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LITSoN: Linking Innovation to Societal Needs Phase 1: Proof of Concept Report May 2017 The UK Water Partnership

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LITSoN: Linking Innovation to Societal Needs

Phase 1: Proof of Concept Report

May 2017

The UK Water Partnership

https://mottmac.sharepoint.com/teams/pj-a331

The UK Water Partnership LITSoN: Linking Innovation to

Societal Needs

Phase 1: Proof of Concept Report

May 2017 Please contact us if you would like further details on LITSoN [email protected]

The UK Water Partnership

LITSoN: Linking Innovation to Societal Needs Phase 1: Proof of Concept Report

https://mottmac.sharepoint.com/teams/pj-a331

Issue and revision record

Revision Date Originator Checker Approver Description

A 09/05/17 J. Radford J. Rains T. Flood

T. Rachwal

First issue to LITSoN participants

Consultees

DEFRA Alison Maydom

Environment Agency Neil Weatherley

HydroNation Water Innovation Service Barry Greig

Natural England Alistair Burn

ESRC Claire Spooner

TWENTY65 Caroline Wadsworth

University of Birmingham Chris Rogers

University of Cambridge Richard Fenner

University of Exeter David Butler, Guangtao Fu

UKWIR Hans Jensen

UKWP Accelerator Project Henri Lambert

Water Innovation Network Nilam Patel, Steve Kaye

HR Wallingford Ian Callender

Isle Utilities Stuart Moss

Mott MacDonald Jon Rains

Affinity Water Patrick Campbell

Anglian Water Steve Kaye

Northumbrian Water Chris Jones

Scottish Water George Ponton

Southern Water Barry Cleasby

SES Water Jeremy Heath

Thames Water Paul Rutter, Eve Germain-Cripps

Yorkshire Water Jon Brigg

Information class: Standard

This document is issued for the party which commissioned it and for specific purposes connected with the above-

captioned project only. It should not be relied upon by any other party or used for any other purpose.

We accept no responsibility for the consequences of this document being relied upon by any other party, or being

used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied

to us by other parties.

This document contains confidential information and proprietary intellectual property. It should not be shown to other

parties without consent from us and from the party which commissioned it.

This report has been pr epared sol el y for use by the party which commissi oned it (the ‘Client’) i n connecti on with the capti oned proj ect. It should not be used for any other purpose. N o person other than the Client or any party who has expressl y agreed ter ms of r eliance with us (the ‘Reci pient(s)’) may rel y on the content, i nformati on or any vi ews expressed i n the repor t. We accept no duty of care, responsi bility or liability to any other r eci pient of thi s document. This r eport is confi denti al and contains pr opri etar y intell ectual property.

No representati on, warranty or under taki ng, expr ess or i mplied, is made and no responsi bility or liability is accepted by us to any party other than the Cli ent or any Reci pient(s), as to the accuracy or completeness of the i nformati on contai ned i n this r eport. For the avoidance of doubt this r eport does not in any way purport to i nclude any legal , insur ance or fi nanci al advice or opi nion.

We disclai m all and any liability whether arising i n tort or contrac t or other wise which it might otherwise have to any party other than the Cli ent or the Reci pient(s), in r espect of this report , or any infor mation attri buted to i t.

We accept no r esponsibility for any error or omission i n the r eport which is due to an error or omission i n data, infor mation or statements supplied to us by other par ties incl udi ng the client (‘D ata’). We have not i ndependentl y verified such D ata and have assumed it to be accurate, complete, reli abl e and current as of the date of such infor mation.

Forecasts presented i n this document were pr epared usi ng Data and the report is dependent or based on D ata. Inevitabl y, some of the assumptions used to develop the for ecasts will not be realised and unantici pated events and circumstances may occur. C onsequentl y M ott MacDonal d does not guarantee or warr ant the concl usi ons contained i n the repor t as there are li kel y to be differ ences between the for ecas ts and the ac tual results and those di ffer ences may be material. Whil e we consi der that the infor mation and opini ons gi ven i n this r eport are sound all parti es must rel y on their own skill and j udgement when making use of it .

Under no circumstances may this report or any extr act or summar y ther eof be used in connection wi th any public or pri vate sec urities offering i ncluding any rel ated memorandum or prospectus for any securities offering or stock exchange listing or announcement.

