Local Growth and the changing innovation landscape

NHS Confederation and Smart Specialisation Hub webinar series

Webinar 2:

23 November 2017

Local Growth and Innovation webinars

• New webinar series with NHS Confederation and Smart Specialisation Hub

• Series of monthly webinars from October 2017 to March 2018 looking at range of linked areas

• Free to join for all involved in health research and innovation – recorded webinars and presentations will be available from www.nhsconfed.org/localgrowth

Smart Specialisation HubScience and Innovation Audits, for the NHS Confederation

webinar

History

• Announced November 2015 by Jo Johnson, in tandem with Smart Specialisation Hub

• Intended as a bottom-up exercise in mapping areas of science and innovation strength – led by self-defined consortia

• Based around data provision supplied by Government, and hypotheses developed through local intelligence

• Bringing together many local actors from LEP, academic, business and other backgrounds

History

• Consortia invited to submit expressions of interest setting out hypotheses and premise – what are they seeking to discover or evidence? How will the process work, and whom will it involve? And what will the economic benefit be?

• Three Waves thus far, comprising varying geographies and sectoral loci

•Range from very large and contiguous (e.g. Midlands Engine Audit in Wave One) to smaller and more tightly focused (e.g. Sustainable Airports in Wave 3)

•Successful consortia offered analytical support from consultancy to assemble datasets and evidence

Audits as analysis and opportunity• Addressing a key issue – lack of

understanding of where we as a nation are strong, and how

• Construction of a place-based intelligence matrix key to better knowledge of what we’re good at, and what we need to support

• Context of local areas claiming health and life science expertise; so much of this depends on NHS actors

• Getting to the leading edge of place-based decision-making and strategy development

• Ultimately forming part of an evidence base for potential investment

• Collaborations formed valuable in themselves

Variable geographies, a range of focuses: an Audit cross-section

• Wave One resulted in five Audits. Examples include:

• The Midlands Engine – a large geography with a broad range of strengths, tightly identified: next generation transport, future food processing, energy and low carbon, and medical technologies and pharmaceuticals

• Sheffield City Region and Lancashire: an Advanced Manufacturing Corridor

• South West England and South East Wales: a self-defined geography based on common strengths in advanced engineering and digital innovation

• Wave Two saw eight reports published. Notably:

• Medical Technologies in the Leeds City Region

• Oxfordshire Transformative Technologies, with a big health element

• The Bioeconomy of the North of England

Moving forward: the future of the Audits and place-based intelligence

• Wave Three, encompassing twelve Audits, has now been announced

• This moves closer to accomplishing greater geographic coverage

• Reports are due next summer

• Monday’s Industrial Strategy white paper may reveal more on next steps and uses for the Audits themselves – important to keep momentum going and partners engaged

• Potential for a Wave Four – but regardless drive to engage remains

Oxfordshire Transformative Technologies Alliance SIA

Science and Innovation Audit

Emerging, disruptive technologies to transform business sectors, practice, and economies

The UK Economy will benefit from focused investment based on place-based excellence in specific industrial sectors, technologies, and national and international business opportunities (also known as “Smart Specialisation”)

Designed to map out local research, innovation and infrastructure strengths across the UK, the SIAs are helping to identify and build on the potential of every region across the country by making sure investment is properly targeted, and uncovering opportunities for businesses to tap into. Five audit proposals were selected in the first wave of the scheme in 2016

In November 2016 the Chancellor of the Exchequer announced that Oxfordshire was one of eight more regions to carry out an SIA

What is a “Science and Innovation Audit” ?

