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					Concept to
Commercialisation
A strategy for business innovation, 2011-2015




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Concept to Commercialisation | 2011-2015




Innovation: the successful
exploitation of new ideas
The Technology Strategy Board is the UK’s national innovation agency.
Our goal is to accelerate economic growth by stimulating and supporting
business-led innovation.


We understand business; our people come mainly from a business background.
We work across government, business, and the research community - removing
barriers to innovation, bringing organisations together to focus on opportunities, and
investing in the development of new technology-based products and services for
                                                                                         Contents
future markets.                                                                          Foreword                   03
Our vision: for the UK to be a global leader in innovation and a magnet for innovative   Executive summary          04
businesses which can apply technology rapidly, effectively and sustainably to create
wealth and enhance quality of life.                                                      The need for innovation    06
                                                                                         – and our strategy
Everything we do is driven by one question - will it help UK business bring new
ideas and technologies to market?                                                        Accelerating the           08
                                                                                         journey between
                                                                                         concept and
                                                                                         commercialisation
   In its first three years as an agency, the Technology Strategy Board has:
                                                                                         Connecting the             11
   •	 Together with partners and with        •	 Developed and launched the SBRI
                                                                                         innovation landscape
      business, invested over £2bn in           process to solve government
      UK innovation                             needs through innovation, with           Turning government         14
   •	 Built programmes around the               over £35m of contracts awarded to        action into business
      challenges that will shape future         more than 500 small and medium-          opportunity
      markets, as a focus for innovation        sized companies
                                                                                         Investing in priority      18
      - such as stratified medicine,         •	 Worked with businesses to                areas based on potential
      sustainable agriculture and food,         create large-scale technology
      and the environmental impact              demonstrators in low carbon              Continuously improving     24
      of buildings                              vehicles, low impact buildings           our capability
   •	 Invested in over 3,000 businesses         and digital services                     How business works         26
      on projects to move ideas and          •	 Re-focused the 30,000-member             with us
      technologies closer to market.            Knowledge Transfer Networks              Governing Board            27
   •	 Joined forces with the                    to promote open innovation
      research councils, regional               and created _connect, the
      development agencies, devolved            online collaboration resource for
      administrations and other                 innovation networks.
      partners, to promote innovation        •	 Built up our annual Innovate
      and business growth                       event to attract over 2,000
   •	 Brought more than 110 universities        delegates from business and
      to engage in business                     research, creating new contacts,
      innovation projects                       partnerships and innovation.

   •	 Cut bureaucracy, making
      programmes more streamlined
      and easier for business to use.
Foreword


Our world has changed in many ways since 2008 when            We have shown how demonstrators can pave the way
I introduced the Technology Strategy Board’s first            for new solutions to challenges; we are planning new
strategic plan. We are in a new economic and political        large-scale demonstrator projects in selected areas.
environment. The after-effects of the economic downturn       We have experienced how public procurement can
are still with us, and budget pressures in the public and     create innovation; we will seek new ways to unlock this
private sectors have altered the business landscape.          potential. We will pursue new projects to build on the
                                                              innovation landscape in the UK - setting up world-leading
However, the need for innovation has not reduced – in
                                                              technology and innovation centres; using our _connect
fact, given the economic situation it is greater than ever
                                                              online resource to develop new models of knowledge
before. Growth is a central government priority, and
                                                              exchange and open innovation; and
innovation is a key enabler of growth.
                                                              creating a new package of support for early-stage high
This is why, in autumn 2010, the Government reinforced        potential companies.
the Technology Strategy Board’s role as the primary
                                                              I am proud of the team we have brought together;
public body in the UK for business innovation.
                                                              dedicated people drawn mostly from business
Since 2007 we have worked with business, government           backgrounds, who understand the issues
and the research base, to help create a far-reaching          facing business. With an exciting agenda, we are
programme of technology-enabled innovation. We                clearly focused on our goals and ready for the
have learnt the power of making connections between           challenges ahead.
people and organisations and, through investment or
                                                              We act as facilitators and conveners - but it is this
support, providing a catalyst for new solutions. We call
                                                              country’s innovative and dynamic businesses, together
this approach connect and catalyse – the title of our first
                                                              with the research base, which do the work of innovation.
strategic plan, and a principle that still holds true.
                                                              We look forward to working with these and all our
We are entering the new spending review period                strategic partners to make this plan a reality.
with a strategy to help drive economic growth
through innovation. Our new strategy - Concept
to Commercialisation - supports the Government’s
ambitions and reviews on growth and focuses on
helping business navigate the difficult territory after a
concept or idea has been initially developed, but before      Iain Gray
it can enter the market and be fully commercialised. The      Chief Executive
strategy builds on the approaches we have developed to
accelerate the pace of innovation in business - and takes
new directions.




                                                                                                          Foreword | 03
Concept to Commercialisation | 2011-2015




Executive summary
Innovation – the successful exploitation of new ideas – is a key driver of economic
growth for developed countries
                               1




Globalisation brings both opportunities     We tackle the barriers to innovation by    The Technology
and challenges. To share in global          working across business, academia          Strategy Board
growth, the UK has to compete               and government, striving to create a
                                                                                       provides a critical
effectively. This will depend on rapid      more effective innovation environment,
technological innovation, effective         reducing risk and promoting
                                                                                       link in the innovation
strategic management of knowledge,          collaboration, knowledge exchange          chain, helping
and a clear focus on higher value-          and open innovation. We build strategic    business in the
added goods, services and industries.       partnerships with key organisations        development stages
The world also faces major issues
                                            such as the research councils. We          where research
– such as climate change, limited
                                            connect and create engagement              ideas can be
natural resources, and changing age
                                            between people and organisations           taken through
                                            which might not normally work together,
demographics. The need for transition                                                  to products and
                                            and we act as a catalyst to enable
to a more sustainable economy is
                                            developments that otherwise would not
                                                                                       services that can be
creating global market opportunities for
                                            take place.
                                                                                       commercialised.
entirely new solutions.
                                            In our first three years we have
However, from an economic                                                              Dr Neil Bentley, Deputy
                                            worked with thousands of businesses
perspective, UK business investment                                                    Director-General, CBI
                                            from industry leaders to SMEs, to
in innovation has tended to be later,
                                            deliver over £2bn of investment in
and lower, than is desirable for
                                            innovation in a wide range of areas.
strong growth. There are risks and
                                            We have introduced challenge-led
uncertainties in investing in early stage
                                            programmes such as innovation
technologies, and companies can
                                            platforms, which create a community
struggle to find finance or partners.
                                            around a societal challenge to identify
Emerging technologies can disrupt
                                            and carry out the actions needed for
business models, creating opportunities
                                            sustainable UK business growth. We
- but also potential threats. Government
                                            have enhanced knowledge exchange
action can also create both opportunity
                                            for business through Knowledge
and disruption. All this takes place
                                            Transfer Networks and Knowledge
in an innovation landscape which for
                                            Transfer Partnerships. We have
business can be complex, fragmented
                                            promoted innovation in procurement
and difficult to navigate.
                                            by launching the SBRI (Small Business
Our goal is to address these challenges;    Research Initiative) programme.
accelerating economic growth
                                            We have also developed a strong
by stimulating and supporting
                                            understanding of what works best to
business-led innovation. We are
                                            stimulate innovation. We have learnt not
business-focused, with a Governing
                                            only how challenges drive innovation,
Board and staff made up of people with
                                            but also how powerful partnerships and
long experience of innovation and the
                                            collaborations can be.
commercialisation of technology.




04 | Technology Strategy Board                                                                            See footnotes on page 6
                                                                                                      1
We are now building on this foundation for the coming years,
with a strategy focused on five main areas.

