over £400m of funding. It is only through their expertise and Co-funding from our partners, such as dedication that we can achieve our research councils, will further boost this objectives. investment – and the overall public sector funding will then be matched by the During the year we will: private sector. This plan supports the delivery of – enhance the service and support our 2011-2015 strategy, Concept to Our investments use a variety of we provide to our customers Commercialisation. During the year competition models and tools, from through telephone, online and other we will build on the approaches that collaborative R&D and feasibility studies, communications we know work, and develop new to demonstrators. approaches to meeting the needs – make our application processes easier of business as we continue to drive The Catalyst model, which we established to engage with and more focused on innovation for UK economic growth. with research councils, is proving its clear business propositions worth – the Biomedical Catalyst set up This document shows plans as at the three years ago is having a major impact. – develop our benchmarks and start of the financial year 2014-15 and This year we will continue to roll out the measures to develop a deeper these may change. New developments Agri-tech and Industrial Biotechnology understanding of the impact we deliver are communicated on our website Catalysts, and establish a new Energy www.innovateuk.org and the Catalyst. – complete the transition to a new _connect online networking platform. leadership team structure geared to the In our priority areas, we will publish successful delivery and development of Access _connect at https://ktn. updated strategies in the areas of digital, our strategy innovateuk.org transport, health and care, agriculture and food, low impact buildings, urban – continue to develop our leadership living, resource efficiency and emerging senior management teams and through technologies and industries. recruitment, training and support.

We are also introducing a new focus on urban living, following last year’s future cities demonstrator and alongside the work of the Future Cities Catapult. We will make significant investments in Over collaborative R&D to meet these complex challenges and set up a new Urban Living Innovation Platform. £400m to support innovation For the key actions in the thematic priority areas see the table on pages 10-13, and for the full details see pages 36 onwards.

Delivery Plan 2014-15 9 Key Actions

Key actions 2014-15

Page Key action 2014-15 Detail

28 Enhancing our support for We will create a new programme to support these SMEs on the journey towards innovative high-growth-potential commercialising their ideas; connecting them to opportunities from partners including SMEs coaching and mentoring, intellectual property and export advice, and to the investor community.

We will enhance our application process to make it simpler and clearly aimed at articulating a business proposition.

26 Expanding the network of We will continue to develop the Catapult centres as a key part of our support for Catapults and establishing innovation and of the overall UK innovation eco-system. We will build the seven existing them as a key part of the UK Catapults to ensure they meet the needs of business, and create new Catapults in the innovation system areas of precision medicine and energy systems.

We will work with Hermann Hauser on his review of the future scope and ambition of the Catapult network.

22 Supporting companies We will help more UK businesses benefit from participating in the EU Horizon 2020 accessing Horizon 2020 scheme, by building a strong in-house team of expert advisers and planning to develop the Enterprise Europe Networks into a powerful support resource.

27 Developing our EU and We will look for opportunities in Europe and beyond to help companies develop international strategy collaborations and supply chains in innovation hotspots. We will run at least three entrepreneur missions in the year and will continue to develop strategic partnerships with the emerging economies of India, China and Brazil.

29 Developing the role of We will champion the SBRI process energetically across government, to help deliver government as a lead customer a five-fold increase in the programme – in which government departments tackle the and expanding SBRI challenges they face by seeking the help of innovative small companies.

32 Stimulating collaboration and We will transform our Knowledge Transfer Network programme into one fluid, dynamic partnerships for innovation, and diverse network, sparking innovation more effectively within and between its many joining up the innovation communities. landscape, and engaging and communicating with business. We will create new opportunities for businesses to share knowledge, create collaborations and accelerate innovation, with a growing national series of Venturefests and our major event, InnovateUK 2014, in November.

We will connect our national programme to local innovation work, with the devolved administrations, local enterprise partnerships, cities and growth hubs.

We will use communications to build dialogue with businesses and help them tell their innovation success stories

10 Technology Strategy Board Key Actions

Page Key action 2014-15 Detail

42 Energy This programme is addressing the challenges of delivering secure, affordable and sustainable energy for the 21st century. This year we will: – commit up to £81.5m in energy, including 11 new competitions – launch an Energy Systems Innovation Platform – establish the Energy Systems Catapult – launch an Energy Catalyst with the research councils and DECC – co-fund international activity in Europe (solar and marine), Canada and the US – develop a programme to demonstrate energy supply chain innovation.

44 Built environment The focus of the Low Impact Buildings Innovation Platform for the next five years is to transform the sector to a more industrialised approach to deliver high-quality, carbon- efficient buildings. This year we will: – commit £12.5m in four new competitions, including competitions in digital design and engineering – specifically in building information modelling.

46 Urban living Our vision is to help UK firms develop the products and services to meet the changing needs of cities and urban areas, and to sell them to the world. We will commit up to £63m. We will: – establish an Urban Living Innovation Platform. – continue to support the Future Cities Catapult – run five new competitions that support integration of city systems – develop an approach to national urban modelling – develop competitions to explore the wider use of environmental, social and economic data in planning and managing cities.

48 Agriculture and food We will support the UK agri-food industry to sustainably intensify food supply chains, and continue to partner with industry and government to deliver the agri-tech industrial strategy. Our commitment will be up to £46m. We will: – deliver the Agri-tech Catalyst to help commercialise UK agricultural innovation – run collaborative R&D competitions focusing on agricultural diseases and food supply chain resource efficiency – run a competition focused on agri-food supply chains – support the development of future agricultural centres.

50 Transport We work to help UK industry profit from a transport system that allows efficient, cost- effective and sustainable movement of people and goods. Our commitment will be up to £70m. We will: – launch a Transport Systems Innovation Platform – continue to develop the Transport Systems Catapult – run six collaborative R&D competitions covering on and off-highway vehicles, marine, aerospace and rail transport – support a further European competition for marine vessel technology – support and deliver R&D activities for the Aerospace Technologies Institute and the Advanced Propulsion Centre for automotive technologies.

Delivery Plan 2014-15 11 Key Actions

Page Key action 2014-15 Detail

52 Health and care Our focus is on growing sustainable businesses that can deliver step-changes in efficient and effective health and care. Our commitment in this area will be up to £79.5m. We will: – launch nine new competitions – establish the Precision Medicine Catapult and continue support for the Cell Therapy Catapult – continue support for the Biomedical Catalyst and launch the ‘grand challenge’ for the second phase of the long-term care revolution.

54 High value manufacturing Our high value manufacturing programme aims to grow the contribution of manufacturing to UK GDP by investing in innovation that will maintain or improve competitiveness and increase the commercialisation of new technologies. Our commitment will be up to £72m. We will: – launch 10 new competitions – continue support for the High Value Manufacturing Catapult – continue the roll-out of the Industrial Biotechnology Catalyst in partnership with the research councils.

56 Digital economy The internet, connectivity and computing are developing more quickly than many businesses can adapt. This programme addresses the use of digital technology by UK businesses. Our commitment will be up to £42m. We will: – launch 11 new competitions – support the Connected Digital Economy Catapult, the Open Data Institute and Tech City UK – continue the IC tomorrow programme for digital micro businesses, including networking support and further funded competitions – develop an open-source toolkit to help business with data handling – continue support to develop Internet of Things systems, and apply this capability in real-world contexts – support the UK’s creative Industries.

58 Space applications This programme aims to support innovation in new applications using satellite data and space-based satellite systems. Our commitment will be up to £20m. We will: – continue to develop the Satellite Applications Catapult – develop competitions on in-orbit validation (TechDemoSat) – further support space application SMEs and the Harwell cluster – support the UK Space Agency’s National Space Technology programme – continue to manage and deliver agreed elements of the European Space Agency programme.

60 Resource efficiency In this area we help UK industry generate wealth through better management and use of material resources. We will commit up to £5.6m. We will: – run three new competitions in resource efficiency. – organise an entrepreneur mission to San Francisco in ‘clean and cool’ technologies – ensure that the benefits of resource efficiency are captured in a wide range of our competitions.

12 Technology Strategy Board Key Actions

Page Key action 2014-15 Detail

62 Enabling technologies Our enabling technologies programme recognises that technological developments can inspire innovation across a range of market sectors. We will commit up to £20m in this area. We will: – run three ‘technology-inspired innovation’ competitions for feasibility studies in enabling technologies – including one focusing on the interfaces between the enabling technologies to simulate new partnerships across industries and new technological developments – invest in activities focused on identified technology challenges, with impact across a wide range of sectors, including materials for aggressive environments, the integration of ‘omics’ technologies, robotics and autonomous systems, electronics systems, user experience, and software quality and testing.

64 Emerging technologies We will increase our work to accelerate the development and uptake of high-potential disruptive technologies emerging from the research base. Our commitment will be up to £16m. We will: – invest in collaborative R&D projects to build on the 2012 feasibility studies in energy harvesting and energy efficient computing – build technology roadmaps in non-animal technologies and quantum technologies – run feasibility studies competitions in graphene and quantum technologies – invest in a collaborative R&D competition to accelerate non-animal technologies towards market.

66 Other opportunity areas We evaluate significant new technology-related business opportunities for the UK and, where appropriate, turn them into coherent programmes. This year we will: – continue to implement the strategy for the creative industries – continue to encourage the earlier use of excellent design in technology innovation – run a £1.1m competition to support the use of design in learning technologies – evaluate the potential for innovation platforms in the areas of global challenges and antimicrobial resistance.

70 Improving our processes and We will continue to develop our people, resources and business processes so developing our support for that we can be fast, flexible, and focused on the needs of business – and enhance innovation benchmarks to ensure that we are effective and deliver value for money.

71 Using evidence to steer strategy We will extend our research on the impact of our programmes, to demonstrate the and measure impact impact of our work and steer our future strategy.

Delivery Plan 2014-15 13 Joining up with government thinking Joining up with government thinking

Joining Built up with Space environment Health Transport and care Satellites and – Construction government the data – Automotive – Life sciences they provide – Aerospace thinking Urban Regenerative medicine Mapping our living priorities against the Government’s Energy Agriculture industrial strategies – Nuclear & food and the eight great – Offshore wind Biosciences Information technologies* – – Oil and gas Agri-tech and Synthetic communications Energy storage Agri-science biology Advanced technology https://www.gov.uk/government/publications/eight-great-technologies-infographics

materials *More information: https://www.gov.uk/government/publications/industrial-strategy-explained Advanced High value Digital materials manufacturing economy – Information economy – Education exports Electronics, Resource – Professional and sensors and Emerging efficiency business services Key: photonics technologies Big data Our priority areas Robotics and autonomous – Government industrial strategies systems Eight great technologies

14 Technology Strategy Board Delivery Plan 2014-15 15 In detail: how we help business

19 Access to funding and finance

26 Access to knowledge, skills, equipment and partners

28 Access to entrepreneurial expertise, mentoring and advice

29 Access to lead customers

32 Making connections

36 Investing in priority areas based on potential

Four friends turned a college project into a business turning over hundreds Five new Launchpads of thousands after winning Innovate set for 2014-15 10 Launchpad funding. Read Bare Conductive’s story at www.innovateuk.org/success-stories

16 Technology Strategy Board Delivery Plan 2014-15 17 How we help business

How we help business Getting an idea from concept to commercialisation, whether involving a start-up or large multinational company, usually requires a combination of factors – not just finance but also knowledge, skills, equipment, partners and, ultimately, customers.

We have developed a range of ways to Much of our work is focused on 12 priority address these needs, tackle market and themes or areas – whether challenges that system failures, and support businesses drive innovation or technologies that enable it. on their innovation journey, including: For our activities in these areas see page 36. – access to funding and finance

– access to knowledge, skills, equipment and partners

– access to coaching, mentoring and advice together with development of entrepreneurial expertise Connections – access to lead customers between business, government and academia – making connections between Coaching, mentoring and advice business, government and academia. plus developing entrepreneurial expertise

Funding and finance Lead customers Knowledge, skills, equipment and partners

18 Technology Strategy Board Access to funding and finance

Access to funding and finance

A key issue faced by a business Programmes focused on specific themes developing an idea is how best to finance also include Launchpads, which help that development. Options may include kick-start innovation in clusters of high-tech Smart family or friends, a loan from a bank, or companies, and SBRI, which uses the funding from the private equity market. power of procurement to give businesses funding fully funded contracts from public bodies boosted to at However, private sector finance is not to tackle challenges faced by the public least £50m always easy to find for businesses with sector. innovative ideas, which may be seen as high risk. Investment may come too late, We continue to increase our funding for if at all. There is a well-recognised seed Smart to meet the high demand from finance gap for start-up and early-stage small businesses to support more of companies, as well as for small innovative the excellent proposals we receive. In enterprises that want to invest in their own the Smart programme, around 70% of development and growth. recipients are micro companies (with fewer than 10 employees) and over half are Technology Strategy younger than five years. Board funding: responding to innovators’ needs Targets To help overcome the challenges faced – increase our funding to at least £50m by companies in finding the finance for the Smart programme to support to support the development and SMEs to develop their ideas commercialisation of an idea, and to help reduce risk, the Technology Strategy Board – run five new Launchpad competitions provides a range of funding support for providing support to SMEs in the innovative projects. clusters:

We offer grants for ideas through – internet of things businesses in competitive applications. Our funding London and Cambridge programmes fall into two broad types: – healthcare technology businesses in Wales – funding open to ideas from any – manufacturing process industry technology or market sector – through businesses in the North East schemes such as Smart and Eurostars – space applications businesses in Harwell – support focused on specific priority – digital media businesses in an themes and challenges – which emerging cluster of small creative includes collaborative R&D, Catalysts businesses. and feasibility studies (see Investing in priority areas based on potential, page 36). For a full description of all our thematic funding competitions and programmes in priority areas see pages 36-67.