Four key areas were developed for Oxfordshire:

• Digital Health• Space-Led Data Applications• Autonomous Vehicles• Technologies Underpinning Quantum

Computing

The geography is Oxfordshire-focussed but the SIA process involved links to five other LEPs and boundary-spanning industry partners and organisations

Our SIA’s ‘Transformative Technologies’Science & Innovation Audits – Wave 2 Summary Reports

Oxfordshire Transformative Technologies Alliance

Science and Innovation Audit

Summary Report August 2017

Purpose: To inform a strategic approach to government investment

Output: A report for Government (BEIS), with data-supported evidence for science and innovation assets and capabilities, with high-level proposals for possible investments and next steps

Timescales: Report submitted to government in May and approved for publication in September

The four technology areas offer the potential for game-changing innovation, international competitiveness and economic growth for the UK

Oxfordshire has globally significant research strengths and assets with which to drive the development of the transformative technologies, and strong links with other areas of the UK for the more mature phases of commercialisation

These transformative technologies interact and are mutually supportive. The opportunities at the interfaces offer exceptional potential for further transformative innovation and economic growth

Overarching hypothesis

Emerging technologies where the UK needs to participate

Oxfordshire is a key focus for the national capability, but other areas contribute

Clustering effect: the whole is greater than the sum of the parts

Including support from the following business partners

Identify critical points when integrating Digital Health inventions within the current healthcare system

Streamline the process of local, regional and national adoption taking into account community settings and end-users to maximise impact

Two main aims for the Digital Health workstream

Digital Health sector as part of SIA

Digital Health

Oxfordshire is home to:• Harwell Space Cluster (70 space related organisations)

• UK Space Gateway• Leading data analytics

• Environmental data sets (NERC CEH, HR Wallingford, STFC)

UK targets 10% of global space market by 2030. SIA Thesis

Oxfordshire can drive £5bn of the £40bn target by developing existing companies and related supply chain, working with other sectors &

driving inward investment

Space-led Data Applications

AV and robotics innovation, for commercialisation.

This builds on Oxfordshire’s strengths in big data, sensor technologies, and automotive manufacturing.

Demonstration spaces are needed, to refine these innovations into globally competitive, demonstrable market ready solutions.

Based on existing investment and capacity:

• Develop integrated AV test beds, and boost demonstrators

• Evidence-based business cases to integrate AV solutions into national and regional strategies (e.g. transport and housing strategies)

• Inform policy to enable adoption

• Develop a pipeline of supporting services around these new technologies

Autonomous Vehicles

Establishing strong links with a wide range of industries to help develop quantum computing technologies in line with

the needs of end users

Building and growing a skilled workforce to deliver advanced engineering solutions for a new quantum

economy for the benefit of the UK

Technologies underpinning quantum computing

Economic Impact

Science and Innovation Audit

OxTTA_SIAreport.docx 13 of 153

1. Introduction

A Science and Innovation Audit Report sponsored by the Department for Business, Energy & Industrial Strategy

This SIA examines inevitable technologies. There is no question that our lives and

our economy will be transformed by autonomous vehicles, quantum computers,

digital health solutions and the use of data from satellites. The only question is the

role that the UK plays in the science and innovation that shape them and the

industries that deliver them.

It is our contention that Oxfordshire’s science and innovation assets have such

scale and quality that they must be a key part of any national strategy if the UK is to

play a key role in these future industries. Decisions we make now will allow

Oxfordshire to make a transformational impact on national competitiveness and

productivity through the UK Industrial Strategy.

We do not recommend investment solely in Oxfordshire (although we do

recommend some investment in Oxfordshire), because each of these industries

requires a national strategy to deliver national results. However, we believe that

Oxfordshire’s role in nucleating clusters of new and growing businesses at this early

stage of technology development will be pivotal in the future success of the UK.

If we are successful, we estimate that these four themes will

contribute 800,000 jobs to the UK economy by 2030, of which we

believe 8% will be in Oxfordshire8.

Table 1-1: Jobs in 2030, UK revenue, and Global Market 8

Science and technology area

Jobs in 2030 UK Revenue by 2030 (£Bn)

Global Market by

2030 (£Bn)

Oxfordshire UK

Connected and autonomous vehicles

16,000 320,000 51 900

Digital health 33,000 300,000 50 1,000

Space-led data applications

10,000 100,000 40 400

Technologies underpinning quantum computing

10,000 80,000 40 800

Total 69,000 800,000 181 3,100

8 For derivations of estimates see: CAV: para. 4.38. Digital Health: para. 5.23. Space-led data applications: paras 6.4 and 9.18, and

Annex B ‘Geospatial Analysis Centre’, Economic case. Technologies underpinning quantum computing: section 7.6 and Annex B ‘UK Quantum Computing Centre’, Economic case