Accelerating the journey between           Investing in priority areas based on
concept and commercialisation              potential
The journey of an idea from concept to     We have to make choices, prioritising
market is uneven and indirect. There are   investment in areas or themes most
many obstacles and possible entry and      likely to generate sustainable UK
exit points, and support for business      economic growth. We will develop
innovation is too often unconnected.       our thematic programme to focus
We will work with business and others      on areas which address global
to build understanding of this journey     challenges and market opportunities,
and accelerate it, providing joined-up     complemented and supported by
support which links with other help        innovation in competencies and
available for innovative businesses.       enabling technologies. We will review
                                                                                        Through initiatives
We will develop a new package of           opportunities for new initiatives where      like the Technology
support for small and early stage          there is potential for UK commercial         Strategy Board’s
companies, establish a network of          success, for example using large-            Low Carbon Vehicles
technology and innovation centres,         scale demonstrators to accelerate the        Innovation Platform,
and promote knowledge exchange and         deployment of new technologies.              the UK Government
open innovation.                                                                        has demonstrated a
                                           Continuously improving our
Connecting the innovation landscape        capability                                   vision of zero-emission
The range of players in innovation –       We will support and develop our talent,      mobility which is very
with multiple organisations and            and ensure that our organisation             much in line with our
initiatives – creates a landscape that     provides a positive and stimulating          own; and played a
is often fragmented and difficult for      environment, where our people can            significant role in our
business to navigate. Broadening           thrive and work effectively together. We     decision to base the
our role nationally and internationally,   will continue to develop our business
                                                                                        production of the
we will build mutually beneficial          processes to be fast, flexible, and
strategic relationships with other UK      focused on the needs of the businesses
                                                                                        100% electric Nissan
organisations, to help join up the         that we support, and our benchmarks          LEAF and batteries
landscape and create a more effective      and impact measures to ensure that           in Sunderland.
innovation environment. We will also       we remain highly effective and deliver
help to define EU funding programmes       value for money. Working with all our        Trevor Mann,
and enable business to benefit from EU     partners, we will translate this strategic   Senior Vice President
and international opportunities.           approach into a programme of action to       for Manufacturing,
                                           accelerate business innovation.              Nissan Europe
Turning government action into
business opportunity
The actions of government departments
and agencies can change markets
and create opportunities for innovative
businesses. We will work with
government to identify areas where
policy, standards, and regulation can          Thanks to the Retrofit for the Future initiative we
stimulate business innovation, creating        have doubled in size, expanded our offering, hired
innovation platforms as appropriate.           more people and proceeded with R&D projects we
We aim to help unlock the potential
                                               wouldn’t have dreamed of pursuing beforehand....
of government to act as an ‘intelligent
lead customer’, engaging with business
to seek innovative solutions to public         Thomas Lipinski,
sector challenges.                             Founding Director of SME Green Structures

                                                                                                   Executive summary | 05
Concept to Commercialisation | 2011-2015




The need for innovation -
and our strategy
UK businesses and their ability to innovate hold the key to economic growth.


Research2 shows that two-thirds of            The innovation challenge                              •	Longer-term trends and
UK private sector productivity growth         The UK is in a strong position. Our                     business opportunities, such as
between 2000 and 2007 was the result          universities and research institutes                    those generated by the major
of innovation, and a separate worldwide       produce world-leading research and                      challenges facing society, are not
study3 confirmed that innovation              we have a track record of technology                    universally apparent.
is central to growth in developed             commercialisation. In many industrial                 •	 Government has not yet
countries.                                    sectors we are global leaders, ranking                   fully realised the full potential of
It is also vital for competition. In a        second in aerospace and sixth in                         policy, standardisation,
global market, the competitive                manufacturing generally. We are front-                   regulation and procurement to
advantage of UK businesses will               runners in finance, advertising and the                  encourage innovation.
depend on effectively managing                creative industries. We have a wealth of
                                              entrepreneurial small businesses. The                 •	 The help available to businesses
the knowledge we have, rapidly
                                              country is full of potential.                            needing to innovate is often
commercialising technologies and
                                                                                                       fragmented and complex.
focusing clearly on higher value-added        However, innovation is not easy. It does
goods, services, and industries. A            not happen spontaneously. From an                     To accelerate innovation, these barriers
country rich in innovation will gain a        economic perspective, UK business                     must be tackled.
decisive advantage in both trade and          investment in innovation is generally                 Building on experience
inward investment.                            later and at a lower level than is                    Our experience has confirmed
The world faces major issues which            desirable for the highest growth. There               several key principles. The first is that
must be addressed, such as climate            are many reasons for this:                            challenges - from global issues or from
change, limited natural resources, and        •	 In new and emerging markets                        market needs - can drive innovation.
changing age demographics. The need              the timing and levels of return on                 We place a strong emphasis on
for transition to a more sustainable             investment are uncertain; it can be                encouraging challenge-led innovation,
economy is creating global market                hard to build a business case. Small               supported by the technology
opportunities for entirely new solutions.        companies especially, although                     development that will enable new
The countries which can innovate most            major contributors to growth, can                  solutions to be found. The second
rapidly will be most likely to benefit from      struggle to find finance for their ideas,          principle is collaboration. To tackle the
these shifts in markets.                         or partners to bring their concepts                barriers to innovation, businesses need
As the Government’s Growth Review                to market.                                         to work with supply chain partners,
has made clear, strong, sustainable                                                                 universities and research institutes,
                                              •	 New technology in a market can
and balanced growth is a central                                                                    government departments, funders and
                                                 disrupt existing supply chains and
government priority for the coming                                                                  investors - sharing perspectives and
                                                 business models, requiring new
years. The task of the Technology                                                                   working towards common goals. By
                                                 partnerships and simultaneous
Strategy Board is to work with business                                                             bringing organisations and individuals
                                                 innovation at multiple points; this is
and other partners to stimulate the                                                                 together, and adding support and
                                                 difficult for individual businesses,
business-led innovation which will                                                                  investment, we can make things
                                                 particularly smaller firms.
accelerate this growth.                                                                             happen which otherwise would not.
                                                                                                    Connect and Catalyse, the title of our
                                                                                                    first strategic plan, described
                                                                                                    this approach.



                                                                                                      2
                                                                                                        NESTA Innovation Index 2009, www.nesta.org.uk
06 | Technology Strategy Board                                3
                                                                  The OECD Innovation Strategy: Getting a Head Start on Tomorrow, 2010, www.oecd.org
The third principle is the value of being    Our strategic focus: 2011-12 to 2014-15
business-led and business-focused. By
                                             Our budget for the period 2011-12 to 2014-15 is over £1bn. In partnership with
listening to the needs of business, we
                                             business and other funders, this will generate investment of around £2.5bn to drive
take well-informed decisions and make
                                             economic growth.
investments that enable companies
to move innovative ideas towards             Our strategy for business innovation over these years concentrates on five areas:
commercialisation. We operate in the
                                             •	   Accelerating the journey between concept and commercialisation
space after basic research, but before
                                             •	   Connecting the innovation landscape
commercial investment steps in to take
a product or service into the market.        •	   Turning government action into business opportunity
                                             •	   Investing in priority areas based on potential
These principles have helped to define
our strategic direction and will continue    •	   Continuously improving our capability.
to guide our work.                           These are explained in the later sections of this document, which, together with the
A changing context                           specific commitments in each area, make up our strategic plan for UK innovation.
The world in which we will operate
over the next few years is changing in
important ways.
                                                  Our plan for innovation: key commitments
As the UK economy emerges from the
                                                  Technology and innovation centres
downturn we need to recognise a new
context for our work. The abolition of the        Physical centres of excellence have a powerful role to play in helping
regional development agencies means               business to develop and commercialise good ideas. From 2011, we will
that we will need to find new ways of             establish and oversee a new network of world-leading technology and
reaching high growth SMEs who may                 innovation centres in specific fields and look at how clusters of expertise can
be able to benefit from                           create momentum for innovation.
our support.
                                                  New support for high potential SMEs
And as our partners in the public sector          Small and medium-sized enterprises will be a major source of the UK’s
face ever growing pressure on public              future economic growth. We will create a co-ordinated package of support
spending, we will need to set out more            and investment for SMEs, helping early stage businesses to accelerate
clearly why working with us will create           their ideas more rapidly to market and, for more mature businesses with
value for them.                                   potential, to deliver strong growth. We want to make the UK the preferred
                                                  place to start and grow innovative businesses.