Delivery Plan 2014-15 19 “Running a business is really, really hard work and everyone needs a few lucky breaks. We are fortunate in that these lucky breaks came in the form of the Technology Strategy Board and their fellow agencies, in particular GrowthAccelerator.” Neill Ricketts, chief executive, Versarien Read Versarien’s story at www.innovateuk.org/success-stories With growth in staff from three to 55 people in the last four years, Versarien epitomises the sort of company that we are well- placed to help. Starting from a Smart award soon after start-up it has gone on to develop new products, list on AIM, as well as win awards and blue-chip clients. Equally important have been the Full benefits of ‘growth roll-out of SME growth programme coaching’ through the pilot starts this year SME programme.

20 Technology Strategy Board Delivery Plan 2014-15 21 Accessing funding from EU programmes

Accessing funding from EU programmes

There is a great deal of innovation We are strengthening our network of The Knowledge Transfer Network, which funding available through European National Contact Points (NCPs) – experts from 2014 has new coherence with programmes – in particular Horizon who provide advice on accessing its many communities served by one 2020, the European Commission’s new European funding – by integrating their organisation, will also have an important programme for research and innovation. work better with our other activities role in working with the NCPs and With a budget of €79bn over seven years, to reinforce the help they provide to helping to support the participation of this represents a major opportunity for UK business. UK businesses in the different areas of business and academia to gain support Horizon 2020. for innovative projects. It also brings much Central to the support we provide is the more than funding; the feedback we UK’s Horizon 2020 website – get from businesses participating in EU www.Horizon2020UK.org – which we Targets programmes is that the real benefit is in launched in 2013 and will enhance. forming partnerships, building networks – ensure good strategic alignment and collaborating with potential customers. We are also establishing an office in between our national programmes Brussels so that we can better support and EU programmes such as Horizon Despite the opportunities, UK businesses businesses seeking involvement in EU 2020, to gain maximum impact have historically underperformed in gaining programmes and strengthen our contacts EU funding. Of the private commercial with the European Commission. – create more coherent support organisations participating in Framework to help business make the most Programme 7 (the predecessor to Horizon The Enterprise Europe Network is a of the opportunities in EU R&D 2020), 11.2% were from the UK compared multi-country network part-funded by and innovation programmes – by to 11.4% from France and 15.8% from the EC. This provides a potentially integrating National Contact Points, Germany. We need to ensure that more UK powerful resource for SMEs in building creating a permanent office in businesses take advantage of the benefits overseas collaborations to enable access Brussels, and bidding to manage the and opportunities offered by Horizon 2020, to EU funding programmes as well as Enterprise Europe Network. in the interests of economic growth. supply chain partnerships and export opportunities. In the UK this network has There are many areas defined by Horizon had limited national support and funding, 2020 where the UK has strong capability which has limited the impact. We are and there are major opportunities – that working with key players in the existing is, the societal challenge areas of health, networks to bring together a nationally food, energy, transport, climate change, consistent and appropriately resourced innovative societies and security. We set of local networks which will help will strengthen the help available for connect SMEs in their areas to access EU businesses wanting to take up these and national innovation support. In 2014 opportunities and, where appropriate, we we will lead a consortium bid to deliver the will ensure strategic alignment between Enterprise Europe Network in England, our national programmes and those of Wales and Northern Ireland – aligned with Horizon 2020. a bid by Scottish Enterprise for Scotland – as another part of our offering to help businesses accelerate innovation and achieve growth.

22 Technology Strategy Board Accessing financial support from others

Accessing financial support from others

Providing a Technology Strategy Board Face-to-face engagement is also important grant to a company’s R&D project may not – for example through Venturefests, local on its own be enough to propel it to rapid entrepreneur/investor events with strong commercialisation. Companies often need potential. We will facilitate the development more help – whether finding the funding to of Venturefests into a coherent series of match our grant offer, or financing a scale- powerful events held around the UK, which up to take the idea to the next stage. As bring together innovators, entrepreneurs, part of our offering we are developing ways local service providers and investors, and to help businesses access private funding, enable face-to-face engagement between for example from venture capitalists and innovative businesses – often supported business angels. We have found that these by the Technology Strategy Board – and private sector investors see companies that the investment community. have been awarded Technology Strategy Board support as good investment We will also develop other, more prospects, carrying less risk because their sector-specific events, showcasing the ideas have been independently assessed companies we are working with to and backed by government funding. potential investors.

We aim to help innovative SMEs to connect more successfully to sources of private Targets sector finance, either to match or follow on from our grants. – help the businesses we support open doors to private finance by Introducing opportunities to investors connecting them with the investment virtually can be a powerful approach. In a community through the new online new project aligned with the Government’s ‘GrowthShowcase’ of investment own aim to support high-growth SMEs, opportunities developed with public we are working with GrowthAccelerator, and private sector partners, and BIS, the British Business Bank and the through the national series of UK Business Angels Association to create Venturefest events. a new online resource – showcasing selected high-quality, investment-ready SMEs which we support, to qualified investors looking for innovative companies with potential. See Investing in priority areas from page 36 on, for all our thematic funding opportunities

Delivery Plan 2014-15 23 Working out of the Satellite Applications Catapult in Oxfordshire, Rezatec has been able to access the expert facilities needed to make its land asset management platform possible. The Climate and Environmental Monitoring from Space (CEMS) facility enabled Rezatec to “Working with the Catapult really download and process An innovation voucher helps us in educating the market. up to 400 terabytes of paid for an expert to help with the statistical analysis. See earth and ground our plans for Catapults and It’s great to have their support.” Innovation Vouchers on the Philip Briscoe, marketing director, Rezatec. observational data. following pages Read Rezatec’s story at www.innovateuk.org/success-stories

24 Technology Strategy Board Delivery Plan 2014-15 25 Access to knowledge, skills, equipment and partners

Access to knowledge, skills, equipment and partners

In accelerating the journey of an idea from Knowledge Transfer organisations, design advisers and concept to commercialisation, funding is Partnerships intellectual property advisers. We only part of the answer. Equally important launched our vouchers in 2013 and will are other kinds of resource – scientific The long-established Knowledge Transfer continue to develop the scheme into and technical knowledge, state-of-the-art Partnerships programme (KTP) unlocks new areas such as manufacturing. Our equipment, or new skills and expertise. innovation capability in a business Innovation Voucher web pages Effective innovation rarely happens in by working with a further or higher (https://vouchers.innovateuk.org) also isolation, and working with partners to education body such as a university. In signpost to the other innovation voucher develop new products, processes or a partnership, an associate – usually schemes available from different services brings powerful advantages – the a graduate – is placed in the business providers in the UK. more so as products and services become to deliver a challenging innovation ever more complex. A great deal of our project. In 2014-15 we will continue to Catapults work is focused on helping business tap effectively manage and develop the KTP into such resources. programme. The Catapult centres are a powerful new force in the UK economy and innovation Knowledge Transfer Innovation Vouchers system. In a Catapult the very best of Network the UK’s businesses, scientists and Innovation Vouchers offer SMEs up to engineers work side by side on research For years we have helped business access £5k to access knowledge from external and development, transforming ideas into knowledge and expertise through thriving providers such as universities and new products and services to generate knowledge transfer networks serving colleges, research and technology economic growth. different communities of interest aligned with our priorities – from biosciences to transport, and from creative industries to electronics, sensors and photonics. Current Catapult locations These communities create knowledge flow, Offshore Renewable Energy connect business to academia and other Glasgow partners, and enable two-way dialogue to Narec – Blyth inform our strategies. High Value Manufacturing We have transformed the organisational AFRC – Strathclyde model of this support to form one coherent CPI – Wilton / Sedgefield Knowledge Transfer Network serving the AMRC & NAMRC – Rotherham distinct communities. This recognises WMG – Coventry that innovation happens across sector MTC – Ansty boundaries, when people, ideas and NCC – Bristol issues which do not normally connect come together. The combined network will still serve distinct sectors but will be Future Cities more flexible, dynamic and better suited London to the innovation ecosystem and challenges of today. Connected Digital Economy London

Cell Therapy London

Transport Systems Satellite Applications Milton Keynes Harwell

26 Technology Strategy Board Access to knowledge, skills, equipment and partners

Catapults help businesses develop A successful approach to this has been relevant and exciting ideas in receptive Targets entrepreneur missions, which take small and invigorating environments and groups of innovative SMEs to overseas add an important new dimension to – set up the Precision Medicine and locations strong in innovation and complement our existing research, Energy Systems Catapults opportunity in a particular sector. Working development and innovation with UKTI, we have supported 11 such programmes. They help businesses to – work with Hermann Hauser to review missions since 2008, including last year’s adopt, develop and exploit innovative the Catapult programme by Q3 Web Mission to India, Clean and Cool products and technologies, offering Mission to Brazil and Manufacturing concentrated expertise, access to – ensure the Catapults are delivering Mission to China. We will run at least three cutting-edge equipment and specialist their business plans, supporting SMEs further missions in 2014-15. facilities to develop and test ideas in and help them to raise their reality. international profiles We will develop the role the Catapults play on the international stage so that they Successful implementation of the – consolidate Narec (the National achieve global recognition and support Catapult programme is strategically Renewable Energy Centre) into the the needs of UK business through important for the UK globally. Offshore Renewable Energy Catapult. building strong international links.

Since 2011 we have established seven We will develop joint programmes with Catapults, which are all now operational, International partnerships Research Councils UK (RCUK), where covering high-value manufacturing, cell they align with our priorities, to build on therapy, offshore renewable energy, An estimated 90% of R&D and innovation investments RCUK have already made in satellite applications, connected digital happens outside the UK, and so we are specific countries. And we will support the economy, future cities and transport actively helping companies to access development and delivery of the Newton systems. In 2014-15 we will develop and knowledge and build partnerships with Fund, which aims to develop science and build the existing Catapults. organisations in other countries. innovation partnerships between the UK and a number of emerging economies, We will ensure they are operating The new EU Horizon 2020 programme helping to build capacity. effectively as part of the support we is an opportunity for business not only to provide, continue to establish them as access funding but also to develop new a key part of the UK innovation system relationships with businesses and other Targets and work to expand the network further. organisations across the EU and beyond. We will be initiating the graphene Our support for this programme, through – publish an EU and International application centre and scoping the the National Contact Points, KTN and the strategy setting out our approach £55m cell therapy manufacturing centre Enterprise Europe Network, will open new and priorities and continue to develop – both announced in the 2014 Budget – doors for business. activities with India, China, Brazil as well as planning new Catapults in the and US areas of precision medicine and energy We will continue to develop more strategic systems. innovation partnerships with a few – identify innovation hotspots to priority countries including India, Brazil, prioritise international engagement in We will also work with Hermann Hauser China and the US. These partnerships specific thematic areas on the review looking at the future will involve a range of bilateral activities scope, scale and ambition of the including missions and collaborative – support the development and Catapult network. R&D programmes such as the recent delivery of the Newton Fund building competitions with India in the areas of sustainable partnerships with a energy and affordable healthcare, and with number of countries, including India, China in sustainable manufacturing. China and Brazil

Both in Europe and beyond, we look – run at least three missions overseas, for opportunities to help companies covering robotics, clean and cool develop collaborations and supply chains technologies, and assisted living. in specific innovation hotspots around the world, and take advantage of the opportunities.

Delivery Plan 2014-15 27 Access to entrepreneurial expertise, mentoring and advice

Access to entrepreneurial expertise, mentoring and advice

We recognise the key role that high- growth-potential small and medium-sized Targets companies play in delivering economic growth. – ensure that SMEs in receipt of our funding have their business needs Applying for funding from a scheme such identified at an early stage and are as Innovation Vouchers or Smart is often connected to the right forms of the first contact an early-stage business support throughout the life of the has with us. We are building a new project programme of ongoing engagement, to provide companies with holistic support – offer a new programme of relevant on the innovation journey. skills, mentoring and coaching support to small companies in receipt In 2013 we carried out research on the of our funding, enabling them to needs of SMEs engaging with us and improve their capability to grow ran a successful pilot programme of extended support. Building on this, in – develop a simple application process 2014 we will further develop how we which adds value to all applicants, support such companies and connect whether or not successful, providing them to other opportunities – increasing additional support through rich online the commercialisation success of their multi-media content and helping ideas and maximising overall impact. We them create an effective business will do this by: case or business plan for use beyond the application. – connecting SMEs to support from partners including entrepreneurial training, coaching and mentoring, intellectual property and export advice

– enhancing our application process to make it simpler and clearly aimed at articulating a business proposition

– connecting grant-winning companies looking to raise private finance with the investor community.

