Research & InnovationGrowth & Diffusion
Kevin BaughanDeputy Chief Executive
UK Research & Innovation
Sir Mark Walport:
“The success of UK Research and Innovation will
ultimately be measured through the impact it delivers:
through pushing the frontiers of human knowledge,
delivering economic impact and creating better jobs
and by supporting society to become stronger, healthier
and more resilient.”
KNOWLEDGE ECONOMY SOCIETY
Accelerating UK economic growth throughfunding and connecting business-led innovation
Innovation:Delivering Better
Outcomes
KNOWLEDGE ECONOMY SOCIETY
Thriving in Constant Change
The Research BaseHarness Natural Phenomena
Increasing the AvailableBuilding Blocks
Existing TechnologiesProvide Building Blocks
Enable New TechnologyCombinations
TechnologyFuels Itself
Thriving in Constant Change• From optimising to new combinations• From rationalising to sense making• From commodities to skills• From components to alliances
Brian Arthur
Source: Innovate UK operational data
≈ 60% of our core grant funding goes to SMEs
≈ 80% of collaborative projects involve at least 1 research base partner
We work with over 140 individual research base organisations (including institutes and RTOs)
2,900organisations / year
2,400projects / year
Who does Innovate UK fund?
Our Productivity Challenge
USAFranceGermany
G7 average
Industrial Strategy CommissionLaying the Foundations
July 2017
G7 labour productivity versus the G7 average
UK
Japan
Canada Italy
UK
Productivity isn’t everything, but in the long runit is almost everything …. Paul Krugman
Our R&D Challenge
The World Bank
R&D expenditure
as a % of GDP
UK 1.7% of GDP
(1.72% in 2000)
Region 1.9%
Leaders 2.5%
The UK’s R&D is
concentrated:
• in auto, aero
& pharma
• in the large
multi-nationals
Assessing our Performance - ERC
Assessing the business performance effects of engagement withpublicly funded science, ERC Research Paper 61, August 2017
Firms supportedby Innovate UKexperience a bettereconomic growththan their untreatedcounterparts:• +21% in employment• +23% in turnoverin the medium term.
Those supportedby EPSRC achievedeven higher growth• +27% in employment• +30% in turnoverin the medium term
Innovate UK
EPSRC
Assessing our Performance - Overall
Innovation and the Frontier Economy
Frontier Productivity
Laggard Productivity
84% of the UK Economy
Diffusion and the rest of the Economy
84% of the UK Economy
Early majority:
Wants to know it’s a sound investment
Wants to understand the cash flow
Otherwise they will stay as they are
New forms of intervention:
Providing knowledge & expertise
Generating robust business cases
Well suited to loan investments
Accelerating UK economic growth throughfunding and connecting business-led innovation
Innovation:Delivering Better
Outcomes
KNOWLEDGE ECONOMY SOCIETY
Business
People Place
Infrastructure
Loans:
Pilotingof the newInnovation
Loans
Equity:
InvestorPartnerships
andPatient Capital
Challenge led: The Industrial Strategy Challenge Fund
Businesses – Incentivising Innovation
Responsive: A regular rhythm of Open/Sector competitions
The goal of our funding is to give the private sector theconfidence to invest in the markets of the future.
Medicines manufacturing technologies
Batteries for clean and flexible energy storage
Robots for a safer world
Self-driving vehicles
Manufacturing and materials of the future
Satellites and space technology
Industry-led and powered by multi-disciplinary
research and business academic collaboration
Through ISCF
Through Deployment of Patient Capital
Giving the private sector
confidence to invest.
New Investment
Accelerator Pilot:
Innovate UK grant funding
plus VC equity funding
Innovate UK skills in early
stage tech
Alongside VC skills in
assessing the management
team and business plan.
Financing Growth in Innovative Firms, Aug 2017
£17m£52*
£4m£30*
£23m£45*
£57.5m£64*
£30.4m£74*£8.4m
£38*
£33.4m£60*
£18.4m£50*
£16m£41*
£56m£55*
£11.4m£78*
£19m£37*
*Per Registered
Business Oct16
Place – Our Funding by Region in 15/16
“We have had some great input from the Catapult’s technical experts that helped us solve some key blockers early on in our business development.”
Mish Gopaul, Co-founder, Fatmap
Infrastructure – Our Catapult Network
People – Women in Innovation
We can’t stop thinking about
the future
Empowering innovativeUK businesses today tolead the global growthindustries of tomorrow.
Top Related