LITSoN: Linking Innovation to Societal Needs Phase 1: Proof of Concept Report

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Contents

Executive summary 1

1 Introduction 2

1.1 Statement of need 2

1.2 Objectives 2

1.3 Benefits 2

1.4 Scope 3

1.5 Programme 3

2 Methodology 4

2.1 Survey development 4

2.2 Participants 5

3 Results 7

3.1 Response rate 7

3.2 Data quality 8

3.3 Innovation alignment 8

3.4 Economic growth 9

3.5 Market information 10

3.6 Capability development 11

3.7 Communication 12

4 Conclusions 13

5 Recommendations 14

5.1 Survey improvements 14

5.2 Next steps 14

LITSoN: Linking Innovation to Societal Needs 1 Phase 1: Proof of Concept Report

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Executive summary

The UK Water Partnership (UKWP) is a public-private partnership that puts water first, with a

vision of “Safeguarding our water future through innovation”. In creating national partnerships

between the UK Governments, businesses and the research community it aims to stimulate a

step-change in action to tackle strategic water challenges and provide a platform to promote UK

water services globally.

The LITSoN project – Linking Innovation To Societal Needs – is intended to further those

objectives by providing an overview of innovation in the UK water sector and assessment of its

alignment with societal, sustainability needs. It will also identify corresponding global water

needs and potential export markets. Through this it will help strengthen the case for support

from the UK Governments for development and commercial exploitation of UK water

technology. This report describes a four-month initial proof of concept phase which focused on

the UK water utilities.

The UKWIR ‘Big Questions’ were selected as the statement of societal needs as they cover the

full hydrological cycle and were identified by the UK water utilities industry to focus research

efforts. Participants completed a brief survey providing an overview of their organisation’s

research and innovation programme. This included an assessment of impact on the societal

needs, the current stage of development (from fundamental research to commercial product),

timescales for progress and the business demand for commercialisation.

Over 100 organisations associated with research and innovation related to UK water utilities

were identified across Government, academia, non-profits and businesses and two thirds were

invited to participate in this pilot. Responses were received from 21 organisations, totalling over

350 projects, despite the pilot’s short duration. This included water utilities representing

approximately 50% of the regulated market, but had particularly low coverage of projects in

Academia and those funded by Research Councils.

Analysis of the data identified both areas of relative weakness, including the ‘Zero leakage’ and

‘Zero water poverty’ challenges, and potential opportunities for further collaboration and

efficiencies where multiple partners are working on similar projects. These align with significant

global market opportunities and could help focus efforts to assess export potential. The results

also provide market information on high priority projects and unmet needs to support SMEs and

future entrants, and highlight the success of the HydroNation Water Innovation Service in

identifying projects already in commercialisation. All of these benefits should be reviewed as a

more complete data set is collected for UK water utilities and other parts of the water industry.

This proof of concept has successfully collected a significant amount of data through a rapid

survey. Benefits have been identified in terms of innovation alignment, market information,

capability development and economic growth. Further work is now required to provide a

comprehensive review of UK water utilities innovation, extend the pilot to include the wider

water industry and scope a pilot at global scale to meet the full objectives of the LITSoN project.

Specific next steps are to:

● Review findings with UK water utilities’ R&D and Innovation Managers

● Engage with UKWP member Sainsbury’s on extending LITSoN for water use in agri-food

● Support Innovate UK in their review and development of mechanisms to stimulate innovation

across the UK water industry to support the UK Industrial Strategy.

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1 Introduction

1.1 Statement of need

The UK water sector is recognised as having a strong academic base, with world-class research

capability (eg ranked third globally on academic papers published1). However, it only captures

an estimated 3% of the global market for water technology2 with relatively few world-class

companies outside of consultancy services3. The industry is highly fragmented, with a lack of

alignment between research and market opportunities, resulting in a low success rate in

commercialising fundamental research into marketable products4.

1.2 Objectives

The LITSoN project – Linking Innovation to Societal Needs – is an initiative of the UK Water

Partnership’s (UKWP) Development & Implementation (D&I) Group. It builds upon previous

work undertaken by the Water Sector Innovation Leadership Group in 20135 to provide an

overview of innovation in the UK water sector and help improve alignment to societal needs.

