FORGING OUR FUTURE INDUSTRIAL STRATEGY THE STORY SO FAR

1 Industrial Strategy Forging Our Future

“Our challenge as a nation, and my determination as Prime Minister, is not just to lead the world in the fourth industrial revolution, but to ensure that every part of our country powers that success. That is what our modern Industrial Strategy is all about. Investing in science and research to keep us at the forefront of new technologies and the benefits they bring. Nurturing the talent of tomorrow — through more outstanding schools, world-leading universities and the technical skills that will drive our economy. And transforming the places where people live and work — the places where ideas and inspiration are born — by backing businesses and building infrastructure not just in London and the South East but across every part of our country.” Theresa May, Prime Minister

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Birmingham University is leading the ReLIB project to recycle Contents electric vehicle battery components FOREWORD 6 INTRODUCTION 8

INDUSTRIAL STRATEGY AT A GLANCE 10 Industrial Strategy — local to global 11 FOUNDATIONS Ideas 18 People 20 Infrastructure 22 Business Environment 24 Places 26

INDUSTRIAL STRATEGY AROUND THE UK 28

SECTOR DEALS 30

GRAND CHALLENGES AI and Data 40 Ageing Society 42 Future of Mobility 44 Clean Growth 46

REFERENCES 50

4 5 Industrial Strategy Forging Our Future Foreword

One year after the publication of The UK needs to make the most of our Industrial Strategy, we have the benefits this can bring. This is already seen significant progress. why we set ourselves four Grand Challenges: Artificial Intelligence Over the past year there have been and Data, Clean Growth, the Future important achievements across the of Mobility and Ageing Society. five foundations of productivity set We have already announced four out in the strategy. We now have missions to focus attention on long- record levels of public investment term targets, from five extra year in research and development, of healthy life for all, to halving the matched by sustained growth in energy use of new buildings. private sector spending. We have the fastest wage growth in nearly The Industrial Strategy is more than a a decade and a record number set of policies and commitments. It is of people are now in work. We a new way of working for Government, have had major upgrades to our working across departments to build infrastructure, with the fastest growth long-term partnerships with business, in infrastructure spending in the G7 academia, and local leaders — from and big decisions taken for the nation mission-focused policy-making to our such as the expansion of Heathrow. newly-established Industrial Strategy And we are delivering the biggest Council. It is an ongoing priority, which shakeup to technical education and will adapt as delivery progresses retraining in a generation to make and our needs change. What will sure we have the skills we need. not change is its core objective: to build a Britain fit for the future. We have also struck six Sector Deals, long-term strategic partnerships The Industrial Strategy is designed between government and industry, to secure our success, looking in sectors from construction to beyond our departure from the creative industries. These deals European Union to the future of are not only about attracting the UK and the global economy. investment and growth: they are ensuring we have the skilled, diverse workforce we need for the future. Rt Hon Greg Clark MP Secretary of State for Business, As our Industrial Strategy Energy and Industrial Strategy acknowledges, the way we live continues to be transformed by the technological advances of what is a fourth industrial revolution.

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``Places — how we put our ``Artificial Intelligence and Data: national strategy on a local We will put the UK at the forefront Introduction level, creating prosperous of the AI and data revolution. communities across the UK. Our first mission is to use data, BUILDING LONG-TERM artificial intelligence and innovation Our modern Industrial STRATEGIC PARTNERSHIPS to transform the prevention, early diagnosis and treatment Strategy is a long-term Partnership between the government of chronic diseases by 2030. plan to boost productivity and industry on sector-specific issues and earning power for can create significant opportunities ``Clean Growth: We will maximise the people throughout the to boost productivity, employment, advantages for UK industry from United Kingdom. innovation and skills. Sector Deals the global shift to clean growth. call for sectors to set out proposals Our first mission is to at least halve the to transform productivity in their energy use of new buildings by 2030. area. The government then works ``Future of Mobility: We will become with leadership in the sector to a world leader in the way people, ensure that the proposal is robust goods and services move. and transformative, and deals are announced as and when agreements Our first mission is to put the UK are reached on an ongoing basis. at the forefront of the design and manufacturing of zero emission “The Industrial Strategy is one of We are working with key UK industries vehicles, with all new cars and vans the most critical strands of work STRENGTHENING to agree Sector Deals, with six effectively zero emission by 2040. taking place across government. THE FOUNDATIONS already published: Life Sciences, It has the potential to raise living We are strengthening the five Automotive, Creative Industries, AI, ``Ageing Society: We will harness the standards across the whole of foundations of productivity. Nuclear and Construction, and three power of innovation to help meet the UK, boost people’s earning These are the main drivers more due shortly: Aerospace, Rail the needs of an ageing society. powers and put the UK at the of a successful economy. and Food & Drink Manufacturing. Our first mission is to ensure people forefront of future industries ``Ideas — how we make the UK the TAKING ON GRAND can enjoy at least five extra healthy internationally. One year from world’s most innovative economy. CHALLENGES independent years of life by 2035, while narrowing the gap between the its original publication, I look People — how we build a successful, `` We are positioning the UK at the experience of the richest and poorest. forward to working with the high-calibre workforce, now and forefront of tackling four global Grand members of the newly-formed in the future, ensuring good jobs Challenges where we can build on our Each Grand Challenge will have Industrial Strategy Council and greater earning power for all. strengths and lead the industries of a Business Champion with relevant industry experience, to provide an independent Business Environment — how we the future. We have picked specific `` and missions which are goals evaluation of the impact the secure the UK’s position as the best ‘missions’ within the Grand Challenges we can all work towards. Industrial Strategy is having place to start and grow a business. — addressing clearly defined problems up and down the country.” by setting an inspiring and stretching As we leave the European Union we Infrastructure — how we drive `` goal to focus the efforts of industry, are looking to global opportunities, Andy Haldane, Chief Economist improvement to the country’s researchers and government. with policies to sustain and enhance at the Bank of England and Chair connections, delivering a major our competitiveness and productivity. of the Industrial Strategy Council upgrade to the UK’s infrastructure.

