http://www.nwda.co.uk/PDF/Science%20Strat%2007

Northwest Science Strategy 2007 – 2010

Northwest Science Strategy 2007-2010

Contents Chairman’s Foreword

01

Vision

03

Strategy 2007 – 2010 Science and Economic Growth – National Policy

04

Aims

05

Priorities

06

Foundations

07

Strategic Pillars

13

Promotion and Branding

22

Principles for Regional Support

22

Appendix A: Review of Progress

25

Appendix B: Regional SWOT Analysis

32

Appendix C: Northwest Science Facts and Figures

33

Appendix D: Sector Skills and Productivity Alliance Priorities

35

Appendix E: Summary of Strategic Priorities

37

Appendix F: Priority Sector Action Plans

38

Further Information

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Northwest Science Strategy 2007-2010 Chairman’s Foreword

The UK’s first regional science strategy, was developed by the Northwest Science Council, and published in 2002. Five years on, it is time to take stock of the progress that has been made, to reexamine the environment in which we operate and to review and update our priorities to ensure they are valid and appropriate for the next three years.

In Appendix A, we make an open and honest assessment of the progress that has been made by the region since 2002. Many significant successes have been recorded. The science infrastructure has been dramatically improved through developments such as those at Daresbury Science and Innovation Campus, the National Biomanufacturing Centre in Speke, Liverpool Digital, Infolab 21 in Lancaster and the Core Technology Facility in Manchester. Regional venture capital funds have been established and invested for the benefit of more than 150 young companies in the region. The research base has been greatly strengthened through initiatives such as the Cockcroft Institute, the new University of Manchester, the Dalton Nuclear Institute and the support of the Northwest Science Fund. In other areas, such as within the Aerospace cluster, achievements over the review period have been disappointing although it is anticipated that the work of the National Aerospace Technology Strategy group, together with our proposed actions, will improve the situation going forward.

The Northwest has many strengths upon which we will capitalise; a science sector which accounts for over a quarter of the regional £106 billion GVA economy, strong, ambitious and vibrant universities, good transport links including the largest international airport in the UK outside the South East of England and an excellent quality of life. There are some notable geographical concentrations of scientific excellence, particularly in Manchester where the established base, new building blocks and plans are in place to create a significant new science and innovation ‘spike’ of real credibility and potential global importance.

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Our vision for the future remains unaltered.

England’s Northwest will be renowned as an area of world-class scientific achievement, creating a magnet for talent and science investment, a powerful driver for innovation and enterprise, and an effective force for delivering benefits to health, the environment and society.

To deliver this vision, we have chosen to be focussed and will concentrate our efforts on three underpinning foundations and six strategic pillars through which high impact, transformational activity will be channelled. By focussing clearly on the areas where we have competitive advantage and the potential to drive significant progress, we strongly believe that the region will thrive economically and contribute to overcoming the wider global challenges that we all face such as climate change, the depletion of natural resources, an ageing population and the spread of infectious diseases.

The foundations are, an Internationally Excellent Science Base, the relevant and timely Exploitation of Science and a sufficient supply of high quality people with the right Skills. These are essential to create the appropriate building blocks and climate in which new scientific insights can be generated and applied to enable globally competitive, sustainable and successful businesses, well placed to deal with the evolving environmental challenges, to emerge and prosper.

The strategic pillars reflect industries that are critical to the success of the Northwest economy, where science has a major impact. We will give priority attention to the internationally competitive sectors of BioHealth*, Aerospace**, Chemicals** and Nuclear*** – three of the clusters highlighted in the 1 2006 Regional Economic Strategy. In addition the rapidly changing and dynamic nature of progress in science and technology dictate that we must also recognise and encourage Emerging Opportunities.

The final pillar, ‘Strategic Science Sites’ highlights the importance of selected knowledge nuclei with the critical mass and competence to become major national and international centres of science and technology activity.

Overarching professional and coordinated marketing and promotional activities are essential if the region is to capitalise fully on its assets and create the reputation and brand of a region rich in world class scientific endeavour.

In developing this strategy, we have engaged widely with representatives from industrial and academic institutions across the Northwest. Current positions have been mapped, critical issues identified and strategic priorities highlighted. However, the publication of a strategy will not in itself achieve the desired results. We must now follow through with enthusiastic implementation otherwise we will fail to realise the vast potential that the region has to offer.

I hope when you read this strategy you will catch something of our vision and join us in our determination to succeed and deliver.

Jeremy Scudamore Chair of the Science Council

George Baxter

Drummond Bone

Robert Boyd

David Clarke

Richard Clegg

Michael Dexter

Alan Gilbert

Martin Harris

Lambert Dopping-Hepenstal

Sue Ion

Malcolm McVicar

John Stageman

Dominic Tildesley

Damien Waters

Paul Wellings

Colin Whitehouse

*Referred to as BioMedical in the Regional Economic Strategy **Aerospace and Chemicals are sub-sectors of the Advanced Engineering and Materials RES priority sector ***Nuclear is a major component of the Energy and Environmental Technologies RES priority sector 1 Northwest Regional Economic Strategy 2006: www.nwda.co.uk/strategy

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Northwest Science Strategy 2007-2010

Vision The Northwest is rich in science, technology and talent. Its companies, universities, colleges and research institutions are home to people who are using science to create new businesses, develop better products and services, improve the environment, protect health and enhance quality of life.

The Northwest Regional Economic Strategy (RES) 2006 sets out the pathway to build a ‘dynamic, sustainable international economy which competes on the basis of knowledge, advanced technology and an excellent quality of life for all’.

To achieve this, the region needs to focus on 7 key factors: • Developing new Enterprise and growing existing companies • Developing higher added value activity in Regional Sectors • Innovation to improve productivity in all companies and exploiting the HEI base of the region • Exploiting the Science/Research and Development base of the region • Improving International Competitiveness • Using ICT more effectively and efficiently • Focussing on Sustainable Consumption and Production The science base is a key contributor to all aspects of the region through its impact on business, health, education and culture.

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The science vision is simple but challenging: England’s Northwest will be renowned as an area of world-class scientific achievement, creating a magnet for talent and science investment, a powerful driver for innovation and enterprise, and an effective force for delivering benefits to health, the environment and society.

It will take four things to make this vision a reality: Purpose - the determination to realise the vision, shared by all the regional partners and supported by resources and commitment; People - the talented individuals and teams, from worldleading scientific stars in our major universities and companies through talented graduates to young people who are fascinated by scientific achievement and entrepreneurialism and want to be part of it; Passion - the same commitment and persistence that put the Northwest at the forefront of technology in the past, and is still doing so through a succession of new science-based business ventures; Plans - clear and implementable action plans devised for each of the priority elements in this strategy.

Science and Economic Growth – National Policy Research conducted over a wide range of countries and timescales has shown a positive link between levels of Research and Development (R&D) and economic growth, whether in the public or private sector. In response to this, many European countries including the UK have set R&D targets as a way of achieving higher R&D investment in the long term.

Table 1 illustrates the level of public and private sector investment in R&D as a percentage of GDP in 2003 for the Northwest, UK and selected competitor countries.

% of GDP

Northwest England 2002 UK

FRA

GER

USA

Business

1.7

1.2

1.4

1.8

1.8

Public

0.4

0.6

0.8

0.8

0.8

Total

2.1

1.8

2.2

2.6

2.6

Table 1: 2003 Figures Public and Private R&D Investment

UK Government has recognised the significance of R&D investment in driving economic growth and has set targets for raising the ratio of R&D to GDP from its current level of around 1.9% to 2.5% by 2014. This policy is laid out in the UK’s Science and Innovation investment framework2 2004-14 and is further developed in the Next Steps document3 issued in March 2006. It is within this framework that the Northwest’s approach has been developed.

Although overall R&D intensity for the Northwest is above average UK levels, the data highlights a number of key challenges for the Northwest:

• Public sector R&D is particularly low. This is due to relatively low levels of direct Government investment in Research Institutes in comparison with other regions in England. Government investment in Higher Education Institutions (HEIs) HEI R&D is also below the UK average, however, this is due to the large skew of funding towards London and the South East. Northwest HEIs perform well in relation to the remaining UK regions and have the collective power to significantly contribute to the creation of a Northern ‘Golden Triangle’. The Northwest’s economy has the critical mass, business R&D potential and international branding and infrastructure to exploit greater public investment.

• Business R&D is concentrated into a few, high technology sectors which disguises a long “tail” of R&D less intensive firms. The overall investment figures in Table 1 above, whilst giving the impression that the Northwest does well compared to the rest of the UK, conceals the fact that business investment is dominated by a single player, AstraZeneca.

Innovation activity divides into two components – Science, Technology, Engineering and Mathematics (STEM) related and non-STEM related. Current EU measures of innovation activity are weighted heavily towards STEM. The correlation between high levels of STEM activity and GDP per head figures is a statistical one, not absolute i.e. over a range of economies, there are those such as Sweden where high levels of STEM activity do not lead to world-leading GDP/head figures.

In these cases, social and political factors such as legislation, cultural views of entrepreneurship and innovation have a significant impact. As such, it is recognised that the target for R&D investment is an indicator rather than an end in itself.

2 www.hm-treasury.gov.uk/spending_review/spend_sr04/associated_documents/spending_sr04_science.cfm 3 www.hm-treasury.gov.uk/budget/budget_06/assoc_docs/bud_bud06_adscience.cfm

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Northwest Science Strategy 2007-2010

Aims The aims of the region are specified below. If achieved this will move the Northwest a significant step closer towards attaining the vision. These have been identified within the context of a regional SWOT analysis (Appendix B):

• Grow and maintain world-class infrastructure for the academic and industry base • Enhance the creation and exploitation of knowledge • Develop, attract and retain high quality people • Close the R&D funding gap between private and public sector • Promote the image of the Northwest as a vibrant hotbed of scientific endeavour

In order to deliver these aims, we will work in partnership with all of the stakeholders of the science base. In the Northwest, more than elsewhere, the private sector accounts for the majority of R&D investment and public-private partnership is vital.

There is a dynamic interplay between the components and each feeds off the other. The regional science partners are the region’s leading science-based companies, its universities, the regional NHS and its hospital trusts, and research organisations. We will continue to work together under the leadership of the Northwest Science Council to ensure delivery of this strategy.

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Priorities

If this strategy is to have an impact, we need to be specific and focussed in our priorities. Clear and sometimes difficult choices have been made in order to define a strategy for maximum impact.

Attention will be directed towards three underpinning foundations and six strategic pillars through which high impact, transformational activity will be channelled.

The foundations: An Internationally Excellent Science Base, relevant and timely Exploitation of Science and sufficient supply of high quality people with the right Skills, are essential to create the appropriate building blocks and climate in which new scientific insights can be generated and appropriately applied to enable businesses to flourish and grow. Without this supporting environment, creating, nurturing and supporting globally competitive industries will become increasingly difficult.

The Foundations: Internationally Excellent Science Base, Exploitation of Science and Skills The strategic pillars reflect industries that are critical to the success of the Northwest economy, and where science can have a major impact. We have chosen to be very focussed and will place our attention on the internationally competitive sectors of BioHealth*, Aerospace**, Chemicals** and Nuclear*** – three

STRATEGIC SCIENCE SITES

EMERGING OPPORTUNITIES

NUCLEAR

CHEMICALS

BIOHEALTH

AEROSPACE

The timescale over which this strategy seeks to make the most direct impression is the medium term (4-5 years). This is where new science drivers may steer existing company growth or new company formation, or where the science and technology needs of regional businesses can be met by coordinated efforts across the science base.

PROMOTION

SKILLS EXPLOITATION OF SCIENCE INTERNATIONALLY EXCELLENT SCIENCE BASE of the clusters highlighted in the 2006 Regional Economic Strategy.4 However, the changing and advancing nature of science and technology means this is a living process and the importance of recognising and acting on Emerging Opportunities is also recognised. The final pillar, ‘Strategic Science Sites’ highlights the importance of knowledge nuclei with the critical mass to become major national and international centres of science and technology activity.