The LITSoN Project Scoping Brief6 defines the following key objectives:

● To understand how all innovation activity in the UK (from research to exploitation) aligns with

the needs of the UK water industry.

● To understand key global needs in water, how they align with those in the UK and potentially

what markets exist.

● To take to UK government, the case for government providing support for the development

and commercial exploitation of UK water technology to meet UK and global needs.

Furthermore, the intention is to develop a replicable process that can be regularly updated to

provide information on UK water sector innovation.

1.3 Benefits

The anticipated benefits of the LITSoN project include:

● Innovation alignment – helping ensure that research and innovation projects meet societal

needs of the water sector (eg sustainability drivers for utilities, industrial water users and

Agri-Food businesses). Greater alignment will create a stronger ‘pull’ for commercialisation

of innovations, as well as identifying opportunities for collaboration and efficiencies.

● Market information – identifying promising new innovations that meet businesses’ needs,

as well as areas of opportunity where there are innovation gaps with strong unmet demand.

● Capability development – sharing innovation best practices across the UK water industry to

increase the proportion of ideas that are successfully commercialised. Supporting the case

for increased Government support of UK water innovation.

1 Innovate UK (2016) Catapult Candidate Evidence - Water

2 UKWRIP (2014) HTECHO Tapping the Potential: A Fresh Vision for UK Water Technology. Available online

3 Frost & Sullivan (2016) Global Water and Wastewater Market Outlook as referenced by Innovate UK (2016) Catapult Candidate Evidence - Water

4 UKWRIP (2014) HTechO Tapping the Potential: A Fresh Vision for UK Water Technology. Available online

5 Severn Trent Water, Anglian Water and MWH (2013) Insight Model Demonstration: LITSoN

6 UKWP (2016) Scoping Brief – Outline of Phase 1 of the LITSON Project

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● Economic growth – increasing opportunities for SMEs to serve the UK water market with

innovative technologies and targeting industry and Government support to maximise growth.

Identifying ‘hot spots’ in UK water innovation and associated global market opportunities.

1.4 Scope

Phase 1 serves as a proof of concept for the first objective of LITSoN:

● To understand how all innovation activity in the UK (from research to exploitation) aligns with

the needs of the UK water industry.

It includes development of the methodology and assessing the resulting stakeholder benefits. It

is not intended to collect a comprehensive or complete data set, but sufficient to rapidly test the

LITSoN concept and share the results with participants and UKWP members. This initial proof

of concept has focused on UK water utilities, as a subset of the wider water industry (accounting

for 50% of non-tidal surface water and groundwater abstractions7), as detailed in Table 1 below:

Table 1: LITSoN Scope

Phase 1 is about… Phase 2 is about…

Innovations relevant to water utilities Wider water sector users eg agri-food and industrial

Societal needs of the UK water sector Needs of global water markets

Innovation activity taking place in the UK Global innovation activity and how the UK compares

Gaps between UK water innovation and needs Assessing market potential for those innovations

Collecting sufficient data for a proof of concept Producing a comprehensive and complete data set

1.5 Programme

The proof of concept ran from December 2016 to April 2017, with data collected on UK water

research and innovation activities during an initial one month window, subsequently extended to

include additional submissions.

7 DEFRA (2017) Water Abstraction statistics, England 2000 to 2015. Available online

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2 Methodology

2.1 Survey development

For the purposes of this pilot, the UKWIR ‘Big Questions’ were selected as the statement of

societal needs for the UK water utilities industry. These 11 questions, listed below, cover the full

range of the hydrological cycle as well as cross-cutting areas, can be readily mapped to the

three pillars of sustainability, and have already been identified by the UK water utilities industry

“To focus research efforts… to provide a world class, sustainable service to their customers”8:

1. How do we halve our abstractions by 2050?

2. How will we achieve zero leakage in a sustainable way by 2050?

3. How do we achieve zero interruptions to water supplies by 2050?

4. How do we achieve 100% compliance with drinking water standards (at point of use) by

2050?

5. How will we deliver an environmentally sustainable wastewater service that meets

customer and regulator expectations by 2050?