8 9 IndustrialIndustrial Strategy Strategy Forging Forging Our Our Future Future

£2.3bn of The Industrial private investment and 1,600 new jobs were Strategy is working announced as part of for the UK economy London Tech Week

£45bn 78,000 already committed smaller UK businesses across the UK through boosted by the British the Industrial Strategy Business Bank

5% 76,000 increase in private sector new jobs created expenditure on research by foreign direct and development1 investment2

£7bn #1 fastest growing record increase in public infrastructure investment spend on research of the seven largest advanced and development3 economies in the world4

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AI TECHNOLOGIES COULD ADD AN ADDITIONAL £630bn TO IN THE FIRST HALF OF MORE THAN 30 AUTOMOTIVE THE UK ECONOMY BY 20355 2018, 1 IN 5 ELECTRIC MANUFACTURERS BUILD VEHICLES SOLD IN EUROPE VEHICLES HERE IN THE UK9 8 We are backing research and WAS MADE IN THE UK development for data science OVER 1,100 BUSINESSES We are agreeing partnerships and AI. £300m has been START EVERY DAY IN BRITAIN We are committed to reducing with industry to boost allocated by the Engineering — ONE EVERY 75 SECONDS6 emissions, with £1.5bn productivity, employment, and Physical Sciences Research investment for ultra low innovation and skills. The Council to fund relevant projects emission vehicles by 2020 Automotive Sector Deal will boost We are helping small businesses the level of UK-made parts in UK- to grow. This year, the British built vehicles so that at least half Business Bank launched TH of their value is manufactured THE UK IS NOW RATED 4 IN four new programmes in this country by 2022 THE WORLD FOR INNOVATION, and is now supporting over OVERTAKING THE USA7 78,000 smaller businesses with more than £5.5bn We are driving research and innovation through the Industrial Strategy Challenge Fund. 602 different projects have already received £652m in funding support

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THE £92bn CREATIVE 2017 WAS THE UK’S CLEANEST, INDUSTRIES SECTOR IS 13 GROWING AT TWICE THE GREENEST YEAR YET THE UK WILL BENEFIT FROM RATE OF THE ECONOMY11 £600bn INVESTMENT IN THOSE AGED 50+ NOW MAKE We are partnering with business INFRASTRUCTURE OVER UP NEARLY A THIRD OF THE to maximise the opportunities 10 We are supporting cultural 12 THE NEXT 10 YEARS ENTIRE UK WORKFORCE from clean growth. The first contributions to our local Green GB Week in October economies. £20m will be We are developing technologies 2018 saw 67 pledges, from We are investing in sustainable awarded to cities and towns and industries to support organisations including HSBC, and public transport. The for creative, cultural and our ageing society, with Tesco and John Lewis Transforming Cities Fund will heritage projects through the £300m from the Industrial provide £2.5bn for local projects Cultural Development Fund Strategy Challenge Fund for relevant research projects THE UNEMPLOYMENT RATE HAS DROPPED TO 4% — THE LOWEST IN OVER 40 YEARS14

We are building the technical skills our workforce needs. Over the past year, 47,000 people started higher level apprenticeships — an increase of 30%.

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The Industrial Novo Nordisk is In May 2018, the UK signed investing £115m in a new agreements for science and Strategy is having an centre for development innovation with Israel, for of medicines that will greater collaboration in shared transform the lives of priority areas including advanced international impact people with diabetes. materials and Ageing Society.

The UK-Canada AI 13,000 delegates Innovation Challenge is welcomed to the International The UK is chairing the £35m planned for inspiring AI solutions in Business Festival in Liverpool EUREKA programme investment in British aerospace from companies to see UK start-ups involved for 2018/19. This AI start-ups by in both countries. in the Grand Challenges. intergovernmental network Japan’s AI-focused supports innovation-driven Global Brain. entrepreneurship in Europe.

Some of the UK’s most innovative businesses met their US counterparts on board the HMS Queen Elizabeth in New York, Chinese robotics for a trade mission on $500m invested company JEE cyber security and AI. by Japan’s Softbank Automation Equipment in Improbable, a is investing £6m in London-based company the UK to establish an crafting virtual worlds. assembly and testing facility in Birmingham. The second UK-India The Newton Prize is Energy for Growth funding scientists in the Dialogue took place UK and Chile to develop in September 2018. ways to strengthen energy infrastructure so that it can £10m invested by withstand extreme weather the UK and Singapore and natural disasters. £32m invested in Technology Accelerators to $72m co-invested with South in a joint quantum build innovative business links Africa in our Clean Growth space programme. between Africa and Britain. ambitions for battery storage. 16 17 Industrial Strategy Forging Our Future

