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30 May 2016 Regional Innovation Monitor Plus 2016 Regional Innovation Report Yorkshire and the Humber (Advanced Materials) To the European Commission Internal Market, Industry, Entrepreneurship and SMEs Directorate-General Directorate F – Innovation and Advanced Manufacturing www.technopolis-group.com Regional Innovation Monitor Plus 2016 Regional Innovation Report Yorkshire and the Humber (Advanced Materials) technopolis |group| in cooperation with Dr Peter Kolarz, Technopolis Group Xavier Potau, Technopolis Group Martin Wain, Technopolis Group Dr Anoushka Davé, Technopolis Group Table of Contents Executive Summary 2! 1. Advanced Manufacturing: Advanced Materials 6! 1.1 Overview of performance and trends 6! 1.2 Business sector perspective 8! 1.3 Scientific research potential 10! 1.4 Role of intermediary institutions 13! 1.5 Developing skills for the future 13! 1.6 Major investment projects 15! 1.7 International cooperation 16! 1.8 Policy support and delivery mechanisms 18! 1.9 Good practice case - Advanced Manufacturing Research Centre (AMRC) 18! 1.10 Leveraging the existing potential 22! 2. Regional Innovation Performance Trends, Governance and Instruments 25! 2.1 Recent trends in innovation performance and identified challenges 25! 2.2 Institutional framework and set-up 27! 2.3 Regional innovation policy mix 31! 2.4 Appraisal of regional innovation policies 37! 2.5 Policy good practice 39! 2.6 Possible future orientations and opportunities 41! Appendix A Bibliography 44! Appendix B Stakeholders consulted 45! Appendix C Economic indicators for the region 46! Table of Figures Figure 1 Percentage of 25-64 year olds with tertiary qualifications .............................. 25! Figure 2 Total R&D personnel and researchers (Percentage of active population) ..... 26! Figure 3 The counties and LEPs of Yorkshire and the Humber, and the region in England ........................................................................................................................... 28! Regional Innovation Monitor Plus 2016 i List of Tables Table 1 Industrial activity of LEPs in Yorkshire and the Humber .................................. 7! Table 2 Data from ERC’s Growth Dashboard for LEPs in Yorkshire and the Humber .. 8! Table 3 Proportion of firms reporting these as main barriers to growth. Companies in the LEPs covering Yorkshire and the Humber ................................................................ 9! Table 4 Total intramural R&D expenditure (€ per inhabitant) .................................... 26! Table 5 Make-up, personnel headcount and core funding of the four LEPs (late 2015) ......................................................................................................................................... 28! Table 6 Local government structures in the Yorkshire and the Humber region, UK ... 29! Table 7 Growth deals in the Yorkshire and the Humber region .................................... 30! Table 8 Yorkshire and Humber LEPs – overview .......................................................... 31! Table 9 Regional policy mix for innovation in Yorkshire and the Humber .................. 33! Regional Innovation Monitor Plus 2016 ii PREFACE In the context of the growth and investment package set out in the Investment Plan of the European Commission, the Regional Innovation Monitor Plus (RIM Plus) provides a unique platform for sharing knowledge and know-how on major innovation and industrial policy trends in some 200 regions across EU20 Member States. Launched in 2010, the Regional Innovation Monitor aimed at supporting sharing of intelligence on innovation policies across EU regions. Building upon the experience gained and results obtained during the period 2010-2012, the RIM Plus 2013-2014 provided practical guidance to regions on how to use the collected information, via a network of regional experts. Since 2014, the RIM Plus has introduced a thematic focus on advanced manufacturing. The RIM Plus 2015-2016 evolved from a general monitoring of innovation policies towards establishing a more thematic focus in selected areas in order to contribute to improving the competitiveness of European regions. Particularly, the RIM Plus aims through its activities and in close cooperation with the regional stakeholders and other relevant initiatives to: •! Contribute to the development of new and open spaces of collaboration and exchange on advanced manufacturing, each with a clearly defined thematic focus. •! Play an enabling role in providing evidence-based information on specific themes and bring in outside perspective from other regions. •! Map out regional practices in support of advanced manufacturing and relevant pilot/demo projects and work towards involving the relevant stakeholders. •! Provide