The Strategic Pillars: BioHealth, Aerospace, Chemicals, Nuclear, Emerging Opportunities and Strategic Science Sites Overarching marketing and promotional activities are essential for the region to capitalise fully on its assets.

We need to create the image that it deserves, of a region rich in world class scientific endeavour, in order to attract new skills and resources which in turn will lead to self-sustaining growth.

*Referred to as BioMedical in the Regional Economic Strategy. **Aerospace and Chemicals are sub-sectors of the Advanced Engineering and Materials RES priority sector ***Nuclear is a major component of the Energy and Environmental Technologies RES priority sector 4 Northwest Regional Economic Strategy 2006: www.nwda.co.uk/strategy

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Northwest Science Strategy 2007-2010

Foundations 1. Internationally Excellent Science Base The region hosts a number of major world-class industrial laboratories, with total business R&D investment in excess of all other regions outside the South East and East (£1.56 billion of a total of £12.79 billion business R&D investment in 20035).

International companies including AstraZeneca, Unilever, BAE Systems, Rolls-Royce and British Nuclear Group6 are all major R&D investors in the region along with a growing number of smaller enterprises, most notably in life sciences.

The great majority of businesses, however, invest comparatively little and only a few independent research and development businesses are in place.

In some disciplines, such as bioscience, SME engagement in R&D is strong but overall there is scope to improve in this area. Globalisation, changing priorities and increasing ‘open innovation’ could cause the loss or downsizing of major corporate R&D facilities. In addition, increased competition through growth of the science base in major lower cost growth economies, such as China and India, poses a major threat to the share of R&D spend available to the region and the UK. Universities in the Northwest have a range of departments and centres of international standing with 14 STEM related units receiving 5* ratings in the RAE assessment 2001 (See Appendix C). HEIs must continue to develop research initiatives within the context of the RAE (due for refinement in 2008) in order to maximise HEFCE research funding in the region and achieve an equivalent or improved ranking under the new system. It is worth noting that there is not necessarily a direct correlation between 5* excellence and regional economic performance – it is possible that economic impact is greater from 4 or 5 5

Regional Economic Indicators February 2006, Office for National Statistics, www.statistics.gov.uk Currently under review 7 Regional Economic Indicators February 2006, Office for National Statistics, www.statistics.gov.uk 6

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rated departments. This will be an issue for the Northwest in future if the RAE exercise or any successor continues to concentrate quality research funding in a small number of research excellent departments, leading to the closure of 4 or 5 rated groups and the consequent decrease in the research, innovation and knowledge transfer capacity of the region, and the supply of graduates and postdoctoral researchers to industry. It is desirable to have increased recognition of academic/industry links in the refined assessment. In some research areas, excellence in the knowledge base is fragmented across institutions, mitigating against the region achieving its full potential. The new University of Manchester now has the scale to make a real impact worldwide. This is an opportunity that should be seized for maximum advantage.

In relation to other regions in England, the Northwest receives comparatively little public sector R&D funding (£54m, which equates to 3% of the total expenditure of £1.679 billion).7 The majority of this funding is centred

on Daresbury Laboratory, which houses world-class scientific equipment and has enormous potential to grow in light of recent Government decisions to recognise the site as one of only two science and innovation campuses in the UK for large science facility development. The NHS has several excellent facilities that should be built upon and exploited. The Proudman Oceanographic Laboratory in Liverpool and the Centre for Ecology and Hydrology in Lancaster are important specialist research locations.

In light of the above, the following strategic priorities can be identified: • The region must retain and adapt the science base already in place. It must understand the issues facing its major private and public research facilities, and exert influence where appropriate to retain them, facilitate change, or plan to mitigate the effects of downsizing. Partners across the region must present a strong case to retain current public sector investment and build compelling arguments for additional investment as opportunities arise. Immediate opportunities of long term significance are Daresbury Science and Innovation Campus, the proposed National Nuclear Laboratory and opportunities arising from the National Energy Technology Institute.

FrameworksNW project to foster greater take up of this currently underutilised programme. The Northern Way is working with the N8 group of Northern research intensive universities and Northern industry to create virtual Research Centres; by pulling together first class research teams from across the North, synergy, critical mass and added value should be created.

• Centres of excellence. Within each broad priority sector, there should be centres of excellence, offering a critical mass of world-class science in disciplines with regional industrial application and participation. Knowledge transfer should be considered an integral part of the remit of such centres.

• The profile and perceptions of the Northwest science base must be raised. This science base must be strengthened together with increased marketing activity to ensure greater awareness of the assets within the region.

• Alliances outside the region. If the region is to maximise the benefits from first class research conducted elsewhere, it is vital that the number of national and international scientific collaborations increase, especially with those teams at the forefront of understanding. Working in multinational teams can stimulate fresh thinking, and increase the pool of intellectual property to which all members have access. Considerable resource to support science is available via such collaborations; for example, the EU's Framework VII programme.

The NWDA will continue to sponsor the

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Northwest Science Strategy 2007-2010

2. Exploitation of Science More successful, higher impact exploitation of science is a major challenge facing the Northwest and the UK as a whole. Building blocks that contribute to creating an environment in which this process can spontaneously flourish include: business capability to utilise scientific developments; physical infrastructure; knowledge transfer processes; enterprising people and flexible financing. Each of these aspects is considered below: Business capability: The Northwest does have the business ecosystem in place to benefit from emerging science and technology. It is internationally strong across a range of sectors and contains a number of large global companies that not only take the lead in exploiting science within their own company structures but also form the customer base for many SMEs. These companies are increasingly looking to their suppliers to provide innovative, leading edge solutions. This presents a key issue for those sectors where SMEs are not sufficiently engaged in R&D and innovation. The injection of a more entrepreneurial approach to the implementation of new science within the NHS and the use of NHS capacity for scientific studies is an important special element of business capability.

• The interaction of SMEs with the knowledge base needs to be stimulated.

• The benefits of R&D / innovation need to be promoted and companies supported to undertake the innovation process.

Physical Infrastructure: Nine technology focussed business incubators and a number of science parks, in varying degrees of maturity, are available across the region. These house approximately 400 tenant organisations and 4,500 employees and are located in close proximity to the region’s major research organisations. An incubation network has been established to foster collaboration and knowledge

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sharing. The National Biomanufacturing Centre and the Advanced Manufacturing Centre provide specialist production facilities for SMEs. • It is a key aim of this strategy to continue to grow and maintain world-class infrastructure for the academic and industry base. For the BioHealth sector, collaborations with the NHS will be key.

Knowledge Transfer Processes: There is a significant amount of activity within the region’s universities to encourage and promote businesses to take advantage of their expertise. This has been demonstrated by the formation of knowledge transfer offices and the success of Northwest universities in securing HEFCE funding to support knowledge transfer activities and developing HEI engagement with business and the wider community. European Structural Funding (ERDF and ESF) have also been a key tool in building on the innovation and knowledge transfer agenda within HE. The North West Universities Association (NWUA) administered the Knowledge Based Action Plan (KBAP) and, jointly with the NWDA, the subsequent Regional Action Plan (RAP) to provide assistance to a broad range of SMEs in the Northwest, many relevant to the science base. Moving forward, it will be important for the region to continue to effectively utilise European Funds for maximum benefit.

Networks to coordinate the needs of SMEs in key clusters are now well established, for example, the Innovation Relay Centre helps companies access technology providers across Europe. The Northwest also benefits from national schemes promoting the exchange of people and knowledge through Knowledge Transfer Partnerships and Knowledge Transfer Networks (KTNs) respectively. Looking to the future: • Industry needs to be proactive in sharing their long term needs and goals with academic partners and there must be a willingness to adjust the academic research programme to reflect those needs. Cluster organisations and KTNs will perform

an important intermediary role in facilitating this process. Product innovation requires excellence in the science and technology infrastructure to bring new products to market and the region should exploit its strengths in the high technology service companies with a base in the region.

• The flow of people across the HEI / business boundary should be encouraged.

• For SMEs, simplified access to the wealth of knowledge available in the region is an urgent requirement; the aim to simplify should take account of the complexity of processes required to deliver high intensity, high value interventions.

Enterprising People: Data from the Regional Economic Strategy shows that the Northwest overall suffers from a lack of entrepreneurship. Data specific to science and technology based entrepreneurship is unavailable, however the UK as a whole is generally accepted to be weak in this area when compared with the quality of its science. The availability of people in the region, with the desire to start a business, possessing appropriate entrepreneurial skills and insight, is a key issue. The Science Enterprise Centres at the Universities of Manchester, Liverpool and Salford have gone some way to address this, however there is scope for considerable expansion.

• A means to link businesses with potential nonexecutive chairmen and board members would be a valuable asset.

• More needs to be done to promote entrepreneurial role models within the region and to engender a culture of entrepreneurship within the science and technology community.

Flexible Financing: Venture capital funds in the region, backed by NWDA and European funds, have been very effective at supporting technology based businesses. To date, £80m has been invested in over 150 companies. A majority of investments from these funds is directed towards high-tech companies. An intermediary advice and support service (TEChINVEST) is available to help businesses access these funds.

TEChINVEST also leverages private sources of investment.

• We need to ensure that Northwest propositions are of the best possible quality and attractive for investors, i.e. ‘Investment Ready’.

• A working definition of high growth, knowledge based businesses and a means to collect data need to be established.

• Just-in-time, flexible education needs to be made available for those in work thinking about starting a business.

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Northwest Science Strategy 2007-2010

3. Skills For Science to continue to flourish in the Northwest, it is important for scientists and science based businesses to engage with the public of all ages with enthusiasm and openness. The creation of a vibrant science and technology culture in the region will have many positive effects. The most important will be to create the next generation of scientists who will develop exciting careers within the region at a time when, due to demographic changes, the numbers of 14-19 year olds are projected to decline by 12% over the next five to ten years, combined with increased competition from social science and arts subjects. The Sir Gareth Roberts report, “SET for Success” published in 2002 stressed the need to increase the supply of science and engineering skills in the UK and improve the recruitment of highly skilled scientists and engineers. This has been reiterated in the 2006 Science and Innovation Framework Next Steps document and continues to be an area of priority for the UK and the Northwest.

There are many ‘curriculum enhancement activities’ carried out across the Northwest. However there is potential to achieve a far greater impact from these.

Focus needs to be placed on coordination of activities to ensure maximum benefit, to simplify access and to provide clarity on the range of options available. More emphasis needs to be placed on the involvement of industry working with organisations such as the Science, Engineering, Technology and Mathematics Network (SETNET and SETPOINTS) to provide initiatives, challenges and competitions relevant to science and mathematics. In addition, the national Regional Development Agency STEM mapping exercise concluded that the HE sector needs to be more proactive with the pre-16 cohort to facilitate the promotion of high level technician skills.

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• The development of a regional Science Support Hub in conjunction with the Science Learning Centre will greatly assist the education sector to meet these teaching and learning challenges.

Sectors need to take a proactive role in raising the profile of their industries to ensure there is a flow of well-motivated, high quality people from schools through further / higher education into Science, Technology, Engineering and Maths careers.

• The regional Careers Northwest resource needs to be utilised to a greater extent by industry sectors and effectively promoted to ensure widespread communication of the wide range of opportunities that are available.

• A delivery mechanism needs to be developed to link progression through the education pipeline with industry. The UK Career Academy for the financial sector and ‘Progression Accord’ offer possible models.