Our goal is to help businesses develop the core capabilities required to realise the value of innovation, gain access to further funding and facilitate growth.

28 Technology Strategy Board Access to lead customers

Access to lead customers

SBRI Targets The government is the largest single purchaser in the UK but little of that – continue to work with and across purchasing power is currently directed government to increase the scale of at supporting innovation and economic SBRI, helping to realise the target of growth. How the public sector £200m of new contracts issued this addresses its needs and behaves financial year towards its suppliers can do much to foster innovation. – work with the emerging NHS innovation organisation, particularly The SBRI (Small Business Research through the new Academic Health Initiative) scheme gives public bodies Science Networks, to help the NHS a way to tackle the challenges they behave as a lead customer and face by sourcing innovative ideas from become an engine for growth business and gives a business a contract to develop their idea and potentially a – encourage the Ministry of Defence to government ‘lead customer’ and a route work more with innovative businesses to market. through SBRI to develop new technologies addressing operational This is an area where great impact could needs be achieved – the SBRI equivalent in the US awards more than $2bn annually – carry out an evaluation of SBRI’s to small businesses. The Government process and impact by February has recognised this potential with a 2015. commitment to increase the SBRI scheme fivefold compared to 2012 levels – from £40m to £200m – by encouraging departments to use the scheme to help solve public sector challenges.

In 2014-15 we will continue to energetically champion the SBRI process, working across government to increase its use by departments and other public bodies, working to make this growth a reality.

Delivery Plan 2014-15 29 Innovative digital business MyTourTalk helped tourist boards in Northern Ireland and Wales to develop new ways to inspire visitors, after winning two SBRI contracts. The company, based in Belfast and London, devised apps for Belfast’s Titanic area and a guide to the Welsh coastal path. It is now partnering with the “Contract funding allowed us Guardian on a series £200m to continue our R&D.” in SBRI contracts targeted Julie McNeice, founder, MyTourTalk of destination apps. for 2014-15 Read MyTourTalk’s success story at www.innovateuk.org/success-stories

30 Technology Strategy Board Delivery Plan 2014-15 31 Making connections

Making connections

Linking and leveraging In summary we will continue to develop – the UK Commission for Employment public sector support and build partnerships with organisations and Skills: better aligning skills provision offering support to UK business to support innovative companies, including piloting a new approach for Support provided by the public sector including with: SMEs in the power electronics sector can be complex and difficult to navigate for businesses. Many organisations have – the research councils: continuing – the Higher Education Funding Council an important role to play in the innovation our strong strategic collaboration for England and the SetSquared journey, and as the UK’s innovation agency with research councils, from major group: a pilot scheme to facilitate we can help businesses to access these co-funded programmes such as the commercialisation of academic many forms of government support. Catalysts or collaborative research and development, to initiatives such as research and the development of high- potential spin-out companies. We have developed strategic relationships innovation and knowledge centres with organisations such as UKTI, IPO and The British Standards Institution (BSI) that – UKTI: better connecting companies Building awareness enable us to improve the support we give with UKTI support for exporting, helping and creating dialogue to companies we work with. them to internationalise and to work together to maximise the potential of A vital aspect of our work is engaging with There are also regional and local aspects global opportunities a wide range of organisations – business, to the way we can link public sector academia, government, media, investors support. As a national organisation we – the IPO: linking companies with and business support intermediaries. work across the UK and support innovation intellectual property support provided by projects with the greatest potential to the IPO and others Dialogue enables us to understand generate growth regardless of where in business priorities and innovation support the UK they are based – but at the same – GrowthAccelerator: ensuring companies needs and to find out what is and is not time there are many situations where get appropriate mentoring and coaching working. We also explain what help and geographical location and local strength support to facilitate growth support is available, and raise awareness offer opportunity. Examples are the in business of the opportunities that exist introduction of Catapult centres and the – the devolved administrations of and the latest developments as they Launchpads in support of specific clusters, Scotland, Wales and Northern Ireland happen. which bring a clear local dimension to our and local enterprise partnerships (LEPs) work. in England Events are an important way to reach businesses and organisations and The local enterprise partnerships and the – BSI: supporting the development of to trigger and deepen collaboration. growth hubs being established locally in standards, particularly in emerging InnovateUK, delivered jointly with UKTI, England to support businesses are now areas of technology is our major conference, exhibition part of the innovation landscape, and and showcase and has become the we will increase our work with them on – the British Business Bank: helping to leading multi-sector innovation and trade shared aims and objectives. We hope that showcase innovative companies to networking event. In autumn 2014 we will our local help to business will be further potential investors run InnovateUK 2014, taking advantage of enhanced through the Enterprise Europe a new venue to make the event even more Networks. – Nesta, an innovation charity with a effective in enabling opportunities for new mission to bring great ideas to life: relationships and innovation to flourish. working to understand the evidence base around innovation support and supporting its activities on prizes

– the Design Council: helping businesses understand how design can play a key part in their development

32 Technology Strategy Board Making connections

We also participate in many other existing Working with and We have a service level agreement with local and national events run by third across government the UK Space Agency (UKSA) as its parties, for example reaching out to SMEs delivery partner for telecoms, navigation through events for early-stage companies We work with government departments, and integrated projects funded through the and investors, and working with science both centrally and in the devolved European Space Agency. parks and incubators. administrations, helping them to develop policy and strategy and to identify where Other partnerships which we will continue We will continue to develop our online business innovation is needed and how it to manage this year include the delivery of communications to provide clarity, can be best stimulated. the programmes related to the Aerospace support and inspiration for business, and Technology Institute and the Advanced particularly to tell the success stories of Naturally we work closely with our Propulsion Centre for automotive business innovation. In addition, we are sponsor department BIS in a range of technologies, and working with BIS and reviewing our brand and how we can areas, including the development and Birmingham City Council on the delivery of simplify the journey of discovery and implementation of the industrial strategy the Advanced Manufacturing Supply Chain participation for businesses who want to and sector strategies, and on the ‘eight Initiative. work with us. great technologies’ identified by the Government as those with particular The SBRI approach, which helps public The Knowledge Transfer Network potential to drive UK growth. bodies find innovative companies to solve communities are also an important their challenges, has been extensively channel for dialogue, engagement and We will continue to provide input to the used by some – such as NHS England new ideas. In 2014-15 the new unified industrial strategies and support their with its SBRI Healthcare programme. Knowledge Transfer Network structure (see implementation and, specifically in 2014- This year we will continue to work across page 26) will enhance this by providing 15, we will support the development government to champion and increase the greater flexibility and extend the breadth of the Government’s new science and take-up of SBRI. of the network. The KTN communities’ innovation strategy. online activity is hosted on a virtual network platform called _connect (https://connect. We also act as an effective, proactive and innovateuk.org) which we are reviewing trusted delivery partner to government this year as part of optimising networking organisations, helping them to maximise and communication activities. the impact of their support for innovation.

Many government departments are key Targets partners in our innovation platforms approach – both in providing visibility of – further improve the way we the societal challenges and policies that communicate with business and create opportunity, and in co-funding stakeholders through channels the innovation programmes that result. including online, _connect, social These strong relationships include the media, direct communication and Department for the Environment, Food events and Rural Affairs; and the Department for Energy and Climate Change. Similarly, – work with other agencies to raise our We are the delivery partner for the profile and that of the opportunities innovation work of the Department for we offer amongst SMEs and small Transport and the Office for Low Emission business groups Vehicles. – run InnovateUK, our annual innovation, networking and exhibition event, in partnership with UKTI in November 2014.

Delivery Plan 2014-15 33

The Low Carbon Vehicle Innovation Platform has brought together partners from government, multinational manufacturers, small suppliers, local authorities and in fact any organisation involved in the industry – driving innovation, supply chain development and therefore the uptake of low carbon vehicle technologies. There have been 10 funding competitions to date with more to come in “Submitting a bid to the Technology Strategy 2014-15. A 2012 survey of Board for funding for a low carbon vehicle companies involved in the low demonstrator project created the impetus for Innovation carbon vehicle programme us to start discussions with Nissan, Smith and platforms in urban living, energy systems estimated return of £35 smaller vehicle manufacturers.” and transport systems – all launching in 2014-15 for every £1 of public Liz Gray, senior consultant, Future Transport Systems Read Future Transport Systems’s story at www.innovateuk.org/success-stories sector investment.

34 Technology Strategy Board Delivery Plan 2014-15 35 Investing in priority areas based on potential

Investing in priority areas based on potential

We have identified a number of Challenges Competences priority areas, or themes, to focus our investment in innovation. These fall into We have identified six potential markets We have also identified four priority four categories: where innovation is led by societal ‘competence’ areas – themes which are challenge: hugely influential in setting the rate of – challenge-led areas: driven by change in many industries and sectors. societal and market challenges and – energy the resulting market opportunities These underpin the challenge-led areas and – built environment markets and link them to the technologies – cross-cutting competences: we support. They are: areas that enable the translation – urban living of technologies into products and – high-value manufacturing: by linking services – agriculture and food technologies to markets and by focusing on high-value elements of manufacturing, – enabling technologies: technologies – transport UK businesses can differentiate that underpin capability themselves from the global competition – health and care. – emerging technologies: high- – digital economy: with the increasing potential-technologies just emerging It is always difficult to predict the future of digitisation of markets, digital services from the research base. markets and what products and services present a major opportunity for the UK to will be required, but since these are compete globally These areas align well with the driven by societal need, they are almost Government’s sectoral industrial certain to grow and will require innovative – resource efficiency: we need to use strategies and ‘eight great technologies’ solutions to meet demand. resources more efficiently in a way that (see diagram on page 14). helps provide a high standard of living for They are also areas where the markets the population but does not compromise are influenced by government action the planet’s ecosystems – such as standards, regulation and procurement – making it possible to – space applications: this is a focus specify aspects of the future products area where future markets can drive and services. innovation in technology.

Number of funding 20 competitions planned in 2014-15

Total: 88 10

0

Energy Transport High value Emerging Urban living industries Health and care Digital economy Built environment manufacturing Space applications Agriculture and food Resource efficiency technologies and Enabling technologies

36 Technology Strategy Board Investing in priority areas based on potential

Enabling technologies Sustainability Identifying investment areas

Enabling technologies are areas with a The world faces major issues such In selecting areas, programmes and key role to play in helping business to as climate change, limited natural projects for investment we apply four develop high-value products and services resources, and changing age key criteria: to meet market needs across all economic demographics – and using resources, sectors. energy and social capital effectively is – is there a large (global) market a pre-requisite for long-term economic opportunity? The areas on which we focus, and where success. there are important links to the knowledge – does the UK have the capability to base, are: The need to move to a more sustainable develop and exploit the technology? economy is creating global market – advanced materials opportunities, and the countries and – is the idea ‘ready’ – is the timing right? businesses that can find sustainable – biosciences solutions most rapidly will be most likely – can the Technology Strategy Board to benefit. The challenge for business make a difference? – electronics, sensors and photonics is to introduce the ‘triple bottom line’ of environmental, social and financial – information and communication sustainability from the start. technologies. For this reason many of our programmes Single developments in any one of these have a clear theme of environmental may unlock several market opportunities or resource sustainability as a driver across multiple sectors. of innovation, and about two-thirds of projects we fund have a sustainability objective. Emerging technologies In 2013, we launched Horizons This part of our work identifies high- (http://horizons.innovateuk.org), potential technologies just emerging from our sustainable economy framework the research base and helps to accelerate developed with Forum for the Future. their commercialisation. It includes areas We use this tool to help us to evaluate such as synthetic biology, energy-efficient candidate areas for Catapult centres, computing, non-animal technologies, updates to our technology strategies, emerging imaging technologies, and potential new areas of investment – graphene, quantum technologies and but it is also a resource for businesses energy harvesting. themselves to help embed sustainability factors into their early planning.

It details the environmental and social drivers and risks that will become common currency over the next decade and provides a set of questions to build into business innovation processes. This year we will provide further guidance in using Horizons for scoping innovation projects.