NEXT STEPS IDEAS ``Continue to drive investment in R&D, launching an R&D Roadmap to set out how public, Becoming the private and voluntary sectors will meet the 2.4% target world’s most ``Launch a Knowledge Exchange Framework to benchmark how innovative well universities are sharing knowledge and commercialising research economy ``Announce the first winners of the Strength in Places Fund, DEVELOPING who will receive funding to build CUTTING-EDGE BATTERY on their science and innovation TECHNOLOGIES strengths and develop stronger A team at Birmingham local innovation networks University is leading a project Innovation is about ``Go further to support international to recycle electric vehicle ideas, new ways of doing research and innovation battery components. things, new products and programmes, including the services, new technologies second stage of the Fund for The goal of the ReLiB project is to establish infrastructure in the and new business models. HIGHLIGHTS INCLUDE: International Collaboration UK that makes the recycling of ``H e l pindustry transform great We are a global leader in science lithium-ion batteries from the ideas into new products and and research, but we need to drive new research and automotive sector as efficient services through investing the biggest increase in investment development projects as possible. Currently, electric £1.2bn more public funding in research and development (R&D) 602 supported by vehicle recycling capabilities in the Catapult network in our history. We must become government funding are limited in the UK and many better at turning exciting ideas into materials are not recycled. strong commercial products and LONG TERM GOALS Projects like ReLiB are of services, and build on excellence addressing importance if the UK is to meet across the whole country. R&D challenges ``By 2030 we want the UK to be the most innovative country carbon emissions targets, but We are ensuring the UK is the through the £2.7bn in the world: a home to the it also addresses issues with best place for researchers and Industrial Strategy most dynamic businesses at current battery technology. innovators, and are driving Challenge Fund the cutting edge of new partnerships between the best Birmingham University’s project technologies and processes minds and businesses throughout is one of four fast-start projects Britain. We are already delivering to support ``We want 2.4% of GDP to be run by the Faraday Institution, record increases in public sector international invested in R&D across the whole the £78m centre funded by the R&D investment — over £7bn so far £110m collaboration in economy by 2027, increasing Industrial Strategy Challenge Fund. — with a target to reach 2.4% of GDP science and research to 3% in the longer term across the whole economy by 2027.

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NEXT STEPS PEOPLE ``Advance reforms to technical education, including through a Generating new £170m network of Institutes of Technology across the country good jobs ``Establish 21 new basic maths Centres for Excellence, alongside and greater a £16m programme to increase SUPPORTING WOMEN participation and attainment IN ENGINEERING earning in level 3 mathematics When Daisy Coombes left ``Set out our commitments to school she had five offers from power for all improve modern working practices universities. But she decided that and protect workers’ rights she wanted to take a different in a new Good Work Plan route to becoming an engineer, ``Expand the network of Maths with a Higher Apprenticeship in Hubs to support schools and Design Engineering with JCB. teachers, as well as continuing to The company pays her a salary upskill computer science teachers and also paid for her degree at We are putting people at the through a new £84m programme Sheffield Hallam University, which heart of our Industrial Strategy to ``Support fair pay for all. All she studies for one day a week. ensure that everyone can improve eligible employers now publish Through the Industrial Strategy, we HIGHLIGHTS INCLUDE: their skills throughout their lives, their gender pay gap data, and are accelerating a transformative increasing their earning power we are consulting on being the programme to increase the and opportunities for better jobs. first country in the world to number of higher apprenticeships, paid to schools and improve employment outcomes We are equipping citizens for mandate ethnicity pay reporting colleges for each for young people, and meet the jobs shaped by next generation £1,200 additional pupil skills needs of our economy. technology. As the economy taking Maths A level adapts, we want everyone to access and enjoy good work. LONG TERM GOALS Investing in our people across their lifetimes is fundamental to increase in A level ``We will be introducing the new to ensure it is underway by the our shared success, from strong 25% computer science T levels — technical education end of the current Parliament foundations for children and young entries since 2017 equivalent to A levels — from ``We are reforming apprenticeships people in schools and relevant high- September 2020, backed to make them world-class, quality education and training in by an additional £500m per helping employers create high our further and higher education year once fully rolled out quality programmes that give them systems to career-long learning people started ``We are developing a National the skills they need. By 2020 we and enabling employers to invest 47,000 higher-level Retraining Scheme, with a will be investing nearly £2.5bn in their workforce. We are already apprenticeships further £100m investment in apprenticeships per year leading the biggest transformation to announced in the 2018 Budget technical education in a generation.

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NEXT STEPS INFRASTRUCTURE ``Trial high-speed digital connectivity in a rural area, with a large-scale Rural Connected Delivering Communities Project a major ``Set out our strategy for addressing the UK’s top infrastructure BOOSTING BUSINESS needs and priorities, as identified THROUGH DIGITAL upgrade to by the National Infrastructure INFRASTRUCTURE Commission’s recent assessment the UK’s Sun Salads is a family business ``Invest in public and sustainable in Dorset that grows, packages transport links to centres of and supplies watercress. Due to infrastructure employment, allocating nearly slow broadband speeds in the £2.5bn to projects in up to 18 cities area, downloads from customer ``Work with the Highlands and ordering systems were often Islands Enterprise to develop plans running overnight. At busy times for a vertical launch spaceport the connections were so slow they were unworkable. With The country’s economic geography in Sutherland, which will create local supplier Wessex Internet, will be transformed through hundreds of jobs and boost the Sun Salads applied for a £3,000 Industrial Strategy investment UK’s commercial space sector HIGHLIGHTS INCLUDE: gigabit voucher to offset the cost – from full-fibre broadband, ``Put the Government’s responsibility of a full fibre connection. This was new 5G networks and smart to look after the natural environment installed in May 2018, and the into law with the introduction technologies such as autonomous for productivity improvement has been dramatic. of an Environment Bill vehicles, to high-speed rail investment, including The option to upgrade to faster connecting people to jobs and £37bn better transport and speeds in the future will be vital opportunities, the regeneration digital connections for growing their business further. of stations and airports and upgrades to the road network. trains fitted We will also improve people’s lives LONG TERM GOALS with the latest where they live and work with high digital signalling ``We will continue to build our ``We will work to halve the effects of quality housing and clean, affordable 200 technology by National Infrastructure and air pollution on health by 2030, by energy. Much of this investment is the end of 2018 Construction pipeline, which meeting targets to reduce emissions large scale and long term, and we will is currently worth £600bn. consider this strategically to support ``We will continue to work with Public investment will have wider objectives as well as delivering industrial sectors to reduce doubled by 2022/23 resilient infrastructure and value for new homes their carbon impact, including money. We have already initiated 650,000 created through ``We will end the sale of new through the new Industrial the highest growth in infrastructure the Housing conventional petrol and diesel Energy Transformation Fund spending out of the world’s seven Infrastructure Fund cars and vans by 2040 most industrialised countries.