                                                  Procurement
                                                  Public procurement, at around £220bn per year, offers great opportunities
                                                  for government to act as an ‘intelligent lead customer’, encouraging and
                                                  purchasing innovative products and services which can then go on to
                                                  further commercial success. We will develop this potential over the next four
                                                  years, working across government to make public sector procurement a
                                                  force for innovation.

                                                  Demonstrator projects
                                                  Large-scale demonstrators help to overcome barriers, bringing partners
                                                  together to test and validate what can be done, and so move new products
                                                  closer to wider application. We have enabled highly effective demonstrators
                                                  in several sectors, and will invest in projects where there is a need and
                                                  benefit.

                                                  New forms of knowledge exchange
                                                  Online social networks are a powerful and efficient enabler of connections,
                                                  bringing people with ideas and resources together. We will develop our
                                                  new online platform _connect, to maximise its impact as a place where
                                                  individuals and businesses can find partners, build collaborations and work
                                                  on challenges on the road to commercialisation.




                                                                                                          The need for innovation | 07
Concept to Commercialisation | 2011-2015




Accelerating the journey
between concept and
commercialisation
The journey of an idea from concept to market is uneven and indirect. There are
many obstacles and possible entry and exit points, and support for business
innovation is too often unconnected.


We will work with business and others        Overall, we need to understand which       Evolving what we do
to build understanding of this journey       levers to pull, when and how hard, and     In continuing to adapt our support
and accelerate it, providing joined-up       to link up the different forms so that     programmes, we will analyse and
support which links with other help          they complement each other. We will        discuss with business what is needed,
available for innovative businesses.         further build our understanding of the     considering what works best for
                                             innovation journey and the support         businesses of different sizes, at different
We will develop a new package of
                                             needed for different sectors and           stages, and in different sectors. We
support for small and early stage
                                             development stages.                        will develop our range of innovation
companies, establish a network of
technology and innovation centres,           The ways in which business works           support programmes to ensure they
and promote knowledge exchange and           with us include:                           work effectively and form a set of
open innovation.                                                                        complementary and integrated ‘tools’.
                                             •	 Gaining funding for single company
                                                                                        We will make effective links between
Understanding the journey and                   and collaborative applied R&D and
                                                                                        our programmes such as KTNs, KTPs
business needs                                  feasibility studies
                                                                                        and collaborative R&D, and look at
The path from initial idea to market-        •	 Joining Knowledge Transfer Networks     how they connect with other public
ready product or service is uneven,             (KTNs), which help businesses and       and private sector innovation support.
and has many twists and turns.                  researchers share knowledge and         We will always aim for best practice in
Companies and projects at different             collaborate                             delivering and measuring impact.
stages have differing needs – whether
                                             •	 Linking with the new national network   The following are examples of new
for ideas, capital, partners, suppliers or
                                                of technology and innovation centres    developments already planned or
customers. To realise the potential of an
                                             •	 Taking part in the SBRI scheme for      in progress (see opposite page).
idea, the appropriate help needs to be
available at the right time.                    procurement of innovative products
                                                by government departments
The Technology Strategy Board
offers a range of ways for business          •	 Developing new capability through
to accelerate innovation in the space           Knowledge Transfer Partnerships
between concept and going to                    (KTPs) between businesses and
market, with different strengths and            academia
applications. Some are valuable in
                                             •	 Getting advice and support for
reducing risk, some in forming new
                                                accessing European funding
supply chains, and others in creating
                                                programmes
collaboration and enabling companies
to access knowledge and ideas.               A full list is on page 26.




08 | Technology Strategy Board
     Case study
     Overcoming barriers to commercialisation
      A quality systems project led to Tissue                 translation projects such as this can
      Regenix’s dCELL® vascular patch                         be difficult for an SME to fund privately.
      achieving European certification in                     Further support, for Tissue Regenix’s
      August 2010. The dCELL®, which can                      knee meniscus material, allowed the
      be used without anti-rejection drugs, is                company to successfully raise £6m
      already benefiting NHS patients. Vital                  through an AIM listing.




Technology and innovation centres                         New support for smaller businesses                      become a larger part of our portfolio,
In October 2010, the Government                                                                                   complementing the majority of our
                                                          The Technology Strategy Board works
announced that over £200m would                                                                                   programmes which will continue to
                                                          with innovative businesses of all sizes
be invested in a network of elite                                                                                 focus on theme areas. This integrated
                                                          and stages of development, from small
technology and innovation centres, to be                                                                          support package will contribute to
                                                          start-ups to global companies.
established by the Technology Strategy                                                                            the Government’s goal of making the
Board. The initiative builds on the 2010                  We also recognise that some high                        UK the one of the best places in the
review by Hermann Hauser, The Role of                     growth SMEs can be disproportionately                   world to start, finance and grow a high
Technology and Innovation Centres in                      important to economic growth. In 2009,                  potential business
the UK4, which made a strong case for                     recognising the wealth of potential in
such centres, and their potential was                     our small entrepreneurial companies,
also highlighted in Sir James Dyson’s                     we developed a feasibility studies
report, Ingenious Britain: Making the UK                  model enabling such businesses
                                                          to compete for modest funding to                             Industrial collaboration
the leading high tech exporter in Europe5.
                                                          demonstrate an idea, prove a concept,                        The composites ‘Grand
Technology and innovation centres                         or create a prototype. This has proved                       challenge’ competition
are drivers of future economic growth,                    highly successful.                                           in 2010 was designed to
which create a critical mass for                                                                                       bring together a consortium
business and research innovation                          Many smaller businesses have also
                                                                                                                       of important players in a
by focusing on specific technologies                      had their innovative work supported
                                                                                                                       fragmented industry to work on
with strong UK capability and a large                     through our other programmes - but
                                                                                                                       new manufacturing methods.
potential global market. They aim                         there is more that can be done for high-
                                                                                                                       Helping groups of businesses
to achieve global impact in pre-                          potential early stage companies.
                                                                                                                       large and small to work
commercial development, which                             Beginning in 2011, the Technology                            together like this will continue
will require coordinated, long-term                       Strategy Board will create a package of                      to be an important focus.
investment and a competitive element                      co-ordinated support targeted at such
so that they remain relevant and valued                   companies. This package will build on
by business in the future.                                programmes that are already available
From 2011, the Technology Strategy                        – including KTPs, SBRI (the Small
Board is establishing six to eight world-                 Business Research Initiative), feasibility
leading centres, with the first two being                 studies, and the Eurostars programme.
in high value manufacturing and cell                      It will also feature new initiatives such
therapy. The investment further bridges                   as the national successor to the single
the gap between the research base and                     company Grant for R&D programme,
businesses, helping to commercialise                      previously run by the regional
the outputs of the UK’s world-class                       development agencies. Designed
universities and research institutes and                  specifically for small and medium-sized
complement existing programmes to                         enterprises, Grant for R&D increases
promote collaboration between these                       our ability to respond to business needs
and industry.                                             without pre-defining a technology
                                                          area. Such ‘open’ programmes will




4
    The Role of Technology and Innovation Centres in the UK, Hermann Hauser 2010, www.bis.gov.uk
5
    Ingenious Britain: Making the UK the leading high tech exporter in Europe, Sir James Dyson, 2010, www.conservatives.com
                                                                                                                               Accelerating the journey | 09
Concept to Commercialisation | 2011-2015