The Regional Skills Partnership (RSP) is the strategic body that addresses the issues facing those individuals and regional businesses that have a need to improve their level of skills. In their latest annual statement of priorities, level 3 and 4 qualifications have been highlighted as priorities for the advanced engineering & materials (automotive, chemicals, aerospace and engineering) and energy & environmental technologies sectors. Within the short to medium time frame, the following opportunities exist to further accelerate and develop the capacity of the region to meet the skills demands facing these industries:

• National Skills Academies are employer-led worldclass centres of excellence that will deliver skills required by the major industry sectors in the economy. Progression of academies in the Nuclear, Manufacturing and Chemicals sectors is of great importance for the economy of the Northwest.

• Foundation Degrees integrate academic and workbased learning through close collaboration between employers and programme providers. Of the Foundation Degrees offered in the region for science (11 in total), only 4 relate to the priority sectors covered in this strategy. An opportunity exists to further develop the progression routes by exploring the possibility of increasing the type and availability of foundation degrees at level 4 to meet the needs of the sector by working in partnership with Foundation Degree Forward.

• Sector Skills Agreements (SSAs) will become the key mechanism to ensure that employer needs and priorities shape the supply of education and training, and secure increased demand and investment. The SSAs for Cogent (Chemicals and Nuclear), EU Skills (Energy and Environmental Technologies) and SEMTA (Aerospace and Bio Technology) are under development. It is important that the Northwest continues to influence the development of these agreements for the benefit of the region.

• Specialist Schools and Academies Trust and Centres of Vocational Excellence: There is a need for the NWDA and its partners to collaborate on influencing the spread of expertise across the region.

• Sector Skills and Productivity Alliances (SSPAs) are sector based structures to enable key partners to understand and implement their lead and support role in the region’s skills and business development strategy and delivery plan. There are SSPAs for: Aerospace and Engineering, Chemicals, BioMedical and Energy and Environmental Technologies. Specific priorities identified by the SSPAs are given in Appendix D.

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Northwest Science Strategy 2007-2010

Strategic Pillars 1. Aerospace Aerospace, a principal component of the Northwest’s Advanced Engineering and Materials sector, has a turnover in the order of £6 billion. It is estimated that the supply chain located in the region directly employs over 21,000 people, nearly a quarter of the total UK aerospace workforce, with double this number indirectly supported by the industry. As with all sectors, there are challenges as well as opportunities to address if aerospace is to sustain and increase its contribution to our regional economy. Globalisation of the industry is driving the need for continuous improvement of business performance in all our companies, from the large trans-national primes such as BAE Systems and Rolls-Royce, down through supply chain companies. The Northwest aerospace landscape has traditionally been dominated by the defence sector, possibly accounting for the majority of the work that flows down into the region’s supply chain. The Defence Industrial Strategy8 will result in a contraction of traditional defence manufacturing activities over the next 20 years, including a consolidation of the BAE Systems activities.

Whilst the NWDA has traditionally pursued a cluster strategy for the aerospace sector, there are structural weaknesses within the cluster, including relatively limited interaction between the region’s prime aerospace companies and the regions HEIs, particularly on R&D activity. There is also a major concern regarding the lack of engagement of Tier 1, 2 and 3 supply chain companies with innovation and R&D. There are also some potentially exciting prospects for the Northwest Aerospace Sector. The teaming of BAE Systems with Lockheed Martin on the 25 year Joint Strike Fighter programme, the emergence of their Autonomous Vehicles business as a cornerstone of the 8

Defence Industrial Strategy, and the continuation of the Rolls-Royce Barnoldswick plant, as the Wide Chord Hollow Fan Blade Centre of Excellence will hopefully be testament to the ability of the industry to remain world competitive. Furthermore, through the Northwest Composites Centre, and the region’s historic strengths in the technical textiles business, there is an opportunity to capture niches in the rise of composite use in the civil aerospace industry.

The Northwest aerospace industry faces a number of key challenges. Firstly, the presence of the aerospace Original Equipment Manufacturers (OEMs) needs to be retained in the region. The OEMs, such as Airbus, Rolls-Royce and BAE Systems, are global players and their presence is vitally important for the future of the Northwest aerospace supply chain. Secondly, there is a need to transform aerospace supply chain companies in the Northwest into a world-class supply chain; this is essential if they are to survive, let alone flourish. The companies need to improve in areas of leadership, skills and processes and then work successfully within a fully integrated supply chain model. Transforming the supply chain will also require attracting new world competitive major sub-system and aerostructures companies into the region as well as supporting those existing companies with the best prospects of making the transformation.

Whilst the first two activities will retain and provide some growth opportunities for the sector, there also needs to be activity in the region to enable the exploitation of emerging aerospace technology trends, to ensure the sector’s growth in contribution to the region’s economy. Priorities for the region are to: • Engage the region in developing technologies that build on national strengths for example autonomous air systems and development of an environmentally friendly engine. This is being addressed through the National Aerospace Technology Strategy (NATS) and the region needs to

www.mod.uk/DefenceInternet/AboutDefence/CorporatePublications/PolicyStrategy/DefenceIndustrialStrategyDefenceWhitePapercm6697.htm

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connect with this process to derive maximum benefit.

• Confirm and exploit those emerging technologies which will have the greatest economic impact on the Northwest aerospace sector in the future.

Areas identified by the sub-team are: Autonomous Air Systems, Systems Engineering and Integration, Niche Composites for Civil Aerospace and Virtual Engineering.

• Increase the interaction of companies – both OEMs and the supply base - with the region’s HEIs. We need to understand the emerging technology needs of the OEMs and position the research base to excel in this area. We need to increase the awareness of Lower Tier companies to the need for innovation and support them in R&D and collaboration across the supply base.

2. BioHealth The vision for the sector remains “A fully integrated biotechnology, pharmaceutical and healthcare company support structure for the Northwest” enabling regional biomedical technology for global benefit.

There are now some 230 (previously 120 in 2002) biotech/pharma/healthcare companies in total with over 120 (70) in the identified ‘core’ group of some 17,500 (13,500) employees, i.e. R&D based and manufacturing biomedical companies (drug development, diagnostics, devices & healthcare). Of these, six are multi-national pharmaceutical companies (AstraZeneca, Novartis, Eli Lilly, Sanofi Aventis, Bristol Myers Squibb and GlaxoSmithKline).

They still account for about 70% of the ‘core’ employees, dominated by AstraZeneca, as well as identifying the region as the largest producer of pharmaceuticals in the UK (exports of £3.4 billion in 2003) and providing a Balance of Trade of £2.8 billion.

Investment into facilities within the sector is estimated at nearly £0.5 billion over the recent and next few years.

The cluster is characterised by considerable strengths in the academic and clinical base (Manchester & Liverpool), relatively few mature (listed) R&D based biotechnology companies and a major pharmaceutical presence, particularly in manufacturing. However, a number of the ‘rising stars’ in biotech have now grown considerably, employing between 50 and 150 people, entering phase III clinical trials, and achieving Initial Public Offerings (IPO). It is vital that such growing companies and the region’s established companies are fully supported in order that the Northwest and UK plc do not lose such activity to mergers and acquisitions, led by well funded overseas companies.

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Northwest Science Strategy 2007-2010

Revision of government policy for Department of Health and Medical Research Council research funding, including greater competitiveness and transparency in allocation of funds, provides a special opportunity for the Northwest which will be vigorously pursued.

The sector strategy, initially developed in 2002, will be augmented and developed by the following priorities: • Alignment with national policy and proactive involvement in setting national priorities. Bionow membership of national committees, e.g.

Bioprocess UK KTN and close communication with DTI bioscience unit and UKTI biopharma & healthcare group. Encourage key members of the community to join national committees and seek to influence agenda.

• Promoting and supporting international excellence. Focus on R&D activities of global calibre (as identified in the competencies table below) and support developing competencies but only where there is an opportunity to become world-class.

• Consolidation of major project investments rather than new investment but with a readiness to respond to national and international opportunities. Considerable investment has gone into capital infrastructure and support programmes for the sector. It is important that they are all connected and create an integrated environment for the sector. However, we must also be ready to respond to strategic opportunities by developing this infrastructure or creating new facilities.

• Enhanced support to the healthcare industry, particularly medical devices and diagnostics companies. This will be achieved by additional resource within the Bionow team and development of the Northwest Medilink franchise with TrusTECH.

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• Leveraging NHS activities for economic development and for improved public health and care. Northwest NHS Innovation Hub (TrusTECH) remains a key portal to the NHS R&D commercialisation activities while there are major opportunities for the region to capitalise on the new research centre for infectious diseases awarded to Liverpool under the new Department of Health Research programme.

• Ensuring efficient technology transfer and commercial exploitation channels. The region has excellent bioincubation facilities and it is crucial that the technology transfer and commercialisation process is efficient and highly professional. In addition, the needs of the independent entrepreneurs in the region must be addressed through networking, mentoring and appropriate investment support.

• Improved support to maturing and established companies. Sector focused accommodation (Growon facilities), financial, regulatory and professional support structures are key for ensuring regional start-ups are able to grow and become anchored in the region.

• Specialised skills provision via Sector Skills Productivity Alliance and cluster projects. R&D based skills gaps are already being addressed in a number of the cluster projects and remain a clear priority. Support of the biomanufacturing community is a particular focus for the region.

The focus for science and technology support is based on key competencies of international excellence/ critical mass within the region: Technology Areas

Therapeutic Areas

• Biohealth Informatics

• Regenerative Medicine (Tissue Engineering)

• Genomics, Proteomics and Pharmacogenomics (Personalised Medicines)

• Cancer

• Clinical Genetics

• Neuroscience, Mental Health & Degenerative Diseases

• Bio/pharma Manufacturing

• Cardiovascular Respiratory Medicine

• Clinical Trials and Ethics

• Infectious Diseases (Vaccine Development)

• Medical Imaging

• Pharmaceutical Sciences

Projects and activities already developed and initiated in the Northwest means that the region is very well placed to respond to the DTI Technology Agenda in Bioscience and Healthcare which has three priorities: Medical Devices; Pharmaceuticals & Biopharmaceuticals and Exploitation of Bioscience by industry.

3. Chemicals The Northwest is home to the UK’s largest and most extensive cluster of chemicals-using industries, contributing in excess of £10 billion of sales, representing around 20% of the UK chemical industry.

The sector is very broad, incorporating a complex supply chain matrix and consists of approximately 1,300 organisations. Directly and indirectly, around 220,000 people are dependent on the sector for employment. The cluster has maintained its high performance in recent years and productivity remains higher than other industrial sectors, with GVA of approximately £55,000 per employee. Start-up firms are evident at around 4% of the total company base, mainly in the high technology sectors. Decline in employment has slowed - with a 5% decrease in employment in the period 2003 – 2006. This was due largely to the basic chemicals and the inks, dyes and pigments sectors, however, these organisations now stand in a far more competitive position. The speciality sector has seen a small amount of growth in sales and employment has stabilised. This will remain the most significant component of the chemical sector in the region.

The Chemistry Leadership Council9 has identified ‘materials chemistry’ and ‘novel surface effects’ as major growth opportunities for the chemicals-using industries. New commercial opportunities of particular relevance to the region include biomedical/healthcare applications, smart coatings, new applications of inkjet technology, technical textiles, cleaning and consumer personal care.

Specific examples of technologies of interest to companies in the region include (but are certainly not limited to): encapsulation of active ingredients, preferential adsorption of polymers and new functional materials (Unilever and PZ Cussons); microdeposition and nano-particle encapsulation (Fuji-Film), molecular salts (AstraZeneca), materials analysis and

9

Chemistry Leadership Council, Research and Technology Priorities, February 2005.

16

Northwest Science Strategy 2007-2010

characterisation (Intertek), molecular precursors for deposition of electronic materials (Epichem) and novel surface coatings on glass (Pilkingtons).

In order to capitalise on these opportunities, the region needs to enable the exploitation of emerging technologies by the existing industry base.