Delivery Plan 2014-15 37 Investing in priority areas based on potential

How we support innovation Innovation platforms Evaluating whether to set up an in priority areas innovation platform involves defining In innovation platforms we bring industry, the magnitude and scope of a particular challenge, establishing that a range of Within each area, we analyse available academia and government together new technology solutions are needed to data and consult with business, academia to focus on a specific challenge, such resolve it, understanding the impact on and government to ensure we have as vehicle emissions or affordable the future market of government action, identified how innovation support could healthcare; identify the innovation and and ensuring that the UK is well placed to make a difference, and we then plan our business opportunities; and create a develop and commercialise the necessary programmes and activities for the greatest long-term commitment to a programme solutions and that a Technology Strategy impact. of support through the Technology Strategy Board to help business address Board programme would add value. We publish strategic reviews in each the challenge. Last year, we evaluated the case for area. Last year we published an updated establishing an innovation platform in strategy for creative industries, and this Bringing key stakeholders responsible for personal security. Whilst we concluded year will follow with strategies in the areas policy and delivery together with business that this was an area where we would of digital, transport, health, agriculture and provides unique insights into where the support further activity, we did not feel that food, built environment, and emerging Government and markets are moving, an innovation platform would be what was technologies and industries. and the long-term commitment to the programme gives industry the incentive required to best support the area. Over the next year, we will evaluate the case for an We are working to ensure that these to invest. innovation platform in global challenges strategies align with and complement – those challenges that are significant in the BIS industrial strategies and the We have five innovation platforms: other parts of the world but not necessarily eight great technologies. We support our within the UK. thematic areas with the most appropriate – low carbon vehicles: established response to the needs of the challenge, 2007 market or technology area. The main Targets ways in which we provide support are – assisted living: established 2007 innovation platforms, large and small-scale – publish new strategies in the priority demonstrators, competitions on specific – low impact buildings: established areas of digital, transport, health and themes and support through community 2008 care, agriculture and food, low impact engagement and knowledge sharing. buildings, urban living, resource – sustainable agriculture and food: efficiency and emerging technologies established 2009 and industries stratified medicine: established 2010 – – launch three new innovation (since then incorporating the detection platforms: urban living, energy and identification of infectious agents systems and transport systems innovation platform). – evaluate the potential for an Over the next year we intend to establish innovation platform focusing on a further three innovation platforms: ‘global challenges’. – energy systems

– transport systems

– urban living.

38 Technology Strategy Board Investing in priority areas based on potential

Large-scale demonstrators Catalysts Thematic competitions

Large-scale demonstrators bring Our catalyst programme is a highly Competitions for R&D and innovation partners together to validate ideas, effective way to offer businesses joined- funding focused on a specific theme overcome barriers and move new up support from the research base – or area of challenge, technology or products closer to wider application. through our partnership with the research application form the bulk of our funding They provide opportunity for real- councils – from early-stage ideas all the programmes. world user testing and trialling prior to way to commercial readiness. commercialisation. We have enabled During 2014-15 we plan to run 88 such effective demonstrators in areas such Catalysts offer funding opportunities competitions for R&D and innovation as low carbon vehicles, retrofitting of throughout the year, when innovators funding using collaborative R&D, feasibility buildings and digital products. need it, in a joined up and progressive studies, SBRI, demonstrators and way – with higher levels of funding than Launchpad formats. Current demonstrators include dallas our other ‘always open’ schemes such (Delivering Assisted Living Lifestyles at as Smart. Following the success of the The details of competitions and other Scale) and the future cities demonstrator award-winning Biomedical Catalyst we activities planned for 2014-15, and the in Glasgow, with smaller ones in Bristol, launched two more, in agri-tech and anticipated funding commitments, are London and Peterborough. industrial biotechnology, last year and will shown in the following sections. launch an Energy Catalyst in 2014-15.

Targets

– continue the roll-out of Biomedical, Agri-tech and Industrial Biotechnology Catalysts

– launch an Energy Catalyst.

Delivery Plan 2014-15 39 Anticipated investment commitments in 2014-15, by priority area* Anticipated investment commitments in 2014-15, by priority area*

Anticipated Space applications £20m investment commitments in 2014-15, by priority area*

The Technology Strategy Board’s total committed spend on thematic programmes will be up to £536m. The planned Core funding for 2014-15 is £421m – this can change in year. Agriculture and food Urban living

Energy £82m £13m environment Built £46m £63m Transport £70m Health and care £80m £150k Resource efficiency £13m Resource High value manufacturing £72m

Digital economy £42m

Enabling technologies £20m *Note that the figures quoted in this illustration are indicative only, subject to change over Electronics, sensors the spending period, and Advanced materials Biosciences and photonics ICT represent budgets under Developing new opportunities new Developing Technology Strategy Board control only. These funding Emerging technologies commitments will usually be spent over a number of years. & industries £16m

40 Technology Strategy Board Delivery Plan 2014-15 41 Challenge-led areas: Energy

Challenge-led areas: Energy

Energy underpins almost every aspect The barriers to innovation Focusing our investments of our day-to-day lives. We have learnt to take energy for granted as a The future energy system will need to In 2014-15 we will put extra focus on the commodity that will always be able to be flexible, resilient and affordable to following areas: meet our increasing demands. However, integrate the changing mix of energy global legislation and domestic energy supply and demand technologies. – expansion of work in energy systems: policies are now making us appreciate we will progress setting up the Energy the complexity and value of energy in a There are a number of key challenges to Systems Catapult – and work with way we have not before. We therefore overcome but they also offer businesses business and government to launch believe UK domestic policy and legal an opportunity: a new Energy Systems Innovation requirements offer real opportunities for Platform. This will pull together activity UK business to develop innovative new – cost: developing new energy across the energy systems area, joining products and services. technologies can be very expensive up roadmapping, funding, Catapult and lengthy. R&D investment is often programmes and demonstrator In 2012, the energy supply industry in seen as too risky for private funding programmes across industry, academia the UK contributed approximately 3.5% until the technology is de-risked by and the public sector of GDP, 10% of total investment, and further development 52% of industrial investment, directly – launch an energy catalyst: in employing around 176,000 people, and – supply chains: new technologies in partnership with DECC and EPSRC, more indirectly (source UK Energy In energy often need new supply chain we will launch a new Energy Catalyst Brief 2012, DECC). We are aiming to help players which may not naturally find competition UK business profit from the changes the the right collaborators or routes to world will have to make to address the market or demonstration projects – increase international activity: we ‘trilemma’ of energy security, affordability will increase international activity by and sustainability. – skills: a skilled workforce is needed to better enabling innovative UK energy build a successful energy technology businesses to develop the partnerships Against this background, and within business. Often these skills are not and connections in Europe and beyond the sustainability framework developed easily accessible for small companies, with Forum for the Future, we focus our where they are held in academia, or – grow and support the SME supply strategy on three overarching strategic potential business partners chain: we will grow and support opportunities where we believe UK the SME supply chain in energy by business can make a real difference and – infrastructure: innovation in energy supporting those already in the sector, generate wealth: is often inter-dependent with energy and by joining up parallel sectors to infrastructure. Lack of visibility of the enable new entrants from businesses – development of affordable and secure future development of infrastructure currently working in manufacturing, sources of energy supply that also can prevent new products being digital, communications and materials reduce greenhouse gas emissions developed development. – integration of future demand and energy supply into a flexible, secure – policy: to invest in new infrastructure, and resilient energy system new generating capacity, new supply – reduction of greenhouse gas chains and new skills, businesses emissions at point of use. need longer-term certainty regarding regulation, planning and capacity targets.

42 Technology Strategy Board Challenge-led areas: Energy

Energy action plan 2014-15

Challenge Action Timing & Budget

Offshore Renewable Energy Catapult: provide a world-class centre of expertise Catapult Q1–Q4 to support rapid commercialisation of cutting-edge technologies in offshore Up to £10m renewables with global potential.

Energy Systems Catapult: establish a world-class centre combining assets and Catapult Q1–Q4 expertise to enable the UK to be a global leader in developing new services and Up to £1.5m products for energy systems – taking a whole-systems approach.

Energy Technologies Institute (ETI): maximise value of public sector investment Co-funding of the ETI Q1–Q4 by inputting into ETI strategy, utilising programme outputs and ensuring Up to £10m coordination.

Energy Catalyst: establish a Catalyst with EPSRC and DECC to accelerate Catalyst competition Q1 and Q3 energy innovation by providing constant and joined-up support. Up to £35m

Shale gas: working with DECC and NERC, to develop new technologies to Feasibility studies Q1 exploit the UK’s resources responsibly. competition Up to £2m

International bilateral energy collaboration: opportunities for UK companies to Collaborative R&D Q2 collaborate internationally. We will enable collaboration with the US in fuel cell competition and Eureka Up to £1.5m technologies, and with Canada in marine energy sensing and cost–reducing competition measurement technologies (through a Eureka competition).

Energy systems toolkit: procurement of modelling tools and/or data to fill gaps SBRI competition Q2 in UK’s energy systems modelling capability. Up to £1.5m

Energy systems supply chain demonstrator: develop a programme to SBRI competition Q3 demonstrate energy supply chain innovation. Up to £10m

Conventional fuels – maximising efficiency, minimising emissions: to ensure Collaborative R&D Q3 that the UK makes the most efficient use possible of fossil fuel resources. competition Up to £5m

Ocean energy: this ERANET comprises a four-year programme of co-ordinated EU competition Q3 activity among nine European partner countries to support research and Up to £1m innovation in the ocean energy sector.

Next-generation solar technologies: supporting the next of the Solar ERANET KTN community Q1 focusing on next-generation solar technologies. We will also set up a solar EU competition Q4 special interest group on _connect. Up to £1m

Enabling technologies for energy: aiming to pull in latest digital, manufacturing, Feasibility studies Q4 advanced materials, sensors, communications and electronics technologies into competition Up to £3m the energy sector.

Budgets shown refer to funding commitments in the year, which may be spent over several years

Delivery Plan 2014-15 43 Challenge-led areas: Built environment

Challenge-led areas: Built environment

Low impact buildings The barriers to innovation Focusing our investment

The demands we make on our built These include the following factors: The focus areas are: environment are changing rapidly. Increasingly stringent legislation, growing – globally and in the UK, construction – digital design and engineering urbanisation, concerns about energy has a strong subcontracting culture. security, and resilience and adaptation This means that information, and – high-performance materials and to environmental change all require new innovation, spreads slowly building technologies approaches to the design, construction and operation of buildings. – contracting practice results in risk – energy eco-systems being passed to the smallest players To meet these requirements the in the supply chain, which limits – energy management and construction industry needs to transform novel approaches or technologies diagnostics tools. from a traditional craft-based sector due to concerns over product and to an industrialised, outcome-focused professional liability and process-driven sector. This trend is underpinned by government policy – the majority of design decisions which will reduce build times and costs; are taken on-site, impacting on the improve predictability, precision and quality of the outcomes and speed of quality; and deliver high carbon efficiency. build, and reducing the opportunity to develop repeatable practices The UK boasts five architecture, engineering and design firms in the – innovation tends to be on a project- world’s top 25 by turnover – making the by-project basis, rather than within UK second only to the US – and three of the context of a continuous learning the top 25 contractors in Europe. culture

The UK also produces a healthy £18bn – both the industry and the consumer of higher-value building technologies are conservative and risk-averse. and energy management solutions and exports £11bn of high-value architecture and design, engineering, construction management, building technologies and energy management solutions.

Our investment in the construction sector has been developed in collaboration with the Government’s industrial strategy for construction, Construction 2025, creating a strong alignment, with clear opportunities for working together in supporting UK-based firms.

44 Technology Strategy Board Challenge-led areas: Built environment

Built environment action plan 2014-15

Challenge Action Timing & Budget

Digitising the construction sector: exploiting the power of building information Collaborative R&D Q1 modelling (BIM) to enable new and more industrial approaches to construction. competition Up to £6m

A digital tool for building information modelling: building new BIM standards SBRI competition Q1 into software tools that can be used by industry. Up to £1.5m

Enabling collaboration in the construction supply chain: exploring new ways Feasibility studies Q2 to increase collaboration and information flow along the complex construction competition Up to £2m supply chain.

Demonstrating whole-life value: exploring how managing the whole-life value of Collaborative R&D Q3 a building can benefit all involved. competition Up to £3m

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 45 Challenge-led areas:Urban living

Challenge-led areas: Urban living

Our cities matter more than ever. Three The size of the market for integration of Focusing our investment quarters of us will be ‘urban’ by 2050, urban living is estimated to be £200bn a and cities outperform rural areas in every year by 2030. The UK is well-positioned The main focus areas are the following: economic indicator. to exploit this growing market. We have world-leading companies in – tools for integration: overcoming However, our urban areas face a wide project management, engineering, incompatibility between urban living, range of challenges which transcend architecture, energy and transport and solving the problems of capturing the buildings in which we live and work, systems, communications and the digital and using the rich data streams in cities including a changing climate, population economy, finance, legal and insurance. growth, shifting demographics and – simulation andmodelling at a resource crunches. As cities grow, Our ability to bring together the cluster city scale: developing the potential to issues such as overheating, congestion, of companies needed to design, ask ‘what-if?’ questions at a city scale. supplying water and removing waste, finance, risk manage and execute large To observe, understand, predict and become more and more significant. infrastructure projects makes the UK a act Urban infrastructure becomes major global centre for such projects. overstretched and brittle, leading to the – innovation from integrated platforms: risk of systemic failure. Barriers to innovation re-thinking urban infrastructure and services based on new levels of Cities around the world say that to be These include: integration successful in the future they need to deliver three things: a strong economy, – technical complexity: innovation – demonstration of performance in use: an excellent quality of life and a reduced requires collaboration across multiple providing practical evidence of the environmental footprint. sectors to integrate disparate systems effectiveness of integrated urban living.