  Case study
  Backing spin-out successes
  R&D funding at a critical point in       network infrastructures in 3D. Real-
  development has resulted in Intergence   Status, which found its first clients while
  Systems and Geomerics spinning out       networking at our Innovate 2010 event,
  Real-Status Ltd to commercialise their   has created 12 new hi-tech jobs, and
  HyperGlance product. HyperGlance         is now backed by an oversubscribed
  draws from computer games                private funding round.
  technology to model complete IT and



Knowledge exchange
Knowledge sharing and open                  We will:
innovation help companies engage
with the ideas and opportunities around     •	Work with business to build our shared understanding of the
them. This is the purpose of the 15           innovation journey and the support needed for different business
business-led KTNs, which have more            types, sectors and development stages
than 30,000 individual members. We          •	Strengthen our range of innovation support programmes to
will continue to invest in and optimise       ensure they work effectively and form a set of complementary
these networks.                               and integrated ‘tools’:
In 2010, we created an online
collaboration and social networking               launch a new package of support for smaller and early stage
tool, _connect6, which hosts the KTNs             entrepreneurial companies
together with many other groups. We
will develop and grow _connect, to                design, establish and oversee the new national network of
maximise its impact as a place where              technology and innovation centres, and support clusters and
businesses and individuals can discuss            other innovation structures.
challenges and ideas, find partners and     •	Enhance the effectiveness of networking, collaboration,
build new collaborations.                     knowledge sharing and open innovation, by:

                                                  using events and communications to widen our engagement
                                                  with high growth potential businesses

                                                  further developing KTNs and exploiting the potential of
                                                  _connect as an online networking and collaboration space

                                                  growing the Knowledge Transfer Partnerships programme by
                                                  engaging with more funding partners.




10 | Accelerating the journey                                                                   6
                                                                                                    https://ktn.innovateuk.org
Connecting the innovation
landscape
The range of players in innovation – with multiple organisations and initiatives – is
fragmented and difficult for business to navigate. Broadening our role nationally and
internationally, we will build mutually beneficial strategic relationships with other UK
organisations to help join up the landscape and create a more effective innovation
environment, and we will help to define EU funding programmes and enable
business to benefit from EU and international opportunities.


Partners in innovation                       Research Councils UK and individual         As we work to help join these elements
Our relationships with the other             research councils, which as strategic       in a connected landscape, it will also be
organisations influencing innovation         partners aligned over £230m of their        important to communicate effectively
have been critical to progress during        funding with our programmes between         how these organisations complement
the first three years. In the next period,   2008 and 2011. Over 2011-2015,              each other.
we will further strengthen existing          we are committed to further
                                                                                         More widely, we will use communication
partnerships and make new alliances          strengthening strategic alignment
                                                                                         strategically to ensure that we work
to continue this momentum, so                and increasing collaborative and
                                                                                         effectively with partners, reach the
that by bringing together business,          complementary activities.
                                                                                         businesses that can contribute most
policymakers, regulators and research        We aim to work strategically with           to innovation and growth, listen to
we create a business environment that        other partners and structures with a role   their perspectives and needs, and
enables rapid innovation.                    in UK growth, connecting the public         communicate the outcomes of the
Partnerships with businesses, from           sector innovation system and working        projects we support and their economic
the largest to the smallest, are at the      to achieve mutual goals. These include      and societal impact.
heart of our role. We listen to business     government departments and the
needs, and business delivers a wide          devolved administrations, as well as
range of innovation projects with our        bodies such as the Intellectual Property
support. We engage directly through          Office, UK Trade & Investment, BSI
our Knowledge Transfer Networks, led         Standards, the Design Council, the
by high profile business chairs and          National Measurement System and
steering groups. We also work closely        NESTA. We will also link with the new
with bodies such as the Confederation        Local Enterprise Partnerships and the
of British Industry.                         support delivered through business
                                             coaching for growth.
The UK’s world-leading universities
and research institutes provide many         We will also work alongside private
of the advances, ideas, capabilities         sector organisations which invest in and
and people which underpin innovation.        promote business innovation - science
Most UK universities have worked             parks, venture capitalists, business
with business on projects that we            angels, business coaches and
have helped to fund. We have built           entrepreneur support groups - to help
strong and effective relationships with      build continuity.




                                                                                                   Technology Strategy Board | 11
Concept to Commercialisation | 2011-2015




  Case study
  Independence matters
  We are working with the Design Council     the nutrition and mobility of older adults
  on a £1.1m programme to find the most      through SBRI development contracts.
  innovative ways of helping people live     Designers and businesses will work
  independently for longer. The £600k        with older adults and third sector
  strand of the Independence Matters         organisations to develop and test new
  programme - Home and Away - will           services that can then be marketed.
  generate new business opportunities in



The international environment              It will also be important to ensure the
The UK innovation system extends           newly-established technology and
beyond our borders. Through the EU,        innovation centres play a role in helping
business can gain innovation support       to shape and engage UK business in
on a scale not available within the UK.    European Union funding opportunities.
This can bring UK companies new            We also collaborate with other EU
R&D funding, the chance to collaborate     bodies on innovation where it can help
with other world-class companies and       UK business, for example our work with
institutions, and reach into the world’s   the European Space Agency to explore
largest ‘home’ market.                     new commercial applications
An important role of the Technology        of space technology and data from
Strategy Board is to help business to      space systems.
take advantage of these opportunities -    To maximise these benefits we will
such as the R&D funding available from     further develop our role in the EU,
Framework Programme 7.                     and help business take advantage
The direction of European innovation       of the opportunities which European
policy7, such as the Commission’s move     innovation programmes such as
to address ‘grand challenges’, promises    Eurostars present.
further opportunity for UK business        Beyond Europe we will work with UK
benefit. We are making EU alignment        Trade & Investment to align our activities
a key consideration in all our themed      and support for companies seeking to
programme strategies, focusing             expand and co-operate abroad, as well
initially on assisted living, high value   as companies looking to make inward
manufacturing and integrated               investment. We will also work with the
transport systems.                         Science and Innovation Network which
                                           provides information and facilitates
                                           collaboration globally.




12 | Connecting the innovation landscape                                       7
                                                                                   See Innovation Union at ec.europa.ec/research/innovation-union
Case study
Joined-up thinking and support for UK manufacturers
Jaguar Land Rover is working with        Technology Strategy Board, and
Lotus and Nissan, among others, on a     industry are now much more joined
two-year project to develop improved     up, allowing everyone to align with a
performance range extended electric      common long-term vision for the UK
vehicles (REEVs).                        automotive industry.’

‘Projects like REEVolution show          Martin Dowson, Advanced Hybrid
how government, bodies like the          Manager, Jaguar Land Rover.




 We will:
 •	Join up the landscape and create a more effective innovation
   environment, and specifically:

       further develop strategic relationships with the research
       councils, the wider research base, UK Trade & Investment, the
       Intellectual Property Office and other relevant bodies

       ensure our ability to connect to businesses across the UK,
       working with devolved administrations, emerging sub-national
       bodies, and other public and private sector organisations

       map and build understanding of the innovation landscape,
       using communication strategically to work effectively with
       partners and business.
 •	Maximise the benefits of EU engagement to:

       ensure that we take into account all relevant EU activities in
       developing our strategies, playing an active role in defining
       the new Common Strategic Framework and linking to
       developing European Innovation Partnerships

       strengthen help for companies accessing EU
       innovation funding and support for SMEs through the
       Eurostars programme.
 •	Work internationally to benchmark our activities and develop
   best practice.




                                                                                 Connecting the innovation landscape | 13
Concept to Commercialisation | 2011-2015




Turning Government action
into business opportunity
The actions of government departments and agencies can move markets and create
opportunities for innovative businesses. We will work with the Government to identify
areas where policy, standards, and regulation can stimulate business innovation,
creating innovation platforms as appropriate. We aim to help unlock the potential of
government to act as a ‘lead customer’, engaging with business to seek innovative
solutions to public sector challenges.


