fst journal The Journal of the Foundation for Science and Technology

Volume 20, Number 8, May 2012

Sir John Enderby: Arts, Humanities and Social Sciences Research and innovation Sir Adrian Smith: The intrinsic connection between research, innovation and growth Sir Tim Wilson: Business and universities in partnership Professor Andy Hopper: The creative power of disruption Professor Ric Parker: A strategy for growth – a response Stimulating growth Sir Richard Lambert: The state of Higher Education Dr Graham Spittle: Innovation and economic growth Catherine Coates: How the Research Councils contribute to growth David Willetts MP: The role of Government Climate adaptation Dr Rupert Lewis: From a scientific-certainty to a risk-based paradigm Sir Graham Wynne: Flood risk and water resources Tom Bolt: Insurance in a changing world Women in STEM Dame Jocelyn Bell Burnell: Still more to be achieved Dr Ellen Williams: A life in STEM Sir Adrian Smith: Encouraging a diversity of talent Shale gas Malcolm Brinded: The gas supply revolution Professor Paul Stevens: The global potential of shale gas Professor Mike Stephenson: Shale gas risks Antibodies Sir Greg Winter: Turning inventions into medicines – and businesses Sir John Savill: A tale of two revolutions Dr Neil Brewis: Collaboration is the way forward Arctic development Charles Emmerson: A changing landscape

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COUNCIL CHAIRMAN Editor The Earl of Selborne GBE FRS Sir John Enderby CBE FRS Production Editor President, The Royal Society Sir Paul Nurse PRS FMedSci President, The Royal Academy of Engineering Sir John Parker FREng Simon Napper President, British Academy Sir Adam Roberts KCMG PBA Sub-editors President, The Royal Society of Edinburgh Sir John Arbuthnott PRSE FMedSci Wendy Barnaby, Judy McBride, President, The Academy of Medical Sciences Sir John Tooke PMedSci FRCP Charles Wenz President, The Science Council Sir Tom Blundell FRS Design and layout Chairman, EngineeringUK Dr Paul Golby CBE FREng James McQuat Chairman, The Arts and Humanities Research Council Sir Alan Wilson FBA FRS Chairman, The Biotechnology and Biological Sciences Research Council Sir Tom Blundell FRS Chairman, The Economic and Social Research Council Dr Alan Gillespie CBE www.foundation.org.uk Chairman, The Engineering and Physical Sciences Research Council Dr Paul Golby CBE FREng Chairman, The Medical Research Council Sir John Chisholm FREng CEng FIEE Chairman, The Natural Environment Research Council Mr Edmund Wallis FREng Chairman, The Science and Technology Facilities Council Professor Michael Sterling FREng Chairman, The Technology Strategy Board Mr Phil Smith Professor Polina Bayvel FREng Sir Leszek Borysiewicz FRS FRCP FMedSci The Lord Broers FRS FREng Sir Geoffrey Chipperfield KCB The Lord Haskel Dr Geraldine Kenney-Wallace FRSC Sir David King KB FRS ScD The Lord Krebs Kt FRS FMedSci The Rt Hon the Lord Lloyd of Berwick DL Dr Mike Lynch OBE FREng Sir Rob Margetts CBE FREng The Lord May of Oxford OM AC Kt FRS FMedSci The Rt Hon Sir Brian Neill The Baroness O’Neill of Bengarve CBE FBA HonFRS FMedSci The Lord Oxburgh KBE FRS The Lord Rees of Ludlow OM Kt FRS HonFREng Dr Peter Ringrose The Lord Soulsby of Swaffham Prior FMedSci Dr Graham Spittle CBE Sir Mark Walport FRS FMedSci Sir Peter Williams CBE FREng FRS The Lord Willis of Knaresborough Dr Robert Hawley CBE DSc FRSE FREng (Deputy Chairman) Mr Patrick McHugh (Honorary Secretary) Mr Tony Quigley (Honorary Treasurer)

CHIEF EXECUTIVE Professor Dougal Goodman FREng

Neither the Foundation nor the Editor is responsible for the opinions of contributors to FST . © 2012 The Foundation for Science and Technology. ISSN 1475-1704 fst journal Volume 20, Number 8, May 2011 contents

UPDATE fst Managing the risks of hydraulic fracturing; Investment at the Hadley Centre; New journal centre for CCS; New resource for lifesciences; Tackling consumption and population 2 The Journal of the Foundation for Science and Technology EDITORIAL Volume 20, Number 8, May 2012 Arts, Humanities and Social Sciences Sir John Enderby: Arts, Humanities and Social Sciences Research and innovation Sir Adrian Smith: The intrinsic connection between research, innovation and growth Sir Tim Wilson: Business and universities in partnership Sir John Enderby ...... 3 Professor Andy Hopper: The creative power of disruption Professor Ric Parker: A strategy for growth – a response Stimulating growth Sir Richard Lambert: The state of Higher Education RESEARCH AND INNOVATION Dr Graham Spittle: Innovation and economic growth Catherine Coates: How the Research Councils contribute to growth David Willetts MP: The role of Government Climate adaptation The intrinsic connection between research, innovation and growth Dr Rupert Lewis: From a scientific-certainty to a risk-based paradigm Sir Graham Wynne: Flood risk and water resources Tom Bolt: Insurance in a changing world Sir Adrian Smith ...... 5 Women in STEM Dame Jocelyn Bell Burnell: Still more to be achieved Dr Ellen Williams: A life in STEM Business and universities in partnership Sir Adrian Smith: Encouraging a diversity of talent Shale gas Malcolm Brinded: The gas supply revolution Sir Tim Wilson ...... 7 Professor Paul Stevens: The global potential of shale gas Professor Mike Stephenson: Shale gas risks Antibodies Sir Greg Winter: Turning inventions into medicines – and businesses The creative power of disruption Sir John Savill: A tale of two revolutions Dr Neil Brewis: Collaboration is the way forward Arctic development Professor Andy Hopper ...... 8 Charles Emmerson: A changing landscape

T H E F O U N D A T I O N A strategy for growth - a response F O R S C I E N C E A N D fs t TE C H N O L O G Y Professor Ric Parker ...... 9 STIMULATING GROWTH www.foundation.org.uk The state of Higher Education carries reports on all Sir Richard Lambert ...... 10 Innovation and economic growth Foundation meetings. Dr Graham Spittle ...... 11 How the Research Councils contribute to growth Catherine Coates ...... 12 The role of Government David Willetts MP ...... 13 CLIMATE ADAPTATION From a scientific-certainty to a risk-based paradigm Dr Rupert Lewis ...... 15 Flood risk and water resources Sir Graham Wynne ...... 16 Insurance in a changing world Tom Bolt ...... 17 WOMEN IN STEM Still more to be achieved Dame Jocelyn Bell Burnell ...... 19 A life in STEM Dr Ellen Williams ...... 20 Encouraging a diversity of talent Sir Adrian Smith ...... 21 SHALE GAS The gas supply revolution Malcolm Brinded ...... 23 The global potential of shale gas Professor Paul Stevens ...... 24 Shale gas risks Professor Mike Stephenson ...... 25 ANTIBODIES Turning inventions into medicines - and businesses Sir Greg Winter ...... 27 A tale of two revolutions Sir John Savill ...... 29 Collaboration is the way forward Dr Neil Brewis ...... 30 ARCTIC DEVELOPMENT A changing landscape Charles Emmerson ...... 31 FST JOURNAL >> MAY 2012 >> VOL.20 (8) update

New resource for life Managing the risks of hydraulic fracturing sciences The Government has published an and monitoring stage; The Wellcome Trust is creating a new independent expert report recommending • an effective monitoring system to business that will invest in emerging measures to mitigate the risks of seismic provide near real-time locations and businesses and technologies in the tremors from hydraulic fracturing - magnitudes of any seismic events should healthcare and life sciences sectors. and is inviting public comment on its be part of any future hydraulic fracturing The business’s initial capital will be recommendations. See also page 23 of this operations; £200 million, drawn from the Wellcome issue. • future hydraulic fracturing operations Trust’s endowment. The business is An effective monitoring system and for shale gas should be subject to a ‘traf- currently operating under the working a traffic light control regime are among fic light’ control regime, similar to that title Project Sigma, and a name and brand measures recommended. The report, from recommended by Cuadrilla’s consultants. identity will be announced shortly. the Department for Energy and Climate A red light at activity levels of magnitude Sigma will be a directly owned and Change (DECC), confirms that minor of 0.5 or above means fracking should managed business that will seek to deliver earthquakes detected in the area of the be stopped and remedial action taken attractive returns on the capital it invests. company’s Preese Hall operations near (this is lower than the magnitude 1.7 Sigma will give the Wellcome Trust an Blackpool in April and May last year were proposed by Cuadrilla’s report). Unusual additional opportunity to identify and caused by fracking carried out by energy seismic activity, even at lower levels, invest in promising healthcare businesses, company Cuadrilla. should be carefully assessed before op- which will typically be at an early stage DECC’s Chief Scientific Advisor erations proceed. in their development with significant David MacKay said: “This comprehensive potential to grow. independent expert review of Cuadrilla’s The Royal Society is also undertaking a Sir Mark Walport, Director of the evidence suggests a set of robust measures review, jointly with the Royal Academy of Wellcome Trust, said: “The Wellcome to make sure future seismic risks are Engineering. Trust is known as an investor that takes minimised - not just at this location but at http://og.decc.gov.uk/en/olgs/cms/explo- a long-term view. Sigma will extend this any other potential sites across the UK.” rationpro/onshore/cuadrilla_decc/cuad- successful approach to direct investments The study recommends: rilla_decc.aspx in emerging healthcare technologies, to • the hydraulic fracturing procedure http://royalsociety.org/news/shale-gas- give small and medium-sized companies should include a smaller pre-injection review-launch the support they require to fulfil their potential.” www.wellcome.ac.uk Investment at the Hadley Centre £60 million of investment in the build upon the Met Office Hadley Centre’s Met Office Hadley Centre’s Climate strong collaborations with UK academic Tackling consumption Programme has been announced, science. and population aimed at maintaining the UK’s place as Over £11 million of new High a global leader in climate research and Performance Computing (supercomputing The most developed and the emerging modelling. capacity and associated hardware) will economies must stabilise consumption Nearly £50 million of funding is being be provided to underpin this programme levels, then reduce them, to help the poor- committed to a programme of research of research. This significantly enhances est 1.3 billion people to escape absolute and modelling until 2015. This investment the Met Office Hadley Centre’s capability poverty through increased consumption will significantly enhance the evidence until 2015 and is a response to the according to a new report from The Royal available to Government, supporting both recommendation of the Government Society. Alongside this, education and vol- mitigation and adaptation actions and will Chief Scientific Adviser. untary family planning programmes must be supported internationally to stabilise global population. The report, People and New centre for Carbon Capture and Storage the Planet, is the result of a 21 month study. Sir John Sulston, Fellow of the Royal The Engineering and Physical Sciences between 2011-2015. Society and Chair of the report working Research Council (EPSRC) and the The new Centre, which will have its group, said: “The world now has a Department of Energy and Climate coordination base at the University of very clear choice. We can choose to Change (DECC) are jointly undertaking Edinburgh, will bring together over 100 address the twin issues of population a £13 million investment to establish a of the UK’s world-class CCS academics and consumption. We can choose to UK Carbon Capture and Storage (CCS) and provides a national focal point for rebalance the use of resources to a more Research Centre. This forms part of the CCS research and development. The egalitarian pattern of consumption, to Research Councils UK (RCUK) Energy Centre will be a virtual network where reframe our economic values to truly Programme which is led by EPSRC. academics, industry, regulators and reflect what our consumption means for EPSRC will invest £10 million over others in the sector can collaborate on our planet and to help individuals around a five-year period, with funding of analysing problems and undertaking the world to make informed and free £3 million from DECC, to establish world-leading research. A key priority reproductive choices. new capital facilities that will support will be to support the UK economy “Or we can choose to do nothing innovative research. DECC has also by driving an integrated research and to drift into a downward vortex launched its CCS Commercialisation programme that is focused on of economic, socio-political and Programme and Roadmap which sets out maximising the contribution of CCS to a environmental ills, leading to a more the Government’s vision for achieving low-carbon energy system for the UK. unequal and inhospitable future.” commercial deployment of CCS in the www.epsrc.ac.uk http://royalsociety.org/policy/projects/ UK in the 2020s, including investing £125 www.decc.gov.uk/en/content/cms/ people-planet/report million in CCS research and development emissions/ccs/demo_prog/demo_prog.aspx

2 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) editorial Arts, Humanities and Social Sciences John Enderby

eaders might think it odd that 1966 TV play Cathy Come Home. This the Editor (a physicist) of a did more than any other activity to raise journal primarily concerned awareness of homelessness and even with Science and Technology provoked discussions in Parliament. The Rshould stray into territory more properly subsequent success of the charity Shelter covered by the British Academy and the owes much to this broadcast. relevant Research Councils. I hope to convince you that the success of Science Marrying art and science and Technology depends crucially on The death of Steve Jobs reminded us that the Arts, the Humanities and the Social he was, to quote a headline from The Times Sciences (AH&SoSc). (7 October, 2011), “a genius who married The starting point of my thinking on art and science to place the world at your this was an article by Ben Macintyre in The fingertips”. Fred Anderson, a former CFO Times some months ago. He described of the Apple Corporation said that: “Jobs the impact of a fringe group, the Kilburn understood the importance of combining Professor Sir John Enderby Tricycle Theatre, in performing The Art and Science in the creation of truly CBE FRS is the Editor of Great Game, a series of plays depicting innovative products.” FST Journal. He was Afghanistan’s turbulent past. Interestingly, it was a British engineer, Nothing unusual there, you might say. Sir Monty Finniston, who, in a 1980 report, Professor of Physics at What caught my eye, though, was the wrote of the ‘Engineering Dimension’. Bristol University from 1976 effect the series had on General Sir David Finniston argued that to translate science, to 1996. He was elected Richards, who is Chief of the Defence Staff. via good engineering, into economic benefit a Fellow of the Royal He is quoted as saying, “If I had seen this required an appreciation of the market series of plays before I had deployed myself environment and this would include design, Society in 1985 for his in 2005, it would have made me a better appearance and a deep understanding of the pioneering studies into the commander”. customer base. In short, as most practising structure and properties This is a truly remarkable statement. industrial engineers have long recognised, of liquids and amorphous Here is a most distinguished soldier who the very skills which those trained in the has achieved the highest possible posi- arts, humanities and social sciences bring materials. He served as a tion in the British Army. He has had vast to the table are essential components of Vice-President of the Royal operational experience and was both a stu- successful innovation. Society from 1999-2004. dent and an instructor at the Staff College, There is increasing concern that the One of his responsibilities Camberley. As preparation for high necessary skill base in design might be office, he undertook the rigorous Higher squeezed out as an unintended consequence was the Society’s publishing Command and Staff course. Nevertheless, of changes in FE and HE funding and the activities. Sir John was it was a theatrical experience and not fur- school curriculum. To address these issues, President of the Institute ther courses on strategy, tactics and logis- the Associate Parliamentary Design and of Physics in 2004. He was tics that, in his own words, had the poten- Innovation Group has asked Vicky Pryce the Chief Scientist at IOP tial to make him a better commander. Not and Baroness Whitaker to co-chair an a better person but, in the strictest military enquiry into the role of design education Publishing. sense, a better commander. in promoting innovation. Now that statement is highly relevant I suspect that we are still too influenced to the theme of this Editorial. I have by C P Snow’s ‘two cultures’ analysis of long believed that First World War poets contemporary society, yet it is surely time like Siegfried Sassoon and Wilfred Owen to embrace the idea that the Arts and the influenced senior military men – through Sciences are cousins. The early Fellows of their poetry – as the military strategists the Royal Society, for example, would not rethought their tactics in order to eliminate have recognised Snow’s analysis. Their the horrors of trench warfare. Sir David’s world view was informed by classical remarks substantiate my belief. philosophy which held, for example, that Great works of art, novels, poetry and natural phenomena, music and number plays are not only of value in their own theory are intimately related. A graduate right but, by illuminating the human in the History of Art need not know the condition, they impact in a direct way on precise formulation of the Second Law other disciplines. Sir David’s example is of Thermodynamics (the example always but one where this synergy is manifested. quoted by followers of Snow). What really Another example of the power of the matters is that he or she should understand performing arts was Jeremy Sandford’s why scientists worry about it.