The following specific priorities have been highlighted: • World-class Science and Knowledge Transfer. The number one priority identified by the Northwest Science Council Chemicals sub-team is the establishment of a (virtual) knowledge centre for Materials Chemistry that will build on existing relationships in the region, position the Northwest as the UK leader for research and increase interaction with industry.

Northwest universities have a real opportunity to lead the UK in materials chemistry research and teaching. Significant expertise is present in the region including (but not restricted to): Highthroughput technologies, nanoformulation, lithography (Liverpool); organic material analysis and synthesis (Manchester) and computational materials chemistry (Daresbury). Through initiatives such as the Organic Materials Innovation Centre, the Molecular Materials Centre, CoEBio3 and the Centre for Materials Discovery, some steps have been taken to align industrial needs with the academic research programme and stimulate the flow of new ideas and skills between academia and industry. This process requires constant refreshment and renewal and we call on these centres to work together to address emerging technology capabilities and industry opportunities.

The landscape with regard to academic and industrial capabilities needs to be clarified and overlapping strengths identified and exploited.

Industry needs to be proactive in sharing their long term needs and goals with academic partners and there must be a willingness to adjust the academic research programme to reflect those needs.

17

Product innovation requires excellence in the science and technology infrastructure to bring new products to market and the region should exploit its unique strengths in the high technology service companies with a base in the region. For SMEs, simplified access to the wealth of knowledge available in the region is an urgent requirement.

• Industry Promotion: A consistent supply of high calibre scientists in the future is imperative.

Interest in scientific subjects within school age groups remains a major concern. Careers information requires considerable improvement and the numbers of pupils being exposed to promotional initiatives and demonstration facilities needs to be substantially increased. This requires an integrated approach and coordination of the various operating schemes across the region.

• Skills: There is a well developed infrastructure in the region considering the skills agenda, however this tends to be complex and fragmented which can reduce flexibility and impact. The current Sector Skills Agreement (SSA) process has confirmed a clear age profile concern within the industry that needs to be addressed, and a requirement to ‘upskill’ the workforce towards NVQ level 3. The Sector Skills and Productivity Alliance (SSPA) is working to coordinate responses. A key priority for this area is the approval of a National Skills Academy by the Department for Educational Studies (DfES), a facility that will provide an integrated approach to this important and complex arena. Considering the strength of the sector, location of a delivery hub within the Northwest is a major priority.

4. Nuclear The Northwest is at the heart of the nation’s nuclear energy sector with major operational sites at Sellafield (waste management), Springfields (fuel manufacture), Heysham (electricity generation) and Capenhurst (uranium enrichment), supported by an extensive supply chain network. Over 40,000 people are employed in the sector in the UK with more than 50% located in the Northwest. In recent years major restructuring of the industry has taken place, brought about by the creation of the Nuclear Decommissioning Authority (NDA) which is charged with the decommissioning and clean-up of all the civil nuclear sites in the UK. This is an enormous task that will take many decades to complete at an estimated cost of £72 billion.

Whilst this task is now underway the Government is also considering options for the long term disposal of nuclear waste and has just completed a review of its energy policy, paving the way for the construction of a new generation of modern reactors. A recent report by the Sector Skills Council, Cogent, has estimated the employment demand between now and 2015 could be as high as 11,500. The challenge therefore for the region is to position itself to win new decommissioning business and to react to the changing skills requirements of a new build programme using the capabilities that are already prevalent in the Northwest. The industry restructuring has also led to a more diverse range of companies competing for work. Attention is needed to ensure the R&D investment of these new entrants to the market is maximised within the region.

Active nuclear facilities are a key resource for the Northwest and include the £250m Technology Centre at Sellafield which is undergoing active commissioning. This, together with the largest commercial and academic radiochemistry laboratories in the UK, represents a strong attractor for new business both from the UK and overseas. The Government has recently announced the formation of

a National Nuclear Laboratory based around the active facilities in the Northwest, with the Technology Centre at Sellafield at its core.

The communication and marketing of these unique regional capabilities needs to be improved.

There is a unique opportunity within the Northwest to establish itself as a world leading centre of reactor technology based on its existing capabilities in the industrial and academic sectors and the strong prospect of a new nuclear build programme in the UK (and the wider prospect of a global renaissance of nuclear energy). Such a centre will also strengthen the region’s position regarding the National Nuclear Laboratory.

Northwest activity in reactor technology should be encouraged and supported.

The new initiatives taken in postgraduate education and the development of The Nuclear Academy are important steps to remedy the poor position outlined in 2002. New postgraduate training provision has been established, notably the Nuclear Technology Education Consortium led by the Dalton Nuclear Institute at the University of Manchester and a new MSc in Decommissioning and Environmental Clean-up at Lancaster University. A new undergraduate degree programme in Nuclear Decommissioning and Waste Management has been introduced by The University of Central Lancashire (UCLan), and at foundation degree level a new course in Nuclear Decommissioning is being run by the Westlakes Research Institute (UCLan) and Lakes College. In addition, work has also commenced on the build for The Nuclear Academy in West Cumbria to provide craft and technical skills, innovation and business support. This will form a delivery arm of the National Skills Academy Nuclear which is supported by the Northwest Science Council and currently under review.

Concerted action will be needed over the next three years to see current skills initiatives come to fruition.

The success of any training programme is dependant on its ability to attract students and here the nuclear sector suffers with difficulties in attracting students into

18

Northwest Science Strategy 2007-2010

STEM subjects, coupled with the relative unpopularity of nuclear as a career choice. Efforts are needed both to promote science and engineering subjects in schools and to increase the nuclear content across a wide range of relevant undergraduate courses, including environmental sciences and project management.

It is proposed that a scheme be established for senior scientists and ex-employees from industry to contribute actively to these courses through lecturing, mentoring and course material development.

With the restructuring of the industry there have also been concerns about the research intensity of Tier 2 and 3 companies as well as Tier 1 commitments and an increase in the mobility of staff between organisations.

It is important for companies to be encouraged to work together, sharing best practice to ensure the maintenance of standards and key skills across the sector.

The NDA will continue to specifically encourage investment in skills development, innovation and R&D via contractual arrangements in order to underpin their mission.

Despite the evident strengths in the region, there remains a difficulty in attracting SMEs to invest in R&D. It is proposed that action be taken to support and facilitate greater SME involvement with HEIs and R&D. Concerted effort and lobbying will be needed to ensure the funding of academic research on nuclear topics which has recently seen something of a revival with the Engingeering and Physical Science Research Council (EPSRC) providing £5.7m to support a programme on Keeping the Nuclear Option Open and £5m for a new EngD in nuclear engineering. The DTI has also indicated that it would allocate £5m to support the UK’s participation in the international Gen-IV project looking at advanced reactor concepts.

This has yet to be realised. It is essential that this support continues as it will provide the training

19

opportunities for scientists and engineers that will be needed once new nuclear capacity is commissioned.

NDA is also set to spend £8m this year on basic R&D to support its waste management and decommissioning task. Although these examples are national R&D programmes, they are almost exclusively led by Northwest organisations who also receive the majority of the funding.

The region needs to capitalise on its excellent track record to win future funding through opportunities such as EU Framework VII, US Global Nuclear Energy Partnership, further Gen-IV activities, potential waste repository research and energy initiatives being developed by the N8 alliance of northern universities.

5. Emerging Opportunities The strategic pillars identified in this strategy focus on those sectors where strong industry clusters and strengths in the science base converge. It is crucial to maintain and build on these successes to ensure economic growth for the future. However, there may also be opportunities lying on the boundaries of this segment, where supporting a growing industry, e.g.

ICT or Media, or the underpinning science base, may result in a new competitive advantage for the region.

+

SUPPORT INDUSTRY GROWTH

BUILD ON SUCCESS

MINIMAL STRATEGIC IMPORTANCE

REINFORCE RESEARCH BASE

–

+

RESEARCH

–

INDUSTRY SECTOR

radar’ capability. This means we will be able to take advantage of opportunities where clusters and technology converge.

• The Science Council, supported by the NWDA, will identify the most influential regional players, and temporary resources to respond to major short term opportunities.

6. Strategic Science and Technology Sites There are four strategic regional Science and Technology sites, of which Manchester has the highest concentration of science and innovation assets and the associated infrastructure to build a centre of significant global visibility. Other key sites with sufficient critical mass to become major national sites are Daresbury Science and Innovation Campus, Merseyside and West Cumbria. These sites also have significant public sector involvement.

In addition, the Heath Business and Technology Park at Runcorn, AstraZeneca (Alderley Park), Unilever Research and Development (Wirral), BAE Systems (Wharton) and the Blackley Science Park (Fuji Film, Arch) are all large research and innovation sites, which are major contributors to the regional economy.

Lancaster University has the potential to significantly impact the local, sub-regional economy and has significant potential for the future.

The region needs to remain alert to future developments impacting on science and innovation.

The long timescale for most major innovations means regions require far-horizon thinking, planning and skill development capability if they are to take leadership or play a major role. Flexibility needs to be maintained in order to respond quickly to new opportunities as they arise, sometimes unexpectedly.

• To ensure the science base anticipates new needs and new themes, foresighting and horizon scanning activities will be conducted – helping the region’s scientists to have an ‘over-the-horizon

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Northwest Science Strategy 2007-2010

Strategic Science and Technology Sites Name

Current Position

Issues and Priorities

1. Manchester Science City*

• Numerous new science investments underway e.g.

- Photon Science Institute - Bio-incubators - Organic Materials Innovation Centre (OMIC) - Northwest Embryonic Stem Cell Centre/ UK Centre for Tissue Regeneration • Partnership with Greater Manchester Research Alliance (GMRA)

• Successful development of the Oxford Road corridor (led by University of Manchester) • Establishing University of Manchester as a leading global HEI • Commercialisation of University Interlectual Property • Continued expansion of Manchester Science Park (MSP)

2. Daresbury Science and Innovation Campus (DSIC)

• New company formed between NWDA/CCLRC/Universities of Manchester, Liverpool, Lancaster and Halton Borough Council to carry out business development • Innovation Centre performing well • Nominated by Government as one of two “big science” sites

• Next stage infrastructure development – need to get private sector investment • 4GLS investment case to be carried through • Increasing collaboration with NHS research

3. Merseyside Liverpool Science Park (LSP) and Speke Biotech

• First stage of Liverpool Science Park (LSP) opened 2006 • LSP Ltd charged with providing strategic leadership to next stage • Phase 1 Liverpool Digital now full • National Microsystems Packaging Centre (NMPC) under development • National Biomanufacturing Centre (NBC) opened 2006

• Obtaining private sector investment into LSP • Formalising NMPC project structure and contracting the project • NBC to build on HEI and commercial capability in infectious diseases and vaccines • Awarded one of the new NHS specialist Research Centres

4. West Cumbria

• Nuclear Decommissioning Agency (NDA) HQ now at Westlakes • Rebuild of nuclear power-stations • Westlakes now owned by UCLAN • Future role of technology facilities at Sellafield and Nexia • University of Manchester Dalton Institute investment in new facilities with NDA

• Build a strong nuclear cluster around the NDA • Develop The Nuclear Academy • Potential for the hub of a National Nuclear Laboratory • National nuclear archive

*Led by Manchester Knowledge Capital

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Promotion and branding

Principles for Regional Support

The Northwest’s image does not do justice to the quality of its science. The region will be promoted for what it is: an area that is alive with scientific endeavour, with world-class people, facilities and projects in areas of cutting edge importance, including pharmaceuticals and biotechnology, chemicals, aerospace, communications & IT, astronomy, environmental sciences and energy.

It is suggested that future Northwest Science Council supported activity be consistent with three broad principles:

Northwest Science is being promoted by all of the regional science partners. We will target young people, scientific and entrepreneurial talent, science-based businesses looking for a chance to grow and inward investors with a view to attracting R&D facilities and forging links with the region’s laboratories and universities. For example, if all regional players presenting at conferences, exhibitions or network meetings were to begin with just one slide highlighting the strengths of the region, the potential impact and global and national reach is enormous.