Working across government
A key strength of the Technology           We will:
Strategy Board is its ability to work
                                           •	Continue	to	develop	our	innovation	platforms	
across government with other
                                             and programmes, working across government on
departments and public sector bodies.
                                             areas where government action and/or societal
By understanding their policy and
                                             challenges will create business opportunities for
innovation objectives, and adding the
                                             UK companies
perspective of technology and business
capability, we are able to form strong     •	Act	as	an	effective,	pro-active	and	trusted	delivery	
partnerships and work together to            partner helping other government organisations
define specific programme activities.        to maximise the impact of their innovation
This combination of resources can            interventions
result in the leverage and alignment
                                           •	Ensure	that	the	roles	of	policy,	standards,	
of significant public sector funding
                                             regulation and financial incentives are considered
to create greater momentum for
                                             in the design of our thematic programmes and
innovation. One example is the Office
                                             strategies
for Low Emission Vehicles’ investment
of around £30m to date in projects         •	Help	unlock	the	enormous	innovation	potential	of	
under our Low Carbon Vehicles                government acting as a lead customer by:
Innovation Platform.
                                                scaling up the use of SBRI and creating
We will continue to work closely
                                                a central support fund to engage other
with government departments to
                                                government departments
identify opportunities for developing
joint programmes, aligning funding
                                                developing other support structures
and identifying areas where policy,
                                                and programmes.
standards, regulation or procurement
can play a part.




14 | Technology Strategy Board
Policy, standards and regulation            In the building sector, this work has         Below the broad policy level, innovation
Government policy and action can            created a programme of R&D for                can also be accelerated by specific
change market dynamics and create           zero-carbon building technologies,            regulations – such as the phasing out
opportunities for business.                 projects focusing on how to design            of incandescent light bulbs. An SBRI
                                            buildings for our future climate, and a       competition in ultra-efficient lighting,
For example, the legal commitment           major UK programme of pilot projects          launched in 2010, is helping a number
to reduce UK carbon emissions by 80%        to retrofit housing with new technology       of small businesses to develop high-
by 2050 is prompting the exploration        for dramatically improved environmental       quality, compact lighting solutions
of new and better solutions to the          performance.                                  which will improve on the current
challenges of low carbon energy                                                           alternatives. Funded by the Department
generation, travel and                      The Low Carbon Vehicles Innovation
                                                                                          for Environment, Food and Rural Affairs
building construction.                      Platform has brought hundreds of
                                                                                          (Defra) and the Technology Strategy
                                            electric cars onto the UK’s roads in
Such a policy target presents a major                                                     Board, the projects will give government
                                            real-world demonstrator trials. By
challenge for government and at the                                                       cost-effective products for its own use
                                            bringing together manufacturers, the
same time a range of potential business                                                   and develop UK capability in lighting
                                            supply chain, government bodies and
opportunities. Innovation can both                                                        technology to meet wider demand.
                                            universities, and by co-funding the
address the challenges and unlock           technology development and the trials,        We will continue to search for ways in
the opportunities.                          we and our partners in the programme          which government policies and needs
In areas with the most potential we set     have facilitated an important step            can be connected to innovation and
up innovation platforms. The innovation     forward by the automotive industry -          business can capitalise on the
platform approach brings industry,          demonstrating how low carbon                  resulting opportunities, creating
academia and government together to         vehicles perform in real life and             economic growth.
focus on the challenge, and gives UK        informing future development.
business visibility of the opportunity.     Standardisation also has a role in
It then offers business the support         innovation. It can ensure that best
it needs to develop new solutions,          practice - such as innovative building
products and services - which               technology – becomes standard
can compete not only in domestic            practice. There is also a great
markets but on the world stage. As the      opportunity to use the role of
Government addresses these societal         standards in early stage technology
issues, we work to help define the future   development to help create UK
market opportunities and help business      competitive advantage.
to profit from them.
                                            For example our investment in
Innovation platforms have proved            nanoscale technologies is framed firmly
a highly effective approach. Two            in the context of environmental, health
platforms which have been working to        and safety issues and the standards
meet the challenge of carbon reduction      which BSI Standards has created in
focus on low impact buildings and low       this area.
carbon vehicles.




                                                                                     Turning government action into opportunity | 15
Concept to Commercialisation | 2011-2015




Procurement                                   Acting as a lead customer means            to find solutions to its needs, and
Government is the single largest              working closely with business in the       gives companies a way to engage with
customer in the UK, and public sector         pre-commercial stages of product           government, a source of funding for
procurement, at around £220bn per             development; sharing challenges and        product development, a lead customer
year, is a significant part of the UK         objectives, guiding specifications and     and a route to market.
economy – with the potential to be a          testing prototypes before purchasing
                                                                                         Effective public sector use of SBRI is
major stimulus for innovation.                the resulting solution. In this way the
                                                                                         an important part of our strategy in this
                                              public sector can not only generate
Whether government procurement                                                           area, and we will continue to champion
                                              better solutions for its own needs, but
inhibits innovation or encourages it                                                     its use across central government,
                                              also support future economic growth
depends largely on the way that the                                                      support departments and agencies.
                                              by helping business – especially early
public sector behaves with suppliers.         stage, high growth SMEs which may          There is much more that can also
Many innovative companies, particularly       have limited resources – to develop        be done to harness government
SMEs, find it difficult to engage with        new products and services which can        procurement to stimulate innovation.
the public sector or to get support for       become globally competitive.
the creation and deployment of new
products and services.                        One approach to unlocking the
                                              innovation potential of government
There are many ways in which                  procurement is SBRI - the Small
government can stimulate innovation           Business Research Initiative - which we
– whether indirectly, by being open to        launched in 2009. This competition-
procure solutions which are new to            based scheme provides a process
the market or to the public sector, or        for public sector bodies to offer R&D
directly, by acting as a lead customer        contracts to innovative SMEs, as a way
in the creation of new products               to solve specific challenges. SBRI helps
and services.                                 government to engage with business




    The SBRI process was streamlined and focused,
    helping us accelerate the development of new
    healthcare products to meet urgent needs in
    pathogen detection and hand care. We awarded
    development contracts to innovations aiming to save
    thousands	of	lives	and	lower	the	associated	NHS	
    costs by reducing healthcare-associated infections.

    William Maton-Howarth,
    Chief Research Officer for Public Health,
    Department of Health




16 | Turning government action into opportunity
  Case study
  Supporting business to safeguard patients
  Healthcare-associated infections            ‘SBRI has been a breath of fresh air.
  cost £1bn per year and even a 10%           Although horror stories abound about
  reduction could save 500 lives. Through     endless red tape when applying for
  the Department of Health SBRI               government support, nothing could
  competition on hand hygiene, Creo           be further from the truth with the SBRI
  Medical has developed HandiPlasmaTM,        initiative. We were awarded a contract
  which has now been proven to kill           direct with the Department of Health.’
  C. difficile spores.
                                              Steve Morris, Co-founder,
                                              Creo Medical Ltd




Areas that we propose to address            Over the next four years we will
include:                                    increase our activity in this area,
                                            developing dialogue across
•	 Working with the Office for
                                            government, working to identify
   Government Commerce and other
                                            operational and policy challenges
   government departments to create
                                            to which business could provide
   better links between innovation
                                            innovative solutions, and looking at
   activity and full scale procurement of
                                            other mechanisms and structures
   new products and services
                                            which could use public procurement to
•	 Engaging more closely with               encourage business innovation.
   departments and agencies across
   government to understand the
   challenges and issues that could
   be addressed by business
   innovation, and using SBRI or other
   approaches to help solve them –
   with benefit to business

•	 Looking at how we might help
   departments use information
   technology to manage engagement
   and gain suggestions from
   innovative businesses.