6. How do we achieve zero uncontrolled discharges from sewers by 2050?

7. How do we achieve zero customers in water poverty by 2030?

8. How do we ensure that the regulatory framework incentivises efficient delivery of the right

outcomes for customers and the environment?

9. How do we become carbon neutral by 2050?

10. How do we turn all wastes we receive and generate into products by 2030?

11. What is the true cost of maintaining assets and how do we get this better reflected in the

regulatory decision making process?

A standard framework was also required to assess an innovation’s level of development – the

“innovation pipeline”, taking a project from fundamental scientific research to a fully

commercialised product. Previous work on LITSoN was developed further into a four-stage

process model that incorporates innovation management best practice, as seen in Figure 1

below.

Figure 1: LITSoN Innovation Pipeline

To ensure consistency between different organisations completing the LITSoN survey, guidance

was provided mapping each of these stages to the more detailed breakdown used in Innovate

UK Technology Roadmaps9 and the EU Horizon 2020 Technology Readiness Levels10, as seen

in Figure 2 below.

8 UKWIR (2016) Our Research Big Questions. Available online

9 Innovate UK (n.d.) Technology Roadmaps. Available online

10 European Commission (2014) Horizon 2020 Work Programme 2014-2015. Annex G. Technology readiness levels (TRL). Available online

Fundamental Research

Applied Research Development Commercialisation

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Figure 2: Mapping between development stages used by LITSoN, Innovate UK and EU Horizon 2020

Previous surveys of UK water innovation developed for LITSoN were reviewed and the decision

taken to greatly reduce the number of questions – from over 100 per project in some cases.

Although this could potentially reduce data quality, it was considered important to achieve a

meaningful response level from the industry. For each innovation project participants were

asked to:

● Provide a brief description of objectives and activities

● Assess its current stage of development (from the four shown in Figure 1)

● Estimate when it will progress to the next stage

● Assess the business demand for commercialisation (on a scale of 1-5); and

● Rate its potential impact, once commercialised, against each of the UKWIR big questions

This was considered an appropriate compromise between data quality and quantity (in terms of

the response rate, linked to time taken to complete the survey), with each question contributing

to the objectives of LITSoN. A small number of additional questions were included at

organisational (rather than project) level, including key innovation networks, programmes and

partners, and the total annual budget for all reported projects which they lead. Response bands

were included for the latter ranging from <£100k/yr to >£1M/yr, to reduce potential commercial

sensitivities and clarify that only an approximate estimate was required.

Participants were encouraged to openly share their data through a ‘share and share alike’

policy, whereby those who agreed to share their data (plus UKWP members) would receive all

the shared data for their own analysis, whereas others will only receive a publicly-accessible

summary of the analysed data.

The use of specialist survey software was considered, however for this initial pilot it would have

been cost-prohibitive, with the small scale not justifying the additional complexity. As no

commercially sensitive data was collected, and participants were encouraged to openly share

their responses, an ISO 27001-compliant system was not considered necessary and the survey

was developed in Microsoft Excel and distributed via email. A brief guidance video was also

recorded to explain how to complete the spreadsheet and distributed with the survey.

2.2 Participants

Survey participants were classified into four categories using the Frascati Manual11, a well-

established and internationally accepted reference for collecting statistics on research and

development. Over 100 organisations funding, supporting or undertaking research and

11 OECD (2015) Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development –

Figure 3.1 Decision tree for allocating institutional units to the main sectors in this manual p.91 Available online

Innovate UK

Technology Roadmap UKWP LITSoN model

EU Horizon 2020

Technology Readiness Levels

Problem identified TRL1: Basic research. Principles postulated and observed but no experimental proof available

Principles understood TRL2: Technology formulation. Concept and application have been formulated.

TRL6: Prototype system tested in intended environment close to expected performance

TRL7: Demonstration system operating in operational environment at pre-commercial scale

Limited scale production TRL8: First of a kind commercial system. Manufacturing issues solved

Mass scale exploitation TRL9: Full commercial application, technology available for consumers

Realistic demonstration

Proof of concept

System prototype

Fundamental research

Development

Commercialisation

TRL3: Applied research. First laboratory tests completed; proof of concept

TRL4: Small scale prototype built in a laboratory environment ("ugly" prototype)

TRL5: Large scale prototype tested in intended environment

Applied research

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innovation related to UK water utilities were identified, including the groups shown in Figure 3

below.