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NEXT STEPS BUSINESS ENVIRONMENT ``Introduce new programmes, such as leadership and management training, to help Becoming the improve the productivity of 5.7m British businesses best place to ``Improve conditions for small businesses with measures start and grow to tackle late payments ``Consider how UK businesses a business can boost their supply chain capabilities to match the best IMPROVING THE in Europe and beyond PRODUCTIVITY OF ``Ensure the competition regime SMALL BUSINESSES is working to support an Be the Business, an initiative led enterprise economy, publishing by businesses and supported a review in Spring 2019 by Government, has launched programmes to help SMEs The UK has a global reputation as ``Develop our plans to tackle barriers adopt and share best practice. a great place to do business, and facing UK businesses looking to export or export more our Industrial Strategy aims to HIGHLIGHTS INCLUDE: Cumbria Crystal, a manufacturer make the country the best place of bespoke hand-made crystal, to start and grow a business, and completed the Productivity through People programme in a global draw for innovators. destination for Lancaster. This is a 12-month We are driving productivity in venture capital LONG TERM GOALS SME leadership programme businesses of all sizes by increasing #1 in Europe15 supported by large businesses collaboration, building skills and ``We will generate over £20bn and delivered by business schools. ensuring everyone has the opportunity investment into high-growth- of good work and high-paying jobs. potential businesses by 2027 Cumbria Crystal Managing businesses We are ensuring the financial sector Director Chris Blade said: “We supported by ``We will provide management is better connected to the rest of spent more time on the business, Growth Hubs training to 10,000 small the economy, driving impactful not in the business. One of my 375,000 in local areas business leaders by 2025 investments. We are creating a challenges was to think of small across England through the Small Business business environment equipped for Leadership Programme changes all staff could make to the challenges and opportunities increase productivity, margins of new technologies and ways of ``We will increase total or efficiency by 1%. That sounds UK exports from 30% of doing business. In the past year the SMEs supported quite easy — and in fact it wasn’t GDP (as of June 2018) to Government has put in place all the by the British that difficult. But add up all those 78,000 35%. This will add over building blocks to deliver a £20bn Business Bank small gains month-by-month and action plan in support of innovative £100bn worth of exports you can create a big effect.” high-growth-potential businesses.

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NEXT STEPS PLACES ``Work in partnership with strengthened local institutions across the country to agree Developing the first Local Industrial Strategies, including for including prosperous Greater Manchester, West Midlands and partners across communities the Oxford-Cambridge Arc ``Roll out Skills Advisory Panels throughout across England to better coordinate SUPPORTING skills provisions for over 16s LOCAL SKILLS the UK ``Drive clusters of business across Plans are underway for the country to innovate or adopt ‘Maths Month’ on the North new technologies through the Yorkshire Coast, as part of a Strength in Places Fund wider programme to create a ‘love ``Invest in our culture, heritage of Maths’ across the district. The establishment of a Scarborough- The UK has world-leading and creative industries across the country through the £20m based maths centre ensures that businesses located around the Cultural Development Fund local schools and teachers have country. Our cities, towns and HIGHLIGHTS INCLUDE: access to continuous professional rural areas in England, Scotland, ``Refresh strategies for the development to aid their Wales and Northern Ireland have Northern Powerhouse understanding and delivery of and Midlands Engine competitive advantages essential for local plans to teaching for mastery. The maths to shaping our economic future. make high streets centre will host teachers from Shanghai as part of an exchange We are building on the strong £675m and town centres programme, which will provide foundations of our City, Growth fit for the future teachers with an opportunity and Devolution Deals and continue to learn from specialists. to work in partnership with local leaders to drive productivity. We cities benefiting are introducing new policies to from £2.5bn improve skills, shaped around the 18 to improve LONG TERM GOALS needs of different parts of the intra-city transport ``By early 2020, we will agree ``Build up to 1m high-quality homes country, create more connected Local Industrial Strategies for by 2050 to maximise the economic infrastructure, back innovation all places in England, with support growth of the Oxford-Cambridge Arc strengths, ensure land is available for places in Scotland, Wales and for housing growth and strengthen to fund local ``Deliver more City and Growth Northern Ireland that want one our cultural assets. We are already innovation through Deals across the devolved nations, working with areas to develop Local £120m the Strength in in addition to those already agreed Industrial Strategies, which will set Places Fund with regions in Scotland and Wales out priorities to drive growth locally.

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The Industrial Strategy is Bio Technics Ltd. exports innovative hygiene solutions to 17 global markets. They have worked with the Department for International supporting business, research Trade, Scottish Enterprise and Scottish Development International to and training throughout the UK help them reach their global expansion goals quicker.

The Nissan Leaf car Greater Manchester will plant in Sunderland currently boost the contribution of W5 is an interactive discovery centre has capacity to manufacture older workers through its in Belfast. The Inspiring Science Fund 50,000 electric vehicles Local Industrial Strategy. awarded it £3m to create new immersive per year. Sunderland builds Building on the Working Well exhibitions, encouraging young Leafs for 23 markets, programme, their objective is people to consider science careers. including Western Europe, for 5,000 more 50-64 year Argentina and Israel. olds in employment by 2020.