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 3 editorial

Technology Assessment Group concluded 200 that “for the time being, there is little 180 indication of an increase in overall

160 acceptance. While it is possible that public perception will change as new 140 consumer-oriented GM products become 120 available, this cannot be taken for granted.” 100 Advocates for GM are largely drawn from

80 the scientific and commercial sectors, Anti-tubercular thereby opening themselves to the totally 60 drugs

Deaths per 100,000 from TB Deaths per 100,000 from unfair criticism “Well they would say that, 40 wouldn’t they?” 20 Clearly more work needs to be done:

0 there is the danger that, for example, stem 1900 1920 1940 1960 1980 2000 cell therapies might suffer from a similar Year lack of public support. Again, it is surely a no-brainer to encourage colleagues from Figure 1. Deaths per 100,000 from TB (US figures). the AH&SoSc community to become involved and indeed to campaign for Likewise a Physics major might not danger of obesity. With diabetes costing adequate funding. An illustration of fully understand the significance of the the NHS £286 every second and a predicted what can be achieved can be seen in the Punic Wars but should respect those case load of four million in the UK alone work of artist Gina Czarnecki, which is scholars who draw conclusions from the by 2025, it is surely a ‘no-brainer’ to ask the currently being exhibited at the Bluecoat wars in terms of the nature of power and AH&SoSc community how their particular Artistic Hub in Liverpool. Gina makes human behaviour. In a recent speech, expertise could best contribute to solving a films, installations, public art works the President of the British Academy, Sir growing problem. and sculpture which emphasise human Adam Roberts, challenged “the sterile Without in any way wishing to relationships to disease, evolution and and outdated notion of a society of downgrade the role of new therapies and genetic research. two cultures” and drew attention to the drug developments, it is interesting to look Wasted is a series of sculptures that increasing mutual dependencies of the at the historic changes in mortality rates explore the use of human tissue in art, the natural sciences with the humanities and for TB (Figure 1). These are figures from life-giving potential of ‘discarded’ body social sciences in responding to the major the USA but essentially the same trend has parts and their relationship to myths and social challenges of our age. occurred in the UK. history. The works draw attention to What are these major challenges to Changes in social awareness, better diet timely concerns such as stem cell research which Sir Adam refers? Let me give two and housing led to the dramatic fall between and issues surrounding the process of examples as illustrations of the necessary 1900 and 1950. Much of the thinking informed consent. synergy between Science and Technology behind these came from social scientists. Palaces is a resin sculpture with on the one hand and the Arts and The new drugs were undoubtedly of participatory artwork made from thousands Humanities on the other. huge benefit in essentially eliminating the of milk teeth donated by children around disease in the UK, but nature has a knack the UK and was jointly commissioned by New and old diseases of finding ways round our best efforts and Bluecoat and Imperial College. The first ‘new’ disease which hit the new strains of mycobacterium tuberculosis headlines in the early 1980s was Aids, the are sadly becoming a serious problem, A crucial role cause of which was soon established to particularly in developing countries. It is evident that subjects outside the natural be the Human Immunodeficiency Virus sciences are highly relevant to scientific (HIV). ‘New’ is in fact a misnomer as Public acceptance of new and technological innovation. Products HIV is now known to have existed for technologies must be well-designed, user-friendly and decades in sub-Saharan Africa, but changes This huge field includes the application reflect the cultural norms of the customer in social and sexual behaviour, combined of biotechnology to food production base. Likewise, changes in patterns of with relatively low cost travel, led to its (GM for short), therapies based on stem behaviour which are necessary to gain full emergence in the West. Other examples cells, genetically informed medicine and benefit from new technologies and medical include swine flu (H1N1) and the new nuclear power. Most scientists believe that interventions need to be encouraged. strains of TB which have proved to be if we are to address the acute problems Above all, technologies must command highly resistant to anti-tubercular drugs. facing the world such as food and water wide acceptance of the benefit they bring To deal effectively with these diseases security, the challenges of population to society generally. This requires a deep clearly needs the intervention of medical growth and the effective use of resources, understanding of the historical, cultural, science in the form of anti-viral drugs and major interventions at the scientific and economic and geographical context of the other therapies. Yet these will fail if social, technological are necessary and, moreover, relevant societies. economic and cultural contexts are ignored. all of the above have a role to play. Our friends and colleagues from the While the worldwide pandemic of Type 2 Yet such technologies are viewed with AH&SoSc community could, if properly diabetes will certainly make demands on suspicion by a significant fraction of the resourced, play a crucial role as the challenges medical science, we will be missing a trick world’s population. This is particularly facing mankind become ever more acute. It if we fail to spot that the Arts could play true for GM so far as Western Europe is is of direct importance to STEM subjects that a role in raising public awareness of the concerned. The European Parliamentary this is fully recognised. ☐

4 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) research and innovation

How should the Government, the Research Councils and Technology Strategy Board focus their resources to maximise economic growth? The question was debated in the light of the recent publication of the Government’s innovation and research strategy at a meeting of the Foundation for Science and Technology on 1 February 2012. The intrinsic connection between research, innovation and growth Adrian Smith

ince the last spending review, the also in retail and distribution as well as Government has put nearly half Professor Sir Adrian construction (Figure 2). Engagement a billion pounds of new capital Smith FRS is Director is not purely concerned with research: into science and technology, into General, Knowledge there is a whole host of ways in which initiatives such as: the Institute of Animal and Innovation, business engages with academia and it S Department for Health; high-powered computing and may be through meetings, joint research Business, Innovation e-infrastructure; and the commercialisation or consultancy. Indeed, there is a whole and Skills (BIS), where he leads on all of graphene. It has been hugely supportive ‘ecosystem’ of inter-relationships between aspects of policy relating to research, of science and research but, of course, innovation and higher education, universities, businesses and those who against the background of a very difficult including funding, science in society fund research (the Research Councils, economic and fiscal position. and women in science. Previously Technology Strategy Board, etc). How has that investment been justified? he was Principal of Queen Mary, Well, the UK has to take account of what University of London. Prior to this A strategy is happening in the rest of the world. he was Professor of Statistics, Head The recent Innovation and Research There is a great deal in the news about of the Department of Mathematics, Strategy for Growth1 published by the economies of China and India, but Member of the Management and BIS had five strands: discovery and less of Russia, Mexico, Indonesia and Planning Group and a Company development, innovative businesses, others which are also expanding. There Director of ICON (the Imperial knowledge and innovation, global has been an acceptance on the part of College Consultancy). collaboration, and challenges. Under Treasury that even in the current economic ‘discovery and development’ come what circumstances it is vitally important to driver of our policies. When enterprises were originally called Technology and invest in science and technology. are engaged in any one of the following Innovation Centres, now re-branded as We are not alone: in the USA President they are described as ‘innovation active’: ‘Catapults’: centres to support technology Obama has singled out research and • introducing a new or significantly commercialisation, bridging the gap innovation as key areas in which to invest. improved product (good or service) or between academia and business. The On the other side of the world, China process; Catapults have been announced in the is making huge investments in this area. • investing or engaging in: following seven technology areas: High Underlying these decisions is a substantial – internal R&D, training, design Value Manufacturing (operational Oct evidence base relating economic growth to – acquisition of capital goods for the 2011); Cell Therapy (operational in 2012); investment in R&D and innovation. purpose of making new products or Offshore Renewables (operational in 2012); R&D is an important part of the wider improving processes Satellite Applications; the Connected story. Looking at global investment, this – acquisition of external knowledge; Digital Economy; Future Cities; and is increasing at a rapid rate in China and • engaging in development projects Transport Systems. The network will be the USA but not so fast in the UK (Figure that have neither been completed nor fully operational in 2013. 1). So, is this a disaster? Well, even if in abandoned. The Strategy also identified emerging recent years this country has not kept pace technologies where it is believed there is with others, one proxy for output (citations Innovation does not always occur in an opportunity for the UK to become or the most cited citations) per pound high-tech areas – there is a great deal the global leader in their development. invested, shows that the UK has been in engineering-based manufacturing, but There will always be debates about picking

remarkably productive. A priority now is DISCUSSION to sustain that in the face of the financial The international dimension investment being made elsewhere. UK universities are very internationally minded, with large numbers of students Innovation and staff from overseas on UK campuses. There are also some successful Now while science and research are campus ventures in a number of overseas countries. However, the Government’s concerned with a great deal more than short inward investment initiatives may have underplayed the importance of the UK’s term, economic growth, for Government knowledge and research base as well as the strengths of the UK university sector. the economy – including growth and jobs Action is now in hand through Trade and Investment to address that. – is a primary focus. Innovation is a key

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 5 research and innovation

Total Gross Domestic Expenditure on R&D EU, where the Horizon 2020 programme 160 400 will succeed the current framework programmes. There is a great deal activity 350 140 on this agenda, such as that between the

$ 120 300 Research Councils and China to take just one example. PPP 100 250 t Open access, open data, open 200 publication, getting data and ideas freely

rr en 80

cu out there – addressing all these challenges 150 n 60 will encourage innovative business, so

ll io 40 100 the Government will be focussing on Bi these areas. This will include the largely 20 50 untapped potential of public procurement 0 0 as a driver of innovation. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Universities France Germany Japan United Kingdom China Singapore United States The universities are fundamental in all Figure 1. Total gross domestic expenditure on R&D (USA on right axis) of this. They are, after all, where most of the research funding goes. They are where bright people work, where they come from and where the interaction with Total industry happens. There have been a Engineering-based manufacturing number of recent initiatives that bring Other manufacturing together innovative areas of the economy Knowledge-intensive services with universities: the Maritime Centre Retails & distribution at Southampton; the links between Strathclyde and renewable energies; and the Other services very strong links built up over a number of Construction years between the automotive industry and Primary sector Warwick Manufacturing Group. 0% 20% 40% 60% 80% 100% An ecosystem There is an ecosystem of funders, Figure 2. Highly innovative firms are found in all industries and regions. Proportion of universities and business. Commitments innovation-active enterprises in the UK by sector 2006-2008. of £500 million since the Spending Review demonstrate Government’s support for this winners; it has become a pejorative phrase VAT: efficiency savings would have to be approach. David Willetts, the Minister which is odd because with limited resources at least 21 per cent for the project to work. of State for Universities and Science, choices have to be made. The aim of the At last the Treasury has been persuaded to restated that the Government wants to do current initiative is to underpin growing exempt universities and charities from this. everything possible to make the UK the technologies – synthetic biology, energy There is a saying that ‘he who out- best place in the world to do research. efficient computing, energy harvesting, computes, out-competes’. So, in terms of So let us get more universities into the nano-technology – those that are going to the ‘knowledge and innovation’ agenda, world’s top 100. Let us also encourage more be important in the future. the Government will continue to invest thinking between private providers, industry heavily in high-powered computing and and other existing institutions in order to see Further investment the e-infrastructure that goes with it. if there are any alternative models that might The Autumn Statement announced further give even better results. ☐ investment for innovative businesses: £75 Global collaboration 1. www.bis.gov.uk/assets/biscore/innovation/ million is going into various programmes On global collaboration, the UK must docs/i/11-1387-innovation-and-research- for small companies, there is an expansion ensure that it fully exploits its links strategy-for-growth.pdf of the R&D Tax Credit scheme, as well as with partners who are making massive www.bis.gov.uk/assets/biscore/innovation/ funding for a Future Cities demonstrator. investments. This is not just with countries docs/e/11-1386-economics-innovation-and- The Small Business Research Initiative like India, for example, but also within the research-strategy-for-growth.pdf (SBRI) has historically produced excellent

returns, so there will be continued DISCUSSION investment here as well. Learning from other cultures More generally, the Government recognises that geographical clusters with The apparently greater success of other countries, such as Germany and critical mass – where new companies Japan, in translating innovation into commercial success was raised. Yet surely can grow near, and interact with, great it is unrealistic to think that systems and structures which reflect cultural university departments and scientific characteristics specific to other countries can simply be imported and emulated in facilities – are highly desirable. One barrier the UK. It is more sensible to ensure that the UK learns from other countries and to working together has been the way that uses that knowledge to make the UK’s own system work even more effectively. joint companies were liable for 20 per cent

6 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) research and innovation Business and universities in partnership Tim Wilson

ne of the initial problems Additionally, more and more companies Professor Sir in conducting my review are taking interns, not just because they Tim Wilson DL of business-university want the intern inside the organisation, was Chair of the collaboration1 lay in but almost as an extended interview for Wilson Inquiry into defining its scope: the interactions O University-Business future employment. Internships offer a between universities and business are Collaboration. He new way of work-integrated learning. very diverse. Universities do a great held the post of Vice-Chancellor Industry-sponsored degree deal of work with the public sector and of the University of Hertfordshire programmes, although well-advertised other sectors within our economy, but from September 2003 to December today, are not new. Southampton Solent it is the interface with wealth-creating 2010. A strong advocate of the University and the Merchant Navy business which was the focus of my role of universities in economic have been doing this for years. We will review. development, he is acknowledged certainly see more company-sponsored, Although the definition of a as one of the leading thinkers and undergraduate degree programmes, but university is fairly straightforward, practitioners in university-business in the postgraduate research market too. there are many more institutions collaboration. Rolls Royce and Cranfield have their accredited to award degrees in this Masters portfolios, GlaxoSmithKline and country than just universities: private the business somewhere else. Without Strathclyde their PhDs; these are jointly sector education providers and some FE inter-university collaboration, we sponsored programmes and will certainly colleges. The review therefore covered cannot achieve excellence. increase in number as companies become all of these institutions. more engaged in ensuring a supply Supply chains and people chain of high-level skills for their future Landscape and domain development workforce. They need to be encouraged Many research academics – and A university is an integral, strong and promoted. equally many research people part of the supply chain to UK Internships and placements need not within business – work in their own business. It supplies high-level skills, apply just to undergraduate programmes. domains, developing new technologies, it supplies innovation, it supplies I have recommended there should be innovating and creating wealth. This research, and it supplies enterprise as internship opportunities for PhD students work is well recognised. Yet there well as entrepreneurial graduates and – work outside the university should are many other domains within the postgraduates. The supply chain model be an integral part of their programme. overall university/business landscape: is well-understood by most people but it That also applies to post-docs – surely supporting undergraduates forming is not a linear model: strong supply chains they should have similar opportunities? their first new business, encouraging have feedback loops, involving empathy Knowledge exchange is all about entrepreneurship, developing enterprise between supplier and user. people, too. The growth of Knowledge and employability skills. Upskilling This type of supply chain is all about Transfer Partnerships (KTPs) and mini- our workforce through work-based people and people development. There KTPs are among the successes of the learning is a further example of are, however, blockages that need to be last 30 years. These are excellent ways university/business collaboration, as removed. The situation regarding the of promoting innovation and research is the provision of internships and employment of undergraduates is well especially in the context of SME growth. placements. publicised: the need for work-integrated Diversity is a fundamental strength learning is well-acknowledged and yet Facilitating economic growth of the sector. No one university can each year we see the number of students The facilitation of economic growth has cover all domains within that landscape going out on placement declining. to be considered in the wider sense. – it is simply impossible and, indeed, There are many reasons given but I do In the knowledge-based economy of not desirable. But, for an excellent not accept them. The universities that the 21st century, universities are the system of collaboration, all domains are really active in sandwich courses, engines of economic growth. They are within the entire landscape need to be and which make sure their students the suppliers of high-level skills, they are excellent. get full year placement experience – the suppliers of innovation, they are the To achieve that excellence, places like Loughborough, Brunel, suppliers of research. Frederick Terman, collaboration between universities is Bournemouth and Ulster – have student Dean of Engineering at Stanford, vital. When a business approaches work experience in their educational persuaded the university in 1951 to a university and asks for a service, genes. establish a 700 acre industry park on part a simple answer of ‘no we don’t do This phenomenon of placement of the campus – that is now the Stanford that’ is simply not good enough. decline is far more about university Research Campus. Those 700 acres, next There are far too many examples of culture and mission than about student to a university which was receiving so ‘unresponsive’ universities; not because motivation. The evidence is strong and much investment in research, was a key they actually do not respond, but compelling that undergraduates who go reason why the ‘tech industry’ grew up because when asked they neither offer on a placement year are better equipped there as Steve Jobs acknowledged in his what the business requires, nor refer to contribute to their future employer. autobiography.