Figure 3: Survey participants categorised using the Frascati Manual

* Water and Sewerage Companies/ Water Only Companies

A prioritised list was selected of 64 organisations to include in this pilot phase and contact was

established through personal connections of UKWP members, principally the D&I and R&I

Groups. The focus was on targeting stakeholders with a research and innovation portfolio who

would be able to provide relative weightings across multiple projects. In many cases (eg

HydroNation Water Innovation Service, Anglian Water’s Water Innovation Network) those

portfolios comprise multiple innovative products and technologies offered by different SMEs.

SMEs were also encouraged to participate by publishing a request for data on the websites of

British Water and the Pipelines Industries Guild to test the response rate and potential scoring

bias from organisations who may be promoting a particular innovation.

A high-level review of the results by Isle Utilities has provided a sense-check in the following

three areas:

● The completeness of the dataset

● If it is representative of UK water utilities innovation (including the content of TAG); and

● Whether the conclusions drawn are reasonable.

This feedback has been incorporated into the discussion of the results that follows.

Government

• Departments

• Research Councils

Academia

• Consortia

• Research Centres

• Universities

Non-profit

• Industry bodies

• Trade associations

Business

• WaSCs/WOCs*

• Consultants

• Contractors

• SMEs

• Technology Transfer Offices

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3 Results

3.1 Response rate

The majority of organisations contacted agreed to take part in LITSoN and in total 21 responses

were received, totalling over 350 research and innovation projects. The participants in this proof

of concept are listed in Figure 4 below.

Figure 4: Survey participants in LITSoN proof of concept

The number of projects shared by each group of participants (with Business subdivided into the

utilities and ‘other’) is shown in Figure 5 below:

Figure 5: Projects shared in LITSoN pilot, by participant group

The ‘Government’ group is skewed by HydroNation WIS which contributed over 100 projects,

the majority products in commercialisation that had applied for support from their programme. A

particularly strong response was also received from the utilities, representing approximately

50% of the regulated market12. The response from academia, however, was particularly weak,

12 On the basis of 2015-16 Totex – see eg http://www.ofwat.gov.uk/wp-content/uploads/2016/12/Service-delivery-report.pdf

Government

• DEFRA

• Environment Agency

• ESRC

• HydroNation Water Innovation Service

• Natural England

Academia

• TWENTY65

• U. Birmingham

• U. Cambridge

• U. Exeter

Non-profit

• UKWIR

• Water Innovation Network

Business

• Affinity Water

• Anglian Water

• Northumbrian Water

• Scottish Water

• SES Water

• Southern Water

• Thames Water

• Yorkshire Water

• HR Wallingford

• Mott MacDonald

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Government Academia Non-Profit Business -WaSC/WOC

Business - Other

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Commercialisation Development Applied Research Fundamental Research

4 4 2 8 2Responses

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contributing just 25 projects, a small proportion of the UK’s world class research base in the

water sector. In comparison, entering the search term ‘water’ into the RCUK Research Gateway

which covers the seven Research Councils and Innovate UK, returns almost 2000 current

projects13. Future phases of LITSoN should consider how best to make use of the Research

Gateway in collecting data from Academia and the Research Councils, while still providing an

assessment of each project’s potential impact on societal needs.

3.2 Data quality

Review of the responses received demonstrates a varying level of detail in the descriptions and

granularity in the level of reporting. Some participants have summarised their innovation

programmes into 8-12 areas, reducing the value of the data for subsequent analysis as

individual projects cannot be identified and potential synergies and collaborations are less

apparent. This is partly to be expected as the survey was intentionally left open-ended at proof

of concept stage to maximise the response rate and understand what level of detail participants

were willing to provide.

Potential barriers to more detailed reporting are confidentiality and the increased effort required

– particularly given the short deadline necessary during the pilot phase. Future phases should

encourage participants to report at a more detailed project level, perhaps through providing a

suitable example from the proof of concept as a reference for comparison. It may be useful to

add one extra question, to provide further detail on the level of effort associated with each

project. As one participant noted, the projects “range from single PhDs to multi-million, multi-

institution projects”. This could be the project budget, if that data is available and not

commercially sensitive, or perhaps an estimate of the number of full time equivalent staff

working on it. Additional resource and programme allowance should also be included to review

responses and encourage participants to make any necessary revisions or add additional detail

as required.