                                                                                        £




                                                                                    Turning government action into opportunity | 17
Concept to Commercialisation | 2011-2015




Investing in priority areas
based on potential
We have to make choices, prioritising investment in areas, sectors and themes
most likely to generate sustainable UK economic growth. We will develop our
thematic programme to focus on areas which address global challenges and market
opportunities, complemented and supported by innovation in competencies and
enabling technologies, and will review opportunities for new initiatives where there is
potential for UK commercial success. We will use large-scale demonstrators to help
de-risk new ideas and accelerate deployment of new technologies.


Making choices                             This analysis is widely shared with the                    Whichever model of funding
There are many challenges – and            communities who contributed, including                     competition we use, proposals from
associated opportunities – so we           contributing to the Government’s                           companies or groups of companies
select areas for our activities using      sectoral growth reviews, and used                          (often with a research base partner)
clear criteria, which focus on business    to create a roadmap of the potential                       are independently assessed and
strength and potential.                    activities required to achieve success.                    monitored for progress towards the
                                                                                                      agreed goals. Once finished, projects
Every area where we could potentially      We then map onto this picture the R&D
                                                                                                      are assessed to check that they had
apply our resources is analysed in         competitions and other programmes
                                                                                                      their desired impact.
the same way, with wide consultation       which we could use, and assess their
across relevant business communities,      likely ability to overcome blockages or                    Both through the lifetime of the project
universities and government                speed up development of the capability                     and after, consortia or companies who
departments including input from           that is needed.                                            seem to be developing complementary
government such as The Plan for                                                                       ideas are put in touch with one another.
                                           Some competitions focus on the
Growth8. From these inputs we build a                                                                 In our innovation platforms in particular,
                                           development of areas of technology,
picture of:                                                                                           communities of interest are encouraged
                                           some test the integration of those
                                                                                                      to share ideas and work together
•	 how the market is developing within     technologies in demonstrators, and
                                                                                                      to achieve success for the whole
   the UK and globally                     some seek to build the supply chains of
                                                                                                      community as well as for the
                                           the future.
•	 where the capability to answer                                                                     individual companies.
   the challenge lies along the
   development path

•	 who we could support to develop
   products and services that answer
   the challenge
                                                                                                                                             £
•	 what enabling technologies and
   competencies may be needed.




18 | Technology Strategy Board                  8
                                                    The Plan for Growth, HM Treasury & Department for Business, Innovation and Skills, 2011, www.bis.gov.uk
Challenge-led areas                           Competencies
The starting point for defining               In our work to date, we have recognised
                                                                                           We will:
challenge-led priority themes is the          that some areas are immensely
market need and how it is perceived.          influential in setting the rate of change.   •	Apply the four Technology
Many of these areas are globally              They are neither markets nor specific          Strategy Board criteria
recognised as problems – climate              technologies but rather a fusion of the        to ensure our investments
change, the ageing population and the         two, where technological developments          are in areas most likely to
increasing scarcity of resources –            or market insights can rapidly                 generate sustainable UK
but the ownership of the response is          propagate through many areas of                economic growth
often complex.                                application. These areas of competency
                                                                                           •	Develop our overall
                                              can define a national capability and
Many governments take action to                                                              portfolio to ensure
                                              have impact on many markets, if
address these issues, and their actions                                                      synergy between
                                              properly developed and connected to
can profoundly change the direction                                                          programmes focused
                                              both the academic base at one end
or rate of development of the market.                                                        on demand-side global
                                              and the market at the other. We will
Our innovation platform approach                                                             challenges, cross-cutting
                                              maintain and develop our programmes
works closely with UK government                                                             competencies and
                                              in the competency areas of high value
departments to understand their                                                              supporting
                                              manufacturing and digital services.
intentions and actions, and enables the                                                      enabling technologies
relevant communities to address the
                                                                                           •	Ensure a balance of
evolving market needs. Success also
                                                                                             investments in new
depends on uptake of these solutions
                                                                                             products, new processes,
by the wider community, and so we
                                                                                             new services and new
seek to understand what influences the
                                                                                             business models
target market at the personal level.
                                                                                           •	Take into account the
We have developed strategic
                                                                                             Government’s sectoral
assessments of innovation potential in
                                                                                             growth reviews, evaluate
the challenge-led areas of healthcare,
                                                                                             and, where appropriate,
energy, transport, environmental
                                                                                             launch new initiatives
sustainability, built environment, creative
                                                                                             in areas with significant
industries and financial services; we
                                                                                             potential for UK
will update and continue to implement
                                                                                             commercial success
these strategies.
                                                                                           •	Use demonstrators
                                                                                             to help de-risk the
                                                                                             evaluation of new
    Our programme would never have happened                                                  ideas and accelerate
    without the Technology Strategy Board’s                                                  deployment of new
    involvement. Working alongside the Stratified                                            technologies. Following
    Medicine Innovation Platform has also helped                                             the successful low carbon
    us attract vital partnerships and funds from                                             vehicles and home
                                                                                             retrofit programmes, we
    industry partners such as AstraZeneca and Pfizer.
                                                                                             will continue to invest
    Partnership is essential if we are to recognise the                                      in other large-scale
    huge potential of personalised medicine to save                                          demonstrators, including
    lives from cancer.                                                                       in independent living.

    James Peach, Director of Cancer Research UK’s
    Stratified Medicine Programme




                                                                                                  Investing in priority areas | 19
Concept to Commercialisation | 2011-2015




    Space
    Innovation in the space sector involves, and benefits, businesses in many other areas. The Technology Strategy Board
    plays an important role in promoting innovation in the high growth UK space industries, and in the exploitation of space
    capabilities for open innovation more generally.

    We plan to be a highly effective delivery partner for the UK Space Agency in delivering European Space Agency
    programmes for telecommunications, navigation and integrated space applications. We will build on this role to generate
    the maximum potential for exploitation of space capabilities across our major challenge areas, engaging the space
    business community in these programmes.




Enabling technologies                       Sustainability                                In setting our priorities, we will continue
Enabling technologies are the key           The effective use of resources,               to emphasise the importance of
to flexibility when addressing market       energy and social capital is a pre-           challenge-led and competency areas,
needs. Each may impact on the               requisite for long-term economic              while continuing to invest in key
products or services required by many       success. In promoting innovation              enabling technologies. The diagram on
markets, and often any single market        we take account of the ‘triple bottom         pages 22-23 explains the theme areas
may require a combination of different      line’ of environmental, social and            on which we have chosen to focus.
technologies. This area links strongly      financial sustainability.                     We have published strategies for
back into the research base, where                                                        most of our thematic areas. These
                                            Many of our programmes have a clear
many technologies are first developed,                                                    documents are available on our website
                                            theme of environmental or resource
but we also need to monitor early                                                         at www.innovateuk.org
                                            sustainability as a driver of innovation,
development in some areas for potential
                                            but beyond these we consider wider
crossover into others.
                                            sustainability principles in everything
We will update and continue to              we do.
implement our strategies in the
enabling technology areas of
bioscience, information and
communication technologies,
electronics, photonics and electrical
systems and advanced materials.




20 | Investing in priority areas
Case study
Co-ordinating large-scale collaborations
We have brought together seven          Medicine Innovation Platform
national organisations, collaborating   involves: Medical Research Council,
on an unprecedented scale, to           Department of Health, Scottish
develop medicines targeting smaller     Government Health Directorates,
subgroups of patients, and to           National Institute for Health and
establish the UK at the centre of       Clinical Excellence, Cancer Research
a revolution in the diagnosis and       UK and Arthritis Research UK.
treatment of disease. The Stratified    Together we are investing over £75m.




                                            Investment criteria
                                            Is there a large market                •	 Will bringing it to market make
                                            opportunity?                              enough impact quickly enough to
                                            •	 What is the size of the global         be commercially rewarding?
                                               market opportunity?                 •	 Will it speed progress towards
                                            •	 Is the market opportunity              more sustainable economic
                                               sustainable?                           growth?