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DISCUSSION and Coventry University are working Innovation in social sciences in partnership. Here are two excellent universities working in partnership The emphasis on science and technology could result in too little attention and collaborating; not competing but being given to innovation in the social sciences which could themselves produce complementing each other. The LEP enormous benefits for society as a whole. The BIS Strategy paper does define is making a difference, working with innovation as applying much more widely than just science and technology. excellent universities, working for local There is a great deal of value to be gained by the nation from innovation economic growth. It is a good exemplar stemming from social science research; this does not just benefit society in for others to follow. general but also businesses, for example in the field of business ethics and As LEPs are the only game in town, governance. they must be made to work and to succeed. So my review recommends that these organisations take a significant role Now, here in the UK there is an investment that is going to create jobs in the promotion of future university/ under-utilised resource in our research outside the university? Are we doing business collaboration. That includes universities. The facts are compelling enough to build on this excellence to create the promotion of innovation vouchers – the UK universities have one of the more economic wealth in this country? with the Technology Strategy Board. It best research profiles in the world. Universities are engines for economic includes a role in developing high-level There is enormous research power in growth; they need to be recognised and skills training. It includes helping SMEs this country. Do we use it sufficiently promoted as such. with apprenticeships and internships. in the context of economic growth? Local Enterprise Partnerships are The Local Enterprise Partnership is Do we work hard at obtaining further fairly new; it has taken time to get them critical to the future economic health of research from international companies together. Some are doing extremely well. our country; it cannot all be achieved into our universities? While we welcome Look at Warwickshire and Coventry, centrally. ☐ new investment in R&D, where is the for example, where Warwick University 1. www.wilsonreview.co.uk The creative power of disruption Andy Hopper

he enterprise culture within too much money involved in IPT; just try Professor Andy UK universities has seen a paying a patent for a lifetime as an SME – Hopper CBE FRS substantial change over the it is almost impossible. FREng who is Head past 30 years. Today it is as Capital is expensive but it is interesting of the Computer good as anywhere around the world. In T Laboratory at to compare venture capital (VC) and general, universities have three functions: the University of Angel funding. Angel funding for SMEs, teaching (which some people forget Cambridge. He is an elected in particular in the UK, has done rather but it is important); supporting current member of the University Council. well. The amounts of money are smaller industries; and then a ‘disruptive’ effect His research interests include – £1-2 million in general, but this tool where they help to create new industries. computer networking, pervasive has been making money and recycling While it is good that the Government and sentient computing, and it. Fiscal schemes, like R&D tax credits, has maintained the research budget this using computers to ensure the are great from an SME point of view. year in cash terms, our competitors have sustainability of the planet. He has Yet the financial landscape within which actually increased Higher Education R&D. co-founded a dozen spin-outs and SMEs operate is complex and, perhaps Yet the UK does appear to have a large start-ups, three of which floated on even more important, it keeps changing. share of R&D undertaken by subsidiaries stock markets. Stability is crucial. of foreign companies. A study by Hughes & Menner on the UK R&D landscape Industry is changing: there is The interface found that the country has the lowest share technological change, the invasion of Collaboration between universities and of government support for independent digital into everything and new materials business tends to work in one of two ways: SMEs among a range of leading economies. as well. In the more established industries, high barrier-high cost; and low barrier- Taking out the small companies which are disruption occurs in the structure of low cost. In the first, the university is subsidiaries of multinationals, only 3.5 per the business, through fragmentation, encouraged to produce patents, which it cent goes to SMEs – and that is a worry. consolidation and so on. Importantly, then sells to companies or start-ups for University culture has become very there has been a loss of corporate research as much as possible. Research prices are institutional; more like the multinationals laboratories. I personally think this is a high, with full economic costing. It could than entrepreneurial bodies. The huge problem and a huge gamble. be termed the ‘turnstile’ model and there system of governance appears to be very The issue of Intellectual Property is almost nothing in it for an SME. Yet it conservative and constrained; at all levels Rights (IPR) is very complex but oversold. continues to operate. it appears you have to show the outcome Business is about selling something to In the low barrier-low cost model, of what you are proposing before you get somebody and that is how to make profit, the university is concerned with gener- going. That is not good. not by negotiating IPR. There is, however, ating knowhow. If patents are created,

8 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) research and innovation these are given away – alternatively, the of reduced instruction set architectures what to back. And be careful about how research is deliberately patent-free. The being developed in California. There you measure this activity. Inappropriate research is priced low. One might call were no IP rights and the business model metrics airbrush out some of these good that the ‘revolving door’ model and there in ARM’s case was ultimately a corporate things: for example, if you only count is great deal of potential for SMEs in that spin-out. This was very much a case of companies as spin-outs if the university situation. The norm at present seems to low cost innovation. retains a shareholding, that is going to be the high barrier-high cost model but I distort the picture. would encourage a move to low barrier- Policy The fact that only 3.5 per cent of low cost wherever possible. It is very important to encourage Government support goes to SMEs is The SME disruptive sector seems to hybrid institutions which lie between a real problem and I would encourage work in the following way. A start-up industry and academia; like the Institute tax benefits for independent SMEs. or an entrepreneurial arm of a large for Electronics, Communications and In the Netherlands, there is a scheme company comes up with a business idea. Information Technologies (ECIT) in which allows them to delay paying They liaise with a university to get the Queen’s University Belfast, for example, tax on dividends. I would encourage very best people. Then, to generate which is a research centre in the investment in money-making funds, in knowhow and to understand what university with a number of development Super Angel Funds, the Royal Society is happening in the academic sector, engineers. Enterprise Fund, for example. they need that research group to be It is worrying that the Research In conclusion, stability and simplicity as brilliant as possible. It can then be Councils are neither focussing on quality, are crucial. I would incentivise the used as a ‘radar mechanism’ to scan the nor on specific directions – this is the revolving door model rather than the worldwide academic world and identify worst of both worlds. It is not really turnstile model, I would be very much any disruption that might affect their possible to predict what will happen in more cautious about measurement, business. the next five or 10 years, but it is possible I would measure less but much more I was involved with the original to make decisions based on track records. wisely. I would also be very careful of ARM technology. Back in 1981-2, the The Research Councils should employ innovation lists: Whitehall seems to have university was designing chips and some experts in different domains and ideas which are not completely joined-up CAD. The ‘radar’ focussed on the idea let them make decisions about who or with the real world. ☐

A strategy for growth — a response Ric Parker

n terms of the traditional metrics have to fill that gap, and many are very of research excellence, the UK is Professor Ric Parker good at doing so. superb. While research excellence is FREng is Director The strategy also propagates the myth of Research and a necessary precursor for innovation, that all innovation is carried out by SMEs Technology at the Rolls- though, it is not a sufficient condition. and that they are without exception full of I Royce Group. He is Traditional measures are dominated by wonderfully innovative people. In reality responsible for direction citation indices and publications, not and coordination of research and the linkages between SMEs and large patents and products brought to market technology programmes worldwide. companies are also vital to innovation. The in the UK. The new strategy outlines He is a member of the National strength of the Small Business Innovation initiatives that may start to enable true Defence Industries Council (NDIC) Research (SBIR) programme in the USA innovation. R&D Group, and a member of the is that it allows large companies and small Yet look at the challenges facing the European Transport Advisory Group. companies to join together in order to UK. The strategy includes investment bring innovation to the market. The grant of £158 million in e-infrastructure: that is not withdrawn if the recipient is bought is a large sum and yet is unlikely on its the importance of universities to the by a large company, which unfortunately own to get the UK into the world’s top 20 innovation process. However, as Tim tends to happen in the UK. nations in this area. The issue is not just Wilson pointed out, UK universities do Research investment is, of itself, having big computers, but in UK industry a superb job in bridging that ‘valley of a good economic stimulus. It creates having access to them. It is sad to say that death’ between research and successful jobs, it provides investment in capital today, Rolls-Royce can get greater access commercialisation. We do not have and equipment. Much of this is sourced (and at a considerably cheaper rate) to the Helmholtz Institutes or Max Plank in the UK and, unlike many job-creation University of Illinois super computer than Institutes, we have dismantled many schemes, it has a lasting legacy in terms of to any in the UK. of our corporate research centres and intellectual property (IP), which contains The BIS strategy is a bit light on national research centres; so universities the seeds of future growth. ☐

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How can the research carried out in Higher Education be used to create economic growth? This was the issue debated at a meeting of the Foundation for Science and Technology on 23 November 2011. The state of Higher Education Richard Lambert

flourishing Higher Education Ed], and a university could take as many sector is vital if we are to Sir Richard Lambert of these as it wants. Another 20,000 achieve sustained economic has been Chancellor places would go into a separate pool, to growth. The universities’ of Warwick University be competed for by institutions whose biggest single contribution to a dynamic since August 2008. average fee did not exceed £7,500. A He was previously economy is the flow of well-educated graduates that they produce each year to Editor of the The consequences Financial Times, join the workforce. The HE sector itself is What are the likely consequences of all Director General of the CBI and an important contributor to the economy, this? Top universities will benefit as the a member of the Bank of England and at regional level universities are a Monetary Policy Committee. In best-qualified students focus on the best- magnet for talent and inward investment. 2002 he undertook an independent ranked institutions – and these will be The universities are the partners of review of higher education and allowed to accept more of them than they choice for business R&D. In many cities business collaboration for the then do today. The outlook for many other the local economy has been transformed Government. institutions is uncertain. Students from by the relations built between the middle-income families may be relatively academic and business sectors. Indeed, it price-insensitive, but how students from is hard to think of a really successful city but that was politically unacceptable. poorer backgrounds will react is unclear. anywhere in the world that does not have It was also important that the system Some of the post-1992 universities, a successful university or two at its heart. could be presented as progressive, with offering low-cost courses and with a good Yet today, the English Higher an emphasis on widening access. The record of getting their graduates into Education sector is suffering. It thrives Coalition ignored another of Browne’s employment, will do well. Others will on confidence and stability, but both ideas, that universities should pay a levy find themselves locked in competition for qualities are in short supply. on income from fees above £6,000 to candidates with the Further Education The fiscal crisis meant that changes cover the extra costs to the taxpayer of colleges. were inevitable whoever was in power. providing students with up-front finance. Some middle rankers, including Prior to the big spending decisions in The decision to set a standard figure for members of the Russell Group, will find the autumn of 2010, the Department for fees at £6,000 a year, with an upper limit their high fees hard to justify in a more Business, Innovation and Skills (BIS) faced of £9,000 in exceptional circumstances, competitive world. Newcomers will a big problem. It was the largest spending seems not to have been based on research. cherry-pick their most profitable courses. Department not ring-fenced against the In practice, most universities announced There will be increasing competition from cuts and the universities loomed large in fees close to the £9,000 ceiling. Demand continental Europe, where universities its budget. That presented some tough for places exceeded supply; a university from Madrid to Maastricht offer political choices: sharp cuts in student charging lower prices might be saying competitive courses taught in English. numbers, salami-slicing of funding or something unflattering about how it saw Revenues will become more volatile as tuition fee increases — probably all three. itself; inflation was rising; and this might student preferences shift. be the last chance to increase income for There will be a growing number of for- The Browne review some time. profit entrants at the bottom end of the Lord Browne’s review, which suggested When it became clear how universities scale, offering courses like business which putting most of the funding for teaching would play the game, the system was cost less to put on, and which do not in the hands of the students rather adjusted to reserve places at the top end have to cross-subsidise more expensive than the universities, appealed to the for candidates with A-level grades of courses such as engineering. Conservative side of the Coalition. AAB or better [the Government has since Moreover, it is hard to find anyone Placing power in the hands of the student announced this will be ABB from 2013 – who thinks the new model is sustainable

could be presented as a shift towards DISCUSSION competition and market forces. For the The situation outside the UK Liberal Democrats, though, who had campaigned on the abolition of tuition Not enough attention is being given to what is happening in the rest of the fees, it would spell trouble. world: to the role of inward investment in contributing to the UK’s research The Coalition says it has accepted and innovation; to the opportunities in the rest of the world – and especially roughly 85 per cent of Browne’s in the EU – for UK researchers; and the scope for the UK to exploit research proposals, but it is the missing 15 per output from outside the UK. There is also much which we can learn from the cent that is the problem. Lord Browne experience of other countries. favoured removing the fee cap altogether,

10 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) stimulating growth over anything more than the next few places by creating the price-based margin Second, it should follow the advice years. Furthermore, it is unclear how of 20,000 places, but how will that work? of the recent Business, Innovation and much it will cost the taxpayer. Some Other policy changes will also affect Skills Select Committee report and believe that Government estimates of the the universities’ role as magnets for talent. allow the changes that have already been proportion of student loans that will get There are worrying reports about the drop announced sufficient time to settle down. paid back are too optimistic, and that the in student applications from outside the We need more stability. new system could cost the taxpayer more European Union — especially India — as Finally, and most important, it should be than the old. a result of the stricter approach to visas. bolder in its aspirations for our university There are other uncertainties. Perhaps The Government’s decision to system. Universities are a powerful engine of most interest to employers is what maintain the research budget, at a time for innovation and economic growth and the changes will mean for the teaching when everything else was being cut back they need to turn out high-achieving of science, technology, engineering and heavily, is to be applauded. However, graduates for the workforce, but they are maths (the STEM subjects). Since many research can take years to translate into about much more than that. Perhaps more students do well at A-levels in the economic activity. the British Academy is being harsh in its humanities than in STEM subjects, will criticism of the reforms, saying that they STEM students find it harder to find Taking action imply that “study at university is only places in the best universities under the The Government should, I suggest, now successful if it leads to a higher salary in new quota system? Will the subsidy do three things. It should work to give employment”. Yet we must never forget paid to support expensive-to-teach STEM prospective students and their families that Higher Education is a public as well subjects be big enough? the information they need to make as a private good, bringing benefits to the The White Paper does not consider informed choices about the costs and nation as a whole. ☐ the funding of postgraduate work. This benefits of going to university, and about Browne report: is especially relevant to STEM, where what different institutions have to offer. http://webarchive.nationalarchives.gov. the falling proportion of home students The piecemeal way in which the policies uk/+/http://hereview.independent.gov.uk/ on postgraduate courses is already of have been launched, with the initial focus hereview/report concern. on fees, means there is a lot of catching BIS Select Committee report on The Higher Education Funding up to do. In response, the Government Government reform of Higher Education: Council for England (HEFCE) proposes has set up an Independent Taskforce on www.publications.parliament.uk/pa/ to offer protection for expensive STEM Student Finance Information. cm201012/cmselect/cmbis/885/88502.htm Innovation and economic growth Graham Spittle

he United Kingdom has initiatives and the focus has shifted from a tremendous university Dr Graham Spittle the pure subjects and technologies to CBE is former sector. The country is widely multidisciplinary areas such as healthcare, Chairman of the acknowledged as being excellent energy, food sustainability, transport and Technology Strategy at research — but not always the best at buildings. T Board as well as the exploiting it. Chief Technology At IBM I work with companies glob- Officer and Vice President for IBM’s Priorities ally as they seek to transform their busi- Software Group Europe. Previously Priority is given to work on energy nesses and now the same process of mod- he was Vice President, Integration supply, security, climate and the ageing ernisation is taking place in governments. Development, and Director of the population, because these are the areas Suddenly the Western model looks out- IBM Hursley Laboratory. He has that will shape the national economies of dated, and while here we talk about a lectured and published on software the future and drive innovation. While the global recession, in some countries they contracting and intellectual property. old DTI looked at big technology projects talk about a North Atlantic recession. in the traditional large industries, the TSB We are still struggling for growth. universities recorded an 80 per cent works with companies big and small in We need to reform the economy, satisfaction rating. Research is the healthcare, creative industries, financial understanding that we are in a race for bedrock, but if we are to benefit from that services and satellite engineering: it aims skills and renovation. At the Technology research it must feed into products that to cover a broad spectrum. Strategy Board (TSB), the emphasis reach the market. The Small Business Research Initiative is on the importance of research and Since being spun out of the old (SBRI) helps SMEs win Government development in achieving those goals. Department of Trade and Industry (DTI), business through pre-commercial R&D The support that businesses get from the TSB has come a long way, with a contracts and helps Government deliver universities is vital, and of clear benefit. much-increased budget and with new more effectively and save money. Two-thirds of the projects supported by approaches. It is an organisation driven The TSB investigates how whole the TSB are direct collaborations between by business and run by business people. systems could work, rather than individual business and universities, and two-fifths In the four years since re-forming the TSB, projects. Also it has established more of its funds are spent in universities. we have invested £2 billion. Nearly 4,000 networks with the Knowledge Transfer A recent survey of SMEs working with businesses have participated in various Networks (KTNs) and _Connect.

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DISCUSSION we spend only £300 million a year on this. Manufacturing in the UK and abroad That is not enough to change the macro- economic state of a country. It must be The decline in the UK’s manufacturing base is a cause for concern as is the many times that to make a difference. short-termism of UK investors as compared with those in the USA and Japan. We want to make the UK irresistible to One consequence of this is the low level in the UK, relative to the public major global corporations seeking to invest sector, of private sector research and development. However, the importance in knowledge-based industries. We are a of manufacturing in the UK is comparable to that of many other advanced perfect dropping-off place for Europe, and economies, although Germany is an exception with its manufacturing sector we have the English language on our side, being exceptionally large when compared to the rest of the economy. as well as our free trade and heritage. That is working in the automotive sector, where we are producing more cars than ever. One of the complaints heard from innovation centres (TICs) now renamed people who are ‘head down’ in business Catapults. The Government acknowledges Procurement is that they do not know where to go to that innovation is important and Now we must put procurement to work. I get support. I have been amazed how confirmed that it would provide funding am encouraged that the Government are much support is available, but it is still too for this new network. saying all the right things and I believe difficult for businesses to know where to we have an opportunity here. We can find it. We need to address the question Business needs ensure that the money we spend on of how we can better join up the UK Two things are important for businesses health and defence is spent in a more Government/innovation infrastructure worldwide — a continuity of policy and intelligent way to stimulate innovation and make it easier for people to navigate. a visibility of continued funding. We are and manufacturing in the UK. TSB’s thematic priorities include lucky that politically the UK is viewed as I was heartened by the investment in advanced materials, information and stable ‘free traders’, always (irrespective of graphene — I personally do not know communications technology, electronics, our political colour) ready for innovation whether it is a brilliant thing to do, but I photonics and biosciences: all areas where and growth based upon the technologies think it is a good bet. Practically every the UK has deep strength, intellectually, that we have. That is what will transform other country in the world supports its in our universities. Then there are our economy. industries, and we need to follow suit. the more ‘societal’ areas of energy, the The link between innovation and We must maintain pressure on built environment, food, transport and economic recovery can be seen the world Government to deliver ever-stronger healthcare. High value manufacturing over. China has invested in education and support for research, skills and crosses many of these areas. research, and is now enjoying commercial innovation. It means taking an economy- In order to support SMEs, we have success. The UK must grasp that message, wide view of the growth and innovation launched feasibility study grants, ‘launch invest and take risks. The economic policy. We will have succeeded in 10 pad’ grants for R&D, the Small Business urgency for faster innovation could not years’ time if we no longer need a TSB Research Initiative (SBRI) — which has be stronger. because we are doing all these things proved very popular — and the Euro All governments can do more; we automatically. That is the way the world Stars programme, to ensure continuous cannot use deficit reduction as an excuse is rapidly moving. Fortunately, we have evolution. If programmes work, they will not to invest properly in economic growth. the gold standard of intellectual capital. be continued: if not, better ways of using Based upon recent output evaluations, we We can build on that if we focus on the the money will be found. calculate that our current programmes in total ecosystem, while keeping the faith In 2011, the TSB launched a £200 the TSB deliver a return of between 10 and with innovation and the exploitation of million programme for six technology 50 times on the original investment. But our best ideas. ☐ How the Research Councils contribute to growth Catherine Coates

he core business of the Research proposals to how their work might be of to make the right connections. Councils and the main way in interest to someone else — perhaps in The Research Councils have campuses which they contribute to the another discipline, or to organisations where new and established companies economy is through the huge in the private or public sectors. We work alongside technological and Tamount of research that is commissioned recognise that will involve a culture intellectual research as it is happening each year and through the support given change over time. While clearly not every — in campuses like Babraham and to thousands of postgraduate students, branch of every discipline will contribute Harwell, and in the university sector many of whom ultimately leave academia directly to economic impact, it should be through organisations such as the taking a wealth of knowhow with them. as natural to researchers to consider who Innovation Knowledge Centres that we Research Councils are encouraging might be interested in their research as it co-fund with the TSB. This arrangement researchers in every discipline to give is to teach and research in the first place. brings people together from inside and some thought when planning research It should then be automatic to take steps outside academia, enabling them freely to

