Research & Innovation Growth & Diffusion

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Research & Innovation Growth & Diffusion Kevin Baughan Deputy Chief Executive

Transcript of Research & Innovation Growth & Diffusion

Page 1: Research & Innovation Growth & Diffusion

Research & InnovationGrowth & Diffusion

Kevin BaughanDeputy Chief Executive

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UK Research & Innovation

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Sir Mark Walport:

“The success of UK Research and Innovation will

ultimately be measured through the impact it delivers:

through pushing the frontiers of human knowledge,

delivering economic impact and creating better jobs

and by supporting society to become stronger, healthier

and more resilient.”

KNOWLEDGE ECONOMY SOCIETY

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Accelerating UK economic growth throughfunding and connecting business-led innovation

Innovation:Delivering Better

Outcomes

KNOWLEDGE ECONOMY SOCIETY

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Thriving in Constant Change

The Research BaseHarness Natural Phenomena

Increasing the AvailableBuilding Blocks

Existing TechnologiesProvide Building Blocks

Enable New TechnologyCombinations

TechnologyFuels Itself

Thriving in Constant Change• From optimising to new combinations• From rationalising to sense making• From commodities to skills• From components to alliances

Brian Arthur

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Source: Innovate UK operational data

≈ 60% of our core grant funding goes to SMEs

≈ 80% of collaborative projects involve at least 1 research base partner

We work with over 140 individual research base organisations (including institutes and RTOs)

2,900organisations / year

2,400projects / year

Who does Innovate UK fund?

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Our Productivity Challenge

USAFranceGermany

G7 average

Industrial Strategy CommissionLaying the Foundations

July 2017

G7 labour productivity versus the G7 average

UK

Japan

Canada Italy

UK

Productivity isn’t everything, but in the long runit is almost everything …. Paul Krugman

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Our R&D Challenge

The World Bank

R&D expenditure

as a % of GDP

UK 1.7% of GDP

(1.72% in 2000)

Region 1.9%

Leaders 2.5%

The UK’s R&D is

concentrated:

• in auto, aero

& pharma

• in the large

multi-nationals

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Assessing our Performance - ERC

Assessing the business performance effects of engagement withpublicly funded science, ERC Research Paper 61, August 2017

Firms supportedby Innovate UKexperience a bettereconomic growththan their untreatedcounterparts:• +21% in employment• +23% in turnoverin the medium term.

Those supportedby EPSRC achievedeven higher growth• +27% in employment• +30% in turnoverin the medium term

Innovate UK

EPSRC

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Assessing our Performance - Overall

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Innovation and the Frontier Economy

Frontier Productivity

Laggard Productivity

84% of the UK Economy

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Diffusion and the rest of the Economy

84% of the UK Economy

Early majority:

Wants to know it’s a sound investment

Wants to understand the cash flow

Otherwise they will stay as they are

New forms of intervention:

Providing knowledge & expertise

Generating robust business cases

Well suited to loan investments

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Accelerating UK economic growth throughfunding and connecting business-led innovation

Innovation:Delivering Better

Outcomes

KNOWLEDGE ECONOMY SOCIETY

Business

People Place

Infrastructure

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Loans:

Pilotingof the newInnovation

Loans

Equity:

InvestorPartnerships

andPatient Capital

Challenge led: The Industrial Strategy Challenge Fund

Businesses – Incentivising Innovation

Responsive: A regular rhythm of Open/Sector competitions

The goal of our funding is to give the private sector theconfidence to invest in the markets of the future.

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Medicines manufacturing technologies

Batteries for clean and flexible energy storage

Robots for a safer world

Self-driving vehicles

Manufacturing and materials of the future

Satellites and space technology

Industry-led and powered by multi-disciplinary

research and business academic collaboration

Through ISCF

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Through Deployment of Patient Capital

Giving the private sector

confidence to invest.

New Investment

Accelerator Pilot:

Innovate UK grant funding

plus VC equity funding

Innovate UK skills in early

stage tech

Alongside VC skills in

assessing the management

team and business plan.

Financing Growth in Innovative Firms, Aug 2017

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£17m£52*

£4m£30*

£23m£45*

£57.5m£64*

£30.4m£74*£8.4m

£38*

£33.4m£60*

£18.4m£50*

£16m£41*

£56m£55*

£11.4m£78*

£19m£37*

*Per Registered

Business Oct16

Place – Our Funding by Region in 15/16

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“We have had some great input from the Catapult’s technical experts that helped us solve some key blockers early on in our business development.”

Mish Gopaul, Co-founder, Fatmap

Infrastructure – Our Catapult Network

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People – Women in Innovation

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We can’t stop thinking about

the future

Empowering innovativeUK businesses today tolead the global growthindustries of tomorrow.