We are helping Swansea University As part of the High Value develop new building materials We have launched a Local Manufacturing Catapult, which generate electricity from Digital Skills Partnership supported by Innovate UK, light and heat, with a £36m grant between regional business, local the Nuclear Advanced for the Active Building Centre. authorities and educational Manufacturing Research institutes in the West Midlands Centre in Rotherham is to boost digital skills and boosting the competitiveness opportunities and support the of the UK civil nuclear growth of the local economy. manufacturing industry. Through the Better Business for All programme, Lynher Dairies Cheese Company in West Cornwall received support to pass food inspections by US regulators. This allowed them to THURN Group is using start exporting their handmade cheese to the USA. robot submarines to enable Consortiq, based in engineers to see hazards Southampton, are expert that ice may cause to drone professionals providing infrastructure, pipelines Bloomsbury AI used supercomputers to test new bespoke unmanned and ships around the Arctic. AI ideas through a programme run by the Digital technology solutions. They They have received project Catapult. The resulting technology, called Cape, converts have clients in Canada, UAE, funding from the Industrial text to knowledge with close to human performance. Kenya and South Africa. Strategy Challenge Fund.

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LIFE SCIENCES IMPROVING THE HEALTH SECTOR DEALS The Life Sciences Sector Deal (December 2017) focuses on ensuring OF THE NATION Building new pioneering treatments and As part of the Life Sciences medical technologies are produced Sector Deal, we issued a in the UK, improving the lives of £30m contract for a Vanguard long-term patients and economic growth. Study, the first phase of a programme to sequence ``O v e r£1.5bn co-investment in long- partnerships term medical challenges and early the genomes of all 500,000 diagnostics and precision medicine participants in the UK Biobank. By looking at whole genomes, with ``Accelerate approval for clinical trials and a Digital Health Catalyst scientists will discover new businesses to help SMEs work with NHS to insights into human biology, develop new technologies with the potential to prevent disease and save lives ``A new state-of-the-art research through earlier diagnosis and development hub from and targeting of treatment pharmaceutical company MSD throughout the country. The Life Sciences Sector Deal ensuring that the next wave Partnership between the “This Life Sciences Sector Deal … of breakthrough treatments, government and industry on DEALS TO DATE: represents a significant change innovative medical research and technologies, and high skilled sector-specific issues can create in both pace and culture … jobs are created in the UK. significant opportunities to that can lead to the discovery deals published and implementation of novel boost productivity, employment, innovations for healthcare.” innovation and skills. 6 across a range of sectors Sir John Bell, Regius Professor Sector Deals call for sectors to set out of Medicine, University of Oxford, proposals to transform productivity Industry lead for Sector Deal in their area. The Government then works with leadership in the sector deals finalised to ensure that the proposal is robust 3 following negotiation and transformative, and deals are announced as and when agreements are reached on an ongoing basis. Sector Deals published to date new deals include commitments to create currently in formal thousands of highly skilled jobs 3 negotiation around the country, and support for innovative and entrepreneurial work.

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AUTOMOTIVE DELIVERING NEW The Automotive Sector Deal (January 2018) ensures that the TECHNOLOGY FOR UK continues to reap the benefits ELECTRIC VEHICLES from the transition to ultra-low and The Advanced Propulsion Centre zero-emission vehicles by continuing (APC) has invested £80m in to build agile, innovative and cost the UK Battery Industrialisation competitive supply chain needed to Centre, which is scheduled secure international investment. to open in March 2021. This ``£1bn co-investment in the next will help commercialise the generation of electric, connected battery technology needed and autonomous vehicles for electric vehicles. ``Ambition for 50% UK suppliers as Since it was launched in July part of programme to improve the 2013, the APC has awarded competitiveness of UK supply chain £345m government funding to 41 collaborative research and ``Flagship projects to support the development projects, worth next generation of driverless £715m. Almost 150 individual and low-carbon vehicles led organisations are being supported by major industry leaders through the APC programme, which will help to secure or create over 23,400 jobs and avoid Oxford Quantum Circuits “The deal strengthens our long- the creation of 40m tonnes of standing partnership with carbon dioxide. The technologies is developing electric government to keep the UK at the they are working on are initially circuits for quantum forefront of electric, connected for the automotive sector but computing. The £800m and autonomous vehicles.” will have wider application. Mike Hawes, Chief Executive SMMT National Quantum Technologies Programme is boosting growth in this ‘future sector’

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CREATIVE INDUSTRIES ARTIFICIAL INTELLIGENCE RESEARCHING THE COLLABORATING The Creative Industries Sector Deal The Artificial Intelligence Sector (March 2018), led by the Creative CHALLENGES FACING Deal (April 2018), is boosting the INTERNATIONALLY Industries Council and with input from CREATIVE INDUSTRIES UK’s global position as a leader in TO MAKE AIRCRAFT the Creative Industries Federation and The Creative Industries Clusters developing AI technologies by taking MORE EFFICIENT others across the sector, is boosting Programme (CICP) is a five tangible actions to advance our AI A new AI Innovation Challenge growth for creative business. year scheme to foster research and Data Grand Challenge and ensure calls on innovators to use ``£150m joint investment and development, with £80m the UK is the go-to destination for artificial intelligence to make including a Cultural Development of Industrial Strategy funding AI innovation and investment. aircraft less costly and more Fund to support creative as part of the Sector Deal. ``£1bn co-investment in eco-friendly by burning less fuel. clusters across the UK As part of this programme, innovation such as Govtech, Start-ups and researchers ``Industry-led creative careers nine creative research and next generation services or can pitch ideas for AI to help programme to reach 600,000 development partnerships the role of AI technologies improve the systems used to students and development of between universities and in the creative industries prevent ice build-up on wings new apprenticeship standards industries are receiving funding to ``A c t i o n s t oincrease data availability and help aircraft reach their take on unique challenges faced and boost high level skills optimum performance. ``A new campaign to increase by a range of creative sectors Applicants will be invited to awareness of online intellectual including screen industries, ``Funding for specialist AI research, pitch their ideas directly to property rights fashion technology, video games, including 1,000 AI PhDs Bombardier’s Belfast-based animation and storytelling. wing factory and industry These partnerships span the experts. The winner will have “The Creative Industries Sector “The sector’s formal inclusion UK including Cardiff, Edinburgh, the opportunity to meet with Deal was a major landmark for in the industrial strategy [is] Ulster, Dundee, Leeds and in the Bombardier to explore a our sector which underlines its crucial to a thriving production south of England. It incorporates potential future collaboration. importance to the UK economy, industry in the UK.” and provides a platform for over 1,000 projects, creating further success over the coming an expected 700 new jobs and Josh Berger, President, years. Implementation is now well 150 new business ventures. Warner Brothers UK underway and I look forward to continued collaboration within the Council, and with many others across industry and Government, to deliver and build on the commitments of the deal.” Tim Davie, Chief Executive Officer of BBC Studios and industry chair of the Creative Industries Council