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connecting companies and researchers. areas. We are also brokering cross-business Catherine Coates is Why do companies want to deal partnerships, for generic technologies, for Director, Business with the Research Councils, rather example in autonomous systems. Innovation at the than exclusively dealing direct with Our relationship with the Technology Engineering and universities? What we offer is national Strategy Board has matured over the Physical Sciences knowledge of excellence. Everything we years. When the TSB was formed, Research Council. fund is the result of highly competitive Research Councils had financial targets Catherine has worked in a variety peer review, so we know where the best (‘you will do this amount of business of roles within EPSRC. She research is going on. If businesses are was Director of Planning and with the TSB’) and that was the metric. Communication from 2000 to 2008. interested in structured collaboration It was crude but helpful as everybody Before that, she was Programme with the university sector, they need this was new at this. Now, we are looking at Manager for the Infrastructure knowledge and we can give then a more a much tighter and smarter relationship and Environment Engineering tailored, strategic view of their options. for innovation. This means that the Programme. It helps us greatly when companies come TSB can reach further back into our together in sectors. We are particularly funded research base to consider where pleased to be working with industry potential new technologies are coming exchange knowledge about what they are bodies like the UK Automotive Council from and the Research Councils can doing. There are some 2,400 businesses and the National Aerospace Technology plan transition to TSB’s more strategic and other organisations collaborating on Strategy Programme. These groups business–led support. To that end, the our research portfolios, as well as a suite provide roadmaps that help us to direct Research Councils are working closely of strategic partnerships with a number of funding to their long-term future needs in with, and are very supportive of, the companies and sectors. So we are actively potentially disruptive and pre-competitive TSB. ☐ The role of Government David Willetts

hree drivers of growth — a big factor for a young person taking a research, innovation policy and The Rt Hon decision. Higher Education — must all David Willetts In setting their fees the universities be functioning well if we are to MP is Minister have to recoup the costs of the grant that achieve economic growth in the coming for Universities they have lost, but we are trying to open T and Science at the years. Sir Richard Lambert has expressed up competition on quality and in the Department for his concerns about the uncertainties volume of places universities can offer. Business, Innovation facing the higher education sector, but I We will gradually phase out the quotas and Skills, and MP for Havant. He is would like to put these into perspective. also responsible for the Technology that determine how many people go to The Coalition Government urgently Strategy Board, the UK Space each individual university: instead, the had to reduce public spending across the Agency as well as a range of other money will go to the university that the board. John Browne’s report into Higher bodies and also has ministerial student chooses. Education — set up by the previous responsibility for space policy. He Controlling student numbers is one Government in consultation with has written widely on economic method of controlling public expenditure. opposition parties — identified radical and social policy including his So we need to establish some mechanism changes that would reduce costs while latest book The Pinch: How the baby for contestability, choice and competition maintaining standards. It called for a big boomers took their children’s future — with an overall constraint on student reduction in teaching grants, with more and why they should give it back. numbers. We have done this in two finance delivered to universities via fees ways: first with a tariff system, where the and loans. The alternative would have all universities and the draconian rate of money will go with the student, starting been an unacceptably large reduction sliding-scale levy that was likely to result with students who have AAB grades or either in student numbers or in grant, would be no improvement on the fee cap. better (about 65,000 students per year) with no offsetting increase in income [since revised to ABB from 2013 – Ed]. from fees and loans. Areas of competition Then there are 20,000 places reallocated The biggest single difference between On the issue of the fee cap, it is important to lower-cost providers, particularly new our policy plans and the Browne report to remember that price is only one area entrants into the system. relates to the levy — we chose not to in which universities compete. Course Sir Richard Lambert makes three impose a levy on universities setting fees content, university location and many requests for government action. First, above £6,000 and instead went for a £9,000 other factors are important — and a he wants more information provided to fee cap. The conceptual argument for a student’s payments are limited to 9 per prospective students. I agree with him levy is that it compensates Government cent of their earnings above £21,000, so and we are acting on transforming the for the cost to it of subsidising the loans, a difference in fees of several hundred information available. Second, he said measured as the Resource Accounting pounds might translate into the difference that the Department of Business Select and Budgeting (RAB) charge. However, between completing graduate repayments Committee report was right to call for a the levy was set as a general rate across at the aged of 43 or 45, which will not be delay in the process of change. But what

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does delay mean – delay introducing the DISCUSSION fees and loans that cover the loss of the The challenge of successful translation grant? Delay making 85,000 contestable places available next year? We feel that Some Higher Education institutions seem reluctant to recognise that the financial any delay would be a backward step. benefits from the translation of research into commercial activity need to Sir Richard’s third challenge was be fairly shared between all the participants in any collaboration. HE itself that the Government should be bolder produces public as well as private benefits and more effort should be devoted to in its aspirations for universities. Our communicating to the public at large the nature and extent of those benefits. White Paper was about teaching in our The Technology Strategy Board also plays an important role in securing economic universities because that is where the big benefit from innovation. financial changes were happening and where there is a challenge. Sometimes the very sharp incentives that we have for e-infrastructure. We have already Then there is nano–technology, where for rewarding high quality research and identified the capital funding sources excellent work was done by the previous the competitiveness of the funding for for the eight priority capital projects Government. We are now trying to bring research has meant that that has become highlighted by the Research Councils. this together and coordinate it. I am the focus of universities’ attention, and For many of us who came into politics convening a group to ensure how we they have not always given the same 20 years or so ago, there is a fear of can take advantage of the research that attention to their teaching responsibilities. ‘picking winners’; as an industrial policy has already happened in nano-tech and it had never worked. I still do not agree that was part of the background to the Science, Technology, Engineering with picking winners, but I do think you decision for the investment in graphene. and Mathematics should pick which races to be in. Also on my list is nuclear technology. Fears for the future of STEM subjects have, Governments also need to be aware We recently had a Select Committee I think, been exaggerated. For instance, of the process of transferring knowledge Report and I know there is the debate University College London are looking from pure research. In the USA, there over G3 nuclear fission and to what extent to set up a second campus in the East is an enormous amount of support we have an in-house capacity. With End of London, indicating a growth to help products all the way from the my responsibilities I am looking further and expansion agenda, while Lancaster purest research through to the market. ahead, to G4 nuclear fission and nuclear University has announced the reopening of The National Institutes for Health and fusion – that is where we have considerable their chemistry department, having closed the National Science Foundation fund scientific potential and opportunities. it in 1999. Universities that are confident projects further downstream than our We will protect the Culham Centre for they can recruit more students at AAB will Research Councils tend to, for instance. Fusion Energy for example. Unlike, say, be making those judgements. Neither of the Large Hadron Collider, Culham is a those decisions would have been possible if Sectoral support scientific experiment that will shape an we had kept the old quota system. The Government is committed to industry of the future. We must develop When we came into office it was clear supporting the life sciences, principally the business potential from the activity that in the Technology Strategy Board through the Medical Research Council, there. It is important that we press hard (TSB) we had inherited an institution and to strengthening the connections to ensure British business gets a fair that was doing a good job, bridging the through innovation and the application share of the contracts in the International gap between universities and upstream of the resulting advances in the National Thermonuclear Experimental Reactor research and full commercialisation. We Health Service. (ITER) programme — based on quality, are wholeheartedly committed to the Then there is infrastructure. not on a willingness to sign up to TSB: there is no reason to reorganise Academics often deal with very large unrealistic commitments of unlimited, things just for the sake of it when there is datasets, requiring high-powered long-term liability. a change of Government. computer systems. The skills developed Finally there is space technology and We have been able to offer cash in order to handle the data that pours space security. We have inherited from protection to the science budget but out of the Large Hadron Collider, for the previous Government an excellent our estimate is that by the end of this example, may be relevant to engineers structure – the Space Leadership Council. parliament, universities will have 10 per wanting to model what happens in a We commissioned a technology roadmap, cent more cash than now with which to Rolls Royce gas turbine or in a Jaguar written by Sir Keith O’Nions. On the cover the cost of teaching. Land Rover vehicle. Consequently we basis of that roadmap the Government For science we have the ring-fenced, decided to make a major investment in will put in funding provided that business cash-protected budget and a clear e-infrastructure. will do the same. The Leadership Council commitment to do better for science There is fascinating work happening provides an environment in which that capital. Science capital is not in the in synthetic biology, already being actively kind of deal could happen. With a shared ring-fence because we want to keep the sponsored by the Research Councils with understanding of how the technology resource and the activity flowing. When investment to the tune of £45 million. was likely to advance over the next times are tough, tough decisions have This is the moment when we can set the five years or so, both sides could make to be taken on public spending. We international standards that will determine commitments about the projects they are have a continuing commitment to science how this technology is going to be deployed willing to back. ☐ capital, however: an extra £100 million in around the globe. There are three countries Lords Select Committee Report on Nuclear the budget, a further announcement of and six learned societies that are going to Research and Development Capabilities: £50 million for work on graphene, and set those standards — two from the USA, www.publications.parliament.uk/pa/ a further announcement of £145 million two from China, two from the UK. ld201012/ldselect/ldsctech/221/221.pdf

14 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) climate adaptation

The UK needs a strategy to adapt to climate change but how should it be framed and how will it work in practice. A meeting of the Foundation for Science and Technology explored this issue on 19 October 2011. From a scientific-certainty to a risk- based paradigm Rupert Lewis

ccording to the Hadley Centre just knowing what the possible maximum and other world leading Dr Rupert Lewis vulnerability is: we need to know the cost! climate science groups, the was Deputy Echoing the view of the ASC, the analysis Director of the CO2 emissions already in the will attempt to identify no-regrets options: atmosphere combined with the inertia Adapting to Climate things that will be of benefit under any A Change Programme of atmospheric systems mean that the circumstances. at the Department world will inevitably experience rising A central element of the Coalition’s for Environment, temperatures. The average temperature strategy is the focus on The Big Society Food and Rural Affairs (Defra) at in 2040 will be similar to the unusually the time of this talk – he is now and Localism. So local government has hot year of 2003, when a heatwave was deputy Chief Scientific Adviser an important role to play in adaptation. responsible for around 35,000 deaths. in the Department for Business, Communities are, of course, heavily There is therefore a significant change to Innovation and Skills (BIS). He has involved already, especially after events which the world has to adapt. If all carbon had strategy, policy, and delivery such as flooding. emissions were to stop tomorrow, there roles in Government mainly at Many of the risks and opportunities are would still be decades of change to come: the evidence/policy interface, and for the markets and commercial players mitigation too is vital. previously worked overseas on to judge. There are great opportunities in The worst that could happen is that the science development programmes. adaptation for business – there is a huge climate changes and humanity takes no export market in helping other people to action: the cost would be huge. The next adapt. The insurance, construction and worst would be it does not happen and yet capable scientists. Also, Government has consultancy industries have a big role to a great deal of money is spent in preparing a role in tackling market failures: flood play, both locally and overseas. for it. The Stern Review estimated that defence and so on. Adaptation is an an investment of 1 per cent of GDP was economic issue, the biggest part of which Identifying the risks required in addressing climate change. is infrastructure investment. The Climate Change Risk Assessment When the Review was published, this The UK’s approach to climate change (CCRA) aims to discover what needs to be represented a vast sum and it was difficult has a statutory framework set out in the done in the next five or 10 years and what to believe that anyone would spend that Climate Change Act. The Adaptation Sub- can be put off until the future when there sort of money. Since then, we have lost Committee (ASC), an independent group might be more and better information. 14-17 per cent of GDP due to the credit of experts, advises, critiques and helps Not surprisingly, flooding is presenting crunch and the ensuing financial crisis: 1 Government in this area. The Act requires itself as the major risk. Water supply is per cent suddenly looks achievable. the Government to complete a Climate another obvious risk. Traditionally, it has The science certainty paradigm Change Risk Assessment1. In 2012, there been assumed that that the South East – predicting the future, improving will be a new National Adaptation Policy was going to be dry and the North West predictions until they are highly certain, Programme. relatively OK – it always rains in Cumbria! making optimal decisions and relaxing While not part of the statutory Actually, in terms of what water companies – is no longer appropriate. As Professor framework, the Government will also carry can supply, it is the other way around. Lenny Smith argues, what is needed is out an economic analysis. It is no good There is plenty of ground water storage in a more risk-based paradigm: assess the risks, hedge decisions on the best available DISCUSSION evidence, then repeat this as data improve. Politics and practicalities That is a much more valuable paradigm for decisions and policy making. There is a danger that governments may be dissuaded from taking action because of fears that these would be resented by individuals, even though such reactions Role of Government are not rational. A good example is water metering: although this reduce the Given the massive challenge of adaptation, cost of water to individuals in most cases, and reduces overall water demand, what is the role of Government? compulsory metering has not been introduced; nor other measures which could Government owns many assets and reduce demand. The Government has a natural reluctance to impose regulations manages many interests. Government and controls; but the alternatives (if adaptation is to be achieved) are through uniquely generates large amounts of either sharp price increases, as in the energy field, or through behavioural change. evidence with large numbers of highly

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 15 climate adaptation

We are already committed to this from past emissions alone

2060’s

Observations 2040’s Projection 2003 (wrt 1961–90) °C mp anomaly over Europe Te

–2 1900 1950 2000 2050 2100

Hadley Centre

Figure 1. Mitigation is vital, but we also need to prepare for inevitable climate change. the South East but little in the North West. which has launched its own conversation aspects. By involving a broad range of An economic approach would work with stakeholders. It is asking them: “How stakeholders, we are going to try and in the following way. First, look at the we can help you, what do you need?” exploit the innovation already out in the potential vulnerability; then look at the Essentially, this is a journey from highly market. policies already in place to tackle this and complex science to practical decisions at This is all about co-creation. It involves what the market itself might do to address the simplest level. We are not trying to tell identifying the elements of the problem and this. The next step is to determine the everyone to care about adaptation, though; then helping those who need to take action remaining deficit and work out how to we are trying to find the people who need to do what is required. Some of that will manage it. This approach is enshrined in to care about it. fall to Government and some of it will not. the CCRA. The Government is committed to A great deal of this is about managing risks; collaborative policy-making on this vital and a large proportion is also concerned Collaborative policy-making issue and there will be open debate. It is with exploiting opportunities. ☐ A scientific approach is all very well but not going to tell everyone the answers, 1. The UK Climate Change Risk Assessment how do people adapt to climate change because frankly, it does not have all the (CCRA) was published on 25 January 2012. in practice? We are now concentrating answers. This is a highly complex topic www.defra.gov.uk/environment/climate/ that effort on the Environment Agency, and many people have expertise in specific government/risk-assessment Flood risk and water resources Graham Wynne

he Adaptation Sub-Committee capacity building, where much effort residential developments. Given that was established by the Climate has been focussed so far in adaptation, there is a total of around 1.3 million Change Act 2008 to advise is not important. It simply seems to the houses in high flood-risk zones, the figure on the UK’s preparedness for Committee that the clearer the picture of the is therefore growing by about 1 per cent a Tclimate change and to monitor progress outcomes being targeted, the more effective year – that is, the overall vulnerability of in adaptation. It focuses particularly on can be the decision-making processes. the housing stock to flooding is growing the assessment of adaptation outcomes, at that rate. This is not insignificant as in order to inform whether the risks from Flood risk around 4.5 per cent of the total housing climate change facing the UK are being The ASC’s second report (2011) found stock is located in areas of high flood risk. appropriately addressed. It is attempting that over the previous two decades Adaptation should start by managing to develop meaningful sets of indicators between 12-16,000 new houses a year the risk of flooding. There is, in fact, by which to measure adaptation progress. had been built in high flood-risk zones. significant uptake of adaptation measures This is not to suggest that the That represents 8-11 per cent of all new for new buildings. Unfortunately, there is

16 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) climate adaptation

18,000 12 zones were at risk of supply shortfalls in 16,000 2010. On the other hand, our water supply 10 14,000 comes at an environmental cost. Once again, it is hard to get a precise picture, 12,000 8 but it is reasonable to assume that that the 10,000 6 environmental cost is quite significant. 8,000 It is likely there will be increased

6,000 4 Homes (%) pressure on supply. It is also projected that

Homes (numbers) 4,000 there will be some increases in demand. 2 2,000 The conclusion is that without further 0 0 action on both the supply and demand sides of the equation, there will be greater