This is not just about hard science - every opportunity will be sought to highlight the benefits the Northwest can offer businesses choosing to locate in the region and the lifestyle that makes it attractive to world-class talent as a place to live, prosper and build success.

Existing excellence will be showcased and new opportunities highlighted to ensure a consistent and frequent drip feed of positive PR coverage.

– Investing in specific schemes only where there is an absence of appropriate market mechanisms (i.e. no funding from alternative sources) and only in alignment with the national Science and Innovation Framework and regional strengths; – Focus more on high impact, transformational projects (acknowledging relatively high risk) that demonstrate an opportunity to the market; – Use and develop business support and skills delivery structures, together with venture capital and knowledge transfer schemes to provide the right environment for sustainable exploitation and commercialisation of scientific strengths.

In particular, therefore, science investment should meet most or all of the following criteria: – Build on regional strengths – Proven market demand for product/service – Demand can be aggregated (ie. there is a common need from a number of SMEs) – Internationally competitive – Support from business sector/cluster (financial and moral) – Pre-competitive or ‘proof of concept’ research – Sustainable beyond RDA funding – Exploitable in the Northwest

22

Northwest Science Strategy 2007-2010

Incubation – Fits with RES/Northern Way priorities – Encourages industry to work with sources of knowledge, e.g. HEIs – Built in knowledge transfer mechanisms and resource The region has a number of existing initiatives and policies either directly targeted at supporting and maximising the economic gain from the strengths outlined, or with significant impact on them. Looking ahead, we need to consider how these investments can continue to be most effectively targeted. We suggest that the most effective approach will be to identify transformational projects that demonstrate business opportunities and encourage a market that mainstream business support services are then geared up to support. This approach may require reviewing the direction of a number of current activities. These are set out below:

NWDA Incubation policy, developed in 2002, was to fund a series of small (a few thousand square metres) regional incubators based around particular technologies. Evidence has shown that these have been most successful where they have been linked to a source of ideas and businesses (e.g. an HEI) and/or have an outstanding management team. Any future support of science-based incubators should demand that they: – Have sufficient scale to be sustainable without public support (over 3000m2).

– Be linked to an HEI/college/industry if possible – Link to the regional technology strengths – Be located in an environment attractive to new business start-ups Business Support

Science Park development In the case of classic Science Park development without major, embedded science research facilities, then the default position should be that these are developed with private sector investment as has happened in Manchester, at Runcorn Heath and elsewhere across the UK.

23

The Science investment model proposed is one where the NWDA would make key interventions where there was strong indication of likely market engagement.

This requires appropriate and effective business support and skills delivery structures. It is clear from feedback during a review of the Regional Innovation Strategy in 2005 that many SMEs still feel that their innovation support needs are not being met by the usual public support routes (e.g. Business Links) and they therefore lack the capacity to exploit new technologies. This will be addressed through the current review of business support in the region.

Venture Capital The venture capital funds developed by the NWDA have been very effective at supporting technologybased businesses – for example, around 50% of all investments made have been in the Biotech area.

There is no lack of ideas or ingenuity among small start-ups in the Northwest – the issue identified by the venture capital community is the lack of ability by those with ideas to make a business case.

Clusters As defined in the Regional Economic Strategy, the NWDA has adopted an approach based on a smaller number of large interventions in the STEM area and has moved towards a twin-track approach to relevant clusters where some warrant additional investment beyond basic networking and collaboration support and others do not.

24

Northwest Science Strategy 2007-2010

Appendix A: Review of Progress A number of key industry clusters were selected for action in 2002. These were based on where the Northwest has the potential to secure competitive advantage and on where science can have the greatest impact. Highlights of major achievements in each of these sectors are given below. The contribution of many partners and funding bodies is recognised in ensuring the success of these initiatives.

Key Sectors

Health biomedical research centre, specialising in infectious diseases; – UK Biobank Ltd has been established in Manchester after national competition; – The University of Manchester won one of three BBSRC national centres for Systems Biology; – Manchester and Liverpool Universities joined together to win one of four national centres for Integrative Biology funded by BBSRC and the pharmaceutical industries;

BioHealth10 The biomedical sector has achieved outstanding success over the last five years, across both commercial and academic sectors. Many accomplishments have been recorded, notably:

– Northwest Genetics Knowledge Park (NOWGEN) building opened in 2006 to deliver training, advice and research across the genetics, society and industry interface.

• Considerable company activity and growth:

• Significant success in international & national competition: – Liverpool School of Tropical Medicine was awarded $50m research funding at the end of 2005 by the Gates Foundation. This was leveraged by £26m funding from partners across the region to build a new research facility (NWDA, GONW, University of Liverpool, the Wolfson Foundation and the School of Tropical Medicine); – University of Liverpool & Alder Hey Hospital were appointed to lead the £20m Department of Health UKCRC Research Network for Medicines in Children in 2005; Greater Manchester Research Alliance (GMRA) success (including wider Northwest) in all national rounds to house local research networks; – Royal Liverpool University Hospitals Trust and the University of Liverpool awarded Department of

10

– Investment: DxS, Gentronix, Farfield Sensors, L3 Technology, Provexis, Platform Diagnostics, Epistem, F2G, Eden Biodesign, and Oncoprobe have all raised investment funding, many through regional funds and the majority are incubator based; – Listings: Provexis completed a reverse takeover of AIM listed Nutrinnovator, Intercytex floated on AIM raising around £20m and Renovo floated on LSE raising c. £50m and giving the company a valuation of ~£150m, the latter two having completed Phase II trials for regenerative and wound healing products respectively; – Merger and Acquisition Activity: Purchase of AIM listed Neutec Pharma by Novartis for an estimated £360m with leading product for MRSA treatment; Dishman Europe acquired Manchester based Synprotec and Teva Pharmaceutical

Biotechnology in the previous Science strategy. This definition has been expanded in the strategy to include a greater of range of health disciplines under the heading of BioHealth

25

Industries acquired Ivax including a manufacturing facility in Runcorn, Inyx Inc (with base in Runcorn) announced its acquisition of Celltech Manufacturing Services from UCB including the Ashton site - now called Ashton Pharmaceuticals; Chiron Vaccines acquired by Novartis having developed a new vaccine manufacturing facility; – Expansions: Eli Lilly opened a newly expanded capreomycin plant in Speke; AstraZeneca opened new centres for advanced lead discovery and cancer research at Alderley Park.

• Cross sector working for added value. A £20m Centre of Excellence for Biocatalysis, Biotransformation & Biomanufacturing (CoEBio3) was established in 2005 at the University of Manchester with satellites in York, Glasgow and Wilton after a national competition. This is an example of development in one sector (biotechnology) giving provision for another sector (primarily chemicals). Daresbury Innovation Centre has proved attractive to a number of independent biomedical companies and Daresbury CCLRC computing science and structural biology links closely with the wider biomedical research agenda.

• Delivery and opening of the NWDA’s £34m flagship National Biomanufacturing Centre (NBC). The centre began operation in spring 2006 with commercial operator, Eden Biodesign, supplying product development and clinical trial manufacture to research organisations and SMEs across the UK. • Development of several new research centres of international excellence. The Northwest Science Fund helped establish the joint University /NHS Trust Northwest Embryonic Stem Cell Centre and the UK Tissue Regeneration Centre with codevelopment of cGMP facilities and the National Centre for Zoonosis Research. The Northwest

Institute for Biohealth Informatics (NIBHI supported by the NWDA and AstraZeneca) to deliver training, research and support across industry, academia and the NHS was launched in 2005. The Manchester Wolfson Molecular Imaging Centre opened in 2006 and is now operational.

• Opening of the Core Technology Facility in June 2006, adjacent to the Manchester Biotechnology Incubator and providing grow-on accommodation for bio and high-tech companies, with a strong pipeline of tenants including US company inward investment.

Environmental Sciences In the UK, the environmental market has increased from £16 billion, 170,000 jobs and 7,000 companies in 2001 to £25 billion, 400,000 jobs and 17,000 companies in 2005. This growth is reflected in the Northwest where the sector has grown to more than 1,300 companies, employing an estimated 43,250 employees proving that the pursuit of environmental gains makes good business sense and is an important driver for social and economic prosperity.

Progress in the sector since 2002 can be reported as follows: • 85% of companies in a survey reported an increase in sales over the previous three years and more than 60% reported increases in employment, profit margins and investment.

• Rapid growth of the region’s renewable energy sector; a recent Envirolink survey showed that in the last three years the size of the sector in the Northwest has almost doubled and the number of employees has increased from 500 to 930 in 2005; the number of companies grew from 100 to 160 with annual turnover increasing from £52 million to £96 million.

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Northwest Science Strategy 2007-2010

• Launch of the Joule Centre for Energy Research in June 2006. Working in collaboration with industry and universities across the region, the £10m Joule Centre is the first centre for the development of sustainable energy sources in the Northwest.

Funded by the NWDA, it will develop sustainable energy sources which are low in carbon emissions, such as hydro and wind-power, as well as improving energy-efficiency within industrial and home environments.

• Launch of the Envirolink Waste Technology Project.

Funded by the NWDA, the BREW programme and Northwest local authorities, this £4.1m programme will help Northwest companies to develop innovative technologies for waste treatment to ensure that the region is recognised as a centre of environmental excellence. The programme will stimulate collaborative R&D networks, develop demonstrator plants to showcase the commercial and technical viability of processes and so promote the capability of the regions waste technologies sector and its supply chain regionally, nationally and internationally.

• Development of Lancaster Environment Centre, where University, Government (NERC), NWDA and ERDF funding is coming together to create a significant critical mass where research council employees work in close association with university staff.

• Successful attainment of competitive HEIF3 funding

by Manchester Metropolitan University for a project looking at ’Opportunities for meeting the environmental challenge of growth in aviation’ (OMEGA project).

Chemicals The sector has been active in pursuing key areas of opportunity and has recorded a number of notable achievements since 2002 including: • Formation of many new companies, including ‘spinouts’ from both industry and academia, examples include: Acimetrics, Iota Nanosolutions, Nanoco Technologies and Novel Technical Solutions. Several of these organisations have benefited from modern innovation facilities in the vicinity of the region’s major research centres and regional venture capital funds.

• Leading the establishment of the Chemistry Innovation KTN, a new national network to simplify access to technology and capability across the Chemistry Using Industry. The development of the Northwest capability matrix identifying academic capability in key technologies is an important step towards this.

• A significantly increased flow of research council funding into the Chemistry departments of the region since 2002. EPSRC figures suggest this has more than doubled11. This success provides a good foundation for the next research assessment exercise.

• An excellent training record with a growing number of chemistry graduates, despite a decreasing national trend12. The Northwest produces over 300 chemistry graduates per year.

• Building substantial research capability in Materials Chemistry: – Establishment of the Organic Materials Innovation Centre (OMIC) for the speciality

11 12

Figures provided by EPSRC indicate grants announced to a value of £2.4m in 2002 and £9.6m in 2005. The 2005 figure includes a long term portfolio grant of £5.3m.

Statistics of Chemistry Education, Royal Society of Chemistry, 2005.

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organic material and polymer industries.

Coordinated by the University of Manchester and involving other HEIs across the region, the centre has become recognised for its flexible and responsive delivery to industry. Over £6m additional funding has been secured and 26 industrial contracts fulfilled since 2004.

– Establishment of the Centre for Materials Discovery, a world-leading facility focused on the discovery of new, step-change materials using automated methodology. A £9.5m project co-funded by the NWDA, ERDF (Objective 1, Merseyside), the University of Liverpool, and industry.

– The Molecular Materials Centre, an effective collaboration between the Universities of Liverpool and Manchester and industry.