an easy access and comparative overview of regional innovation policies and relevant actions in the field of advanced manufacturing. •! Share the lessons learned with the European Commission services to feed into the preparation of future programmes. The main aim of 30 regional reports is to provide a description and analysis of developments in the area of advanced manufacturing with a clearly defined thematic focus and regional innovation policy, taking into account the specific context of the region as well as general trends. All regional innovation reports are produced in a standardised way using a common methodological and conceptual framework, in order to allow for horizontal analysis, with a view to preparing the Final EU Regional Innovation Monitor Plus report. European Commission official responsible for the project is Alberto Licciardello ([email protected]). The present report was prepared by Peter Kolarz, Xavier Potau, Martin Wain and Anoushka Davé ([email protected]). The contents and views expressed in this report do not necessarily reflect the opinions or policies of the Regions, Member States or the European Commission. Copyright of the document belongs to the European Commission. Neither the European Commission, nor any person acting on its behalf, may be held responsible for the use to which information contained in this document may be put, or for any errors which, despite careful preparation and checking, may appear. Further information: https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor Regional Innovation Monitor Plus 2016 1 Executive Summary This report presents a profile of the Yorkshire and the Humber region of the UK. Under current arrangements, the economic governance of the region is made up of four Local Enterprise Partnerships (LEPs). LEPs are business-led boards that have the formal policy remit from the UK Government to lead on economic development, and as such are the main intermediary bodies between the private and public sectors. Now in their third year of operation, the LEPs have begun to design and deliver policies and programmes to deliver economic growth for their local areas. This broad remit includes both innovation policy and maximising regional strengths, such as advanced manufacturing and materials. 1. Advanced Manufacturing: Advanced Materials The region of Yorkshire and the Humber is historically a manufacturing region, and like many regions that experienced deindustrialisation, Yorkshire and the Humber has been disadvantaged in recent decades. The region lags behind the UK average on many economic indicators, such as unemployment and regional Gross Value Added (GVA). However, there are some bright spots. Recent figures show that 28% of the region’s GVA is still accounted for by production activities. Despite recent difficult economic conditions in the region, the areas of particularly strong manufacturing output have underpinned some recovery. Three of the four LEP areas in Yorkshire and the Humber demonstrated growth in manufacturing employment between 2009 and 2012. The latest data show that 11.5% of all jobs in the region are in manufacturing – the third highest in the country. In the region, manufacturing activity is mostly concentrated in the urban areas of Sheffield City Region and Leeds City Region, with activity in advanced manufacturing or materials located in certain hotspots due to specific companies, university-industry collaborations or research centres, rather than homogeneously throughout. These two city regions are also home to a strong population of fast growing businesses and high survival rates for start-ups. The latest Research Excellence Framework (REF) exercise highlighted several examples of advanced materials spin-offs and start-ups established from research conducted in the region, including: advanced ceramic composites, nanomaterials for organic electronics research, bioresorbable shape-memory polymers, and nonwoven fabrics. Indeed, REF 2015 sets out a number of research strengths and specialisms within the region’s universities in the area of advanced materials. Making the most of the region’s advanced manufacturing and advanced materials activities for the economy can be summarised by three key challenges: •! Challenge 1: Scale-up the impact of manufacturing in terms of jobs and economic activity more broadly across the region The crisis has shown that areas with traditional strong manufacturing output have been more resilient in terms of employment (e.g. those around Sheffield, Leeds). Moreover, Yorkshire and the Humber rebounded strongly in manufacturing jobs in the 2009-2012 period, compared to other regions in England. Pockets of high value manufacturing activity exist and new ones are being created
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