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 shortages by 2035. Of course water companies have plans to deal with this, Number of completed homes but the ASC found that the extent to which in Flood Zone 3 climate change was actively modelled in those plans was highly variable. This Percentage of completed homes needs greater scrutiny in the future. in Flood Zone 3 Most commentators would agree that the simplest and least-regrets place to start Reducing flood risk: the location of developments is on the demand side, although action will be needed on supply. The ASC looked at the existing risk or the increasing risk. It the costs and benefits associated with very Sir Graham Wynne is interesting in itself that those statistics simple water efficiency measures in the CBE is a member of should be so difficult to obtain. south-east of England and how could that the Adaptation Sub- Vulnerability has undoubtedly affect the demand side of the equation. Committee (ASC) increased by building in high-risk areas. It The resulting cost-curve demonstrated of the Committee has increased further due to the expansion that an economically beneficial package on Climate Change. of hard surfacing at the expense of green of measures could be introduced which Previously Chief areas in our towns and cities. It is unclear, would bring individual demand down to Executive of the however, what this tells us about the overall the order of 115 litres per person, per day. RSPB, he is a Special Advisor to the preparedness for flood risk. This process, International Sustainability Unit, That would be of benefit both to society and a Trustee of Green Alliance. where the increase in vulnerability, or and the individual. That consumption He was formerly a member of the potential vulnerability, is weighed up rate is substantially lower than the current Minister’s Natural Environment against the actions that are taken to reduce water demand level and it is substantially White Paper Advisory Panel; the it, is not transparent. The ASC recognises less than projected for the future. Foresight Land Use Futures High that local authorities have to address Water companies have plans to tackle Level Group; the Sustainable different sets of trade-offs when approving both sides of the equation – none of them Development Commission and the new developments. In many cases, appears to have a target as low as 115 litres Policy Commission on the Future of development in the flood plain is almost for domestic consumption. The best are Farming and Food. inevitable and quite possibly rational. Yet around 120-125 litres; but some are still these developments are occurring in the projecting individual demand at 160 litres much less activity on retrofit, but there is a absence of an explicit decision-making by 2035. There is certainly more scope, cost-effective package of measures which process. The Sub-Committee concluded then, on the demand side of the equation the Sub-Committee believes ought to be that building on the flood plain is not as well as the supply side. promoted and taken up. necessarily the wrong thing to do – but To conclude: first, there is evidence that There has been an increase in there is not enough assessment at present vulnerability to climate risks is increasing. expenditure on community-level flood to ensure it is the right thing to do. Next, there are low-regrets actions being defences over the last decade: the number taken but, third, there is economic, cost- of properties protected by new or improved Managing water resources beneficial scope for more. Furthermore, it defences has increased very substantially. The security of water resources has always is not evident that long-term decisions are We have not, however, been able to assess been reasonably high in England and it has explicitly accounting for climate change the scale of flood defences in terms of improved over the last decade to the point and the risks, or indeed the opportunities, how commensurate they are either with to where only 8 per cent of water resource that may come with it. ☐ Insurance in a changing world Tom Bolt

limate change is an issue that the wide-ranging and long-term impacts, different organisations, for example with the Lloyd’s takes very seriously as governments, business, academia – eve- Geneva Association, the London Climate it significantly affects business. ryone in fact – need to work together. Change Partnership, the Department CIn order to tackle it and adapt to Lloyd’s works with a wide range of for Energy and Climate Change and the FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 17 climate adaptation

economic losses and insured losses. insurers have a key role in helping Tom Bolt is Insurance does not cover everything. businesses and society to adapt. However, Performance Director Yet insured losses have risen nearly ten insurance is not the sole solution to and a member of the times when the number of catastrophes climate change. Mitigation is still vital. executive team at – although this is hard to judge exactly Insurers do, however, have roles Lloyd’s of London. – has gone up by something like three to play in all stages of the adaptation He is responsible times. Part of the increase in insurance process. The industry has expertise in for working losses is due to the fact that more loss reduction and risk management, with individual people live on the coast, so there is a and it can encourage residential and Lloyd’s businesses to improve demographic shift to more exposed areas. the commercial performance of commercial properties to focus on their the market. He has extensive Climate change is not the only factor, resilience and resistance to risk. One of experience in international however. One of the reasons the damage the significant impacts of climate change insurance and reinsurance across in Christchurch was so dramatic was is sea level rise. Owners of coastal the UK, USA and Europe, having the liquefaction on the delta where the properties rely on insurance to manage spent 25 years at the Berkshire city fathers encouraged people to build the risk of flooding. A sea level rise of Hathaway Group. homes. In the earthquake, it proved to 30cm may more than double average be a disastrous environment and nobody losses for some exposed properties, but will be allowed to rebuild there. adaptation can bring losses to below Lighthill Risk Network. It was a founding One of the ways insurance works current risk levels. member, in 2007, of the ClimateWise is to spread the loss of the few among Adaptation strategies must of course initiative, a global collaboration of leading the many. However, if people want be tailored to individual locations and insurers focussed on reducing the risk to continue to live in Christchurch, circumstances. Risk-based pricing of climate change. This brings together Auckland or Wellington, it must be is critical in ensuring adaptation to over 40 international members from recognised that there is not enough extreme events, but it is important too Europe, North America, Asia and Southern money in the New Zealand economy to that this pricing reflects the true risks. If Africa, all of whom agree to abide by the pay for the rebuilding of large sections it does not, there is no incentive to put in ClimateWise principles. These include of the country, should things go wrong. adaptation measures. Property-holders commitments to support and undertake It is a similar story with the Thames. If should introduce resilience measures research on climate change and to support there was a really material event along before a flood or other extreme event climate awareness among our customers, the Thames, the economic costs would happens. Governments have an as well as encouraging them to adapt to be dramatic. Who in society would pay important role to play in adaptation climate change. for it and how – would it be through by rewarding appropriate measures, In 2011, Lloyd’s paid out a large insurance or Government? In the USA but Government intervention in private sum of money for the Australian floods. there is a flood programme which is insurance markets should be kept to a Insurance pays people according to the sponsored by the federal government, minimum. events they have suffered, for example and that encourages development in Insurers can perform a signalling role. various types of flooding or precipitation, certain places. Some consider that not Prices and risk grids should be set in such but sometimes it is hard to see exactly all of these locations are rational places a way they can encourage people to make why the flood occurred. Determining to build homes. but if the cost could changes to their properties to mitigate the who actually pays to repair the damaged be spread amongst the taxpayers of the cost of insurance. Insurance also works caused can often be made simpler United States then it may be a perfectly as a tax: it sets the premiums so that through a hydrology report such as the sensible idea. those people who want to live in areas one Lloyd’s commissioned on behalf of Climate change will bring wider risks. that are more at risk do pay more. Lastly, the market in this instance. Issues of water scarcity, food security, insurance protects. The impact of these scarcity of energy and natural resources changes is not going to be gradual, over Climate change and insurance may lead to geopolitical and security a long period of time – it will often be Between 1970 and 2010, the number of tensions. It is already having an impact sporadic and sharp. In fact, it is in these natural catastrophes around the world today. Monitoring these impacts and risks circumstances that people seem to come increased by over 300 per cent. That is important, and we must adapt to them. to a greater sense of a problem. While included some earthquakes as well as it can help, insurance is only one part of weather-based events, but many scientists Adaptation and the role of dealing with climate change. We cannot attribute a significant proportion of the insurance insure our way out of the climate-induced increase in storms, temperature extremes, The risk landscape is changing and challenges ahead. ☐ drought, wild fires and floods to climate change. DISCUSSION The highest ever economic loss from Future strategies natural catastrophes occurred in 2010: $265 billion (£171 billion). Before this, Climate change will affect some families adversely, while others may even benefit. the costliest year was 2005 – some $220 Given such different situations, it is difficult to see how the relation of risk to price billion (£142 billion), largely due to three can apply widely. Behavioural change is difficult to achieve except over the long hurricanes: Katrina, Wilma and Rita. term, and it will not come about without much Government action. Therefore, Insured losses have increased nearly 10 more regulation, pricing signals and a campaign to educate and enlighten people times between 1970 and 2010. about the possible effects of global warming, must go together. It is important to distinguish between

18 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) women in STEM

What barriers still remain to prevent women playing their full part in science and technology and how can they be eradicated? The issue was debated at a meeting of the Foundation for Science and Technology held at the Royal Society of Edinburgh on 27 October 2011. Still more to be achieved Jocelyn Bell Burnell

dvice to women from we all know that a steady drip can do a Housekeeping Monthly in May Dame Jocelyn Bell lot of damage. 1955 includes the following: Burnell DBE FRS Removing these types of institutional “In anticipation of your FRSE FRAS FInstP bias can produce surprising results. A husband’s return, have dinner ready, put is Chair of the Royal good example of this can be seen in A Society of Edinburgh a ribbon in your hair, tidy the house, the composition of modern orchestras. clean up the kids. Listen to him; his topic Inquiry into Women When candidates for orchestras were in STEM and Visiting of conversation is much more important auditioned while playing behind screens Professor of Astrophysics at Oxford. than yours. Don’t complain if he is that extended to floor level (hiding She was previously a professor at late or stays out all night – remember the Open University and then was even the candidate’s feet) the number of he is the master of the house, you have Dean of Science at the University of women appointed rose dramatically. As no right to question him. A good wife Bath. She is a Fellow of the Royal a result, we now see orchestras with a always knows her place.” Now, this was Society and the Royal Society of much higher proportion of female players written less than 60 years ago. We have Edinburgh. than in the past. It is clear that when come some way, undoubtedly, but there the recruitment panels were blinded to is further to go. the candidate’s gender, far more women As recently as 2009 only 27 per professorships who are working at PhD were judged to be of a high enough cent of women graduating in Science, and postdoctoral level are overlooked. standard to join the orchestra than when Technology, Engineering or Mathematics the candidate’s gender was known. (STEM) in Scotland were employed in Discrimination Even once they have attained a post, STEM professions, compared with 53 It is generally agreed that the women face a number of barriers. One per cent of their male counterparts. In discrimination women face comes from of these is the culture of the workplace, the universities we see the proportion both sexes and is usually inadvertent. which can be very male-oriented, of women in STEM departments falling It is clear that women do not receive particularly in fields where men dominate with each step up the academic ladder. the same career opportunities and in terms of numbers and seniority. At undergraduate level, more than half encouragement as men. Both men and Women today are a bit like the canaries of STEM students are women, but once women hold implicit biases and both that used to be taken down into the mines we reach the level of full professor, the judge women more harshly. Formal – they are more sensitive than men to the proportion of women has fallen to about evaluation criteria often contain atmosphere, the ambience and the ethos one-tenth. Much of our investment in arbitrary and subjective components in a workplace. If there are few women, the STEM education of women is being that disadvantage women. Recruitment it is often an indication that something is lost through attrition. panels are frequently dominated by not as healthy as it should be. In my own field of astronomy, men and their membership is most The Athena SWAN Charter for membership figures from the comfortable recruiting somebody like Women in Science recognises and International Astronomical Union paint themselves. In addition, there are more celebrates good employment practices an interesting picture. The proportion subtle institutionalised instances of as well as the promotion of women’s of women members of the IAU averages sexism, such as application forms that advancement in STEM in universities 15 per cent across the globe, ranging request the sex or gender of applicants and research institutes. In summer from 37 per cent in Argentina, through always offering the male option first. 2010 Dame Sally Davies, Director 12 per cent in the UK, down to only 6 These seemingly small things send General of Research and Development per cent in Japan. out messages that discourage female as well as Chief Scientific Adviser at the Why are the numbers (mostly) participation, drip by drip by drip – and Department of Health, announced that

low? Part of the reason may be that DISCUSSION members are elected by the professional Speeding up change astronomers in their own countries, most of whom are white males who tend The urgent need to tackling the extra challenges faced by women in STEM has to elect people similar to themselves. not yet been recognised. There is a danger that by the time the UK makes Another factor may be the low significant progress in addressing these challenges, its economy will have been proportion of women holding tenured overtaken by dynamic economies in Asia, such as those of India or China. They posts. It is generally more likely that a are dynamic precisely because they seek to use all the talents available in their person with a tenured position will be workforces. The UK cannot risk taking 50 years to resolve these problems. We elected to the Union. Thus the large must move faster. number of female astronomers without

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 19 women in STEM

cabinet minister responsibility; • The UK Government should intro- duce legislation that recognises the co-responsibility of mothers and fathers in parenting; 21% • Business and industry should intro- Not in employmemt duce more quality part-time employ- ment opportunities at all levels for SET Occupations 52% men and women; Non-SET Occupations • Heads of organisations should take 27% responsibility for changing the culture for women within their organisations; • Research councils and other funders should make the achievement of an Athena SWAN Silver Award or equivalent a condition of a grant; • Higher Education institutes should Figure 1. Female STEM graduates by occupation and economic activity, Scotland 2009 ensure that women’s research does not (52% of male STEM graduates are in Science, Engineering and Technology occupations). suffer because of high levels of com- mittee work; National Institute for Health Research They are all good ideas, but they have • Learned and professional bodies funding would go only to institutions or not been implemented consistently or should agree and publicise a statement departments that hold Athena SWAN thoroughly. If they had, we would be in a welcoming and encouraging the full Silver Grade awards. This will ensure very different place today. participation of women in that body that departments achieve a recognised and its academic discipline. They standard of women-friendliness before The Royal Society of Edinburgh should make the qualities expected of they are eligible for this funding. Inquiry successful candidates publicly avail- There have been many In its draft recommendations, the able, ensuring language is gender- recommendations issued to improve the working group for the Royal Society neutral and does not use adjectives situation for women in STEM. They Edinburgh Inquiry into Women in STEM or verbs more usually associated with include recommendations on mentoring, has concluded that: one gender only. ☐ networking, role models and the visibility • The Scottish Government should com- The Royal Society of Edinburgh Inquiry of women, gender-‘balanced’ interviews mit to a national strategy for meet- into women in STEM: www.royalsoced.org. and promotion panels, good management ing the public sector equality duty, uk/877_WomeninStem.html practices, parental leave, flexible working using procurement opportunities and The Athena Swan Charter: and affordable child care, to name a few. working with stakeholders, and with www.athenaswan.org.uk A life in STEM

hile I am currently Chief friendly to women than chemistry. I Scientist at BP, I have Dr Ellen Williams became involved in a committee of the spent most of my career is Chief Scientist at American Physical Society called the BP. Before joining BP in academia. In the Committee for the Status of Women in she worked for over late 1960s and early 70s, the women’s Physics. It was set up by some of the W 30 years in academia movement in the USA was very active and in the USA. She women in the generation above mine who had a militant edge. I was a member of was a Distinguished had truly struggled to forge their careers one of the first cohorts of women to attend Professor in the Institute of Physical in science. Whereas my generation felt the California Institute of Technology, Science and Technology and the like pioneers, these women were heroes. which had denied admission to women Department of Physics at the They had grown up in a world where until 1973. When I went there to study University of Maryland. She also women were not just excluded or ignored chemistry in 1976, the women students provided technical advice to the in science; they suffered active and felt like pioneers entering a previously US Government Departments of methodical discrimination. forbidden field. It is very different today, Energy and Defense. The Committee was invited to when young women are encouraged to other universities to talk about ways to go into science. Then, we were treated encourage more women to enter and more like guinea pigs in an experiment – prove ourselves by working twice as hard remain in science. What we found was ‘let the women in and see what happens’. and being twice as good as the men. that the environment in university science We were not supported nor taken very I switched to physics and began my departments was often very unfriendly to seriously – for example, there were no academic research career at the University women. It made them feel like outsiders dormitories for women. We felt we had to of Maryland. Physics was even less who did not belong and were not wanted.

20 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) women in STEM

DISCUSSION would recommend them as effective tools Changing attitudes that can help women entering a difficult field to adapt to their new environment. Universities and businesses need to be more aware of the problems that women Communication is vital. During my in STEM encounter, particularly those of unacknowledged bias. Marginalising career I have often felt that I was not women in discussions by not allowing them sufficient time or priority in speaking, communicating effectively or was having or using language demeaning to the other gender such as the word ‘girls’, are misunderstandings when I talked to other habits that can only be addressed through proper training and changes in social people. I then discovered the books and business attitudes. However, even that will not cover all areas. A US study written by the linguist Deborah Tannen has shown that male names receive more favourable attention than female about the different communication styles names when applications are being considered. Would a requirement that all of men and women. Reading those applications be anonymised help to tackle this? books helped me understand how I was engaging with other people. They showed me why things that I said or the way that We suggested ways these universities strategy, and BP has several internal I behaved, although perfectly normal to could make their science departments networks that provide mentoring and me, did not always have the results I more welcoming places for women. Sadly, encouragement for women, such as hoped for. Similarly, WFL (Women as to this day one of the problems women BPWIN (our global women’s network) a Foreign Language) training can help encounter when moving through a career and WISE (Women in Science and women succeed in a hostile environment in STEM is a sense of ‘otherness’ – a feeling Engineering). by teaching them how to engage more of being different and a strong awareness Training is also an important means of effectively and understand how others of unfriendliness in the environment. support for women. BP has a number of perceive them. In 2010 I moved to London and joined required training programmes, including Women need the confidence to cope BP as Chief Scientist. The company one entitled Inclusive leadership that with social pressures that often work employs 80,000 people in over 70 coun- teaches employees how to transcend against them – for example, the attitude tries. Although industry is a very different issues arising from differences in gender that they should stay at home and look place from academia, it faces some simi- or culture. The company also has various after the children; or the suspicion that lar challenges retaining and promoting training programmes covering how to they are being given preferential treatment. women. deal with a difficult employee, how to I have certainly seen that sort of thing in conduct a performance discussion and my career. Women need to have a strong Support strategies how to go through a review process, to sense of who they are and be true to their There are a number of strategies that name just a few examples. I have found own set of rules. They also need to learn can be used to support women in STEM these training programmes very powerful how to network actively and engage with enterprises. Networking is one such in terms of career development and I people who can support their careers. ☐ Encouraging a diversity of talent Adrian Smith

y responsibilities at the there remains a great deal of work to do Department for Business, Professor Sir Adrian in securing the initial ‘pipeline’, before Innovation and Skills Smith FRS is Director university level. We need to look at how include overseeing policy General, Knowledge opinions are formed at 12 or 14 years of and Innovation, and budgets for English universities, UK age. For example, what are the formative M Department for Research Councils and the Technology influences – are they parents, teachers, or Business, Innovation Strategy Board (TSB). At BIS I am also the are there other factors? and Skills (BIS), equality and diversity ‘champion’, charged where he leads Relatively few females take A levels in with promulgating equality and diversity on Science and Society policy. mathematics, further mathematics and/ throughout the Department and all its Previously he was Principal or physics, but those who do perform partner organisations. of Queen Mary, University of at a similar level to males. In biology In England over the past few years, London and prior to this he was and chemistry, participation levels are there has been a dramatic increase in at Imperial College as Professor of much more even, biology indeed showing the uptake of mathematics and further Statistics, Head of the Department greater participation and proportionally mathematics at A level, with recently of Mathematics, Member of the better performance by females. a rising uptake in the sciences. But a Management and Planning Group disproportionately high share of entries and a Company Director of ICON Universities in these ‘hard’ STEM subjects comes from (the Imperial College Consultancy). Less than a fifth of undergraduate entrants students in private schools, who are across in engineering and technology are female. the board more than twice as likely as 170,000 university entrants were studying In mathematics the figure is around 45 students at comprehensive schools to for STEM degrees – around 42 per cent per cent. It rises to around 60 per cent in achieve an A* or A grade. of the total entrants for first degrees. subjects associated with the life sciences The picture is more encouraging in By 2009-10 this had increased to over such as medicine, dentistry, biology and Higher Education. In 2002-03 just over 200,000, more than 44 per cent. However, biological sciences. Why do females

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 21 women in STEM

Engineering & technology Computer science Architecture, building & planning Mathematical sciences Phys ical sciences Ag riculture & related subjects Me dicine & dentistry Biological sciences Veterinary science Subjects allied to medicine STEM Non-STEM All subjects

0102030405060708090 % female

Percentage of UK-domiciled, female undergraduate entrants to UK Higher Education Institutions, 2009-10.