Our vision is to help UK firms develop – complex ownership structures: an As part of our plans we will work to the products and services to meet the essential requirement for developing establish an Urban Living Innovation changing needs of cities and urban future city systems is interoperation Platform, which will bring businesses, areas, and to sell them to the world. of infrastructure. Multiple ownership researchers and policymakers together to Considerable investment has gone into structures make it difficult to open up focus on the challenges and opportunities improving key urban infrastructure – critical data sources of this complex area. from energy and transport systems, to buildings and water and waste. However, – weak evidence base for investment: the consensus is that we cannot reach there is a lack of evidence of the levels of performance that are needed performance in use for integrated city for the future by optimising the individual systems systems. Integration across urban living is the critical capability that is missing – – need for new financing and business the ability to treat a city as a system of models: existing methods struggle systems. to justify the financing for city-scale innovation. This will require innovation across many areas – from sensors, use of large packages of data (big data) and advanced simulation and modelling, through energy and transport systems to communications and financial services.

46 Technology Strategy Board Challenge-led areas: Urban living

Urban living action plan 2014-15

Challenge Action Timing & Budget

Future Cities Catapult: the Catapult will create and demonstrate integrated Catapult Q1–Q4 city-wide systems, bringing together city governments, business and the Up to £11m knowledge base.

National urban systems model: integration of urban systems requires the ability SBRI competition Q2 to make models from key infrastructure pillars integrate and inter-operate. Up to £6m

Integrated by design: extending existing infrastructure projects to support Collaborative R&D Q2 integration with other urban systems. competition Up to £20m

Product and service innovation: exploiting integrated information platforms to Collaborative R&D Q2 develop new products and services for future urban environments. competition Up to £15m

Environmental and social data: building on a successful feasibility study Collaborative R&D Q2 competition, combine environmental and other data to develop new solutions for and feasibility studies Up to £5m and urban environments. competitions significant co-funding

Reimagining the High Street – Phase 2: the implementation and demonstration SBRI competition Q4 Up to £6m phase of our rethinking the high-street challenge.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 47 Challenge-led areas:Agriculture and food

Challenge-led areas: Agriculture and food

Nearly four million people in the UK are The barriers to innovation – Greenhouse gas reduction: employed in the food, feed and drink technologies and methodologies industry. These supply chains connect Barriers to innovation include: to tackle by far the biggest sources researchers, agro-chemical providers, of greenhouse gas emissions in machinery manufacturers, farmers, – a fragmented supply chain with many agriculture – nitrous oxide from producers, manufacturers, wholesalers small players with low capacity for fertilisers in soil and methane from and retailers – providing the food and innovation, and the slow spread of livestock. drink that sustains us. ideas As part of the UK Strategy for Agricultural The sector contributes around £96bn – skills shortages Technologies (https://www.gov.uk/ to the UK economy or 7% of GVA. And government/publications/uk-agricultural- with exports of £18bn per year, we are – conservatism, particularly among technologies-strategy), the Government already one of the top global exporters of many small and medium-sized has set up the Agri-Tech Catalyst to further food, feed and drink. The UK already has primary food producers support science and innovation in the recognised centres of excellence across sector, with the vision to make the UK a the agri-food supply chain, and we plan – insufficient applied research on world leader in agricultural technology, to further support the sector, to help it the key challenges identified in the innovation and sustainability. grow further. strategic research and innovation agenda Through the Catalyst £70m will be made Providing a sustainable food supply available to businesses and academia chain is a societal challenge. In the UK – slow uptake of ideas from other areas over the next five years. The Technology the population is expected to grow by of industry and from the knowledge Strategy Board is running the Catalyst, 10–15% by 2030. On top of this there is base. with support from the Biotechnology and competing demand for land – whether Biological Sciences Research Council. from a growing built environment or Focusing our investment competition from energy-based fuel The Catalyst will fund proposals relating to: crops such as for biomass or transport Our programme seeks to increase fuels. And, as we have seen, the the productivity of crops and animals primary crop and livestock production, changing climate can wreak havoc on and, simultaneously, decrease the –  including aquaculture crops and livestock. In a global context, environmental impact of the industry. It the world population is expected to hit will focus on four interlinked areas. nine billion by 2050; around a quarter – non-food uses of arable crops (for example, for biomass) more people on the planet. Diets are – Crop productivity: we are looking at changing too, towards a greater intake two areas of crop productivity: crop food security and nutrition challenges in of meat and dairy foods, and developing protection, and crop nutrition and –  international development nations are expecting similar levels management of choice and nutrition as developed – challenges in downstream food countries. – Sustainable livestock production processing, provided the solution lies in (including aquaculture): development primary production. It is estimated by The United Nations of livestock production solutions that Food and Agriculture Organisation (FAO) are environmentally and commercially that at current consumption levels, 60% sustainable and meet regulatory more food will need to be produced requirements globally by 2050. Simply put, there are huge pressures to increase the amount – Waste reduction and management: of food produced owing to growing farm storage and food processing: populations, whilst resources are a whole-chain approach to waste dwindling, and the climate is changing. reduction, and post-gate food We need to find new ways of providing processing and packaging for retail food to our societies, and the need is and food distribution pressing.

48 Technology Strategy Board Challenge-led areas: Agriculture and food

Agriculture and food action plan 2014-15

Challenge Action Timing & Budget

Crop and livestock disease challenges: effective solutions to control Collaborative R&D Q1 agricultural diseases to realise the yield potential of crop and livestock competition Up to £10m and production systems. £6.5m co-funding

Agri-Tech Catalyst: to advance the sustainable intensification of agriculture and Catalyst competition Q1 and Q4 deliver economic impact for the UK agri-tech industry. Up to £30m

Agriculture and food supply chain: knowledge transfer to improve the Knowledge Transfer Q1 competitiveness, resilience and responsiveness of the agriculture and food Partnerships Up to £1.25m with supply chain. the potential of further co-funding

Resource efficiency in the food supply chain: improving the use of resources Collaborative R&D Q3 and minimising post-farm-gate waste generation in food production supply competition Up to £5m and chains significant co-funding

Centres for agricultural innovation: working with BIS, Defra and BBSRC to Collaborative proposals Q2 establish centres as part of the implementation of the industrial strategy. The Government first centre planned is the Centre for Agricultural Informatics and Sustainability funding as per Metrics. the BIS Agri-Tech Industrial Strategy

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 49 Challenge-led areas: Transport

Challenge-led areas: Transport

The way that people use transport today The barriers to innovation Focusing our investment is unsustainable in terms of energy use, impact on the environment, system The barriers to innovation include: This year, we will establish a Transport efficiency and cost to businesses. Systems Innovation Platform to address Transport generates about 25% of – short-term demands on particular the challenges of integration – helping UK greenhouse gas emissions, and forms of transport that can divert business to develop market-driven congestion, if unchecked, will cost the businesses and academics solutions in the form of end user products economy £22bn by 2025. from addressing the longer-term and services that are delivered through opportunities of integration the integration of systems across different Increasing demand for capacity and modes of transport. capability is already outstripping supply. – the need to re-engineer automotive We now require a major transformation manufacturing supply chains to We will continue to work closely with the in performance (along with a societal provide the components for new Office for Low Emission Vehicles and change) to deliver a more sustainable electric, hybrid and fuel cell vehicles the Automotive Council, and will support and accessible transport system. the Advanced Propulsion Centre as it – a need in the marine sector to share provides a way for the industry to move Transport provides employment for capabilities between the major new technologies into production. more than 1.3 million people and is shipbuilders, the leisure sector and worth almost £40bn to the UK economy. their supply chains We will broaden our support and UK business can make a significant engagement with rail businesses and difference and generate wealth by: – the long-term nature of investments in support the BIS Rail Technical Strategy new aircraft, which generates specific and the department’s Enabling Innovation – reducing vehicle emissions whilst challenges to innovation in aerospace in Rail team. increasing their efficiency – in rail, the relative lack of processes We will continue to work with the UK – supporting the acceleration of new and capabilities in clients and the marine industry, and in line with the Marine vehicle technologies supply chain to collaboratively bridge Growth Strategy, to identify specific areas the gap between research and for support. There is an immediate need – improving the operation, efficiency procurement to further improve vessel efficiency and to and cost-effectiveness of the transport respond to the challenge of autonomous system – the lack of facilities for demonstration operation. and validation at scale and in the real – integrating different energy sources world. In aerospace, the medium-term focus is into transport systems and vehicles on improving manufacturing systems to increase capacity and deliver innovative – exploring integrated and sustainable technologies to aircraft programmes. We solutions for future infrastructure will continue to work with the industry, in particular to support the activities – developing a longer-term strategy of the recently established Aerospace towards sustainability. Technology Institute, the work of the Aerospace Growth Partnership and work To benefit from these opportunities, of the UK Centre for Aerodynamics. the key players will need to continue to engage with the UK supply chain as well as the growing number of SMEs in the field to develop and commercialise new technologies.

50 Technology Strategy Board Challenge-led areas: Transport

Transport action plan 2014-15

Challenge Action Timing & Budget

Transport systems competitions: addressing commercial and public Feasibility studies and Q3 acceptance challenges in developing new integrated transport systems and collaborative R&D Up to £30m solutions. competitions

Transport Systems Catapult: developing a world-class centre of expertise Catapult Q1–Q4 in transport systems to support rapid commercialisation of cutting-edge Up to £10m technologies.

Niche vehicle research and development: supporting the UK niche vehicle Collaborative R&D Q1 Up to £1m (with sector, recognising that smaller companies are often able to develop and competition an additional £0.5m demonstrate new products more quickly than the global original equipment co-funding from manufacturers (OEMs) and tier 1s. OLEV)

Off-highway vehicles: encourage the OEMs and supply chain to collaborate Collaborative R&D Q3 with road vehicle organisations to cut emissions, improve efficiency and further competition Up to £3m increase their value to UK Plc.

Integrated Delivery Programme competition 11: development of advanced Collaborative R&D Q2 technologies in low carbon vehicles, growth of SMEs, and enhanced competition Up to £7m opportunities in the UK supply chain.

Rail supply chain: developing innovative solutions and supply chains for rail. Collaborative R&D Q3 competition Up to £3m

Highly innovative technology enablers in aerospace competition 3: continue Collaborative R&D Q3 to encourage new entrants into the aerospace supply chain by supporting competition Up to £5m development of more risky highly innovative technologies and solutions.

Maritime technologies (MARTEC) 2015 call: support UK businesses to take EU competition Q3 their technologies to a new market and help them work in new Europe-wide Up to £1m collaborations.

Vessel efficiency: to continue the support for UK businesses to meet the Collaborative R&D Q4 challenges and exploit the opportunities around improved vessel efficiency. competition Up to £5m

Maritime autonomous systems: support UK businesses to maintain and build Collaborative R&D Q3 on their global reputation for services and products in maritime autonomy. competition Up to £3m

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 51 Challenge-led areas: Health and care

Challenge-led areas: Health and care

Healthcare providers are facing greater The barriers to innovation – earlier and better detection and challenges from a growing, ageing diagnosis of disease leading to better population and an increasing burden of The barriers to innovation are: patient outcomes disease. Countries in the Organisation for Economic Co-operation and – innovation in medicines and – highly effective treatments tailored to Development (OECD) collectively spent healthcare technology must be carried patients’ needs which either modify the over $4.6tr on healthcare in 2008 and, out within a regulatory environment underlying disease or offer potential for many, this has been increasing as a designed to protect patients, meaning cures in increasingly efficient and cost- proportion of GDP. development timelines are longer effective ways. than some other technology sectors The UK has key strengths. The life and that the risks and costs can deter We are addressing these challenges sciences sector in the UK consists of investment through the following activities: around 4,980 companies developing, producing and marketing products and – the conservative nature of patient – the Assisted Living Innovation Platform: services in the pharmaceutical, medical care can limit the adoption of new helping businesses to deliver products, technology, medical biotechnology and technologies as can the fragmented systems and services to help people industrial biotechnology markets. In total nature of procurement live independently for longer – how they the sector employs 176,000 people. want and where they want – the pace of technology innovation The industry sells into a global industry is outstripping the ability of users – the Stratified Medicine Innovation with current total market values of £612bn to adapt to the way healthcare is Platform: supporting companies to for pharmaceutical and biologics, £223bn delivered. create cost-effective solutions for for medical technology and £32bn for the delivering the right treatment to the right rapidly growing industrial biotechnology We must ensure that innovators patient at the right time market. These markets have historically are working towards users’ needs strong growth, and forecast growth rates and thinking about how adoption of – our regenerative medicine and cell are 8-10% a year. Life science companies technology will require changes in patient therapy programme: helping UK based and operating in the UK generate care pathways, or the way that services businesses take advantage of the next £52bn in turnover from sales into the are used. generation of treatments to deliver UK and overseas and this represents long-term relief or cures for diseases approximately 6% of world market sales. Focusing our investment – the Biomedical Catalyst, allowing a Current healthcare models are facing more open approach to innovation greater challenges, both physically and to bridge academic and commercial financially, in providing for a growing, activities in therapeutic development, ageing population with an increasing medical devices, diagnostics and burden of disease. For companies to e-health/m-health solutions. devise solutions to these challenges, they must recognise the drivers behind Alongside the new competitions planned the healthcare challenges and look at for this year, we will establish the Precision models of: Medicine Catapult, a world-leading centre that will help the UK to accelerate innovation in this exciting area. – an increasing emphasis on health and wellbeing, disease prevention and proactive management of long-term conditions

52 Technology Strategy Board Challenge-led areas: Health and care

Health and care action plan 2014-15

Challenge Action Timing & Budget

Cell Therapy Catapult: providing a world-class centre of expertise in cell therapy Catapult Q1–Q4 to support the rapid commercialisation of cutting-edge technologies with the Up to £10m potential to have a global impact. Scoping the new cell therapy manufacturing centre.

