DECEMBER 2018
THE SOUTH WALES CRUCIBLE A Science and Innovation Audit Report Sponsored by the Department for Business, Energy & Industrial Strategy A Science and Innovation Audit Report Sponsored by the Department for Business, Energy & Industrial Strategy 1 FOREWORD
BY CABINET SECRETARY FOR ECONOMY & TRANSPORT, KEN SKATES AM
The South Wales economy is becoming more sophisticated and this Audit is a helpful tool to help us understand the current position and what we need to do to move forward. For example, the steels and metals industries are undergoing constant development and will need to decarbonise significantly between now and 2050, in line with the UK’s desire to reduce carbon emissions. The development of compound semiconductor applications technologies in the whole of the South Wales area is crucial for many different world In Wales we need a better understanding of industries and I am keen to see this niche expertise how research and innovation drives productivity grow into a world-leading RD&I and manufacturing and growth, so that we can support those areas region. that provide the greatest opportunity to grow our economy, create jobs and develop skills. Our Therefore, I welcome this Science and Innovation strategy, Prosperity for All and its accompanying Audit, as it helps us understand the economy of Economic Action Plan, lay the bedrock of Welsh Wales and enables us to plan for future investment. Government support on which increased prosperity, We look forward to the South Wales Crucible improved productivity and economic growth will acting as a catalyst for change in the South Wales be built. These call for a much closer alignment region. and working together of our universities, industry and public sector organisations, to drive change in the RD&I and manufacturing landscape. I see this Audit as part of the evidence base of assets in Wales, which can be exploited to achieve our Government’s priorities.
One of the aims of the South Wales Crucible Science and Innovation Audit is to inform research and innovation policy effectively for the common good, setting Wales’s strengths and opportunity clearly in the frame for future investment, in line with both the Welsh agenda and also the UK Government’s agenda, as there is significant overlap in priorities and ambitions.
2 THE SOUTH WALES CRUCIBLE JAMES DAVIES, EXECUTIVE CHAIR, INDUSTRY WALES
Ultimately, we want to continue to develop a dynamic and effective environment to support companies already established within Wales and to attract businesses that are seeking a world class location for their business. The South Wales Crucible SIA fits clearly with this ethos.
I am delighted to recommend the four key themes focused on; from continued innovation in materials to convergence of Agriculture and Food supply chain by technology, from the application of Smart The opportunity afforded to us by this Science and Manufacturing in all sectors to the prioritising of Innovation Audit (SIA) is very timely. We are about innovative Health and Care solutions. Such strategies to embark upon a revolution of disruptive markets, require the enablers of sustainable and affordable products and services, enabled by the combination energy coupled with a set of new Digital technologies and connectivity of emerging technologies that will and it is good to see such common recognition by dramatically impact our futures. It is essential that we both Academia and Industry. step forward collectively and confidently to engineer solutions that will enhance our society for common This productivity growth imperative has framed our good. This confidence must be based on the strengths SIA thinking and is reflected fully in our proposed of our knowledge and its application into effective key ambitions and activity plans. These will support and economic reality. It is, therefore, appropriate the translation of scientific excellence into innovation- that an audit of our strengths was conducted for our led growth, allowing our businesses to boost their Science and Innovation activities and then to reflect productivity, making their products and services more on the key areas that need to be addressed to achieve competitive internationally. sustainable profitable growth in the economy.
The robust and comprehensive evidence base presented in this report will allow us to make better choices and more informed prioritised investment decisions. The South Wales Crucible partnership will focus effort and resource on our specialised areas of excellence and differentiation where we can confidently and assertively lead science and innovation agendas – both for the benefit of Wales and the wider UK.
A Science and Innovation Audit Report Sponsored by the Department for Business, Energy & Industrial Strategy 3 PROFESSOR HILARY LAPPIN-SCOTT OBE, Chair of the South Wales Crucible Executive Sponsor Group, Senior Pro-Vice-Chancellor – Research and Innovation and Strategic Development, Swansea University
We have existing strengths across the four key thematic areas identified in this audit report, namely: steel innovation; smart manufacturing; health innovation; and agri-food tech, underpinned by digital technologies and sustainable energy. Working together, the SIA process has helped us to identify how we can best build on our existing strengths, reinforce our emerging areas of excellence and use these as a springboard to drive new productivity growth opportunities.
