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Innovation Nation

UK Government White Paper on Science and Innovation

David Evans

Director for Innovation

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The political ambition - becoming an Innovation Nation

• To succeed in the global economy Britain must unlock the talents of all of our people

• Innovation must flourish everywhere in our economy and society

• Innovation is key to the biggest challenges we face

• Britain should be the best country in the world to run an innovative business, third sector organisation or public service

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Innovation is critical to the UK

• Essential for prosperity and quality of life– Productivity

– Social challenges (e.g. climate change, globalisation)

• Innovation is changing and becoming increasingly important

• The creation of DIUS gives us the opportunity – to set out a clear narrative about the Government’s

role

– to lead policy and delivery across Government

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A broad view of innovation

• R&D intensive innovation – the model we have been pushing and investing successfully in.

• Also recognise wider concept of innovation: ‘successful exploitation of new ideas’– Business models and processes– Design– Marketing– Services and manufacturing– Public sector

• All supporting and stimulating high value added activities across economy

• Critical to link demand pull with supply push

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UK strengths and weaknesses

STRENGTHS• Science base• Technology and non technology sectors• Competition and regulatory framework• Finance and business services

WEAKNESSES• Skills• Capacity and capability for innovation in public and

private sectors• Lack of evidence (services, users, public sector)

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Broad scope for policy proposals

• New focus on demand side instruments – linking demand pull with supply push

• Some big challenges– Strengthening our understanding

– Influencing non innovation policies

– Delivering through others

– Maintaining traditional strengths

• 45 Proposals building on Sainsbury and Leitch reviews

• Report on progress in Autumn 2008 and annually thereafter

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Policy proposals covering -

• Demanding innovation• Business innovation• Research base international role• People• Public sector• Places and regions

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Demanding Innovation

• Innovative Procurement– Departmental procurement plans– Spreading good practice and learning from

business experts – Refocusing SBRI to support research on new

products and services

• Regulation – Working with BRE to understand how

regulation can best stimulate innovation– Learning from independent regulators

• Science and Society strategy to support confident users

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Supporting business innovation

• Technology Strategy Board support– New Innovation Platforms

– Knowledge Transfer Partnerships

– Service sector innovation

• Finance for innovation– Working with BERR/RDAs

– Innovation vouchers

• Standard on management of innovation• Intellectual Property research and training for

BL advisers

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A strong and innovative research base

• Maintain investment in the science base and delivering on Sainsbury

• Intellectual Property– Helping universities manage IP - Wellings

study

• Measurement of innovation– NESTA Innovation Index

– Innovation Research Centre

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International Innovation

• DIUS to led the FCO Science and Innovation Network

• EU innovation – – TSB role to improve business engagement with

FP7 and other EU support and

– Use opportunities from EU regulation

– Working with EU’s lead market initiative

• EU patents – improved access to European patent court

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Innovative people

• Delivering on Leitch review and workforce development programme– Train to Gain

– Reform of Sector Skills Councils

– National Skills Academies

– UK Commission for Employment and Skills

• FE Specialisation and Innovation Fund• Higher Level Skills

– Strategy

– NCGE regional network

• STEM skills – understanding needs

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Public Sector Innovation

• Overall framework for risk and innovation –work with NAO – study and conference

• Capacity in Whitehall Departments– Whitehall Innovation Hub

– NESTA Public Services Innovation Laboratory

– Network of Whitehall Innovators

– Trial of Designing Demand for public sector

• Work with Cabinet Office to examine extension of “Power to Innovate”

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Innovative places

• Alignment of National and regional activities– Business Support Simplification Programme

– TSB/RDA budget alignment

– Develop regional innovation indicators

• Work with BERR to create new regional University Enterprise network under NGCE

• Prospectus in Autumn for new Partnerships for Innovation

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Challenges for Learned societies

• Engaging in the debate about how to ensure the UK’s future success

• Building a role in both traditional and non traditional innovation

• Identifying and contributing to specific challenges

• Ensuring skills are kept up to date and relevant – specifically the role of STEM skills

• Using your networks to promote innovation and take advantage of public support

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What success will looks like

• UK businesses, public and third sector organisations produce more innovative products and services

• UK maintains its world-class research base • UK continues to lead international policies

that promote innovation• UK population more skilled and innovative • More personalised and effective public

services through innovation• Innovation activity is more widespread

throughout the UK

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Annex: Strengths and weaknesses

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Strengths and weaknesses - business

Strengths Weaknesses

Open economy and effective framework conditions for innovation

Insufficient demand for innovative solutions from procurement and regulation

Some successful high tech sectors and a sizeable population of high tech SMEs

Significant minority of non-innovating businesses

Strong non technology based innovation in high value added sectors

Rate of business start-up and SME growth still lag behind US

One of world’s leading financial and business services centres

Variability in innovation performance and capability across the UK

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Strengths and weaknesses - research base

Strengths Weaknesses

Substantial public investment in high quality UK research base

Business investment in R&D (but possibly due to sector mix)

Increased exploitation of publicly funded research although limited technology diffusion from the research base

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Strengths and weaknesses - people

Strengths Weaknesses

Excellent universities with rising participation

Low business demand for skills in some parts of the economy

Strengthened public engagement

Overall skill levels of the UK population lag behind international leaders

Increasing overall supply of STEM skills but concerns over numbers coming through in some disciplines

Management skills and practices

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Strengths and weaknesses – public sector innovationStrengths Weaknesses

Some world leading examples of new delivery of services and policy making

Incentives often work against innovation

Builds on strong culture of public management and efficiency

Insufficient skills to innovate successfully

Weaknesses in spreading good practice