Stratification and neurodegenerative diseases: two competitions in the areas of Collaborative R&D Q1 diagnosis, management and stratification, and data and business models to aid competitions x2 Up to £7m stratification.

Digital health in a connected hospital setting: enabling companies to Collaborative R&D Q1 understand what impact they could have to help deliver more efficient and competition Up to £6m effective health systems and to connect with providers.

Dementia: turning research and small-scale pilots into new aesthetically pleasing SBRI competition Q3 products and services. Up to £5m

Advancing regenerative medicines and cell therapies: addressing commercial Collaborative R&D Q1 challenges in developing next-generation therapies. competition Up to £7.5m

Biomedical Catalyst: enabling early to late-stage innovation for healthcare Catalyst competition Q1 and Q3 solutions with a particular focus on SMEs. Up to £30m

Stratified medicine: disease-focused competition under the Stratified Medicine Collaborative R&D Q2 Innovation Platform – scope to be finalised through workshops with the competition Up to £6m community.

Stratified Medicine Knowledge Transfer Partnerships: building links between Knowledge Transfer Q3 companies and the knowledge base. Partnerships Up to £1m

Healthcare Technologies Launchpad in Wales: supporting the growth of the Launchpad competition Q3 healthtech cluster in Wales. Up to £1m

Revolutionising long-term care phase 2: continuing our activity to support new Collaborative R&D Q3 ways for business to develop solutions for long-term care. competition Up to £5m

Ambient assisted living call 2015: enabling UK business to exploit EU EU competition Q4 opportunities in the development and application of assisted living technologies. Up to £1m

Assisted Living Mission: giving small UK companies the opportunity to Mission Q4 understand how products, systems and services for independent living are being Up to £100k developed and successfully commercialised overseas.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 53 Competence areas: High value manufacturing

Challenge-led areas: High value manufacturing

Our high value manufacturing The barriers to innovation Focusing our investment programme aims to grow the contribution of manufacturing to UK Manufacturing innovation requires new The five strategic themes where there is GDP by investing in innovation that will knowledge to generate entirely new strong potential for innovation to make maintain or improve competitiveness products, processes or services, or a difference across multiple sectors and and increase the commercialisation of new technology to improve existing generate wealth for the UK are: new manufacturing technologies. processes. This often involves bringing Manufacturing contributes £6.7tr to together more than one novel technology – resource efficiency the global economy, and the UK is and components of separate supply in the world’s top 10 manufacturers. chains to secure future competitive – manufacturing systems Manufacturing makes up 10% of UK manufacture and through-life service. gross value added and 54% of UK Very few enterprises can address these – integration of new materials with exports, and directly employs more than challenges alone. manufacturing technologies 2.5 million people. Manufacturing new products or adopting – manufacturing processes The UK is scientifically strong in new processes requires demonstration emerging technologies and has the at commercial scale, which is often – manufacturing business models. potential to make a global impact, expensive and risky. including through manufacture of To tackle the challenges and exploit composite materials, plastic electronics This so-called ‘valley of death’ – where the opportunities for innovation in and products derived from industrial many innovations fail – is a significant these areas, businesses will need to biotechnology. barrier to manufacturing innovation. develop within some of the 22 national Small and medium-sized businesses are competencies. Our programmes will set A landscape for the future of high important for economic growth, and it out to support industry in developing these value manufacturing in the UK, a study can be difficult for them to connect with competencies, through feasibility studies, which we commissioned, identified global players who offer routes to market. collaborative R&D competitions, and, 22 national competencies, which, if We will help to address this challenge. where appropriate, special interest groups. effectively developed and/or grown over the coming years, will ensure that the UK is well positioned to grow its manufacturing base significantly.

We incorporated these competencies, grouped under five strategic themes, into our High Value Manufacturing strategy, which forms the framework for our action plans, including those of the High Value Manufacturing Catapult.

54 Technology Strategy Board Competence areas: High value manufacturing

High value manufacturing action plan 2014-15

Challenge Action Timing & Budget

High Value Manufacturing Catapult: provide a world-class centre of expertise in Catapult Q1–Q4 high-value manufacturing to support the rapid commercialisation of cutting-edge Up to £30m technologies. Initiating the new graphene application centre.

Industrial Biotechnology Catalyst: encourage and de-risk the development of Catalyst competition Q1 and Q3 industrial biotechnology processes. Up to £15m

Development and applications of advanced coatings: the application of novel Feasibility studies Q1 coatings that will replace less environmentally friendly products, or enable competition Up to £2m cheaper or more sustainable materials to be used under the coatings.

Novel mechanical conversion processes: the application of new primary and Collaborative R&D Q1 secondary mechanical conversion technologies and processes. and feasibility studies Up to £6m competitions

Manufacturing process industries – North East Launchpad: build on the Launchpad competition Q2 established cluster to enhance its impact on the process industries in the UK. Up to £1m

Flexible and adaptive manufacturing: flexibility of production and manufacturing Collaborative R&D Q3 supporting customised and rapidly reconfigurable manufacturing. Adaptive competition Up to £6m manufacturing including single step, flexible reconfiguration and process

Smart, hybrid and multiple materials: design, modelling and manufacturing Collaborative R&D Q3 processes of multi-metallic components and high-performance materials. competition Up to £5m

Simulation & modelling in materials and manufacturing. Feasibility studies Q4 competition Up to £500k plus matched co-funding from DSTL

Industrial Biotechnology ERANET Call 6: encourage and de-risk the EU competition Q4 development of industrial biotechnology for the production of chemical Up to £750k intermediates, exploiting the strengths of other European players in the process.

Additive manufacturing: application of additive layer manufacturing techniques Collaborative R&D Q4 or other freeform techniques. competition Up to £6m

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 55 Competence areas: Digital economy

Competence areas: Digital economy

Our digital economy programme The barriers to innovation – capability: helping businesses develop addresses the adoption and exploitation the technical tools and resources they of information technologies by The pace of change in information- need to innovate businesses. The internet, computing handling technology creates risks for and mobile communications have a both businesses and their customers, – marketplace: creating industry transformative effect on how businesses and companies adopting digital conditions that encourage succeed across the economy. By technology may need to fundamentally experimentation and business growth innovating in the UK, and establishing rethink their business models and new ways to use this technology in supply chains. Whilst the UK internet – context: working with others to all business sectors, we have the sector benefits from abundant agile, coordinate business and technology opportunity to position UK companies to experimental micro businesses that can innovation with advances in other areas. grow and to succeed on a global stage. help to solve these challenges, growing them to a critical scale requires support For each of these, we will link digital Software, IT and telecoms services not only for their innovative ideas, but expertise to the market needs, in one or together generated 4.2% of UK gross also for the companies themselves. more sectors where the issue is important. value added in 2011 and provided And at a human level, the free flow of We will therefore frequently target the 885,000 jobs. We have 107,000 software data can invade privacy and personal creative industries, where the impact of businesses, and are the world’s number security, and unequal access to digital technologies on value and the user two exporter of telecoms services technology can lead to unequal access experience continues to be keenly felt. (£5.4bn) and number three in computer to services and commerce. services (£7.1bn) and information We will also partner with those working services (£2bn) (Source: BIS). Focusing our investment across a much broader sweep of the progressively digitising economy, both in The world imports the UK’s expertise Our programme aims to help UK sectors dealing with information assets, – services dominate our trade balance companies to experiment and build such as education or finance, and those – and our culture. We are number two in their confidence in digitally enabled grounded in the physical world, such the global export trade in film, television, business, developing new technologies as health, transport, energy or retail, music, books, news and education. and new ways to exploit them, and re- developing digital expertise for use within establishing a profitable route to their these sectors and helping to transfer it Our total creative industries exports digitally-empowered customers. We are between them. (£17.3bn) are the highest per-capita concentrating on five challenges: in the world. Even though 7.8 million UK adults have never used the internet – digital innovators: supporting the (half of them for reasons of disability), business journey of those developing the UK population are the world’s most new uses for digital technology advanced adopters of online retail and the digital economy. – design: encouraging development approaches that stem from the needs of the user

56 Technology Strategy Board Competence areas: Digital economy

Digital economy action plan 2014-15

Challenge Action Timing & Budget

Connected Digital Economy Catapult: provide a world-class centre of expertise Catapult Q1–Q4 in the digital economy, to support the rapid commercialisation of cutting-edge Up to £10m technologies.

Open Data Institute: catalysing the evolution of open data culture to create Funding support Q1–Q4 economic, environmental, and social value. Up to £2m

Tech City UK: celebrating and championing London and UK’s vibrant tech Funding support Q1–Q4 community. Up to £2.5m

IC tomorrow: continuing programme to support digital start-up businesses as Funding competitions Q1–Q4 they link to challenge partners. and business support Up to £2.3m

Open data tools: continuing to develop an open toolkit to help clean, structure G-cloud procurement Q1–Q4 and store data. Up to £1m

Internet of Things Demonstrator Stage 2: scale-up of outputs from previous SBRI competition Q1 projects. Up to £1.6m

Location based services: helping businesses to use location technology to Collaborative R&D Q1 engage with their customers ‘here and now’. competition Up to £5m

Cross-platform production in digital media: further investment to complement Feasibility studies Q1 the collaborative R&D projects on visual and audio effects production. competition Up to £1m

Value from our interactions with digital content: understanding how value in Collaborative R&D Q1 data assets is affected by our relationship to them. competition Up to £2.5m

Learning technology – design for adoption: applying design expertise to help SBRI competition Q1 accelerate the development and uptake of learning technology. Up to £1m

Internet of Things Launchpad (with Tech City UK): investing in the London and Launchpad competition Q2 Cambridge SME clusters working on Internet of Things. Up to £1m

Data applications in commerce: generating value from product and transaction Collaborative R&D Q1 data. competition Up to £4m

Lowering the cost of personalisation: finding efficient ways to create individually Feasibility studies Q2 tailored products and services. competition Up to £2m

Countering cyber threats: creating systems that are resilient against external Collaborative R&D Q3 security breaches. competition Up to £4m

Online professional services: building confidence in the services that we buy Feasibility studies Q4 online. competition Up to £1m

Digital Media Launchpad: investing in an emerging cluster of small creative Launchpad competition Q4 businesses. Up to £1m

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 57 Competence areas: Space applications

Competence areas: Space applications

The UK’s space capability is world The UK is the single largest contributor Focusing our investment class. We have advanced manufacturing in Europe to telecommunications and integrated applications and the capabilities, world-leading satellite Our space programme aims to support second largest to the ESA navigation operators and one of the world’s largest innovation in new applications using programme. These subscriptions are satellite broadcasters, as well as a satellite data and space-based satellite managed independently to this delivery global services sector delivering systems systems. In 2013, we launched the plan under the leadership of the UK integration and software to support new Satellite Applications Catapult, which Space Agency but the same principles space applications. will give UK industry the end-to-end and objectives set out by the Technology infrastructure needed to link innovative Strategy Board are applied. The UK Space Innovation and Growth ideas from existing space sector players Strategy (IGS) 2010 and 2014 set with new collaborators from outside the ambitious targets for the UK to grow its The barriers to innovation sector. One of its primary challenges will global market share from 6% to 10% by be to identify which markets offer the 2030 and to create 100,000 new high- The two sectors within the space greatest potential for UK companies, value jobs. The worldwide space market industry – upstream, such as satellites building on the market analysis carried out was worth £160bn in 2008 and is forecast and supporting infrastructure, and under IGS 2010 and 2014. to grow to £400bn in 2030. downstream, such as data users, receiver terminal manufacturers and end- Our space programme has six key areas In the UK, the space sector has grown 9% use data applications developers – face of activity: a year on average over the last decade different barriers. and continued to deliver similar levels of – R&D and innovation programmes in growth in the last sector review up to 2011. We aim to help business tackle some of conjunction with the UK Space Agency IGS (2010) was updated in 2014 with new these key barriers to innovation, which for both national and ESA programmes actions, most significantly in giving the include: strategy a clear market focus, and these – the Satellite Applications Catapult will be factored into our delivery actions. – limited awareness of the value and efficiency of using space data – investment in open innovation to The last five years have seen great change accelerate commercialisation of take place within the UK space sector, with – perception of risk around feasibility R&D, guided by the National Space the creation of the UK Space Agency, the and robustness of new space-based Technology Strategy and roadmaps arrival and growth of the first European solutions Space Agency (ESA) facility in the UK, and – promotion of business opportunities the establishment in 2013 of the Satellite – long lead times for the provision of for the UK space industry within other Applications Catapult at Harwell. new spacecraft components and growth sectors, focusing on satellite- services. based applications and services Top-level developments have included an increased funding of space through – technology demonstration opportunities the ESA, to a total of £1.2bn. Of this, 37% both in-orbit and terrestrially for new (around £180m) of the ‘optional’ element applications, services, components, (programmes of interest to only some systems, and instruments member states which are able to decide on their own level of funding) of this is – formation of a ‘space’ community as managed by the Technology Strategy part of the Knowledge Transfer Network Board on behalf of the UK Space Agency, to succeed the successful Space in the areas of integrated applications, Special Interest Group and represent telecommunications (ARTES) and satellite the interests of SMEs and non-space navigation (EGEP). players and to facilitate the delivery of the National Space Technology Strategy and roadmaps.