In my role as a champion for Women in Science I will ensure that this comprehensive audit paves This is an exciting time for Universities in Wales. the way for an inclusive programme of activity that The core University members of our Science delivers benefit for all across the region. We need and Innovation Audit (SIA) South Wales Crucible to continuously improve equality and diversity in the consortium – Aberystwyth, Bangor, Cardiff and research workforce as it is only through harnessing Swansea – recognise that we have a vital role to the skills and talent of all that we can unlock our full play in transforming the productivity performance of productivity potential. our region and we are constantly striving to make a positive difference at local, national and UK levels.
Having worked together effectively for many years, we share a common vision of transforming the Welsh economy with world-class science and innovation at its heart. This is made possible by working collaboratively with our anchor companies, SMEs, RTOs, funders and Government partners to maximise the beneficial impacts of our research expertise, specialist innovation facilities and large supply of talented students.
4 THE SOUTH WALES CRUCIBLE CONTENTS
1 INTRODUCTION TO THE SOUTH WALES CRUCIBLE 6
2 OUR KEY STRENGTHS IN SCIENCE AND INNOVATION 10
3 STEEL INNOVATION 17
4 SMART MANUFACTURING 33
5 AGRI-FOOD TECH 49
6 HEALTH INNOVATION 66
7 ENABLING COMPETENCY: SUSTAINABLE ENERGY 80
8 ENABLING COMPETENCY: DIGITAL TECHNOLOGIES 86
9 CONCLUSIONS 93
Annex A: South Wales Crucible delivery structure and contributors A-1
Annex B: SIA core geography B-1
Annex C: Sector SIC code definitions C-1
Annex D: Supporting evidence D-1
Annex E: References E-1
Annex F: South Wales Crucible Innovation Assets F-1
Annex G: SIA Contributors G-1 INTRODUCTION TO THE SOUTH WALES CRUCIBLE
INTRODUCTION TO THE SOUTH WALES CRUCIBLE
BACKGROUND
1.1 The South Wales Crucible Science and forum for discussion and to allow the linkages Innovation Audit (SIA) report forms part of the between the themes to be identified and third wave of SIAs. As UK Government intended articulated clearly. when it launched this exciting initiative, our SIA is focused on identifying niche areas of excellence The emerging evidence was tested thoroughly which can be leveraged to maximise innovation- through an extensive programme of business and led economic growth in Wales and unlock long wider stakeholder consultation. In total, over 70 term productivity gains for the UK as a whole. organisations have contributed formally to this process and many more informally. A fine-grained analysis of our science and innovation strengths has confirmed that we have the potential to realise significant productivity INTRODUCING THE FOUR CORE growth across different technology areas and THEMES OF THE SIA… associated sectors of our economy. 1.4 Both our long-standing and emerging world-class research and innovation strengths 1.2 The South Wales Crucible SIA consortium have shaped the SIA hypotheses, which are includes world-leading universities (Swansea, focused on four core thematic capabilities of Cardiff, Bangor and Aberystwyth), research steel innovation, smart manufacturing, health centres of excellence, and internationally innovation and agri-food tech. significant firms. These themes are underpinned by two enabling The consortium is supported by the Welsh competencies of digital technologies and Government and aligns with Wales' two City sustainable energy – with the latter being Deals and the proposed Growth Deals for Mid particularly important for our steel innovation and and North Wales. Importantly, although rooted smart manufacturing agendas. in South Wales the reach of our SIA consortium extends across all of Wales, including key science and innovation assets in places as 1.5 As indicated above, our themes have not diverse as Deeside (automotive and aerospace), been considered in isolation. The evidence Bangor (energy) and Aberystwyth (agri-tech). presented throughout this SIA report points Additionally, it has strong links to significant towards a need to foster stronger linkages across sectors, clusters, universities, RTOs and science and between these areas of excellence so that parks across the wider UK and globally. we can maximise the synergies and realise our full productivity potential.
1.3 The process of developing the South Wales By doing so, we will support the UK as it embraces Crucible SIA was a highly collaborative and both the challenges and opportunities presented engaging one. Weekly meetings were held by industrial digitalisation, clean growth and an between the theme leads to provide an open ageing society.