• Establishment of the UK Centre of Excellence in Biocatalysis, Biotransformation and Biomanufacturing (CoEBio3). Manchester Interdisciplinary Biocentre won the bid to host CoEBio3’s core research facility out of 30 contenders nationally. The CoEBio3 initiative will focus on the development of novel biotechnological routes to the synthesis of fine chemicals and develop them in partnership with industry. This is an example where a technology development in one sector (Biotechnology) meets the needs of another (Chemicals).

• Establishment of the Northern Way Sustainable Manufacturing initiative delivering solutions to deliver improved productivity and efficiency.

Looking back, many of the initiatives detailed in the 2002 action plan were judged to be inappropriate at an early stage following publication and as a result, have not been progressed. The number of initiatives identified was too great and there was no clear, high

level ownership. Moving forward, a more focused strategy will be presented ensuring that attention is placed where the Science Council can have maximum influence.

Aerospace In response to the Science Strategy of 2002, steps have been taken to create a coordinated vision for the industry, to create centres of excellence in key technology areas and to influence national technology priorities. However, it must be acknowledged that real and significant progress has been limited. An open and honest account of progress to date has been captured below: • Work undertaken in support of developing the Aerospace Innovation Centre (AIC) concept has led to the establishment of a significant business improvement programme, sponsored by the prime aerospace companies, aimed at improving the regions aerospace supply chain. The AIC will not however be developed as a physical technology centre as was originally anticipated at the time of the previous Science Strategy.

• The Northwest Science Fund has provided seed funding to help create the Northwest Composites Centre (£2.1m) and the Northwest Laser Engineering Consortium (£2.5m). Each of these projects has attracted significant interest from industry including Rolls-Royce and BAE Systems and, through further development of these links, they have the vision to become internationally recognised centres of excellence.

• The Northern Aerospace Technology Exploitation Centre (NATEC) was established to provide a mechanism through which industry could access the university knowledge base. At least 4 of the agile technology units ‘ATU’s’ formed are selfsustaining based on industry contributions and are

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Northwest Science Strategy 2007-2010

still operational. Funding for the overall project has now ceased.

• Progress has been made to establish a common view of the business process needs of the ‘primes’ and to communicate this down the supply chain.

There are signs that the supply chain are beginning to understand what is required. This is a time intensive process and much effort is still required to effectively communicate and implement the science and technology vision of the primes down the supply chain and into the science base.

• Effort has been invested in attempts to form consortia of supply chain companies to respond to the procurement needs of the ‘primes’, unfortunately, these activities have not been successful.

• NWDA has played a significant role in shaping the implementation of the National Aerospace Technology Strategy. The agency has signalled its commitment to the development of autonomous vehicles through its £3.7m investment in the ASTRAEA programme, a national programme to open up the UK’s civil airspace for use by autonomous air vehicles, a prime enabler for the nascent UAV industry.

Nuclear Since the production of the first Science Strategy, the nuclear industry has been experiencing a period of unprecedented change. The formation of the Nuclear Decommissioning Authority (NDA) in 2005 to oversee the clean-up of the civil nuclear sites in the UK has led to company re-organisations and the introduction of a competitive marketplace. Against this background the Northwest has managed to retain its position as a leading supplier of science, engineering and technology to the industry and in doing so has safeguarded employment in the region. Indeed with

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the prospect of new nuclear generation alongside the current focus on clean-up and decommissioning there is optimism for expansion of the skill base and new investment into the region. The sector has recorded a number of notable successes over the past four years including: • Significant investment by private sector companies in the region: – Location of the Nuclear Decommissioning Authority in West Cumbria and establishment of offices of several world-leading global nuclear companies from overseas in the Northwest such as Washington Group, Fluor and Bechtel.

– Commissioning of the £250m Technology Centre at Sellafield which is a unique active facility capable of supporting global collaborative research programmes.

• Enhanced HE capacity across both research and training activities: – Formation of the Dalton Nuclear Institute at the University of Manchester with the aim of establishing a world-leading academic capability in nuclear education, science and research.

– Enhanced postgraduate training provision through the formation of NTEC (a collaborative postgraduate programme co-ordinated by the Dalton Nuclear Institute and including the Westlakes Research Institute (University of Central Lancashire) and the Universities of Liverpool and Lancaster), a new MSc in Decommissioning and Environmental Clean-up at Lancaster University and initiatives taken to enhance nuclear training by UCLAN.

– Appointment of new academic posts including a lecturer in Radiation Sciences and Decommissioning Engineering at Manchester, a chair in Epidemiology at UCLAN following a £5m endowment from the NDA and others such as the academic fellow post at Salford University which will specifically address issues around the removal of radioactivity from fluid streams.

– Securing significant new research funding including £5.7m from EPSRC for research into Keeping the Nuclear Option Open and £5m from EPSRC to establish an EngD programme in nuclear engineering.

• Development of plans for an employer-led Nuclear Academy to be located in the Northwest to provide skills development and training (including apprenticeships and foundation degrees), innovation and business support.

• Significantly enhanced international reputation through: – Conducting the majority of UK related support to leading edge, international collaborative ventures such as the Generation IV advanced programme and the Global Nuclear Energy Partnership.

– The signing of partnerships with leading nuclear organisations in the US, France, Japan and China.

– Hosting of prestigious national and international conferences such as Managing Nuclear Liabilities, Actinides 2005, PSD7, IAEA workshops and other activities for the first time in many years.

Elements of Excellence Underpinning the key sectors were a number of crosscutting themes which provide infrastructural support and help to create the right environment for success.

Not all of these elements have made equal progress since 2002 and evaluation of the impact of many of these activities will continue over the coming years.

A summary of activities and achievements to date is given below.

Leading the regional endeavour: Since 2002, the Science Council has become a leading and influential body, embedded in the regional endeavour to become an international player in the knowledge economy.

Strategic guidance has been given to the regional cluster organisations regarding sector approaches and priorities. At a national level, relationships have been fostered through meetings between Science Council members and Government ministers and officials.

Collaboration: Organisations across the Northwest have demonstrated their willingness to identify synergies and to build upon complementary strengths in order to compete on a national and international stage. The new University of Manchester has been created which combines the expertise of UMIST and the Victoria University of Manchester to create the largest University in the UK and one which has the aspiration to hold a leading world ranking in Science and Technology and was the Sunday Times University of the Year in 2006. In another example, the Cockcroft Institute – a collaboration of the Universities of Manchester, Liverpool, Lancaster and the Council for the Central Laboratory of the Research Councils (CCLRC) – was successful in winning the UK’s Institute of Accelerator Science beating stiff competition from Oxford and London. The close cooperation of CCLRC and NWDA has resulted in Daresbury Science and Innovation Campus being officially recognised as one of only two science and innovation campuses in the UK for large science facility development. Major public

30

Northwest Science Strategy 2007-2010

and private investment for the site is planned. There are many other examples, and it is not possible to mention them all here, however it can be said with confidence that major strides have been made in this area.

Academic – Industry Links: Steps have been taken to encourage greater interaction between academic institutions and industry. The Northwest Science Fund has been launched with the aim of creating international centres of excellence with a strongly applied and industry led focus. The NWDA’s match funding of the second Higher Education Innovation Fund (HEIF2) was unique in the UK and helped to maintain Northwest HEI’s reach-out activities to industry and the community. Faster access to the appropriate university expertise for the private sector, particularly SMEs, was facilitated through the Knowledge Northwest portal (although this brokerage service provided a valuable tool to ease business access to university knowledge and expertise, it also demonstrated the limitations of such a simple, generalist intervention; consequently the service ceased to operate in March 2006). Cluster organisations and incubator programmes have also specifically targeted academic-industry links. In some clusters, this has been augmented by the NWUA Lead Academic Network, funded as part of the KnowledgeNorthwest cluster engagement project.

Public Science: A new interactive science gallery at the Museum of Science and Industry has been developed which illustrates the scientific achievements of the region across the ages. The gallery has attracted many visitors since its inception.

Many outreach activities have also been carried out to bring science to life to children of all ages, examples including the work of NOWGEN, SETNET, Catalyst and many others.

13 14

Incubation Services: Five technology focused incubators13 have been provided through public funds since 2002 which brings the total to 9 across the region. These incubators provide a professional, supportive workspace in which new businesses are nurtured and encouraged. Incubation Northwest has been established to provide professional training services to regional incubators and to help share good practice.

Flexible Financing: Considerable improvement has been seen in the options for financing of new enterprises in the region. There is now provision of seven publicly supported venture capital funds14 with total assets in excess of £180m. To date, £80m has been invested in over 150 companies. An intermediary service ‘TEChINVEST’ provides mentoring and guidance to improve the probability of success of small companies bidding for funds. The NWDA has also assumed responsibility for DTI support schemes such as Selective Finance for Investment (SFI) and Grant for Research and Development (GRAND).

Networks: The regional cluster programme is now well established in key science areas such as BioHealth, Chemicals, Environmental Science and Aerospace. The NWUA plays an active role in linking universities across the region, while the Northwest Science Alliance (NWSA) brings together an impressive range of representatives from across the region that are interested in the public promotion of science.

Promotion: A wide range of opening events, launches of initiatives, press articles, PR briefings and specific meetings have taken place that have promoted the Northwest as a good place to do scientific business.

Infolab 21 (Lancaster), Daresbury Innovation Centre (Daresbury), Liverpool Innovation Centre (Liverpool), Core Technology Facility (Manchester), Digitalinc (Liverpool).

Northwest Business Investment Scheme (funded by NWDA and ERDF), Northwest Seed Fund (funded by NWDA), RisingStars Growth Fund (funded by NWDA + Institutional investors), Northwest Equity Fund (funded by DTI + Institutional investors), Merseyside Special Investment Fund (funded by Objective 1 ERDF + Institutional investors), Lancashire Rosebud (funded by Lancashire County Council) and Manchester Technology Fund (funded by UK government, Wellcome Trust and University of Manchester).

31

Appendix B: Regional SWOT Analysis The strengths, weaknesses, opportunities and threats facing the Northwest are highlighted in the analysis below. This sets the scene within which strategic choices have been made.

Strengths

Weaknesses

– High private sector R&D investment – Internationally strong across a range of sectors: Chemicals, BioHealth, Nuclear and Aerospace – Good academic links and collaborations – High graduate output

– R&D focused in a small number of large companies – Low non-HEI public sector investment – Lack of knowledge regarding emerging opportunities (Except Bio) – Not ‘top of mind’ for science investors from outside the region and outside the UK

Opportunities

Threats

– Growing Biotechnology industry – Nuclear re-build and decommissioning – Increased exploitation of the range of world-class research strengths across Northwest HEIs – University of Manchester has ‘world-scale’ – Strategic science sites have the potential to become world class – Have the capacity available to accommodate growth – Increasing trend towards ‘open innovation’ – A changing NHS / MRC policy and practice (Cooksey report)

– Key sectors are mature industries, and as industry needs change they may not map onto Northwest strengths – Outsourcing of manufacturing and research capability to India and China – Reduction of numbers studying STEM subjects in school – Aerospace supply chain is concentrated on ‘old’ technology.

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Northwest Science Strategy 2007-2010

Appendix C: Northwest Science Facts and Figures Core strengths in R&D expenditure by private business, government and higher education institutes are set out below: i. Private Sector Data regarding private sector R&D investment is available based on global figures. Government statistics from the 2005 scorecard15 show that 4 of the top 10 companies by R&D investment have significant R&D activities in the Northwest: – – – –

AstraZeneca (£2 billion) BAE Systems (£1.1 billion) Unilever (£736m) Rolls-Royce (£282m)

Other major contributors in the region include: British Nuclear Group Sellafield (£59m), Pilkington (£26m) and Fuji Film (£17m).

R&D investment data at a national or regional level is unavailable due to confidentiality.

iii Universities Core funding for traditional academic research comes from the Higher Education Funding Council for England (HEFCE). Quality Research (QR) funding is calculated using data from the Research Assessment Exercise (RAE) and the number of active staff.