58 Technology Strategy Board Competence areas: Space applications

Space applications action plan 2014-15

Challenge Action Timing & Budget

Satellite Applications Catapult: helping UK business develop new satellite- Catapult Q1–Q4 based products and services and to stimulate growth across the UK economy. Up to £10m

In-orbit validation: demonstrate innovative satellite payloads and services by Procurement Q1–Q4 developing the TechDemoSat model into a long-term regular programme in Up to £3m (with partnership with the UK Space Agency and the Satellite Applications Catapult. additional co-funding)

Entry to space sector – Harwell Launchpad 2: attract new players and start-ups Launchpad Q2 to the space sector and foster cluster activity around Harwell and associated Up to £1m centres of excellence.

Space foundations: a joint competition with the UK Space Agency to deliver Collaborative R&D Q3 flagship activities under the National Space Technology Programme. competition Up to £2m (with additional co-funding)

Solutions from space: work with other Technology Strategy Board thematic Competition format to Q1–Q4 areas to utilise satellite applications and services in new markets and address be decided Up to £4m identified government needs.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 59 Competence areas: Resource efficiency

Competence areas: Resource efficiency

The driver for this programme is a major The barriers to innovation Focusing our investment societal challenge: how to provide a high standard of living for a global population The barriers to innovation in resource More circular business model approaches of more than nine billion by 2050 with efficiency are: include: repair, reuse, remanufacture, the resources of a single planet. Global recycle, reduce and replace. We seek to resource extraction and use has grown – weak information flow along supply support innovation by businesses to more substantially over the last century, driven chains rapidly adopt solutions based on these by both an increasing population and a approaches that deliver benefits right growing middle class. At the same time, – lack of understanding and exploitation along supply chains. All our programmes the availability and accessibility of a broad of life-cycle thinking promote these strategies and ensure set of resources – minerals and metals, that life-cycle thinking is at the heart of biomass, food and water – is subject to – lack of visibility of projected resource projects. increasing constraints and increasing crunches; especially for smaller environmental impact associated with players Collaboration along existing and new extraction. supply chains is vital. Our plan focuses – lack of systems and established on promoting the design-led and system- This has resulted in price inflation/ business models to get ‘stuff’ level changes necessary to deliver volatility of resources and in some (products, components and materials) markedly-increased circularity in the use of cases substantially constrained or back for manufacturers and retailers resources to deliver customer benefits. even interrupted supply, often due to geopolitical issues. The UK economy is – poor understanding of the importance still predominantly linear in terms of its of system-level thinking and the use of resources. Meeting this societal interrelation of different resource challenge will require a marked increase types. in the circularity with which we use, reuse, repair and recycle resources of all kinds. The nature of the innovations required will span not only new design approaches, materials and end-of-life technologies and business models but will also require approaches operating at a systems level across multiple value chains.

Resource efficiency measures could add $2.9tr to the global economy by 2030, with returns on investment of over 10%; across the European Union, the opportunity is £220bn-400bn a year. We estimate the UK market opportunity to be in the range £50bn-75bn a year.

60 Technology Strategy Board Competence areas: Resource efficiency

Resource efficiency action plan 2014-15

Challenge Action Timing & Budget

Industrial symbiosis expertise: enabling companies to explore the potential for Knowledge Transfer Q1 sharing resources between manufacturing companies, and using co-products Partnerships Up to £500k from one as feedstocks for another.

Increasing value from waste: developing new supply chains that support a more Collaborative R&D Q3 circular economy. competition Up to £4m

Clean and Cool Mission 2014 to the US: giving small UK companies the Mission Q3 opportunity to understand how clean technology is being developed and Up to £250k commercialised overseas, and find investment and partnerships.

Circular economy systems: exploring business models and supply chains for Feasibility studies Q4 the circular economy. competition Up to £1m

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 61 Enabling technologies

Enabling technologies

Our enabling technologies programme 116,000 companies with revenues – information and communication runs in parallel with our challenge-led of more than £137bn and contributes technology: low barriers to entry into activities because we recognise that £66bn to the UK economy. Our software development and lack of technological developments can inspire programme seeks to stimulate engagement with users throughout the innovation across a range of market innovation in software-intensive process often mean that software is sectors, generating wealth for the UK and technologies, processes and not dependable or sympathetic to the meeting societal challenges. systems. needs, preferences and values of the user. We focus on four large and multi- The barriers to innovation disciplinary areas: Focusing our investment Private investors find it difficult to invest – advanced materials underpin many in higher-risk, early-stage innovation One of the mainstays of our activity has sectors including manufacturing, across the four enabling technology been our ‘technology-inspired innovation’ construction, cleantech and transport. areas, making it hard for innovators competitions, open to businesses working The interdependency of advanced to take their initial ideas to a level of on these enabling technologies. We materials and high value manufacturing maturity that will attract later rounds will continue to run these competitions in particular offers a large opportunity of investment or the engagement of in 2014-15 and also invest in activities for UK innovation and growth. potential users. focused on identified technology Businesses that produce, process, challenges: fabricate and recycle materials Particular barriers are: form a critical element in high value – advanced materials: materials for manufacturing. They have an annual – advanced materials: uncertainties aggressive environments turnover of around £197bn and in availability of energy and raw contribute £53bn to the economy materials, and competition from low- – biosciences: the integration of ‘omics’ cost manufacturing overseas technologies and technologies for the – biosciences are vital to develop the agri-food sector integral products and processes in – biosciences: advancing a our lives, from the food we eat to our novel product or process often – electronics, sensors and photonics: medical care. Between them, the UK involves long and expensive robotics and autonomous systems, biosciences sectors of pharmaceuticals development requiring high-value electronics systems and intelligent and industrial biotechnology represent capital equipment. The route to sensor systems over 13,000 companies, generate over exploitation can also be complicated £134bn in turnover and contribute by regulation. Transformative – information and communication £41bn to the economy technologies are often overlooked as technology: user experience, and investments as they are perceived as software quality and testing. – electronics, sensors and photonics complex and inaccessible. There is a underpin many industrial sectors. The lack of cross-disciplinary working UK’s electronics sector generates approximately £29bn a year in – electronics, sensors and photonics: revenues, contributing over £12bn the cost of product development and to GVA and employing an estimated manufacturing can be prohibitive and 850,000 people in the UK there is a fragmented supply chain dominated by innovative SMEs with – information and communication some larger systems integrators technology enables process, product and manufacturers who are more and service innovation across risk-averse all sectors, leading to increased competitiveness and sustainability. The UK ICT sector comprises more than

62 Technology Strategy Board Enabling technologies

Enabling technologies action plan 2014-15

Challenge: Across all enabling technologies Action Timing & Budget

Technology-inspired innovation: encouraging small and micro businesses to Collaborative feasibility Q1 Up to £2m collaborate with new business or science partners to develop technological innovations. studies competition Q4 Up to £3m Technology-inspired innovation: enabling small and micro businesses to demonstrate Feasibility studies Q3 the feasibility of innovative underpinning technologies. competition Up to £2m

Challenge: Advanced materials Materials for aggressive environments: stimulating the development of new materials Collaborative feasibility Q4 concepts to enable operation in particularly harsh environmental conditions (in terms of studies competition £2m temperature, corrosion, abrasion, Ph, impact, load, etc).

Challenge: Biosciences Integrated ‘omics’: stimulating innovation and demonstrating convergence of ‘omics’ Feasibility studies and Q3 Up to £2m with technologies. collaborative R&D significant additional competition co-funding

Challenge: Electronics, sensors and photonics Sensor systems (SAPIENT): designing and integrating technologies to develop sensor SBRI Competition Q1 systems with intelligence and optimised control. Phase 2 Up to £1m Electronic components and systems: joint technology initiative focused on micro/nano EU competition Q1 electronics, smart integrated systems and embedded systems. Up to £3m Robotics and autonomous systems: stimulating innovation to accelerate the Collaborative R&D Q3 Up to £2m with development of novel robotics and autonomous systems concepts towards technology competition significant additional demonstration and commercialisation in multiple sectors. co-funding

Challenge: Information and communication technology Robotics and Autonomous Systems Mission: giving small, high-growth-potential Mission Q1 UK companies the opportunity to deepen their understanding of how robotics and Up to £100k autonomous systems technology is being developed and successfully commercialised in the US. Robotics and autonomous systems: building an integrated community on _connect KTN community Q1–Q4 and developing a robotics and autonomous systems vision for the UK through cross- Up to £200k sector consultation to stimulate greater innovation and collaboration. E-Infrastructure: building a community on _connect to raise awareness in UK KTN community Q1–Q4 businesses of the e-infrastructure resources and expertise available and highlighting Up to £100k opportunities for innovation. User experience: stimulating development and demonstration of new ways for people to Feasibility studies Q4 interact with and experience ICT systems such as wearables and immersive approaches. competition. Up to £1.5m Knowledge Transfer Partnerships Beyond current software testing: stimulating development of new ways to test and Feasibility studies Q4 validate software components and systems to enhance software quality and improve competition Up to £500k software engineering.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 63 Emerging technologies and industries

Emerging technologies and industries

An emerging technology is one that The barriers to innovation Focusing our investment has only recently emerged, or is still emerging, from the science base. The barriers to innovation are: Given the uncertain nature of commercial success in early-stage technologies, we It allows something to be done that was – it is difficult for companies to see how take a portfolio-based approach to the not previously possible or was possible they can benefit from technologies emerging technologies and industries only in theory. It creates a totally new when they are completely new, programme. We have identified seven value proposition, and consequently has and potentially disruptive – and for high-potential emerging technology areas. the potential to disrupt existing markets academics to find the best routes to and create new ones. market These are:

This programme identifies high-potential – the potential value of a disruptive – synthetic biology technologies just emerging from the technology must be judged at science base and helps accelerate their individual business level as well as at – energy-efficient computing commercialisation through the early sector level and this rarely happens of engagement of business. its own accord – energy harvesting

Our work in this area links to and – getting investment for these riskier, – non-animal technologies complements the investment being made early-stage technologies can be hard by the research councils, and in areas – emerging imaging technologies such as the eight great technology areas – it is not easy to generate the critical the Government has identified that have mass needed to develop new – graphene the potential to propel future growth in industries, which requires many the UK. parties working together with easy – quantum technologies. access to expertise and facilities. We will be investing in these with partners such as the research councils, the National Centre for the Replacement, Refinement and Reduction of Animals in Research (NC3Rs), the Defence Science and Technology Laboratory and business. We will be publishing our updated Emerging Technologies and Industries Strategy (2014-18) and will begin implementing it immediately.

64 Technology Strategy Board Emerging technologies and industries

Emerging technologies and industries action plan 2014-15

Challenge Action Timing & Budget

Understanding and exploring early the commercial potential of disruptive Knowledge Transfer Q1–Q4 technologies: support the Knowledge Transfer Network to build communities of Network communities Up to £700k practice in identified emerging technology areas.

Graphene: exploring the potential of graphene to yield new products that could disrupt Feasibility studies Q1 markets, including stimulating the development of a robust and competitive supply competition Up to £1.5m base.