Science and Innovation Audit

OxTTA_SIAreport.docx 91 of 153

8. UK’s global USP: innovations at the intersections between themes

Opportunities for applications that combine technologies, for added value of investment and social benefit

8.1 Oxfordshire is uniquely placed to exploit inter-relationships between themes for

local and national benefit, because of the diversity of the science and technology

cluster in the county, as well as its strength. The dynamic interactions between

researchers, businesses and residents that are made possible by proximity means

that opportunities at the interfaces between themes can readily be identified,

understood and exploited: Oxfordshire can work as a living lab for the testing and

roll out of new technologies developed in combination. The strength of the

Oxfordshire cluster means that new ideas are more likely to secure funding and

attract the technical and management skills needed (see Chapter 2) to generate

economic and social benefits from those ideas locally, nationally and internationally.

8.2 The focal technologies have factors in common. They all depend upon or contribute

to advanced instrumentation, machine learning, computer-based vision and

imaging, and cybersecurity. Figure 8-1 illustrates these commonalities. The advent

of quantum computing will be a game-changer: currently it is a nascent technology,

but it will provide a radical level of change which will inevitably alter the capabilities

arising through the other technologies. These interdependencies present

innovation opportunities which can be identified and realised more quickly through

co-location.

Figure 8-1: Cross-cutting science, technologies, and governance

Oxfordshire Transformative Technologies SIA

Progress, and emerging themes and conclusions

Management

• Steering Group of influential stakeholders

• Strategic Advisory Board, including 9 reps from business, 6 LEPs, and 2 Universities

Themes

• Inevitable technologies: will develop with or without the UK

• Ripple effect: these technologies will draw on the highly skilled workforce in Oxfordshire but the benefits will be realised more widely. How to articulate this? – the “Grimsby question”

• Unique potential of Oxfordshire: the plethora of high-technology expertise mining the intersections between technologies, sectors, and disciplines

Ambition

• Continued, focused investment to establish globally competitive critical mass of technology exploitation and living lab demonstrators

Oxfordshire Transformative Technologies SIA

Challenges

• World-leading UK reward requires a sustained national approach

• Products, services and IP: economic models for future markets

• Cohesive geographic “place” vs distributed supply chain

Data:

• Comparative economic data for emerging sectors across the globe

• Industrial data on innovation (patents, SIC codes, employment …)

• The rear-view mirror: 2-3yr old data on rapidly changing innovations

Surprises• Industry’s dedicated appreciation of SIA’s significance

• Real opportunity to contribute to place-based investment debate

SIAs – on reflection…

Forthcoming webinar topics• Industrial Strategy – with the White Paper expected to be

published in late autumn, attention will soon be focused on the new government’s Industrial Strategy. This webinar will look at the innovation opportunities that have arisen from the White Paper and need for local organisations to press ahead with local partnerships. 15 December 2017

• The new UKRI – From April 2018 UK Research and Innovation (UKRI) will be established as a single, strategic body that will bring together the 7 Research Councils, Innovate UK and the research funding from Higher Education Funding Council for England (HEFCE). With a combined budget of more than £6 billion, UKRI will be a major voice for UK research and innovation in the UK and globally. What do NHS organisations need to know about this new and important body? January 2018

Forthcoming webinar topics• Governance of Innovation – with the local growth agenda

leading to a range of new local partnerships across England there is no one clear and consistent model of governance. Who is making decisions locally on innovation priorities and how they relate to economic growth and public service reform? The new Mayors? LEPs? Combined Authorities? How should the NHS be positioning itself in such a complex landscape? February 2018

• The Future of Devolved Funding – Questions remain about some of the core local growth funding that organisations have accessed. Does the Local Growth Fund have a future, and if so what should that future be? What do we know about the planned Shared Productivity Fund that will replace ESIF? Who will lead on this important work? March 2018

Michael WoodNHS Local Growth Advisor, NHS ConfederationMichael.wood@nhsconfed.org@NHSLocalGrowth

Andrew Basu-McGowanPolicy Manager, Smart Specialisation Hub National Centre for Universities and BusinessAndrew.basu-mcgowan@ncub.co.uk