In RAE terms, 14 STEM related units received 5* ratings in RAE 2001. The number of research active staff in each department is given in brackets.

Manchester:

Studies Allied to Medicine (12) Metallurgy and Materials (30) Pre-Clinical Studies (27) Pharmacy (30) Biological Sciences (101) Computer Science (55)

Liverpool:

Physiology (16) Engineering (21)

LJMU:

Sports Science (12)

MMU:

Sports Science (12)

Lancaster:

Physics (21) Statistics (16)

Salford:

Built environment (45) IRIS Library and Information management (23)

ii Government The majority of government investment in the Northwest is directed towards Daresbury Laboratory.

– Daresbury Laboratory, Daresbury.

(Synchrotron science, computational science, accelerator science and structural biology) – Proudman Oceanographic Laboratory, Liverpool.

(Oceanography, climate change and tidal prediction) – Centre for Ecology and Hydrology, Lancaster.

(Environmental sciences)

15

www.innovation.gov.uk/rd_scoreboard/

33

In 2004/05 12 departments attracted 15% of quality research funding: – – – – –

Nursing (29%) Metallurgy and Materials (27%) Built Environment (31%) Library and Information Management (28%) Sports Related (27%)

– – – – – – –

Preclinical Studies (21%) Physiology (16%) Vet Science (21%) Earth Sciences (21%) Computer Sciences (18%) Chemical Engineering (16%) Business (21%)

In addition to traditional research departments, the region has over 50 Research Institutes, many multiinstitutional. While it is not possible to provide a complete list, a number are given below: – UK Centre for Tissue Engineering – Wellcome Trust Clinical Research Facility – Wolfson Molecular Imaging Centre – UK Biobank – Organic Materials Innovation Centre (OMIC) – Molecular Materials Centre – Dalton Nuclear Institute – Lancaster Environment Centre – Liverpool School of Tropical Medicine – Clatterbridge Centre for Oncology – Salford Centre for Research and Innovation in the Built Environment – Patterson Cancer Research Institute – National Centre for Zoonosis Research – Northwest Institute for BioHealth Informatics – Northwest Composites Centre

In summary, across the private sector, Government and HEI, the Northwest is internationally strong in the following sectors: – Pharma/Medical/Health related research – Chemicals/Materials (high end) – Aerospace/Materials (high end) – Nuclear There is significant growth potential in – Biotechnology (2nd strongest Cluster in U.K.) – Energy (transmission, alternative energies) – Aerospace – Nuclear – ICT (including Microsystems Packaging)

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Northwest Science Strategy 2007-2010

Appendix D: Sector Skills and Productivity Alliance Priorities16 Aerospace and Engineering • Lack of graduate engineers • Lack of graduates with specific Technical Skills, Business Information Technology (BIT), Marketing & Project Management • Acute shortage of level 3 • Skills for Life, IT and bite sized/flexible training • Apprenticeships required for 19+ Chemicals • “Skills for Life” for both new and migrant workers and older workers from sectors not previously accessed • Level 2 for skilled trades plus process and machine operatives • The BIT route is seen as the preferred skills development model • There is a need for some form of vocational element to be built into school level qualifications to ensure that young people acquire practical or “hands on” skills (e.g via the expansion of Young Apprenticeships in Science and Engineering and the development of 14 -19 Diploma models) • Level 3 – increasingly the entry level for the sector will be Level 3 • The highest growth in demand, for both adults and young people, is predicated to be in Level 3 Process Skills.

16

Northwest annual statement of learning and skills priorities 2006/07

35

• The area of Process Skills needs to be reinforced within the apprentice programmes • Higher Level Skills - Significant concerns remain that the HEI Sector cannot respond fully to the needs of the Chemical sector, at least in part because suitably qualified graduates are not choosing the sector for their ultimate employment.

(Although there are a large number of chemistry degrees in the northwest e.g Lancaster, UCLAN, Liverpool, Liverpool John Moores, Manchester and MMU) • The need for improvement in the quality of science based degrees. It appears that, because the cost for science based degrees is prohibitive, other degree topics are receiving greater levels of support and/or chemistry related degrees are becoming diluted with associated learning (e.g. ‘Chemistry with …’ or ‘Chemistry and …’ courses dominating) • For existing employees there is a need to increase the development and uptake of foundation degrees designed to employer’s specifications and delivered locally to upskill the current workforce and to influence the graduate intake.

BioMedical • Level 2 (5 GCSE passes or equivalent) - STEM subjects • Level 3 (2 A-Level passes or equivalent) - STEM subjects • Higher Level Skills (Level 4 and above) first degree or equivalent and above • Key skills identified in bioprocessing industry (reference: Merseyside Biosector Skills Study 2006 & Bioprocess UK KTN)

• Key skills identified by the pharmaceutical industry (reference: ABPI skills study) Skills Gaps • The supply of scientists, technologists and mathematicians to the biomedical and other high tech sectors in the future is at risk due to decline in students taking these subjects at GCSE and A level • Some of the specific subject areas at advanced apprenticeship, degree level and above are being addressed through current biomedical sector projects e.g. NBC and IMB, but there are still other areas to be investigated with regard to future requirements versus potential supply Energy and Environmental Technologies • Level 4 Technical First Line Management • Graduates include Business Skills, Project Management in Science and Engineering courses, develop new modules to include Fuel Cells, Microgeneration and Renewables • Apprenticeships

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Northwest Science Strategy 2007-2010

Appendix E: Summary of Strategic Priorities PROMOTION FOUNDATIONS

PRIORITY CLUSTERS

STRATEGIC SCIENCE SITES

Internationally Excellent Science Base

Aerospace

Manchester Science City

Retain and adapt science base already in place

Engage the region in the National Aerospace Technology Strategy Exploit emerging technologies with economic impact on Northwest Increase regional industry interaction with HEIs

Sucessful development on the Oxford Road corridor

Build Centres of Excellence Build Alliances (N8 and Northern Way) Improve profile of the Northwest

Exploitation of Science Increase interaction between SMEs and the science base Promote benefits of innovation and support companies to undertake innovation

BioHealth Proactively influence national priorities Promote and support international excellence Consolidate major project investments Enhance support to healthcare industry

Build science infrastructure

Leverage NHS activities for economic development

Partnership working between industry and academia

Ensure efficient commercial exploitation channels

Encourage the flow of people across HEI / business boundary

Improve support to established companies

Simplify access to knowledge based enterprises

Chemicals

Provide just-in-time, flexible education for employed people thinking about starting a business Link businesses with potential non-executive chairmen / board members Promote an entrepreneurial culture Improve investment readiness of business propositions

Skills Create a regional science support hub

Specialised skills provision

Establish regional knowledge centre for materials chemistry Promote chemicals industry to young people

Commercialisation of University Intellectual Property Continued expansion of Manchester Science Park (MSP)

Daresbury Science & Innovation Campus Next stage infrastructure development Fourth Generation Light Source (4GLS) investment case to be carried through Increasing collaboration with NHS research

Merseyside Obtaining private sector investment into Liverpool Science Park Formalising National Microsystems Packaging Centre (NMPS) project structure and contracting the project National Biomanufacturing Centre to deliver business plan to build on HEI and commercial capability

Address skills shortages

Nuclear

West Cumbria

Improve marketing of unique regional facilities

Build strong nuclear cluster around Nuclear Decommissioning Authority

Ensure fruition of current skills initiatives Establish scheme for senior scientists to engage with HEI course development Encourage companies to share best practice

Link progression through education pipeline with industry

Nuclear Decommissioning Authority to encourage investment in skills, innovation and R&D

Influence Sector Skills Agreements

Facilitate greater SME involvement in R&D

Support Sector Skills and Productivity Alliances

Capitalise on track record to win future resarch funding

Progress National Skills Academies

Emerging Opportunities

Develop foundation degrees

Carry out foresighting activities Respond to major short term opportunities

37

Establishing University of Manchester as a leading global HEI

Develop Nuclear Academy Potential for hub of a National Nuclear lab National nuclear archive

Appendix F: Priority Sector Action Plans Aerospace Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Programme: Engage the region in developing technologies that build on national strengths Support and contribute to projects in the National Aerospace Technology Strategy (NATS) of strategic importance to the Northwest, initially, ASTRAEA (Autonomous Air Systems) and EFE (Environmentally Friendly Engine)

Leads: BAE SYSTEMS (ASTRAEA), Rolls-Royce (EFE) Other Partners: NWDA, DTI, other RDAs, and HEIs

ASTRAEA: Completion of critical, technological, experimental, and regulatory activities to enable the substantial opening of controlled civil airspace to a range of autonomous air vehicles EFE: Validation of engine technologies leading to reductions in emissions of CO2, NOx and noise emissions, thus incorporated on the next generations of civil aero engines in which the Northwest has significant workshare. Adoption of engine technologies will contribute significantly to European targets for reducing environmental impact of civil and military aviation

December 2010

Completion of Prognosis And Health Management activity – 09/08 Qualification of affordable manufacturing processes – 12/08 Flight Demonstration of test vehicles – 12/08

From 2012 onwards

NWDA Support confirmed – 03/07 Northwest Exploitation Plan – 05/07 Technology Validation Demonstrations – by 12/12 Confirmation of possible environmental emission improvements – by 12/12

From 2007 Onwards

Confirm Northwest criteria for assessment of AINs – 10/06 Launch NWDA Programme – 06/07 Establish Northwest Science Council mandate for approving AIN programme applications – 06/07

Vision and Knowledge Transfer: To enable the exploitation of emerging technologies Establish NWDA programme to support and contribute to the Aerospace Innovation Networks (AINs) identified in the NATS of strategic importance for the Northwest

NWDA, OEMs, NWAA, Direct involvement of the HEIs

region’s OEMs, SMEs and HEIs in appropriate AINs leading to demonstrable exploitation of knowledge transfer into Northwest involvement in forthcoming aerospace programmes and work packages

CONTINUED

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Northwest Science Strategy 2007-2010

Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Vision and Knowledge Transfer: To enable the exploitation of emerging technologies (CONTINUED) Establish plans to enable commercialisation of emerging ‘technologies’ with potential for significant economic impact

NWSC Aerospace sub- Focus and vision agreed with key industry and public bodies team, NWDA, NWAA Industry, HEIs Resources identified to deliver key actions

2007

Leadership teams and action plans in place

Ongoing

Implementation

First areas will be: Autonomous Air Systems, Systems Engineering and Integration, Composites for Civil Aerospace and Virtual Engineering Capability: To increase interaction between HEIs and the business base and stimulate innovation in the supply chain Establish the Northwest Composites Centre as the focal point for regional composites knowledge and development activity

NWCC with NWAA, Texnet

Technology programmes based on the strategy in place Capability exploited by supply base

2010

Clear strategy for composites technology development and exploitation based on market need with support from OEMs, SMEs - 09/07 Funds in place – ‘08

Create innovation management capability in the supply chain

NWDA, NWAA, Project Aerospace supply chain engaged with proposed encumbent regional Innovation Advisors and Innovation Support Programme Best practice from SC21 and DIS in use

39

Ongoing from 2007

Innovation management service funded and operational, with clear lead organisation

BioHealth Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Ongoing management and monitoring of Biomedical Projects deliverables: NBC, CTF, NIBHI, WMIC, UK Biobank, LSTM, Nowgen

Bionow team plus project developers

Delivery of all outputs

As individual project

As individual project

Continue major involvement with Bioprocess UK KTN; establish links with and Biotechnology 4 Business KTN

Bionow, NBC, CoEBio3

Northwest Bioprocess Centre of Excellence

Ongoing

Establish new Medilink Programme in Northwest

Trustech (CMMCUHT)

Increased involvement for Northwest companies in KTNs Increased recognition of Northwest projects at UK level Enhanced support to Healthcare sector

Summer 2006

Improved information for sector on HEI/NHS support Detailed assessment of regional healthcare industry via target account management and desk research

Bionow team (and sub-regional partners), Trustech and Medlink

Increased R&D based activity and/or new process innovations in companies Improved competitiveness and growth

Spring 2007

Target account identification (May 06)

Ongoing

Initial mapping (Jan 06)

CONTINUED

40

Northwest Science Strategy 2007-2010

BioHealth (Continued) Action

Lead and other partners

Success Measures

Target Date

Review of approach required to support commercialisation of regional core capabilities (as detailed in Table on Page 15) and to identify new ones

Bionow, NWSC BioHealth sub-team, Bionow Steering Committee

Defined approach for each core capabilities

Spring 2007

Establish Sector Skills Productivity Alliance (SSPA) for Biomedical

Bionow, LSC, HEIs, Industry, Providers, SEMTA

Delivery of skills programmes as required by industry

Work with Northern Way & NoE to promote and develop Regenerative Medicine and allied projects

UK Centre for Tissue Regeneration, Northwest Embryonic Stem Cell Centre, CELS, Yorkshire Forward, One North East

Establish the North as major force for Regenerative Medicine & ensure strong linkage between northern way activities

41

Intermediate Milestones

Improved commercialisation and/or industry development

Summer 2006

SSPA requested (Nov 2005)

Ongoing

Membership identified (May 06)

To 2010

Chemicals-Using Industries Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Infrastructure and Capability: To build on the Northwest’s strengths, commercial and academic, in Materials Chemistry Establish (virtual) knowledge centre for materials chemistry.