The average ratings given by participants to all projects in their research programmes against

all of the societal needs vary from 0.3 - 2.8 (on a scale of 0-5). In scaling-up the LITSoN survey

further consideration should be given to whether self-reported scores should be normalised in

some way across all participants.

3.3 Innovation alignment

The impact of each project on the 11 identified societal needs was scored on a scale of 1-5 in

the LITSoN survey. These cumulative scores for each societal need are presented in Figure 6

below.

13 RCUK (2017) Gateway to Research. Available online

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Figure 6: Relative strength of innovation pipeline for each societal need

This highlights a relative weakness in addressing the ‘Zero water poverty’ challenge, which has

independently been identified by UKWIR as a Big Question that requires additional focus14 -

corroborating the findings of the LITSoN pilot.

Potential opportunities have been identified to delivery efficiencies through closer collaboration

and knowledge sharing amongst multiple organisations working in the following areas:

● Smart infrastructure – 14 organisations working on 53 projects

● Aerial and satellite leakage detection – 6 organisations working on 6 projects

● Metaldehyde and treatment byproducts – 8 organisations working on 14 projects

● Energy recovery – 5 organisations working on 12 projects

3.4 Economic growth

The following potential innovation ‘hotspots’ have been identified from clusters of projects

reported in the LITSoN proof of concept:

● Resource and energy recovery ($23 billion by 2017)

● Smart networks and sensors ($16-23 billion by 2020)

14 Hans Jensen (2017) pers. comm.

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● Burst prevention and repair ($3-5 billion by 2017)

● Non-potable resources

● Water treatment processes

● Wastewater treatment processes

These hotspots broadly align with Isle Utilities’ understanding of ongoing innovation projects in

UK water utilities. Many of these are also highlighted amongst the ten examples of major global

market opportunities identified in the ‘HTechO’ Report15, with the market size indicated in

parentheses above. This initial list should be reviewed as part of future work to collect a more

comprehensive dataset, but could provide the basis for identifying areas of particular strength of

the UK water industry, to support a ‘SWOT’-style assessment of export potential in the global

market.

The LITSoN survey did not collect information on the provenance of innovations, and

specifically whether they involve UK companies. Future work should consider whether this is

best captured in the initial survey (acknowledging the additional reporting burden for

participants), or in subsequent engagement with specific projects highlighted as having strong

export potential.

3.5 Market information

The reported innovation projects have been segmented into four categories according to their

maximum score against any societal need and the level of business demand, as shown in

Figure 7 below:

Figure 7: Innovation projects categorised by impact on societal needs and business demand

This information could be used to help manage and prioritise individual innovation programmes.

It could also provide useful market information, particularly on ‘Unmet needs’ where there is

15 UKWRIP (2014) HTechO Tapping the Potential: A Fresh Vision for UK Water Technology. Available online

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Business demand

Commercialisation Development Applied Research Fundamental Research Will not progress

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Unmet needs

High priorities

Low priorities

Blue-sky ideas

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high business demand for commercialised solutions, but current projects have performed

poorly.

3.6 Capability development

Review of the projects submitted by the HydroNation Water Innovation Service (WIS)

demonstrates that over 60% of these are in commercialisation, compared to less than 20% for

all projects submitted by other participants. This is highlighted in Figure 8 below, which

compares the number of projects submitted by HydroNation WIS and all other participants,

coloured by development stage. Projects are included for each societal need where they are

rated as having ‘high’ or ‘very high’ impact.

The relatively high proportion of projects identified that are already in commercialisation reflects

the remit of the HydroNation WIS to identify innovative companies, particularly SMEs, and

support them in commercialising their products16. A potential Innovate UK Water Catapult could

provide similar support to SMEs across the UK water industry.