                                            •	 Will it create added value in the   Can the Technology Strategy
                                               UK, taking account of the global    Board make a difference?
                                               market potential?                   •	 Is there a clear Technology
                                                                                      Strategy Board role? Can we add
                                            •	 Will innovation in one company
                                                                                      value?
                                               or sector transfer to others,
                                               boosting the overall returns?       •	 Will our investment promote
                                                                                      sustainability and quality of life?
                                            Does the UK have the capability?
                                                                                   •	 Can we bring partners or
                                            •	 Do we have the capability to
                                                                                      programmes together to create
                                               research, develop and exploit the
                                                                                      more than the sum of the parts –
                                               technology or innovation?
                                                                                      for example in cross-government
                                            •	 Do we have - or can we build           co-ordination?
                                               - a strategic presence or a UK
                                                                                   •	 Will our involvement limit
                                               centre of gravity in this area?
                                                                                      or spread risk, or enhance
                                            Is the idea ‘ready’?                      opportunities? Are there gaps
                                            •	 Is there a clear opportunity to        that we can bridge? Can we
                                               which this is a timely response?       create challenges to which others
                                                                                      will respond? Can we address
                                            •	 Is the science or the creative         barriers to progress?
                                               application of technology
                                               developed far enough to
                                               underpin the innovation?




                                                                                                Investing in priority areas | 21
Concept to Commercialisation | 2011-2015




                                    Innovation programmes: focus areas and themes
 Energy                                     Built Environment                          Food                                                Sustainability                     Transport                                     Healthcare
 Energy security, environmental             Enabling UK industry to supply the         Stimulating the development and                     Helping UK industry to secure      Developing vehicles and systems               Disease prevention and proactive
 sustainability and economic growth,        emerging market in low-impact              adoption of new technologies to                     market opportunities driven by     for an integrated, sustainable and            health management, earlier and
 especially the opportunities created       buildings and solutions driven by          help improve the productivity of the                sustainability challenges across   economically efficient transport              better detection and diagnosis of
 by the 2020 and 2050 low carbon            the 2016 and 2019 targets for new          UK food and farming industries,                     the economy.                       system. Focus areas:                          chronic and acute disease and
 energy targets. Focus areas:               build, and emerging government             while decreasing their impact on the                                                                                                 therapies tailored to patients’ needs.
                                                                                                                                                                              •	   Aerospace
                                            policy on refurbishing existing            environment. Focus area:                                                                                                             Focus areas:
 •	    Fuel cells & hydrogen                                                                                                                                                  •	   Road – low carbon vehicles*
                                            building stock. Focus area:
 •	    Carbon abatement                                                                Sustainable agriculture and food*                                                                                                    •	   Assisted living*
                                                                                                                                                                              •	   Marine (under evaluation)
                                            Low impact buildings*                                                                                                                                                           •	   Detection & identification of
 •	    Offshore renewable                                                                                                                                                     •	   Integrated transport
                                                                                                                                                                                                                                 infectious agents*
 •	    Nuclear (under evaluation)                                                                                                                                             •	   Rail (under evaluation)
                                                                                                                                                                                                                            •	   Stratified medicine*
                                                                                                                                                                                                                            •	   Regenerative medicine




 High-Value                                                                                                                                                                                                                 Development
 Manufacturing                                                                   Sustainability                                                                                                                             Identifying and evaluating
 Maintaining or enhancing the                                                                                                                                                                                               significant new technology-related
 international competitiveness of                                                                                                                                                                                           business opportunities for the UK
 UK-based manufacturing industries,                                                                                                                                                                                         and, where appropriate, turning
 including aerospace, automotive,                                                                                                                                                                                           them into coherent innovation
 chemicals, pharmaceuticals and                                                                                  Built                                                                                                      programmes Focus areas:
 foods, through the development            Challenge-led areas                      Energy                                          Food                    Transport              Healthcare
 and application of innovative
                                                                                                             Environment                                                                                                    •	   Creative Industries

 manufacturing technologies in                                                                                                                                                                                              •	   Financial Services
 product and process areas within                                                                                                                                                                                           •	   Emerging Technologies
 and across sectors.                                                                                                                                                                                                             and Industries




                                                                                                                                                                                                             Development
                                                                                                                                                                                                                            •	   Design
                                                                                 High-Value Manufacturing
 Digital Services                          Competencies
 Enabling UK businesses to benefit                                               Digital Services                                                                                                                          Notes:
 from rapidly growing availability of                                                                                                                                                                                      * Current innovation platforms.
 fixed and mobile communications
                                                                                                                                                                                                                           Nanotechnology: the previously
 infrastructure, data and
                                                                                                                                                                                                                           identified area of nanoscale
 computing capabilities.                                                                                                                      Electronics,                                                                 technologies is now embedded in
                                           Enabling technology                      Advanced
                                           capabilities
                                                                                                                              ICT            Photonics and                    Biosciences                                  all themes where there are such
                                                                                    Materials                                                                                                                              opportunities.
                                                                                                                                           Electrical systems
                                                                                                                                                                                                                           Space: technology innovation for space
                                                                                                                                                                                                                           applications involves a range of other
                                                                                                                                                                                                                           sectors and areas; see box on page 20.




22 | Investing in priority areas                                                                                                                                                                                                      Investing in priority areas | 23
Concept to Commercialisation | 2011-2015




Continuously improving
our capability
We will support and develop our talent, and ensure that our organisation provides a
positive and stimulating environment, where our people can thrive and work effectively
together. We will continue to develop our business processes to be fast, flexible and
focused on the needs of the businesses that we support, and our benchmarks and
impact measures to ensure that we remain highly effective and deliver value for money.


Our people                                  •	 Programme managers and
Since it was set up as a separate body         controllers focused on the effective
in 2007, the Technology Strategy Board         running of our programmes,                We will:
has become an established agency               delivering the best outcomes
with a staff of around 130 people who          for business                              •	Refine and embed our
use their skills, knowledge and talent to   •	 Support staff who deliver on our            values ensuring a single
make a difference and help businesses          promises, maintain and develop our          organisational culture
succeed through innovation.                    skills, apply sound governance, and       •	Develop our people,
Drawn mainly from business, they               ensure that the organisation is a great     internal communications
understand that the UK must work               place to work.                              and cross-functional
faster and harder to retain the             The commitment and dedication of               working
competitive advantage. It is through        these teams has been instrumental in         •	Improve our business
their exceptional quality and collective    our success so far. We will continue to        processes to ensure that
effort that the Technology Strategy         develop ourselves as a people-focused          they are fast, flexible and
Board is able to invest with confidence     organisation which can attract the best,       focused on the needs of
to stimulate economic growth. Our           where highly competent people are              the businesses that we
teams include:                              engaged and committed to delivering            support
•	 Technologists and other specialists      our goals, and where we live our
                                            core values.                                 •	Plan our resources to
   who provide impartial advice
                                                                                           deliver our goals most
   and guidance to business and
                                                                                           effectively and create
   government, work with UK-wide
                                                                                           capacity to take on new
   business to set strategic directions
                                                                                           activities
   in technology areas, and develop
   innovation programmes that will help                                                  •	Further develop our
   drive business growth                                                                   approach to measures
                                                                                           and benchmarking
•	 Relationship managers who build
                                                                                           to ensure that we are
   partnerships with other organisations
                                                                                           delivering effective
   and communities to align activities
                                                                                           results
   and energies in the interests
   of innovation                                                                         •	Enhance management
                                                                                           information systems
                                                                                           across our programmes.