Energy harvesting: developing energy harvesting systems designed to perform in Collaborative R&D Q1 usable, reliable and robust ways. competition Up to £2.5m

Energy efficient computing: realising the value of disruptive technology through larger Collaborative R&D Q2 scale investment. competition Up to £3.5m

Quantum technologies: exploring the potential of disruptive technology through Feasibility studies Q2 feasibility studies. competition Up to £2m

Investing in capability: technology does not innovate, it is people who innovate. We Type of support to be Q3–Q4 will explore how best to support high-calibre innovators. determined following Up to £200k consultation

Non-animal technologies: realising the value of disruptive technologies through larger Collaborative R&D Q3 scale investments. competition Up to £4m

Non-animal technologies IKC: work with NC3Rs and the research councils to help Innovation and Q3–Q4 create early-stage critical mass in non-animal technologies (NAT), including exploring knowledge centre Up to £2.5m the potential of a new NAT innovation and knowledge centre.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 65 Other opportunity areas

Other opportunity areas

Our thematic priorities focus on those Creative industries and design areas where Technology Strategy Board programmes can add most value to In 2013 we published an updated UK innovation. But there are other strategy for innovation in the creative sectors where the UK capacity is strong industries. In 2014-15 we will continue to and where we are able to help and implement the strategy and offer support encourage business innovation. to businesses in the sector. The exciting digital opportunities for the creative These include the creative industries industries will continue to be taken and learning technologies. forward through our digital economy programme.

More broadly across the organisation, we will increase our support for the early use of design across our programmes, through the use of Innovation Vouchers, the Design Option and the work of the Design Special Interest Group.

The aim is to counter the tendency to consider the usability and desirability aspects of design only towards the end of R&D projects, and avoid revisiting earlier decisions that can result in increased time to market, more cost, and less commercial success.

66 Technology Strategy Board Other opportunity areas

Other opportunity areas action plan 2014-15

Challenge Action Timing & Budget

Connecting design and technology communities: ensure that design thinking KTN community Ongoing is incorporated early in the project life-cycle to improve commercial outcomes by Up to £150k continuing to support the Design KTN community. Evaluate the success of the Design Option pilots, and develop follow-on activities.

Learning technologies communities: launch (with digital economy team) a new SBRI Competition Q1 design studies competition to bring design expertise to bear to help accelerate the development and uptake of learning technologies.

Budgets shown refer to funding commitments in the year, which may be spent over several years.

Delivery Plan 2014-15 67 IXICO was one of the first tranche of companies to benefit from the award-winning Biomedical Catalyst and is conducting a trial with partners of a dementia diagnosis system. Last year saw “We feel that the Technology the launch of the We will roll out the Agri-tech Strategy Board has been, and will be, and Industrial Biotechnology Agri-tech and Industrial Catalysts further in 2014-15 our long-term partner and ally in the and are launching the Biotechnology fight against dementia.” Energy Catalysts. Dr Kate McLeish, vice president of technology, IXICO Catalyst Read IXICO’s story at www.innovateuk.org/success-stories

68 Technology Strategy Board Delivery Plan 2014-15 69 How we operate: Continuously improving our capability

How we operate: Continuously improving our capability To deliver our programmes as efficiently and effectively as possible, and to best meet the needs of our customers, we need to be a highly capable organisation.

We will continue to develop our people People and resource we will continue to stimulate creativity resources and business processes to planning and develop strong, mutually supportive be fast, flexible, and focused on the teamwork to ensure we achieve our goals. needs of business, and our benchmarks With an ambitious plan and new and impact measures to ensure that we responsibilities, we must make sure we Together with the work we are doing on remain effective and deliver value for are adequately resourced and ready to creating our brand story externally, we money. support our people. will be focused on ensuring our own staff understand and are motivated to telling During 2014-15 we will work with In order to deliver our programme from our story in a positive and energising way, our sponsor department BIS on the 2014-15 onwards – which includes many thus becoming our best ambassadors. implementation of the recommendations new challenges set by government – of the triennial review of the Technology we aim to increase our staff numbers Process improvement, Strategy Board, with a focus on finances from the current level of just over 200 to management information and communications. approximately 300. and IT

Our values This year will be a key one in terms of We have grown strongly since we were our people. We will see some structural established in 2007. We require a more We rely on our people to achieve our change within our executive management robust approach to how we manage our goals. Having clearly articulated values team and will be focusing on how processes to ensure capability, scalability is important for trust, clarity of purpose we grow and develop the distinctive and performance improvement. and delivery. We identified five values leadership capabilities required to deliver as core to our evolving organisation our strategic objectives. We will enhance our business processes and we will continue to ensure these through the development of a framework are embedded over the coming year This will include developing and which will improve how we support through an increased focus on internal supporting people managers who businesses to effectively and efficiently communication and engagement. Those are skilled and capable leaders of meet our customers’ needs. For example, values are: change. We will also continue to focus we have brought the administration on attracting, retaining and renewing of most of our grants into one system – solution-focused excellence in the identified areas of skills and are consolidating all our support to and knowledge we need to deliver against improve processes and reporting. This – passionate about innovation our plans. work includes having an integrated online application and grant payment process. – curious and creative Establishing the right culture for our staff is an ongoing priority. As our team We are increasing access to our – one dynamic team continues to grow, we will underpin the project information, which is now existing culture which safeguards staff available through our website. We are – committed to helping one another. wellbeing; we will build on our peoples’ also supplying data to the Gateway to strong motivation and understanding of Research portal led by the research how they contribute to our objectives; councils, so that information about we will ensure employees have a voice publicly funded science, R&D and in the organisation’s development; and innovation projects is all in one place.

70 Technology Strategy Board How we operate: Continuously improving our capability

We will simplify and enhance our IT To provide more timely insight on system to make it easier for customers – we will simplify and enhance our IT impact, we will investigate ways to and staff to access and use. In addition, system and improve our management improve our monitoring of supported we will work to unify our databases to information systems to make it easier companies. This will enable us to improve our management information for customers and staff to access and track companies’ development during systems. use in order to extract maximum value engagement with us, as well as seeing and we will ensure it is scalable how they develop beyond the life of the Integrating customer project. support – to better support the businesses and organisations contacting us, we will The changed innovation landscape and improve how we manage customer Targets our greater focus on SMEs have resulted queries, complaint tracking and in us working more and more with small support and provide an integrated – explore means of conducting and young companies, including those ‘one-stop’ service for customers portfolio analysis of our support for that may have never applied for public and staff. innovation, to enhance investment funding before. To better support the decisions and ensure our support is businesses and organisations contacting targeted in the most effective way us, we will improve how we manage Impact and evaluation customer queries, complaint tracking and – commence comprehensive impact support and provide an integrated ‘one- We are committed to improving our evaluations covering Smart; the stop’ service for customers and staff. understanding of the impact of our Low Impact Buildings Innovation programmes. Robust evaluation will help Platform; Innovation Vouchers, and us to improve delivery and impact and, Biomedical Catalyst, and deliver the Targets combined with more rigorous analysis evaluation of SBRI of opportunities, will help steer future – we will enhance our business investments. – explore ways to improve our processes through taking a monitoring of supported companies, customer-centric approach to In October 2013 we established a both during engagement with the our end-to-end processes and dedicated economics and evidence Technology Strategy Board and performance management and will function to take forward a complete plan beyond build organisational capability in of impact analysis. In 2014-15 we will improvement methodology, driving deliver a process and impact evaluation – track and evaluate impact such as improvements through the of SBRI, and commence further the ‘conversion’ of the companies organisation to better meet the needs evaluations across a number of key we refer to GrowthAccelerator for of our customers areas, including: support and the amount of external funding raised following showcasing – we will work with our sponsor – Smart of activities department BIS on the implementation of the – Low Impact Buildings Innovation – engage with and seek views from recommendations of the triennial Platform our stakeholders to ensure we are review of the Technology Strategy providing support relevant to their Board, with a focus on finance and – Biomedical Catalyst needs. communications – Innovation Vouchers. – we will investigate and evaluate means to improve our monitoring We will investigate means to conduct of supported companies to ensure a more holistic evaluation of the that our business processes support organisation. We will complement this companies’ development during with portfolio analysis across our range engagement with us of programmes and customers. Together these will provide insight as to our impact and effectiveness now, and help to inform decisions about where we are going.

Delivery Plan 2014-15 71 Our tools, from A to Z

Our tools, from A to Z

Our goal is to accelerate economic growth by stimulating and supporting business-led innovation. We Provide funding and a more co- We help the most entrepreneurial and ordinated approach from early-stage innovative UK companies expand their help business with a range of research to near commercialisation horizons by introducing them to potential activities and programmes, to innovative businesses and collaborators, suppliers, customers and each focused on helping researchers working in the priority areas investors overseas, such as in the US, to solve specific innovation of healthcare, agriculture, industrial India and Brazil. We work in partnership biotechnology and energy, with the aim with UKTI, and we invite mainly early- challenges. of quickly turning excellent UK research stage UK businesses to compete for into commercial products. places on missions to countries that We support businesses of all are particularly strong in innovation and enterprise. sizes and work with a wide range of partners in the public and private sectors to help A network of world-leading technology make the UK’s innovation and innovation centres designed to system work more effectively advance innovation in specific fields Grant funding to help UK high-tech to support future economic such as high value manufacturing small and medium-sized businesses to and satellite applications. Catapults undertake R&D projects and develop growth. enable the very best of UK businesses, partnerships with similar companies and scientists and engineers to work knowledge and supply chain partners Most of our support is offered together with access to leading- elsewhere in Europe. Eurostars enables edge facilities to transform ideas into companies to develop their networks on a competitive basis, and commercially viable products and and to build up the knowledge to we are looking to help the services. participate in larger EU programmes best ideas with the most such as Horizon 2020. economic potential.

The main ways we support Provides funding for businesses, business are outlined in this universities and research and Businesses in need of support to test section. technology organisations to work an innovative idea and explore its collaboratively on innovative projects in commercial potential can compete for strategically important areas to tackle funding towards their costs. Funding specific technical or societal challenges. is available to all sizes of business and can be awarded to both individual companies and consortia. Successful projects are then better prepared to enter larger programmes to develop the idea.

72 Technology Strategy Board Our tools, from A to Z

Other ways we provide support

Innovation and knowledge centres offer Launchpads are aimed at ambitious In addition to the specific activities already a shared space and entrepreneurial early-stage small and medium-sized mentioned, we also deliver support through: environment in which researchers from businesses working in high-tech academia and business can work side- geographic clusters. They provide Innovation platforms: these bring business, by-side on commercial applications of funding and a programme of business academia and government together to emerging technologies. support to help the business develop focus on a specific challenge, such as an innovative idea into a commercial vehicle emissions or affordable healthcare, prospect and potentially attract and include the development of technology additional private investment. roadmaps; consideration of standards, regulations, and procurement; and appropriate forms of funding support Innovation Vouchers provide small amounts of funding to enable innovative Events: these include InnovateUK, our major small and medium-sized businesses to annual innovation conference and exhibition work with experts they have not worked The SBRI programme (Small Business delivered jointly with UKTI; networking days with before and gain knowledge that Research Initiative) helps businesses to designed to help businesses interested in could help their business to grow. The develop an innovative product or service applying to funding competitions to find experts can be from academia and through a contract for up to £1m from collaborators and partners; and events that research and technology organisations a public sector organisation needing help the projects we support to meet with and from the fields of design and a solution to a specific challenge. the investment community. We also support intellectual property. The business gets funding to develop a range of third-party innovation events with its ideas and the guidance of a lead similar aims customer and the public sector gets more innovative ways of meeting its EU and international: support for businesses needs. to access EU R&D and innovation programmes such as Horizon 2020. This includes National Contact Points, experts who can advise businesses on how best to apply The network supports business to specific programmes and the Horizon 2020 innovation by enabling people to share Awards grants to individual pre-start- UK website www.horizon2020UK.org. We are knowledge, ideas and opportunities ups, start-ups, micro businesses and developing more international programmes within and between specific sectors and small and medium-sized businesses to to enable businesses to internationalise and communities. enable them to assess potential markets to access global markets, including with the and invest in R&D and innovation. Three emerging markets of India and China where The Technology Strategy Board’s online types of funding support are available: there is significant potential. community site, _connect, can be proof of market, proof of concept and accessed at https://ktn.innovateuk.org demonstration of prototype. Smart is designed to address the funding gap experienced by many small and early- stage businesses.

Knowledge Transfer Partnerships match businesses with UK universities, colleges, research and technology organisations and a recent graduate in order to deliver a challenging innovation project and build sustainable capacity and capability in the businesses leading to growth.

Delivery Plan 2014-15 73 Notes

74 Technology Strategy Board Notes

Delivery Plan 2014-15 75 Technology Strategy Board North Star House North Star Avenue Swindon SN2 1UE Telephone: 01793 442 700 www.innovateuk.org [email protected]

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The Technology Strategy Board is the UK’s innovation agency. We accelerate UK economic growth by stimulating and supporting business-led innovation. We are a business-led executive non-departmental public body, sponsored and funded by the Department for Business, Innovation and Skills.

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