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NUCLEAR IMPROVING NUCLEAR The Nuclear Sector Deal (June 2018), ensures that the UK’s nuclear sector DECOMMISSIONING remains cost competitive with other Sellafield Ltd is carrying forms of low-carbon technologies out essential nuclear to support our Clean Growth decommissioning work, using Strategy and Grand Challenges. cutting edge technology enabling it to meet the ``£200m co-investment programme in emerging nuclear highest safely standards. technologies including small and We want to achieve greater value advanced nuclear modular reactors for the taxpayer in the way we Industry has committed to conduct nuclear decommissioning stretching targets including: in the UK, and have set a target of a 20% reduction in the costs ``30% reduction in the cost of decommissioning by 2030. of new build projects A joint government and industry ``20% savings in the cost of review is underway to establish decommissioning compared a national decommissioning with current estimates and waste management ``40% women in civil nuclear by pipeline. This aims to create 2030 (approximately 22% today) opportunities for the UK economy by reducing barriers to entry for the supply chain. “This ambitious deal between industry and government will ensure nuclear plays a key role in providing the UK’s low-carbon energy supply for the future, maximising opportunities in overseas markets, leveraging The online Export technology and innovation and Opportunities service increasing competitiveness.” Tom Greatrex, CEO of the showcases more Nuclear Industry Association than 20,000 export opportunities for UK businesses

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CONSTRUCTION HIGHLIGHTS INCLUDE: TEACHING CONSTRUCTION RAIL SECTOR DEAL The Construction Sector Deal (July SKILLS We are in advanced 2018), sets out a partnership between investment by negotiations on mutual government and industry that aims 60 new construction both Government commitments to deliver to transform the sector’s productivity apprenticeship standards are and Industry in £3bn and deploy new technologies, through innovative technologies and now in place, covering essential key UK sectors a more highly skilled workforce. trade skills such as bricklaying, encourage investment, incentivise carpentry and plumbing as well greater collaboration, and ``£450m joint investment increase export potential. in digital construction and as degree level apprenticeships individual offsite manufacturing to in architecture and civil commitments AEROSPACE deliver 50% reduction in time engineering. This already exceeds across sectors to 200 SECTOR DEAL taken to deliver new build the Sector Deal target of 50 boost productivity standards by the end of 2018. We will look to conclude ``25,000 construction a Sector Deal which apprenticeship starts and 1,000 The Construction Skills Fund will support advances in how Construction T level placements also has £24m, plus funding of the UK workforce we power flight, increase the from September 2020 from the Construction Industry employed in the Training Board, to establish 16% six sectors with competitiveness of the supply 27 onsite training hubs for early Sector Deals chain, improve the diversity of the 18,000 students by 2020. sector, and boost the number of “The new construction industry aerospace apprenticeship starts. Sector Deal is to be welcomed, and its focus on digitising the NEXT STEPS FOOD & DRINK construction industry, as well as We will continue analysis of Sector MANUFACTURING off-site manufacturing, will be a SECTOR DEAL shot in the arm for the sector.” Deal proposals to ensure that the most transformative bids are taken forward We have launched formal Graham Robinson, Global ``We will monitor the implementation negotiations with the Food and Business Consultant and Drink manufacturing sector. Director of Global Construction of published Sector Deals to ensure that maximum value is extracted An agreed deal would include Perspectives, Pinsent Masons commitments to support ``We will continue engagement manufacturers to export to with industry to ensure that the new markets and accelerate Sector Deals are designed in the the diffusion of productivity- most beneficial way possible enhancing technologies. ``We will review each Sector Deal at the one year point to maintain momentum and refresh ambition if necessary

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AI AND DATA GRAND CHALLENGE FIRST MISSION