24 | Technology Strategy Board
Operational and management
effectiveness                                               Assessing impact
In 2007 we inherited a number of
separate established programmes from                        Measuring the impact of innovation activity over time is recognised as highly
government, including collaborative                         challenging. We are committed to developing best practice and have,
R&D, KTNs and KTPs. By bringing                             for example:
these closer together under in-house                        •	 Supported an impact measures innovation summit in December 2010 by
management, we have significantly                              the UK Innovation Research Centre, which we sponsor
increased overall efficiency. At the
                                                            •	 Worked with NESTA on the evaluation9 of SBRI
same time, we have been able to
streamline processes and systems,                           •	 Commissioned independent research in 2010 to evaluate the economic
and help business by, for example,                             impact of collaborative R&D projects which took place between 2004 and
reducing the time it takes to participate                      2009. Among the initial findings:
in our competitions.
                                                               •	 For each £1 of CR&D grant, there is expected to be an increase in GVA
We can now consolidate and build on                               of £6.71
this, working to improve our capability
                                                               •	 86% of project partners said that products and processes had been or
continuously, planning our resources
                                                                  would be developed as a result, and three-fifths said that the project
and introducing organisational
                                                                  would increase the value of their business
change as necessary to deliver our
strategy. We will also enhance our                             •	 Over 80% of businesses believed that the projects would create new
business planning and management                                  jobs or protect existing ones
data systems to enable us to better
                                                               •	 Over 9 out of 10 partners indicated that they would definitely or
identify opportunities and track our
                                                                  probably not have proceeded with their project if they had not received
programmes. We will review and
                                                                  a CR&D award.
improve our approach to metrics and
impact analysis and use this - together
with international benchmarking and
assessment of best practice - to ensure
effectiveness and value for money.

Through these measures, we will
continue to build an organisation
which is energetic, dynamic, efficient,
effective, and focused on results.




9
 Buying power? Is the Small Business Research Initiative (SBRI) for procuring R&D driving innovation in the UK? NESTA 2010
www.nesta.org.uk
                                                                                                                             Continuously improving | 25
Concept to Commercialisation | 2011-2015




How business works with us
Business, rather than the Technology Strategy Board, is the source and delivery
agent of innovation. We offer a range of programmes, each with different strengths,
to support businesses on the innovation journey.

•	 Research, Development and                •	 European and international
   Demonstration                               activities
   Funding for projects from small proof       Help for business to access EU
   -of-concept grants and feasibility          programmes for R&D and innovation,
   studies through to large multi-partner      and support for high-tech SME
   collaborative R&D and demonstration         participation in Eurostars with other
   projects. The businesses we support         innovative SMEs from across Europe.
   range from pre start-up, start-up           We also support opportunities for
   and early stage micro businesses,           SMEs in priority areas such as low
                                                                                        Case study
   to large multi-nationals. There are         carbon, digital and healthcare to
   different models depending on the           connect with investors and potential     Connecting innovators
   specific needs of companies, sectors        collaborators in the US, with plans to   with supply chain
   and technologies. These include:            extend to other countries.               partners
  1. Grant for R&D – this single-           •	 SBRI (Small Business Research            Networking through the Modern
     company scheme is open to                 Initiative)                              Built Environment KTN enabled
     applications at any time for              This initiative provides public sector   innovator Mark Singleton to meet
     pre start-ups, start-ups, micro           procurement contracts to business        supply chain partners, Costain,
     businesses and SMEs                       for R&D to develop new products and      secure R&D funding, and provide
                                               services. The business gets finance      a route to market for his innovative
  2. Feasibility studies and
                                               to develop its ideas in conjunction      Startlink construction solution for
     collaborative R&D – these
                                               with a potential purchaser and the       energy-efficient, low cost housing.
     competitions are open to
                                               public sector gets more innovative       The project is targeting an increase
     applications from single
                                               solutions to deliver better services.    in Costain’s turnover of £3.5m and
     companies and business-led
                                                                                        the creation of nine jobs.
     consortia for innovative projects      •	 Missions
     in specific technology areas or           Support for trade missions, in which
     to meet particular challenges             the pick of innovative UK companies
                                                                                        We also facilitate Collaboration nation
     identified as a priority for the UK       in areas such as web, healthcare or
                                                                                        events for companies that have
                                               clean technology travel to the US
  3. Demonstrators – these                                                              received our funding, to showcase
                                               to make new connections and
     competitions invest in business-                                                   the results of their projects to their
                                               meet potential investors, suppliers
     led projects to demonstrate new                                                    peers and others with a view to
                                               and customers.
     products or services in the real                                                   finding new partners to collaborate
     world and at scale such as in low      •	 Bringing people together                 with and new sources of funding.
     carbon vehicles, social housing           We organIse networking and
     retrofits and online services.            partnering opportunities which bring
•	 Technology and innovation centres           businesses, researchers, innovators,
   A new network of physical centres           funders and others together to make
   designed to achieve critical mass           innovation happen. Our annual
   and global impact, enabling business        flagship event Innovate sees 2,000
   to use the best technical expertise,        delegates get together.
   infrastructure and equipment
   to help accelerate the route to
   commercialisation.




26 | Technology Strategy Board
                                                                                Governing
                                                                                Board
                                                                                Members of the Governing
                                                                                Board as at May 2011


•	 Knowledge Transfer Networks
   A dynamic resource for individuals                                           Dr Graham Spittle
   to enable business innovation by                                             CBE (Chairman)
   sharing knowledge, ideas and
   opportunities within and between
   specific sectors. There are also                                             Iain Gray
   special interest groups set up to                                            (Chief Executive)
   work across KTNs on specific tasks.
   The _connect site extends the reach
   of the KTNs and creates virtual                                              Dr John Brown
   communities to share knowledge
   and ideas.
                                                                                Eur Ing
•	 Knowledge Transfer Partnerships          Case study
                                                                                Nick Buckland OBE
   A well-established programme
   which stimulates business innovation
                                            KTP partnership
   by drawing on the expertise in UK        sparks remote
   universities and colleges; companies     renewables revolution               Dr Stewart Davies
   work with recently qualified             Supporting a micro company
   individuals on challenging projects      through a Knowledge Transfer
   which transfer knowledge into            Partnership (KTP) has helped
   the business.                                                                Dr Joseph Feczko
                                            develop world-leading hydrogen
All of these activities represent a range   expertise and offered affordable
of effective ways in which businesses       energy for a remote Shetland
can accelerate innovation.                  community. In 2003, Aberdeen-       Anne Glover CBE
                                            based siGEN Ltd embarked on
Our intention is to create a coherent       the PURE project with Robert
package of support activity with clear      Gordon University, supported
routes, enabling businesses to move         by the Engineering and Physical     Dr David Grant CBE
more rapidly towards marketable             Sciences Research Council, to
products and services. We will              develop a hydrogen demonstrator
continue to be innovative in developing     unit for the people of Unst. This
and integrating our programmes in                                               Lord Kestenbaum
                                            developed into the Pure Energy
response to business needs.                 Centre (PEC),with the original
                                            KTP Associate Ross Gazey
                                            as a founding director. Unst’s
                                                                                Andrew Milligan
                                            PEC is now a global trailblazer
                                            in renewable and hydrogen
                                            technologies and it recently
                                            designed and supplied two wind      Sara Murray
                                            hydrogen projects for NATO.


                                                                                Prof Christopher
                                                                                Snowden




                                                                                                Governing Board | 27
The Technology Strategy                                                   Technology Strategy Board
Board was established as a
                                                                          North Star House
separate organisation in 2007
and is a non-departmental                                                 North Star Avenue
public body sponsored by                                                  Swindon
the Department for Business,                                              SN2 1UE
Innovation and Skills.                                                    Tel: 01793 442700
                                Copyright Technology Strategy Board
                                Published May 2011                        Email: enquiries@tsb.gov.uk
                                1st edition
                                T11/06                                    www.innovateuk.org




                                                                      Picture credit: Page 12 image courtesy of the Design Council

				
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