DISCUSSION excellent relationships with a diverse mix The benefits of increased diversity of engineering institutions. It is very well placed to help us deliver the changes Research shows that mixed groups produce better results. Businesses fare better needed to encourage individuals to pursue if their staff reflect the diversity of their customers. The benefits of increased careers in engineering. diversity both in academia and in business need to be stressed. Yet the issue is Should STEM, or universities, be not just one of economics: it is concerned with enabling people to live their lives considered in isolation? Or is there a in a way that meets their wishes. wider issue with society in general and in particular the number of women on the boards of companies and in director and participate more in life science fields? schools and act as role models, showing high-level posts? The current figures are This must reflect some subtle difference in students what they could achieve in STEM. dire. Within FTSE 100 companies from 1 choice mechanisms and motivation. One Another important area is public October 2010 to 1 September 2011 there might assume that the same information engagement with science. The Government were 1,092 FTSE 100 directors, of whom about the different fields of study is has been evaluating public attitudes to 155 (14.2 per cent) were women. In the available for males and females, but clearly science through its three-yearly surveys. FTSE 250 over the same period, there it is not having the same effect. In 2011, this included the first survey of were 1,192 directors, of whom 178 (8.9 per There are a number of initiatives young people’s attitudes to science. The cent) were women. Board appointments designed to excite young people about the results were revealing – although young over the period 1 March to 1 September nature of science and engineering as well people thought that science itself is terrific, 2011 totalled 93 in FTSE 100 companies, as careers in these fields. For example, very few thought that a scientific career of which 21 (22.5 per cent) were women. attendance at the Big Bang Fair has risen was a good idea. What can be done to In the FTSE 250, board appointments sharply, from just 5,000 in 2009 to 29,000 persuade them otherwise? totalled 158, some 28 (18.0 per cent) of in 2011. At the 2010 event, the Young which were women. So the problem is not Scientist of the Year and many of the prize Engineering limited to the STEM sector. Although the winners were female. It is important to Engineering faces some of the greatest, number of women in senior positions in discover what happens to discourage these often historically based and ingrained, FTSE companies is creeping up slowly, it talented young women from continuing to diversity issues. In the UK, women make is still very low. advance their careers in science. This is up 12.3 per cent of those employed in Then there is the public sector. Here not only right in terms of equality, it makes STEM occupations, but only 6.9 per there is a public sector equality duty that good business sense – it is important to cent of engineering professionals. This places certain responsibilities on public retain the best talent and to recoup our percentage is the lowest in the EU and bodies. There is now greater emphasis on investment in their education. has fallen from 8.7 per cent in 2007. The them to actively consider equality in the Another outreach programme is leadership of organisations such as the work they do and the decisions they make. STEMNET’s STEM Ambassadors Royal Academy of Engineering has to Could – and should – more be done, programme. This has a network of 29,000 be challenged to take responsibility for perhaps in a more targeted way? Despite volunteers across the UK, including delivering the changes needed to promote some recent encouraging trends, it is clear 2,980 in Scotland. These people are from equality. The Royal Academy is the focal from the statistics that much more needs universities and business; they go into point for engineering in the UK and has to be done. ☐

22 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) shale gas

Fracking and the increasing use of other ‘unconventional’ forms of gas supply are causing significant public concern. But what is the reality behind the hype? The topic was investigated at a meeting of the Foundation on 9 November 2011. The gas supply revolution Malcolm Brinded

t is vital that the UK has a well- Malcolm Brinded gas is effective in reducing emissions of informed and balanced discussion CBE is the former damaging local pollutants such as sulphur about tight gas – one based on hard Executive Director oxides and particulates. evidence and rigorous analysis, of Shell’s Upstream Natural gas could play a critical role Irather than speculation. The gas supply International business. in low carbon energy systems for many revolution provides an opportunity to Malcolm was a decades to come as gas-fired power meet surging demand for energy while member of the Royal stations can be switched on and off helping to safeguard the environment Dutch Shell plc Board (and its much more swiftly than other power for future generations. That is because predecessors) from 2002 until 2012. sources. They are thus the ideal back up natural gas offers the fastest and cheapest He is a Fellow of the Institutions for intermittent energy from renewable of Civil and Mechanical Engineers route to reduce CO2 emissions in the sources such as wind and solar. global power sector: the larger the world’s and of the Royal Academy of Another long-term benefit is that natural gas supplies, the more quickly Engineering, and Chairman of the carbon-capture and storage (CCS) and economically coal-fired power can Shell Foundation. In 2002, he was technology has the potential to reduce be displaced. appointed CBE for services to the emissions from gas-fired power to near UK oil and gas industry. Tight gas, shale gas and coal bed zero. CCS is also more effective in methane are all gas deposits trapped in combination with gas than coal, because

very tight or impermeable rock. Only now passed the 390ppm mark, and it only has to deal with half the CO2 10 years ago, the industry considered continues to rise at some 2ppm every year. emissions. them too difficult and costly to access. The tight gas revolution is poised to But since then, there has been huge Gas versus coal become a global phenomenon. China, progress in drilling and fracturing (or Displacing coal-fired power with natural Latin America, Australia, Eastern Europe ‘fracking’) the rock to release this gas. As gas is the fastest and cheapest way to and South Africa all hold significant tight

a result, North America now has more reduce CO2 in the global power sector gas deposits. Coupled with the rapid than a hundred years’ worth of natural over the next 20 years. In 2010, coal was expansion of the global LNG market, gas supplies at current consumption responsible for as much as 44 per cent of this is giving more governments the

rates. Worldwide recoverable natural energy-related CO2 emissions, and usage confidence to back natural gas. As a gas resources are estimated at 250 years of coal continues to rise. Indeed, the result, according to the IEA, between of current production, of which roughly increase in emissions from coal in India 2008 and 2035 gas demand is expected half is tight gas, shale gas and coal bed and China alone is expected to be roughly to grow: methane. Many countries outside the double the increase from the entire global • 60 per cent globally; USA, including China, are starting to transport sector to 2020. • eight-fold in China; access their tight gas resources. Europe, Modern gas plants emit half the • five-fold in India. too, has its share of these gas deposits, carbon emissions of new coal plants, and

but it will be some years before they are up to 70 per cent less CO2 than the old Public concern produced on any significant commercial steam turbine coal plants, of which there Nevertheless, public concern about scale and their potential becomes clear. are still hundreds in Asia, Europe and the safety and environmental impact To see why this revolution matters, the USA. of tight gas continues to mount. In consider that global energy demand is Gas-fired power is also quicker and response, several governments have likely to double in the first half of the much less costly to install than any other already imposed moratoria on hydraulic century, driven by rising population source of electricity. It represents: fracturing. and strong growth in the emerging • less than half the capital cost of coal One major public concern is that economies. The International Energy per MWh; hydraulic fracturing could lead to the Agency estimates that the world will • one-fifth the cost of nuclear; contamination of fresh water supplies, need to invest some $38 trillion to meet • less than 15 per cent of the cost of either by the fluid used to fracture the projected demand in the period to 2035: onshore wind; rocks, or by the gas itself. A study published that means $30 billion every week. Over • less than 10 per cent of offshore wind. last year by the Massachusetts Institute the same period, the world must tackle of Technology found no documented

its CO2 emissions. The consensus of Gas holds much promise in the transport evidence that contamination by fracturing climate scientists is that the atmospheric sector too. Liquefied Natural Gas (LNG), fluids is occurring. However, it did find concentration of carbon dioxide should for example, can be used to fuel lorries, “evidence of natural gas migration into be limited to 450ppm to avoid the worst ships, barges and trains. freshwater zones in some areas, most

consequences of climate change. It has And as well as reducing CO2, natural likely as a result of sub-standard practices

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 23 shale gas by a few operators” in designing and production to use, shale gas-fired power and distribution of shale gas. Other constructing wells. The critical message only uses half the volume of fresh water studies take a more measured view. is that when a well is designed and consumed by coal and nuclear per MWh. For example, the International Energy constructed correctly, groundwater will Agency found that on a well-to-burner not be contaminated. Shell would like Greenhouse gases basis, emissions from shale gas exceed to see strong regulation and enforcement Another concern is that greenhouse gas those of conventional gas by as little as that requires everyone in the industry to emissions from shale gas far exceed not 3.5 per cent in the best case scenario do it properly. only those from conventional gas, but and by 12 per cent in the worst. Sound A second major public concern is also even those from coal. Now, there is operational practices can do much to that hydraulic fracturing depends on no doubt that the question of emissions keep this to the low end of this range. In excessive and unsustainable freshwater is a complex one, and that further any event, the greenhouse gas emissions consumption. Now, sound operational research is required. To this end, Shell from shale gas-fired power are still only practices can keep water consumption to is participating in a University of Texas around half of those from coal across the a minimum. And while the extraction of study to determine the total amount of lifecycle. And that is the critical point to shale gas indeed requires twice as much methane emitted in the course of tight remember, as public discussion about the water as conventional gas production, and shale gas production. The study is gas supply revolution intensifies. this phase only accounts for a small expected to publish its findings early next The reality is that this revolution fraction of the total amount of water used year in a peer-reviewed scientific journal. provides the best chance for many to generate power. Further, the water It is, however, now widely accepted that countries to make immediate and intensity of conventional gas power is far the 2011 Cornell University report which substantial progress towards a much lower than nuclear and all other fossil sparked this controversy exaggerated the cleaner, lower CO2, more secure and fuels. So across the entire lifecycle, from emissions released during the production more affordable energy supply. ☐ The global potential of shale gas Paul Stevens

efining conventional and fracturing. The 2005 US Energy Act unconventional gas can Professor Paul Stevens explicitly excluded hydraulic fracturing be controversial but the is Senior Research from the Environmental Protection simplest definition is that Fellow (Energy) at Agency’s Clean Water Act. This became Dwith conventional gas a hole is drilled Chatham House - known, somewhat cynically, as the in the ground and the gas just flows. The Royal Institute Halliburton Loophole. The result is that Unconventional gas has involved of International Affairs. He is an most shale gas operations have not yet had the application of techniques to create economist and a specialist on the proper environmental impact assessments. a flow such as horizontal drilling and Middle East. He is also Professor At the moment the FRAC Act is making its hydraulic fracturing. These are not new Emeritus at the University of way through Congress and this is intended technologies, though; hydraulic fracturing Dundee and Visiting Professor at to bring hydraulic fracturing back under was first carried out in the late 1940s and UCL Australia. In March 2009 the control of the EPA. Meanwhile, a horizontal drilling also has been around he was presented with the OPEC number of states have introduced drilling for a long time. Award in recognition of his moratoria, awaiting the outcome of the outstanding work in the field of oil The term ‘shale gas revolution’ applies environmental impact assessments. An and energy research. really to the USA and this ‘revolution’ has EPA investigation into the technology is been a long time in the coming – in the now expected to be published in 2013. order of 20 years. The technology came Can it continue? The better studies on this topic so far to public attention in 2007-08, when the Can the shale gas revolution continue suggest that the problems are to do with USA dramatically increased its estimates in the USA and can it be replicated poor well-completion rather than hydro- of recoverable reserves. elsewhere? Given the dramatic fall in fracking per se. The issue can be readily In 2000, shale gas made virtually no prices in North America in the last couple solved given sufficient regulatory clout to contribution to domestic gas production of years, current shale gas operations look make sure that the wells are done properly. in the USA. In 2010, it accounted for rather uncertain from an economic point Horizontal drilling and fracking can around 25 per cent and respectable of view. However, many of the smaller also be applied to ‘fallow oil fields’ which estimates put the future contribution at players have used a hedging-mechanism were abandoned many years ago. Some around 50 per cent. The consequences to protect themselves against lower prices. people are talking about domestic oil of this change have been significant. Gas The larger international oil companies production in the USA rising by around prices have more than halved since 2008 who have recently entered US shale gas 2.5 million barrels a day within five years. (although the recession has had some have much deeper pockets and can stand In this context, it is unlikely that federal influence). There has been an impact on lower prices for some time. The speed of authorities are going to come down very European markets as well. Here gas prices technology development has also brought heavily on these methods. are traditionally linked to oil but increases cost savings. One of the characteristics of shale gas in international prices have started to There is public concern over the operations is that they are all different erode that connection. environmental consequence of hydraulic and for regulators this could be a serious

24 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) shale gas

DISCUSSION in technology mean that the amount of The threat to renewable energy water needed for hydro-fracking has fallen dramatically. The emphasis on a fossil fuel such as gas, even if less harmful than others, could Another factor delaying progress is inhibit the development of renewables and lessen the drive to achieve greater that there are moratoria in various parts energy efficiency in industry and the home. We should not try to pick winners, of Europe while environmental impact but be aware that change will happen more quickly than we expect (as with assessments are awaited. shale gas) and be able to seize opportunities. Nothing should get in the way of Then there is the issue of property improving energy efficiency. rights. In the USA, sub-soil hydrocarbons are the property of the land owner. If you find shale gas, it is yours and you can problem. Different shale ‘plays’ are gas. Drafting new regulations will add to make a lot of money out of it. Outside the different; even wells on the same shale the time before things can really take USA, hydrocarbons are the property of play are different. A rigorous scientific off. In the USA there were significant the state and so a land owner may be less investigation on, say, the environmental tax credits on unconventional gas and enthusiastic about someone drilling on impact of the Barnett shale play may not oil, at least until 2002. In Europe, apart their property. be relevant to other contexts. from Hungary, there are no tax breaks or So, whether the ‘revolution’ can subsidies associated with unconventional continue in the USA and whether it be Is it replicable in Europe? gas. replicated elsewhere are both uncertain. Can the shale gas revolution happen in Access to a pipeline network is another That fact is beginning to affect and Western Europe? While shale gas will important factor. In Europe pipeline access inhibit investments in conventional be important in Europe it will take much is third-party carriage and if the pipeline is and unconventional gas as well as LNG. longer. Shale plays in Europe tend to be already up to full capacity, then the only Future gas demand will increase very deeper, more fragmented and with less option is to build a new pipeline. Yet significantly though and if the current material than those in the USA. Shale in the economics of transport are absolutely uncertainty stifles investment then there Europe also tends to have a much higher crucial to gas operations. could be real supply problems five or 10 clay content; given that gas is produced Industry capacity is vital too. In 2008, at years from now. through fracturing the shale, this makes the peak of operations in the Barnett shale Finally, the availability of vast quantities the process more difficult. In America, play in Texas, there were 199 rigs drilling. of cheap gas with relatively low carbon the operators had access to huge amounts In summer 2010, there were only 34 rigs in emissions is likely to call into question of geological data based upon existing core the whole of Western Europe. Of course, the levels of investment currently being samples from the thousands of oil and gas if the projects become very profitable, directed towards renewable energy. ☐ wells. This is not the case in Europe. companies will build rigs, but once again The Shale Gas Revolution – Hype and There are regulatory issues. Petroleum this takes time. Access to water is also an Reality: www.chathamhouse.org/ regulations do not mention unconventional issue in certain regions, although advances publications/papers/view/178865 Shale gas risks Mike Stephenson

hale gas has been a success story old sedimentary organic matter buried in in the USA. Yet fracking has Professor Mike shale, usually deep underground. Natural had some bad press, the main Stephenson is Head thermogenic methane is often present in concerns being earthquakes and of Science (Energy) ground water, and not necessarily down Sthe contamination of groundwater with at the British deep. In the UK, USA and Germany we gas. In the documentary film Gasland, for Geological Survey. also store natural gas (which is usually example, a man is shown igniting water He is also the first thermogenic) in underground sandstone from his kitchen tap. Director of the Nottingham Centre reservoirs as a means of managing energy Some of the worries are justified. for Carbon Capture and Storage, a demand. Badly managed fracking has recently joint venture between the BGS and Biogenic methane is generated by been shown to have contaminated water the University of Nottingham. modern bacteria at the surface, or close wells in Wyoming, though this involved to the surface in shallow rocks or in the a shallow sandstone reservoir rather than new and which require examination – for soil. Biogenic methane also occurs in much deeper shale. With so many vested example, earthquakes related to fracking, water wells. So there are various kinds of interests, getting reliable information is and the escape of methane into aquifers methane in the subsurface, some natural difficult, though. So peer-reviewed science from fracking or shale gas operations. some not. must play a big role in deciding what the If there is a leak from fracking deep risks are. Which kind of methane? below the surface, is it possible to distinguish In a shale gas well (see Figure 1), the One of the main concerns about fracking ‘fracking methane’ from natural methane? cement casing seals the emerging gas from is the risk of methane contaminating Certain indicators can help: the δ13C and 14C aquifers and other layers of rock. It is rare – aquifers. There are two kinds of methane of the carbon in CH4, and the gas mixture although not unknown – for casings to fail in the sub-surface. Thermogenic methane signature of any stored methane. We can or leak. But there are also risks which are is generated through the action of heat on also measure background or baseline