Putting the Use data, Artificial Intelligence and innovation to transform the prevention, early UK at the FIGHTING TERRORIST diagnosis and treatment of CONTENT ONLINE USING AI chronic diseases by 2030. forefront of The Home Office worked with company ASI Data Science the AI and data NEXT STEPS to develop machine learning ``Launch Data Trust pilot(s) technology that can automatically revolution to explore frameworks and detect terrorist video propaganda mechanisms for safe, ethical on any online platform, ensuring and fair sharing of data the majority of content is stopped before it reaches the ``Set up the AI Council to internet. Tests have shown this galvanise support and maximise tool can automatically detect the ethical uptake of AI 94% of terrorist propaganda technologies across the UK with 99.9% accuracy – if it ``Review how the Government can analyses one randomly selected Artificial intelligence and use AI, automation and data video, only 50 would require machine learning are already HIGHLIGHTS INCLUDE: in new ways, to drive public additional human review. The transforming the global sector productivity and tool can be deployed by smaller economy, using vast datasets package from the AI wider economic benefits platforms that are increasingly deployed by terrorists and their to perform complex tasks. Sector Deal which ``Collaborate with global partners supporters and that often do not These range from helping doctors will strengthen the on shared AI and data opportunities £1bn have the resources to develop diagnose medical conditions more UK’s position as and challenges formulating automated detection technology. effectively to allowing people to a global leader responses that have international communicate across the globe using traction and credibility instantaneous speech recognition and translation software. allocated to fund “Artificial intelligence has the potential to transform our world for the The AI and Data Grand Challenge is data science and £300m better but to be successful we need to galvanise people in businesses seeking to build the best environment AI research right across the country. I’m honoured to be named chair of the AI for developing and deploying AI and Council because I’m passionate about championing the rapid and data technologies in a positive way responsible adoption of this cutting-edge technology. By focusing on for people and society. It is focusing to be invested in skills, data ethics and diversity, we can boost innovation and funding and on building the skills, talent and AI Fellowships to put the UK at the forefront of this exciting and revolutionary sector.” leadership in the UK, promoting bring the best adoption across sectors, and £50m AI researchers Tabitha Goldstaub, co-founder of CognitionX, AI Council Chair, ensuring AI and data technologies to the UK and AI Business Champion are used safely and ethically.

40 41 Industrial Strategy Forging Our Future

AGEING SOCIETY GRAND CHALLENGE FIRST MISSION

Harnessing To ensure that people can enjoy at least five extra healthy, the power of independent years of life by 2035, while narrowing the innovation to gap between the experience help meet the of the richest and poorest. NEXT STEPS IMPROVING CARE needs of an ``Work with national centres of THROUGH NEW expertise and local areas to TECHNOLOGIES ageing society address the opportunities and Internet of things (IoT) challenges of an ageing society, technologies can help people encouraging a range of approaches remain independent for longer in Local Industrial Strategies if they have a care need, such as ``Publish a new Prevention remote monitoring sensors to Green Paper outlining our plans alert friends and loved ones when In the UK and globally, to delivery five extra healthy there is an emergency. They can we have made significant also be used to collect vital data HIGHLIGHTS INCLUDE: independent years of life for all progress in supporting that enables preventative action. people to live longer. ``Launch a competition to design the home of the future — building Vodafone’s new V-SOS wristband One in three children born in invested to more energy efficient and suitable is one example. This product the UK today can expect to £98m support innovation homes for all generations, with can detect falls, and features live to 100. An ageing society for healthy ageing high-quality affordable design an SOS button and a simple profoundly impacts our society interface. The wristband will and economy. It means thinking ``Open up UK business alert family members if the opportunities across this new differently about work, finances, from Newcastle wearer needs help, whether Longevity Economy, through work housing, communities and health. University and the they are out and about, at to develop international research Government for a home or even in the shower. The Ageing Society Grand and innovation collaborations Challenge aims to harness the £40m National Innovation significant economic opportunities, Centre for Ageing including technologies, products and services more suited to our “At Vodafone we believe that technology and innovations like IoT will help more 50-64 future. We want everyone to lead us live longer, safer, more enjoyable lives. The Ageing Society Grand year olds expected fuller, healthier and more active Challenge is an example of the political leadership needed to encourage to be employed in lives, and support a new generation 5,000 people to take up and spread the word about the opportunities available.” of businesses to thrive in the Greater Manchester growing market for products and by 2020 Anne Sheehan, Enterprise Director, Vodafone services that support older people.

42 43 Industrial Strategy Forging Our Future

FUTURE OF MOBILITY GRAND CHALLENGE FIRST MISSION

We will put the UK at the Becoming a forefront of the design and manufacturing of zero emission world leader in vehicles and for all new cars and vans to be effectively the way people, zero emission by 2040. goods and NEXT STEPS services move ``Respond to changes in technology and trends in our urban environments with a Future of INVESTING IN Urban Mobility Strategy in 2019 ELECTRIC VEHICLES ``Establish a suitable regulatory LEVC is the manufacturer of framework for new technologies the iconic black cab. It has such as electric and invested £325m in a dedicated autonomous vehicles, starting electric vehicle manufacturing by conducting a Future of facility in Coventry, which We are on the cusp of a HIGHLIGHTS INCLUDE: Mobility Regulatory Review will create 1,000 new jobs. profound change in how ``Support and enable the The company’s first product,a development of drone we move people, goods and new measures to range-extended electric taxi technology in the UK in a way services around our towns, boost take up of which will be able to go further that responds to society’s needs city and countryside. electric vehicles without running out of power, is 46 included in our Road ``Continue work towards our goals for currently on sale and LEVC will be This is driven by extraordinary bringing an electric van to market innovation in engineering, to Zero strategy 50-70% of new cars to be ultra low emission by 2030, as a step next year that uses the same technology and business range-extended EV technology. models. New technologies can towards achieving the first mission transform public transport. funding for research and development The UK’s road and rail network into zero emission could dramatically reduce carbon £106m vehicle technology “A transport revolution in the way people and goods move around will emissions and other pollutants, see more changes in the next 10 years than the previous hundred. congestion could be reduced As the Future of Mobility Grand Challenge Business Champion, I’m through higher-density use of governments looking forward to working with the Government to help the UK build road space enabled by automated committed to a zero on its existing strengths and capitalise on that opportunity.” vehicles, and mobility could be emission future Ian Robertson, BMW UK Chief Executive, and Future of Mobility available when we want it, where 13 for road transport Business Champion we want it and how we want it.