6 THE SOUTH WALES CRUCIBLE INTRODUCTION TO THE SOUTH WALES CRUCIBLE
THE SOUTH WALES CRUCIBLE SIA THEMATIC AREAS
STEEL INNOVATION AGRI-FOOD TECH
A global leadership position for the UK can be Accelerated process efficiency, productivity secured through the creation of a hub for steel growth and economic sustainability will be innovation by building on and expanding existing delivered through world-class research into research excellence in the South Wales region, improving primary production, specifically and investing in innovation within the UK steel through improvements in crops, animal health industry and wider supply chain. and the waste streams from the agri-food supply chain.
SMART MANUFACTURING HEALTH INNOVATION Sustainable Smart Manufacturing will bring a step change in performance for the regional Developments within data driven life-long health and wider UK economies through enhanced and mental health will be accelerated by the global competitiveness and productivity. In creation of an interconnected test bed for Wales this will be achieved through investment in innovative developments in healthcare, drawing existing capabilities and key assets in advanced on our clear and distinctive strengths in health manufacturing to accelerate convergence with informatics, neuroscience and clinical/medical digital and energy enabling technologies. This technology innovation. will deliver the most efficient and productive methods for manufacturing sustainably, creating value in new and different ways.
A Science and Innovation Audit Report Sponsored by the Department for Business, Energy & Industrial Strategy 7 INTRODUCTION TO THE SOUTH WALES CRUCIBLE
…AND OUR SIA GEOGRAPHY
1.6 Stretching from the Severn Estuary to the Irish 1.9 Moreover, our partnership is confident, bold Sea, the South Wales Crucible covers the largest and outward facing, with well-developed links concentration of economic activity in Wales. to leading ecosystems elsewhere across the UK Encompassing the major urban centres of Cardiff, and internationally. We recognise fully that by Newport, Neath Port Talbot and Swansea, our exploiting emerging strengths, synergies and area is home to 2.2 million people, some 1.4 opportunities, and collaborating with the best, million of whom are of working age, roughly 3% we can both accelerate our own innovation-led of the UK on both measures.1 economic growth and, at the same time, support the UK more broadly with its long-term productivity 1.7 As well as covering the key hubs of economic agenda and response to the Grand Challenges activity along the M4 corridor, our SIA geography set out in the Industrial Strategy.2 also contains significant rural areas, adding to our enviable quality of life offer. This includes 1.10 With 70,000 businesses and over a million two national parks: the Brecon Beacons; and the jobs, the South Wales economy is important Pembrokeshire Coast. to the UK.3,4 In 2016, we generated a GVA contribution of £44bn, c.3% of the UK total. 1.8 The core SIA geography (see Annex B for Importantly, we have a growing economy: since details) covers the two city-regions (Cardiff 2010, we have increased our GVA by 23% and Capital Region and Swansea Bay City Region) created 42,000 jobs, reflecting our underlying of South Wales. However, a logical and flexible academic and industrial strengths across multiple approach to defining the SIA’s spatial footprint sectors and different technology areas. has been adopted by the consortium. 1.11 As explained later, our economy is driven Therefore, each thematic area has a slightly by a combination of leading universities, research different geographic focus, which reflects centres of excellence, internationally significant functional economic areas, the distribution of firms and innovative SMEs. Four leading key science and innovation assets across Wales, universities (each with strong links to industry) plus the important flows and linkages between – Aberystwyth, Bangor, Cardiff and Swansea these. Crucially therefore, the reach of our – are members of the South Wales Crucible consortium extends to other parts of Wales, consortium, and the Compound Semiconductor including places such as Aberystwyth (agri-food Applications Catapult is also based here, whilst tech), Bangor (energy), and Deeside (steel and leading multinational firms including Tata Steel, advanced manufacturing). GE Healthcare and Ford, act as key industrial anchors.
Figure 1-1 shows the location of the key assets, which are concentrated around Cardiff and Swansea in particular.
8 THE SOUTH WALES CRUCIBLE INTRODUCTION TO THE SOUTH WALES CRUCIBLE
Figure 1-1: Map of key science and innovation assets in the South Wales Crucible
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