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 25 shale gas

The water wells in the area are shallow Blowout LOW RISK – around 100m deep. The shale gas wells in the same area are around 2km deep. Osborn et al suggested that the shale gas wells may have had leaky or defective casings and that this caused the methane Casing failure Aquifer in the shallow aquifer. LOW RISK Baseline or background data on natural groundwater methane is rather patchy in Escape of methane Pennsylvania, but rather high levels of into aquifer? methane in groundwater have been noted Earthquake? well outside fracking areas. It is likely that the wells studied by Osborn et al already contained natural methane before ry largedistance

Ve fracking. A new study by Molofsky et al (2011), which was not peer-reviewed, illustrates the widespread occurrence of natural methane in Pennsylvania Frack Shale groundwater and also seems to indicate that the water well methane is unlikely to Figure 1. Fracking and the potential risks. have been produced by the Marcellus shale which is being fracked. amounts of methane in groundwater before bacteria, and they also found thermogenic fracking begins. gas which they thought probably leaked The earthquakes The first indicator is perhaps the most from the storage reservoir far below. The In Blackpool, there have been two useful. The ratio of the 12 and 13 isotopes paper did not go into much detail about earthquakes close to periods of fracking. of carbon in the methane (the δ13C of the how the leak occurred, if there was one. The largest was on 1 April 2011, magnitude

C in CH4) tends to be around -50‰ or But the paper did indicate the possibility 2.3; the second on 27 May. The traces of the less in biogenic methane and more than of leakage. seismic activity were very similar. This and -50‰ in thermogenic methane (i.e. less The best-known paper covering other data enabled BGS to determine that negative). In ideal conditions, it should be purported shale gas leakage into water the earthquakes were a direct consequence possible to distinguish thermogenic and wells is that of Osborn et al, published in of fluid injection during fracking. The biogenic methane. But this does not mean 2011, which deals with an area of northern company that was fracking subsequently that we can distinguish ‘fracking methane’ Pennsylvania. This time the focus was agreed. and natural methane, if natural methane on water wells close to where hydraulic It was also possible to show that in the rocks is thermogenic. Stored gas fracturing was taking place. The authors surface damage is very unlikely from mixtures will have a known signature studied shallow water wells, measuring earthquakes of this magnitude. Claims and ought to be readily identifiable if gas methane content and δ13C. people made for damage in the area are leaks from a storage reservoir. Carbon They found higher methane very inconsistent with what we know 14C has a short half-life so it will be found concentrations in water wells close to about the earthquake. in biogenic rather than thermogenic shale gas wells. The δ13C of the methane So to conclude: the risks concerning methane. suggested it was thermogenic. Their well design and drilling are well-known, Leaks into shallow aquifers are unlikely conclusion was that the methane was likely well-understood and manageable. We because shale is so impermeable and to be shale gas leaking from fracking far have, in this country, very good regulations because fracking is done deep. However, below. to deal with this. There are a few new risks if a leak occurs, or if someone claims a leak They also reported that there was no which need to be looked at and science can has happened, we can use these and other evidence of contamination of the aquifer by help to distinguish between what matters techniques to monitor effectively. fracking fluids, or deep formation brine – and what does not, what is risky and very salty water that exists down at fracking what is not. Peer-reviewed science will be Peer review levels. absolutely vital to this process. ☐ At the moment, there are very few peer- reviewed studies in this field. That may DISCUSSION reflect the speed with which the technology Getting public buy-in has developed: the science community, outside the few companies that are involved The biggest problem is public acceptance. Government needs to make the case in shale gas, has not really caught up yet. about energy demand, GHG emissions and fuel security, but sustained effort is Révész et al published a study in needed by companies and regulators too. However, the public do not understand 2010 which was not about shale gas the different responsibilities of bodies such as the Health Protection Agency, the and fracking, but about gas storage and Environment Agency and local authorities. Industry has not been clear about methane contamination of a shallow what risks they understand and those where further work needs to be done. aquifer above the storage site. In the study, They have paid inadequate attention to the fear of earthquakes, for example, the authors used the indicators described and have failed to convince people of their rarity. There has to be some above to study the methane. They found acceptable independent, scientific analysis of risks and consequences. biogenic methane, probably generated by

26 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) antibodies

The way in which new technology is revolutionising drug development was debated at a meeting of the Foundation for Science and Technology on 7 March 2012. Turning inventions into medicines – and businesses Greg Winter

he field of therapeutic Sir Greg Winter taken daily. antibodies is revolutionising CBE FRS FMedSci is Given the benefits, it is reasonable the pharmaceutical industry. Master-elect of Trinity to wonder why antibodies are only now Therapeutic antibodies are used College, Cambridge coming to the fore. The reason is that Ttoday for the treatment of a number of and former Deputy they also have significant disadvantages. diseases, in particular cancer and immune Director of the In particular, they are digested in the gut disorders. In the past two decades, Laboratory of Medical Biology. He so they have to be given by injection and this area has grown to be worth nearly graduated from Trinity College they struggle to get to targets outside of $50 billion a year, and of the top 10 in 1973, and has been a Senior blood vessels or to targets inside cells. In pharmaceuticals by global sales, more Research Fellow since 1991. A addition, they can be immunogenic. than half are antibodies. UK science and genetic engineer, he is best known translational activities have played a major for his research and inventions The evolution of therapeutic role in its development. relating to therapeutic antibodies. antibodies Antibodies are part of our natural He has founded three biotech Immunogenicity was one of the biggest defence against viruses and bacteria: they companies: Cambridge Antibody problems. Modern therapeutic antibodies are normally raised by encounter with a Technology, Domantis and Bicycle started off as animal antibodies and had foreign antigen in the course of a disease. Therapeutics. He consults for to be evolved to a human form. The They are huge molecules compared to several start-up biotech companies, first step in their evolution was the and received the BioIndustry traditional drugs – an antibody can have rodent monoclonal antibody, made Association Award in 2008. a molecular weight of 150,000, compared in 1975 by Milstein and Kohler at the to about 500 for a typical pharmaceutical. MRC Laboratory of Molecular Biology By binding to an antigen, the antibody they often bind to small hydrophobic by immunising mice with antigen, and blocks its action; for example, it can prevent pockets in other (non-target) molecules, fusing the antibody-producing cells from viruses, bacteria or their toxins locking so unexpected toxicities may emerge at the spleen to a cell line. These hybrid cells, onto human cells. In addition, it can act a late stage clinical trial. Similarly, the or hybridomas, produced a single species as a flag to the immune system, directing large size of antibodies readily blocks the of antibody (or monoclonal antibody). killing activities onto the pathogen. It interactions between proteins, such as Although mouse monoclonal antibodies turns out that neutrophils, macrophages between ligands and receptors. could be developed to kill tumour cells, and NK cells can all mediate such killing Antibodies are also too large to be they were recognised as foreign in patients, through a variety of mechanisms. cleared by filtration of the blood through and provoked blocking human anti- Antibodies can also be used for the the kidneys, and this is one of the factors mouse antibodies. It was clear that human treatment of non-infectious disease. For leading to their long serum half-life – in antibodies were needed but at first these example, the antibody Humira blocks the fact up to a month. That can allow dosing proved impossible to make. action of a mediator (TNF) of rheumatoid intervals of several weeks or more. By Several solutions emerged from outside arthritis, and has transformed the contrast, small molecules are cleared much the field of immunology, starting in the treatment of rheumatoid arthritis. The more rapidly by the kidney and have to be early 1980s. The first solutions involved antibody Rituxan kills B-cells and is used

for treating non-Hodgkins lymphoma in DISCUSSION which these cells proliferate. Striking a balance

The antibody advantage There is a balance to be struck between open access to data, which would There are a number of differences between allow researchers to collaborate and use information, and the need to protect antibodies and traditional chemical intellectual property for exclusive use in order to achieve commercial success pharmaceuticals. Several are directly and profits. There is no universal solution for this problem – it has to be treated related to size – antibodies are large case-by-case. But, if commercial success is to be maintained on the basis of molecules and engage with their target exploiting existing research, whether patented or not, it has to be through antigen over a large contact area. There the development of new ways of using the research or ‘tweaking’ it , through are consequently many interactions and an understanding of its potential. An example might be the development of a these can lead to a high binding affinity. ‘super antibody’. The difficulty of protecting IP internationally, with today’s By contrast, chemical drugs are much communication technology, is already great. smaller and tend to bind more weakly;

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 27 antibodies using genetic engineering to transplant the Councils. They did not file a patent MRC IP had expired – their particular antigen-binding regions from mouse to on hybridomas, even though they were interest was in making antibodies against human antibodies; in chimeric antibodies alerted before publication. A later letter TNF. the entire antigen-binding region was from the NRDC to the MRC said: “It is The MRC wanted to see its humanising transplanted (to give antibodies that were certainly difficult for us to identify any technology more widely applied, and 2/3 human) and in humanised antibodies immediate practical applications which reached an agreement with Celltech by only the antigen-binding loops were could be pursued as a commercial venture which the Celltech patent on recombinant transplanted (to give antibodies that were … and it is not immediately obvious what antibodies and the MRC patent on 95 per cent human). patentable features are at present disclosed humanised antibodies were licensed By the late 1980s, solutions were in the Nature p ap e r.” together to third parties. In addition, emerging to make fully human antibodies. The BBC was interested, though, and Celltech was given an exclusive licence One involved the creation of an artificial news of the discovery was broadcast for making humanised antibodies against immune system. In 1989, we had started around the world. With no patents, other TNF. The effect was immediate and experiments to create huge repertoires – labs and businesses were free to take up between them the MRC and Celltech more than 10exp8 – of different human the technology. Translation was not an licensed more than 40 companies – antibodies by genetic engineering. We issue, it translated itself! The commercial including Genentech! then, somehow, hoped to find those that possibilities were mainly picked up in In the late 1980s, the MRC had also bound the target antigen. the USA. Late in the day, attempts were set up a Collaborative Centre for working The other solution involved the made to capture value for the UK and the with industry. The Centre developed a engineering of ‘human’ mice. Again in National Enterprise Board set up Celltech, focus on antibody humanisation and two 1989, Michael Neuberger at the MRC and the UK’s first biotech company. The of the antibodies developed there became Marianne Bruggemann at the BBSRC MRC assigned future rights on the IP of important pharmaceuticals: Actemra started experiments to introduce human antibodies to Celltech for a limited period, (from a programme with Chugai) is used antibody genes into transgenic mice, such and Celltech became an early player in the to treat rheumatoid arthritis; and Tysabri that on immunisation the mice would field of recombinant antibodies. (from a programme with Elan) is used for make human antibodies. The UK had another shot on goal with treating MS and Crohn’s Disease. By the mid-1990s, there were several humanised antibodies and did better. In The impact of this technology has been working technologies (hybridoma, this case, we filed a patent in 1986 but the huge. Humanised antibodies are used chimeric, humanised and human) for next step in translation was not through to treat a wide range of diseases with making therapeutic antibodies. Each of Celltech, but through an academic combined sales in the region of $20 billion the technologies had originated in the UK, collaboration between my group and that per year. This has brought more than or had a major UK contribution. Each of of Herman Waldmann in the Cambridge $500 million in royalties to the MRC. The the technologies led to major therapeutic Department of Pathology. By 1988, we saddest aspect of all this was the failure antibody products. However of the 29 or had humanised a rat antibody against of UK industry (other than Celltech) to so therapeutic products approved to date, white cells – the Campath antibody – and capitalise on the technology – there was no only seven had a significant UK input in used it to destroy a large mass of tumour interest from the major UK pharmaceutical their development: the technological leaps in patients. The demonstration had a companies even though the technology in the UK did not carry through to the dramatic effect – a number of biotech had been developed locally and was development of antibody products in the companies suddenly wanted to learn the available to license. Furthermore Celltech’s UK. Understanding how the technology technology and take out a licence. own efforts to develop antibody products transfer took place helps to make sense of The patent position was complicated, were slow and largely unsuccessful. that anomaly. though. By the late 1980s, Celltech and Genentech had both filed general Translation through start-up Translation through licensing patents on recombinant antibodies. These companies Let us start with the story of mouse potentially blocked the whole field of The development of human antibodies monoclonal antibodies. This began in therapeutic antibodies. With Genentech took another path, and here I only have the days of the National Research and also controlling access to the chimeric space to describe those made by antibody Development Corporation (NDDC), a antibody format, Celltech needed a licence repertoires. By 1989 we knew how to monopoly responsible for commercialising from the MRC to make humanised produce antibody repertoires of huge size, all research emerging from the Research antibodies, as their automatic rights to by scrambling the heavy and light chain pairings from populations of lymphocytes.

DISCUSSION Patents had been filed, but we did not Falling between two stools know how to identify those rare antibodies binding to the target antigen, at least not The way in which universities exploit their research and encourage their staff to on the scale required. Then we became set up start-up companies was questioned. There is too great a concentration aware that the Scripps Research Institute on securing income for the university, and not enough on looking at the ultimate had arrived at the same idea and had impact of the technology. Moreover, because researchers starting up companies linked up with a local San Diego company still continue in their academic posts, they lack the ability to do two very called Stratagene. Their team was growing different jobs – i.e. run a company and continue research. This system was and we needed to move very fast. contrasted with the MIT system where researchers who want to exploit their UK industry – Celltech, Wellcome and research through a start-up are required to choose – either they leave and run Unipath – regarded the project as too ‘blue the company or they stay in post. sky’. So I asked the MRC for permission to set up a company. Management appeared

28 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) antibodies

in the form of David Chiswell, an antibody DISCUSSION engineer from Amersham International. Lost in translation? Money came from a speculative Australian Is industry now more prepared to work with blue skies research? The biotech company called Peptech. A research collaboration was set up between pharmaceutical industry may well be, because it understands the speed with the MRC and the company to share the which new developments come about, and how (as with antibodies) existing core science and the intellectual property; commercial success can be undermined. Indeed, they now understand the our business plan was to work with need for research which leads to disruptive technologies, which may transform industrial partners to make enough money the market. Yet it is important for researchers to understand that they need to fund our own products. That was how to present a package of research which has scale and impact: it is no use just Cambridge Antibody Technology (CAT) suggesting potential. There is a need for leadership in academia, to motivate was born. In a few months, a company researchers and help them understand commercial reality. researcher working at the MRC discovered that antibodies could be displayed on a bacterial virus; this provided a means of beginning, in the end both came round to from royalties on sales of antibodies and interrogating our vast repertoires. CAT it and are using it to fill and develop their sale of shares in CAT, and through CAT by was flying. product pipelines. the creation of more than 300 jobs. At this point, the MRC set up an Technologies were translated through Interdisciplinary Research Centre (IRC) Conclusion commercial licensing agreements, and/ for Protein Engineering and appointed me The antibody technologies described or by providing centres for working Deputy Director, providing extra resources here emerged from blue skies, curiosity- with industry partners, with humanised for the project. The Centre worked on driven research. They were translated in antibodies through the MRC Collaborative the technology, patents and underlying completely different ways: Centre and with human antibodies research while CAT focussed on developing • with hybridomas, no patent was filed, through the start-up company CAT. Such and commercialising products. the technology translated itself and centres, whether public sector or private, One of the first partners for CAT was the main impact was on research and are valued by industry; in these examples BASF Pharma who had wanted to make diagnostics. The National Enterprise the industry partners paid most of the a humanised antibody against TNF but Board set up Celltech as the UK’s first costs. Such centres act as a focus for the discovered that the MRC had licensed this biotech company and that turned out creation and training of specialists in technology exclusively to Celltech. So they to be very important for later develop- the technology, and are available for the decided to take a chance with our new and ments; development of future inventions. It is unproven technology for making human • with humanised antibodies, patents therefore important to locate such centres antibodies. The collaboration culminated were filed, and the technology was in the UK. in Humira, a blockbuster human antibody widely licenced as a package leading It is clear that for successful translation which this year became the world’s top- to a large class of therapeutic antibod- of high technology it is necessary to bring selling pharmaceutical. ies. In the UK, Celltech developed together several ingredients: research, Like the humanised antibodies Cimzia (an anti-TNF antibody) and the public funding, private funding, and programme, the strategy for human MRC through its Collaborative Centre commercialisation. In the case of the antibodies was successful, CAT developing helped develop Actemra and Tysabri; antibody examples, most of these elements two human antibodies – Humira for • with human antibodies, patents were were brought together sequentially. It is treating rheumatoid arthritis, and Benlysta filed and the technology licensed not clear whether this was ideal, or whether for systemic lupus erythematosus (SLE). exclusively to a start-up company, CAT, it would have been better to bring them The royalties to the MRC from that which worked with multiple industrial together in a more concerted manner, portfolio come to around $250 million to partners to develop antibodies leading or even simultaneously, for example by date. to Humira and Benlysta. setting up of ‘technology exploitation CAT was acquired by AstraZeneca for centres’ (TECs) funded as companies by more than $1 billion; GSK also profited Public money was used for both research both government and non-government from CAT as it now markets Benlysta with (through the MRC) and translation sources (e.g. private investors, industry, Human Genome Sciences. So although the (through the MRC Collaborative Centre VCs) and working with researchers and two large UK pharmaceutical companies and the IRC for Protein Engineering); industry to develop and translate novel showed no interest in the technology at the public returns came through the MRC technologies into products. ☐ A tale of two revolutions John Savill

here are really two health in patients with these crippling strategy for UK life sciences. The MRC revolutions here. The first disorders. Yet there is also a second, has a role in driving the productive lies in the way that previously one in which medical research is able interaction between industry and the untreatable disorders – such to drive the economy in the UK. These MRC family. It is vitally important to Tas inflammatory diseases – are now gains in wealth are just as important get that right. How the UK could have susceptible to treatment. There has as the gains in health. That has been benefited if that relationship had been truly been a revolution in improving reflected in the recent Government stronger over recent decades.