Figure 8: Comparison of high impact projects submitted by HydroNation WIS and other participants

16 HydroNation (2017) HydroNation Water Innovation Service. Available online

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3.7 Communication

The outcomes of this proof of concept will be shared on the UKWP website to raise awareness

about LITSoN and encourage participation in future phases of work. All participants of the

survey who openly shared their data will additionally receive a copy of all responses shared as

part of the proof of concept.

Please contact us if you would like further details on the findings and the LITSoN project:

[email protected]

[email protected]

[email protected]

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4 Conclusions

This LITSoN proof of concept successfully developed a useable model and in just one month

collected data on over 350 projects from 20 partners spanning the full range of organisations

involved in research and innovation in the UK water utilities industry. This included water and

sewerage, and water-only companies representing approximately 50% of the regulated market.

Although this does not provide a complete picture of UK water utility innovation, it validates the

approach and format of the survey and suggests that, given more time, it could be extended to

collect a comprehensive data set. Recommendations have been made on how to improve the

survey and particularly increase the coverage of projects in Academia, those funded by the

Research Councils, and innovation from SMEs, however collecting information from a large

number of small companies remains a challenge.

The proposal for LITSoN identified four potential areas of benefit. This proof of concept has

demonstrated the following benefits in each of those areas:

● Innovation alignment

– Identified ‘Zero water poverty’ and ‘Zero leakage’ as areas of relative weakness in the

current innovation programme.

– Examples of potential opportunities for further knowledge sharing and collaboration in:

Smart infrastructure, Aerial and satellite leakage detection, Metaldehyde and treatment

byproducts, and Energy recovery

● Market information

– Innovation programmes can be segmented to identify high priority projects and unmet

needs. This should be tested further on a more complete data set in future phases of

LITSoN.

● Capability development

– The HydroNation Water Innovation Service has identified a high proportion of projects in

commercialisation. A Water Catapult / Catalyst / Demonstrator supported by Innovate UK

could provide a similar focal point in supporting SMEs across the UK water industry

● Economic growth

– Potential innovation ‘hotspots’ have been identified from clusters of projects. These align

well with previously identified global water market opportunities and could be used to

focus efforts to assess export potential.

All of these benefits should be reviewed and tested as a more complete data set is collected for

UK water utilities and other parts of the wider water industry.

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5 Recommendations

5.1 Survey improvements

Several potential improvements to LITSoN were identified during the proof of concept phase,

including feedback from participants, summarised here:

● Encourage reporting at a more detailed project level, perhaps through providing a suitable

example as a reference for comparison.

● Additional resource and programme allowance should be included to review responses and

encourage participants to make any necessary revisions or add additional detail as required.

● Further detail on the level of effort associated with each project would be useful. This could

be the project budget, if that data is available and not commercially sensitive.

● Consider how best to use RCUK’s Research Gateway to collect data from Academia and the

Research Councils, while still assessing each project’s impact on societal needs.

● Further engage with membership-based organisations such as British Water, Future Water

Association and Water Industry Forum to collect data from SMEs.

● Self-reported scores could be normalised for optimism bias across all participants.

● Improved guidance is required on reporting innovation projects of interest that an

organisation is not directly involved in.

● An additional upper band for total innovation budgets over £1M may provide greater

granularity

● Consider whether to request information on the involvement of UK companies in all projects,

to support assessment of export potential, or through subsequent engagement.

5.2 Next steps

This proof of concept has demonstrated that it is possible to collect a significant amount of data

on innovation projects through a relatively ‘light-touch’ online survey. The results demonstrate

potential benefits in terms of innovation alignment, market information, capability development,

and economic growth.

To deliver the LITSoN objectives further work is required to upscale this pilot to provide a

comprehensive review of UK water utilities innovation, extend it to include the wider water

industry and scope a similar pilot at a global scale. The following next steps have been

identified:

● Present findings to R&D and Innovation Managers of UK water utilities, review specific

opportunities for collaboration and efficiency, and encourage further responses to achieve

>80% coverage of water utilities.

● Use findings of LITSoN pilot to inform selection of focus areas for UKWP Accelerator Project.

● Engage with UKWP member Sainsbury’s on extending LITSoN for water use in agrifood, as

part of their leadership in this area.

● Support Innovate UK in their review and development of mechanisms to stimulate innovation

across the UK water industry, as part of the broader Industrial Strategy.

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