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CLEAN GROWTH GRAND CHALLENGE FIRST MISSION

Maximising the We will use new technologies and modern construction advantages for practices to at least halve the energy use of new industry from buildings by 2030. the global shift NEXT STEPS GROWING THE GREEN ECONOMY GLOBALLY ``Support clean growth through to clean growth implementation of the policies Coventry-based company and commitments in our Organics, has developed over Clean Growth Strategy 300 low carbon projects in 21 countries around the world. ``Develop the UK’s place at the These include Covered Lagoon forefront of green finance by Bioreactors (CLBR); anaerobic publishing a Green Finance digestion facilities that are used to Strategy in Spring 2019 treat agricultural wastewater from The global drive to reduce ``Launch a design competition cassava mills; and sustainable carbon emissions will transform for the ‘Home of the Future’ in palm oil facilities to produce power. HIGHLIGHTS INCLUDE: all sectors of the economy, 2019, supporting innovation in One facility for a large tapioca including power, transport housing design and delivery, conglomerate in south Sumatra key to our Buildings mission and construction. to develop treats wastewater from a 200 It is estimated that the UK’s low carbon smart systems ``Build on our first annual tonne-per-day starch facility 3 economy could grow by as much as £273m and transform Green GB Week with a second and generates 1500 m /hour four times the rate of the rest of the construction week and ongoing Green GB of biogas for use in the milling economy between now and 2030. campaign planned for 2019, and process. It also has the benefit The UK is already a global leader in establish a new panel with a Clean of avoiding pollutants entering key low carbon sectors, including the businesses Growth Business Champion the environment and reducing world’s largest offshore wind sector, pledged to take greenhouse gas emissions. leading in the manufacture of electric clean growth vehicles, in innovative ‘smart systems’ 60+ action during and services such as green finance. Green GB week “The Industrial Strategy’s Clean Growth Grand Challenge can play a key The Clean Growth Grand Challenge role in moving the UK to a competitive, low carbon economy by supporting builds on this, aiming to put the the roll out of existing technologies at scale, as well as innovation in new UK at the global forefront of the government equipment and processes for sectors that have been more difficult to development, manufacture and funding for low tackle to date, such as buildings, industry and long-distance transport.” carbon heating, use of low carbon technologies, £320m Nick Molho, Executive Director of the Aldersgate Group systems and services needed matched by industry to tackle climate change.

46 47 Industrial Strategy Forging Our Future

INDUSTRIAL STRATEGY COUNCIL MEMBERS: ``Andy Haldane (Chair) — Chief ``Nicola Mendelsohn — Advertising Industrial Economist, Bank of England executive; Vice-President for ``Dame Kate Barker — Commissioner Europe, the Middle East and of the National Infrastructure Africa for Facebook. Non- Strategy Commission and recently Chair of Executive Director of Diageo the Industrial Strategy Commission ``Archie Norman — Chair, Marks & Council ``Emma Bridgewater — Founder Spencer. Formerly Chief Executive of Emma Bridgewater Ceramics of Asda, Chair of ITV, McKinsey Consultant and Director at GEEST, An independent ``Professor Diane Coyle — Bennett Professor of Public Policy at Railtrack and Kingfisher view on our success the University of Cambridge ``Hayley Parsons — Entrepreneur and ``Jayne-Anne Gadhia — Ex-Chief investor, founder of GoCompare, and Executive, Virgin Money, member adviser to the Welsh government of the Scottish Business Taskforce ``Roy Rickhuss — General Secretary ``Christine Gaskell — Local of Community union and member Enterprise Partnership (LEP) of the General Council of the Chair, Cheshire and Warrington Trades Union Congress The first meeting of the ``Rupert Harrison — Managing ``Professor Dame Nancy Rothwell Industrial Strategy Council Director of BlackRock — President and Vice-Chancellor took place on 1st November of the University of Manchester ``Dame Vivian Hunt — Managing and Professor of Physiology, Co- 2018 in Downing Street. “Our modern Industrial Partner UK and Ireland, McKinsey, Strategy is key to building chair of the Council for Science This new body is comprised of Chair of CBI London Council and Technology and past President a successful economy that leading figures from business, ``Dame Rotha Johnston — Chair of the Royal Society of Biology academia and civil society with a works for everyone and of Northern Ireland Screen, non- ``Professor Jennifer Rubin — wide range of local, national and creating high-quality jobs executive director of Northern Executive Chair of the Economic international perspectives. across the UK. This Council Ireland Electricity, board member and Social Research Council The Council is independent of the gathers some of the most of the Department of Justice and (ESRC), Professor of Public Policy Government and will provide impartial influential figures in business, Belfast Harbour Commissioners at Kings College London and unbiased evaluation of progress academia, and civil society. ``Professor Juergen Maier — ``Rohan Silva — Co-founder of Chief Executive of Siemens plc in delivering the aims of the Industrial Together, they will share Second Home, Senior Visiting Strategy. The remit of the Council Sir Paul Marshall — Co-founder their expertise and skills `` Fellow at LSE Cities includes reviewing the impact of the and Chairman, Marshall Wace LLP to measure the progress of ``Matthew Taylor — Chief Industrial Strategy to date and its ``Sir Charlie Mayfield — Chairman, our strategy and ensure it Executive, Royal Society for contribution to UK economic growth. John Lewis Partnership, the encouragement of Arts, is boosting people’s wages It is chaired by Andy Haldane, the Chair of Be the Business Manufactures and Commerce (RSA) Chief Economist at the Bank of and improving productivity England. The Prime Minister, the of British businesses.” Chancellor and the Business Secretary Theresa May, Prime Minister also attended this first meeting.

48 49 Industrial Strategy Forging Our Future References

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