FST JOURNAL >> MAY 2012 >> VOL. 20 (8) 29 antibodies

The net commercial income to the linked to the MRC, it is now beginning MRC over the last decade or so, from Sir John Savill FRSE to spread its wings. It will leave the assets like antibody patents, has risen FMedSci who is nest and develop its own portfolio of year by year, from £15 million in 2003- Chief Executive interactions not just with the MRC, 4 to £75.2 million in 2011-12: these are of the Medical but also with universities and other Research Council. significant sums of money. The MRC organisations. Between 2008 and was able to do some really quite creative MRC Technology is probably the 2010, he worked part-time as the things with this stream of money. Today, best technology transfer organisation in Chief Scientist for the Scottish this forms part of the overall expenditure Government Health Directorates. the world: it has generated more than limit and so substitutes for public money, In 2002, Sir John was appointed as £500 million of income, licensed over but it is an important element in our the first Vice-Principal and Head 400 technologies to industry, managed overall budget. of the College of Medicine and the formation of some 18 start-ups and Now Cambridge does not officially Veterinary Medicine, University of managed or developed the technology have a cathedral, but the MRC’s new Edinburgh. He retains an ongoing, leading to a number of major new drugs. Laboratory of Molecular Biology, built research active involvement with the In all, this has led to industry-generated with the aid of a £200 million Government University of Edinburgh. revenue of around £40 billion. It is a grant, may count as one: a cathedral to model of the kind of translation that is the concept that MRC research can drive MRC Technology has become a very going to generate companies of scale in both health and wealth. powerful organisation. Although closely the UK. ☐

Collaboration is the way forward Neil Brewis

onoclonals (mAbs) are Biosciences Catalyst (SBC). GSK will potent, specific and a great Dr Neil Brewis is share expertise and spare equipment deal about them is now Vice President of with future SBC tenants if this aids understood. Yet the hurdles Research, Biopharm success in the wider UK biosciences to successful application are high – these R&D at GSK. He is sector. M also site head for GSK are intricate, large structures, made by Third, whether around Cambridge, engineered cells in large fermentation in Stevenage. He is London, Oxford, the North West responsible for all preclinical and tanks. of England or in Scotland, clusters of clinical biopharmaceutical projects There is a great deal of complexity academia, biotech and large pharma up to clinical proof of concept involved. The manufacturing regulatory and he oversees a portfolio of companies provide benefits to the submission for market authorisation for a monoclonals, antibody fragments individuals working there. People can small molecule pharmaceutical or ‘white and protein therapeutics. His group then move jobs from one sector to pill’ would be several hundred pages long. incorporates drug discovery, an another without the need to uproot their That for a mAb regulatory submission innovation group, early process lives – like many, I have experienced the would form a stack several feet deep. development and a discovery advantages of moving from biotech to Moreover, the development of new medicine function. pharma without relocating. medicines is extremely expensive, Cambridge has the biggest upwards of £1 billion. While mAbs have concentration of biotech in Europe. a higher chance than New Chemical UK can create the vibrant biosciences Clusters like this will continue to bring Entities (NCEs) of successfully passing sector needed for the discovery and benefits not only to individuals but to the various stages of clinical development, development of novel medicines. local economies too. there are more failures than successes. At First, large pharma companies need The monoclonal technology wave the same time healthcare budgets are to work collaboratively with SMEs and has been highly impressive and further under intense pressure, which impacts academia. This involves sharing risk and innovation will come along to improve directly upon the way medicines are reward, something which companies do patient benefits. This is a world stage developed. and which is becoming more acceptable and although countries such as China The old R&D model where a to academia. are making great progress, I see positive pharmaceutical company produces a Second, pharma companies must signs around us in the UK too. The MRC portfolio of medicines whilst operating promote the growth of the sector through is really ‘open for business’ and pharma independently of the outside world is a more open approach to innovation. is looking for ways to encourage external no longer viable. Companies cannot For example, AstraZeneca has given innovation. do all the necessary R&D alone, hence the academic community, via the MRC, It is also pleasing that the UK the increased focus on externalisation. full access to 22 experimental medicine Government is looking seriously at what The industry must look for relationships drugs. GSK is making land available next can be done to strengthen the biopharm which create synergies between academia, to its research centre at Stevenage and sector – both big and small companies. pharmaceutical companies and the SMEs. working with the Wellcome Trust and GSK believes a priority is establishing a There are several ways in which the Government to establish the Stevenage strong SME biotech sector in the UK. ☐

30 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) arctic development

Changes in the Arctic are raising economic, social and environmental issues. A round table discusssion at the Foundation for Science and Technology on 14 December 2011 discussed the opportunities the new situation presents. A changing landscape Charles Emmerson

cience is key to the Arctic. North American shale gas has harmed Supporting science as part of UK Charles Emmerson is a the economics of this project. Tax policy is critical in order to: Senior Research Fellow breaks provided by the Russian state, gas • at the Royal Institute demand elsewhere, as well as the prestige • better understand macro-level pro- of International Affairs and technology elements associated S at Chatham House, cesses which will affect the world; with the project, may mean that it does • better understand macro-level pro- where he works mostly ultimately progress, although over a on issues related cesses which will ultimately affect the longer timescale. to resource security and broader UK; Other projects are going ahead geopolitical trends. He is the author better influence Arctic diplomacy. • of The Future History of the Arctic. and Cairn, or other companies, are Prior to this Charles was an Associate likely to return to Greenland. Shell’s The strength of British scientific research Director at the World Economic developments in offshore Alaska appear is a key element supporting Britain’s role Forum leading their global risk work. to be progressing with US government in both poles. backing. Statoil has announced plans to drill a new well near the Snøhvit, Changes of state Just as environmental state change and the Norwegian government is highly While the Arctic is undergoing an in the Arctic involves moving from a supportive of the northward shift of the environmental ‘state change’ (chiefly as relatively predictable natural environment country’s oil and gas industry (including a result of climate change), it is also to one where things are changing but into the areas recently delimited as experiencing a ‘state change’ in the socio- not with a defined final state, so socio- Norwegian and Russian in the Barents economic and political spheres. The economic and political state-change Sea). Statoil has made two substantial relationship between the environmental involves plenty of uncertainty and again finds in the Barents Sea, proclaiming that and socio-economic state change is not has no pre-destined path. it has ‘cracked’ the geological code, and linear or one-to-one. The reduction the company is seeking to produce 400- of sea ice in the Arctic, for example, is Oil and gas 500,000 barrels per day by 2020. a necessary but insufficient condition Towards the end of 2011, two stories In Russian waters, Prirazlomnoye for large-scale Arctic shipping: other underlined the levels of uncertainty should come on stream in 2012. In elements have to be in place, from in the Arctic and the dependence of Norway, Goliat may come on stream in insurance and infrastructure to, much Arctic economic development 2013 and a new and substantial find from importantly, certainty about where and on external factors. Questions were this year, Krugard, may be producing when the Arctic will freeze in the winter asked about the development of the from 2018. Onshore, the Yamal peninsula months. Shtokman natural gas field off the north may be the future both of Gazprom and Some environmental change in the coast of Russia and there were reports of Novatek: it could also include an Arctic makes access harder, not easier. about Cairn’s unsuccessful experience LNG component. In the longer-term In some areas, melting permafrost will in finding commercially-viable oil off the South Kara Sea is expected to be incur infrastructure costs while in others Greenland. developed, with ExxonMobil in prime later freezing and earlier thawing will While the Shtokman development position to exploit this. shorten periods of ground-transport was originally conceived to provide These developments offer access. Coastal infrastructure may be LNG to the US market, the boom in opportunities for UK companies.

more subject to coastal erosion and DISCUSSION storms. Tensions In addition, while changes in environmental conditions may be There is an inevitable tension between development and the preservation of the generally more promising for economic fragile environment of the region. Development will not take place, or would be activity, plenty of challenges will still hindered, unless environmental concerns are fully addressed to the satisfaction remain: low temperature, wide variations not only of international NGOs but, more importantly, of local communities. It in temperature levels, relative isolation, is only then that the vital trust between local communities and developers can and so on. be achieved, and a licence to operate obtained. This trust must rest on a belief Research and development of Arctic- that developers fully understand fears about accidents and the potential for oil specific technologies and processes will pollution, and have put adequate response measures in place. Failure to deal take time. There will be costs but these effectively with a disaster will affect not only the current developer, but all innovations will be necessary for Arctic subsequent development activities. development.

FST JOURNAL >> MAY 2011 >> VOL. 20 (8) 31 arctic development

DISCUSSION necessarily resolve overlapping claims, Industry and academia or disagreements about where maritime borders of adjacent states should lie (as There is further scope for developing knowledge transfer between industry was the case with Norway and Russia and academia. The UK Government is making efforts to encourage, through over the Beaufort Sea before they reached the Research Councils, research which is of benefit to business and knowledge agreement, and is still the case in the US/ transfer. The Natural Environment Research Council (NERC) itself has a very Canada dispute over the Beaufort Sea). wide spread of interests. However, it is difficult to meet them all; funding There will be disagreements over the decisions have required a focus on selected areas of research, although these status of particular waterways. While the do include Arctic research questions. It is important to maintain research over North-West Passage is considered internal time, and not react to cuts by stopping pieces of long term observations, or waters by Canada, US and UK policies research which underpins other research – that would be the worst form of explicitly state that this, along with the salami slicing. Northern Sea Route, is an international strait. There are differences of opinion about the extent to which UNCLOS While BP has been excluded from the most likely increase in the near future applies to the Svalbard archipelago. Is the South Kara Sea for the present, British (and act as a spur for infrastructure extensive and potentially hydrocarbon- companies have considerable offshore investment which may support shipping bearing continental shelf associated and technical experience, as well as neither originating nor terminating in with Svalbard subject to the equal access experience of Arctic conditions through the Arctic) this will take time. stipulations of the Svalbard Treaty (to the sub-Arctic Sakhalin development (in The UK also has a role to play here. which the UK is a signatory) or does this addition to BP’s operations in Alaska). It is a major shipping nation, with a Treaty only apply to a much more limited As North Sea output declines, UK major financial services industry to help zone? companies may need to look to these manage maritime risk. It is significant The Arctic Council is evolving, signing new locations. Moreover, the UK will be that a polar shipping code is currently its first legally binding agreement in 2011 increasingly dependent on Norwegian being discussed in the International and creating a permanent secretariat in gas in the future, a rising share of which Maritime Organisation, based in London. Tromsø. A decision on how to engage may come from the Arctic. with non-Arctic states (e.g. China and Politics the European Union) which have been Shipping The politics of the Arctic are much more seeking permanent observer status has in The fact that the Arctic is becoming more cooperative than generally reported. effect been postponed to 2013 through ice-free than in the past does not mean All Arctic coastal states agree upon the the introduction of criteria by which that large-scale trans-oceanic shipping in essential role of the UN Convention suitability will then be judged. the area is imminent. However, several on the Law of the Sea (UNCLOS) in The UK is an observer to the Arctic high profile cargos have transited the helping resolve the question of how far Council, but much of its engagement Northern Sea Route over the last few a state may extend its ownership of the touching on Arctic issues will take place summers and the volume of shipping continental shelf from its coastline (this through Government departments other along this route is increasing (although even applies to the USA which is not a than the Foreign and Commonwealth from a relatively low base). The first signatory to UNCLOS). Office (FCO), and will occur bilaterally LNG cargo is scheduled for summer Russia will finalise its submissions rather than through the Arctic Council 2012. Dense point-to-point shipping on its continental shelf in 2012. Canada itself. within particular parts of the Arctic is and Denmark (Greenland) are yet to Although the FCO has produced a more likely to occur in the medium term. submit their claims. Again, this process very useful summary of UK government Factors such as the prevalence of ice, will take time. The committee tasked policy1, such a summary should not be the balance of interests of the coastal with processing claims submitted under equated with a UK Arctic strategy. A states and the likelihood of supporting UNCLOS has a backlog that may take a question, then, remains as to whether an economic activity, mean that the long time to clear. Its pronouncements explicit UK Arctic strategy is necessary, Northern Sea Route around the top of may be taken as having consultative or suitable, or useful. ☐ Russia is more likely to become a major rather than binding force. And the 1. www.fco.gov.uk/en/global-issues/ shipping route than the North-West existence of UNCLOS does not, by itself, polar-regions Passage across the top of Canada. The commercial viability of shipping DISCUSSION depends not just on ice conditions. The longer term There are a range of factors including ship-design, a favourable regulatory Long–term monitoring of developments and long-term thinking by business environment and economic rates for is essential. There is a danger that existing databases and monitoring any accompanying vessels. Commercial arrangements will not continue. The timescales necessary to understand issues calculations for large-scale shipping will such as climate change are different for research and for business. Business may be based on using ships through the year, need an assessment of conditions for a development very quickly, but long-term not just on ships navigating the Arctic issues demand lengthy data-gathering and an acceptance that outcomes will not for a few months annually. Ice formation appear for considerable time (and even then may be uncertain). Environmental will remain an issue. baseline studies are essential to measure the changes caused by development. While shipping associated with oil, gas and mining developments will

32 FST JOURNAL >> MAY 2012 >> VOL. 20 (8) The Foundation is grateful to the following companies, departments, research bodies and charities for their support for the dinner/discussion programme.

Actuarial Profession Home Office Council AECOM Limited House of Commons Library Sharp Laboratories of Europe Ltd American Embassy HR Wallingford Group Ltd Shell International Limited Arts and Humanities Research Council IBM (UK) Limited Sir Walter Bodmer FRS Arup Institute of Biomedical Science Sir William Francis CBE FREng Association for Science Education Institute of Materials, Minerals & Smith Institute for Industrial Association of the British Mining Mathematics and System Pharmaceutical Industry Institute of Mathematics and its Engineering Aston University Applications Society for General Microbiology Atkins Institute of Measurement and Control Society of Biology BAE Systems Institute of Physics Society of Maritime Industries Biotechnology and Biological Sciences Institution of Agricultural Engineers Society of Operations Engineers Research Council (IAgrE) STEMNET BP Institution of Chemical Engineers Technology Strategy Board Brett Consulting Limited Institution of Mechanical Engineers The IET British Academy Ipsos Mori The Kohn Foundation British Computer Society Japan Society for the Promotion of The Lloyd’s Register Educational Trust British Council Science The Medical Schools Council Canadian High Commission John Wiley & Sons The Michael John Trust Chartered Institute of Plumbing and Johnson Matthey plc The Nautical Institute Heating Engineers Keele University The Open University Chartered Institution of Water and King’s College London The Royal Academy of Engineering Environmental Management Landscape Institute The Royal Commission for the City & Guilds of London Institute Lloyd’s Exhibition of 1851 City University London Lloyd’s Register The Royal Society College of Radiographers London and Continental Railways The Royal Society of Edinburgh Comino Foundation London School of Hygiene & Tropical The Wellcome Trust Costain Medicine TWI Ltd Cranfield University Medical Research Council University College London Cuadrilla Resources Limited Napier University University of Aberdeen Department for Business, Innovation National Endowment for Science, University of Birmingham and Skills Technonlogy and the Arts University of Bristol Department for Communities and National Physical Laboratory University of Cambridge Local Government Natural Environment Research Council University of Dundee Department for Environment, Food and Natural History Museum University of East Anglia Rural Affairs Newcastle University University of Edinburgh Department for Transport Nottingham Trent University University of Glasgow Department of Health Office of the Chief Scientific Adviser of University of Hull Economic and Social Research Council Ireland University of Kent Embassy of France Open University University of Leeds Energy Institute Parliamentary and Scientific Committee University of Leicester Engineering & Physical Sciences Premmit Associates University of Nottingham Research Council Queen’s University of Belfast University of Reading Financial Services Knowledge Transfer Research Councils UK University of Sheffield Network Risk Solutions University of Southampton Geological Society Rolls Royce Warwick University GlaxoSmithKline Royal Botanic Gardens, Kew Wm Morrisons Halcrow Group Royal Statistical Society Worshipful Company of Launderers Heads of University Biological Sciences RPS Energy Worshipful Company of Security (HUBS) School of Science and Technology, Professionals Health and Safety Executive Nottingham Trent University Heriot-Watt University Science and Technology Facilities The Foundation for Science and Technology 10 Carlton House Terrace London SW1Y 5AH Telephone: 020 7321 2220 Fax: 020 7321 2221 Email: [email protected] www.foundation.org.uk

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