Carry out a programme of activities to facilitate knowledge transfer with a focus on materials chemistry.

Conduct a feasibility study for the centre including the critera for partners Qtr 1 2007 (£60k)

NWSC Chemicals Subteam, CI KTN (managing the project and providing the link to other KTNS and potential partners).

Chemicals Northwest, universities and industry

Increased research funding into Northwest departments – public and private

2007

Northwest perceived as UK leader in materials chemistry

2007

Significant leverage (3:1) as measured by estimated ‘net profit from sales’ of delivered projects

2008 Onwards

Chemicals Northwest CI KTN NWUA Industry

Knowledge transfer events achieving a balance of industrial and academic attendance

2007

Map the landscape in terms of academic strengths and industry needs

Improved understanding by the research base of industry needs

Ongoing

Agree sponsorship and programme

Increased exploitation of knowledge in the market place as defined by the number of new ‘projects’.

Implement the plans for the centre including the National Link to Chemistry Innovation KTN centre of excellence development. (est. £2 – 5m)

Establish regular events

CONTINUED

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Northwest Science Strategy 2007-2010

Chemicals-Using Industries (Continued) Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Chemicals Northwest, NWDA, Regional STEM Support Centre, RSC

Northwest STEM Support Centre launched, co-ordinating:

From Apr 07 Ongoing

Formation of the Northwest STEM Support Centre

Skills and Training: Increase penetration of current schools education programmes; initiate new programmes; raise awareness and improve perception of chemicals sector with young people, leading to higher uptake in FE/HE courses and careers

Increased number of schools participating in CCI and CoSI programmes

Mapping of current sector schools related activities

New ‘Chemistry @ Work’ events launched, and supported by CNW members

Provision gaps, opportunities, partners identified

Chemistry: The Next Generation programmes rolled out across the region

Co-ordinated regional business plan for future activities

Increased Science & Engineering Ambassador take-up from within the sector

Wider communications strategy established

Perception changes amongst young people Increased uptake at GCSE/A level, and follow-on career choices Drive Cogent as necessary CNW/SSPA (Cogent), to secure Skills Academy NWDA, Industry for chemicals sector, to simplify/expedite and increase efficiency of delivery, maximising public sector resource value

Delivery organisation in place to address regional skills needs of sector

Skills gaps and shortages addressed in line with Sector Skills Agreement needs

43

Evaluation metrics agreed/established

2006 (approval)

Ensure that USPs of sector clearly differentiate from other manufacturing industries

2007 (business plan)

Ensure that regional issues are integrated into business plan.

Generate firm employer commitment

2007/8 (operational)

Drive planning process to locate Hub activity in largest sector or best geographical region in UK

Nuclear Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Infrastructure and Capability: To promote and exploit the position of the Northwest as a major provider of “active” laboratory facilities and nuclear expertise.

Establish a National Nuclear Laboratory with the Technology Centre at Sellafield at its core

All stakeholders

Active laboratories in the Northwest regarded as key international facilities enabling a greater share of national/international research funding to be won

2007

Support for concept (2006) Support for reactor technology centre (Ongoing from 2007) Implementation (Ongoing from April ’07)

Produce marketing plan for Northwest capabilities to promote inward investment.

NWDA supported by industry and universities

Greater utilisation of the Northwest nuclear capability from overseas and other parts of the UK

2008

Marketing plan and brochure on Northwest nuclear capabilities (2007).

Implement plan and measure impact

Better exploitation of synergies with other related industrial sectors (e.g. medicine) Skills and Training: To address the on-going concerns for the maintenance of nuclear skills in the UK. Support the setting up of a Nuclear Academy with a Nucleus Centre for craft and technical skills training, innovation and business support acting as a delivery arm

Industry supported by Nuclear Academy built. government (NWDA, Employers utilising Nuclear NDA, DfES, Cogent Academy to meet their craft SSC) and technical skills requirements.

2009

Decision on NNSA (2006) Implementation (2007 on) Building work begins on Nuclear Academy (2007) Nuclear Academy opens (2008)

Share best practice to alleviate impact of staff mobility, early retirements from the sector and difficulties in recruitment with the latter being a particular issue for regulatory bodies

Industry via Cogent SSC and Nuclear Industries Association

Mobility or loss of key staff actively being addressed

2010

Action plan in place (2007)

CONTINUED

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Northwest Science Strategy 2007-2010

Nuclear (Continued) Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Skills and Training: To address the on-going concerns for the maintenance of nuclear skills in the UK. Evidence of greater investment of Tier 1,2,3 contractors in skills development / R&D initiatives

2010

NWDA supported by industry and universities

Greater nuclear content across a wide range of full and part-time courses with more active involvement from industry

2010

Continue the expansion and development of undergraduate and postgraduate training provision in the Northwest to meet industry needs and be responsive to changes such as new build

Universities supported by industry and NDA

Increased no. of undergraduate courses with nuclear component

Review in 2010

Produce marketing plan to promote career opportunities in the nuclear sector and provision of educational material to 12-18 year olds

Cogent SSC, supported by NWDA, industry and universities

Ensure that conditions are placed on contractors (Tier 1,2,3) to demonstrate their commitment to university links, skills development and R&D when bidding for contracts

NDA

Establish scheme to enable senior scientists from industry and exemployees to contribute to university courses (e.g. lecturing, mentoring, placements, course development)

45

NDA plan articulated (2007) Skills plan per site in place (2008)

Funding secured for scheme (2008)

Increased enrolment on postgraduate training courses in nuclear subjects Skills gap being bridged Increased enrolment on FE/HE courses that contain a nuclear component.

Skills gap being bridged.

Review in 2010

Marketing plan produced (2007)

Nuclear (Continued) Action

Lead and other partners

Success Measures

Target Date

Intermediate Milestones

Programmes and Initiatives: To win a greater share of research funding from UK and international schemes and increase intensity of R&D activity.

Co-ordinate efforts to maximise income from national and international research programmes including EU Framework VII, Gen-IV, GNEP, EPSRC and be responsive to new opportunities as they arise (e.g. repository research, energy initiatives via N8).

Universities supported by industry and the NDA

Increase in nuclear research funding for Northwest organisations.

2010

Bids submitted (2007)

Increase and facilitate interaction between SMEs and universities (e.g. use of vouchers to enable better use of existing schemes such as Knowledge Transfer Partnerships)

NWDA supported by universities and industry

Evidence of greater use of university capabilities by SMEs

2010

Concept developed and funding secured (2007) Scheme in place (2008)

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Northwest Science Strategy 2007-2010

Further Information Acimetrics

http://www.acimetrics.com

Advanced Manufacturing Centre

http://www.amrc.co.uk

AIM

http://www.londonstockexchange.com/aim

Airbus

http://www.airbus.com

Ashton Pharmaceuticals

http://www.inyxinc.com

AstraZeneca

http://www.astrazeneca.co.uk

Auralis

http://www.auralis.co.uk

BAE Systems

http://www.baesystems.co.uk

BBSRC

http://www.bbsrc.ac.uk

Bristol Myers Squibb

http://www.bms.com

CCLRC

http://www.cclrc.ac.uk

Celltech Manufacturing Services

http://www.celltechgroup.com

Centre for Ecology and Hydrology http://www.ceh.ac.uk Centre for Materials Discovery

http://www.liv.ac.uk/chemistry

Chemistry Innovation KTN

http://www.chemistryinnovation.co.uk

Chemistry Leadership Council

http://www.chemistry.org.uk

Cockcroft Institute

http://www.cockcroft.ac.uk

Cogent

http://www.cogent-ssc.com

Core Technology Facility

http://www.umic.co.uk

Cussons

http://www.pzcussons.com

Dalton Nuclear Institute

http://www.manchester.ac.uk/dalton

Daresbury Innovation Centre

http://www.daresburyinnovation.co.uk

Daresbury Laboratory

http://www.cclrc.ac.uk

Daresbury Science and Innovation Campus

http://www.daresburyinnovation.co.uk

Defence Industrial Strategy

http://www.mod.uk

Dishman Europe

http://www.dishman-europe.com

DTI

httP;//www.dti.gov.uk

DxS

http://www.dxsgenotyping.com

47

Eden Biodesign

http://www.edenbiodesign.com

Eli Lilly

http://www.lilly.com

Epichem

http://www.epichem.com

Epistem

http://www.epistem.co.uk

EPSRC

http://www.epsrc.ac.uk

EU Framework VII

http://cordis.europa.eu/fp7

F2G

http://www.f2g.com

Farfield Sensors

http://www.farfield-scientific.com

Fuji-Film

http://www.fujifilmic.com

Gen-IV

http://www.gen-4.org

Gentronix

http://www.gentronix.co.uk

GlaxoSmithKline

http://www.gsk.com

Grant for Research and Development

http://www.nwda.co.uk/Business

Greater Manchester Research Alliance (GMRA)

A partnership of all NHS bodies in Greater Manchester with universities, city council and private sector

HEFCE

http://www.hefce.ac.uk

Higher Education Innovation Fund http://www.hefce.ac.uk/reachout/heif Incubation Northwest

http://www.incubationnw.org

Innovation Relay Centre

http://www.ircnorth.org

Intercytex

http://www.intercytex.com

Intertek

http://www.intertek.com

Inyx Inc

http://www.inyxinc.com

Iota Nanosolutions

http://www.iotanano.com

Ivax

http://www.ivax.com

Knowledge Transfer Networks

http://www.ktnetworks.org.uk

Knowledge Transfer Partnerships http://www.ktponline.org.uk L3 Technology

http://www.l3technology.co.uk

Liverpool Digital

http://www.icdc.org.uk

Liverpool School of Tropical Medicine

http://www.liv.ac.uk/lstm

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Northwest Science Strategy 2007-2010

Liverpool Science Park

http://www.liverpoolsciencepark.co.uk

Manchester Biotechnology Incubator

http://www.umic.co.uk

Manchester Molecular Imaging Centre

http://www.manchestermolecularimaging.com

Molecular Materials Centre

http://www.ce.umist.ac.uk/MMC

Museum of Science and Industry

http://www.msim.org.uk

N8

Consortium of 8 Northern Universities

Nanoco Technologies

http://www.nanocotechnologies.com

NATEC

http://www.natec.org.uk

National Aerospace Technology Strategy

http://www.sbac.co.uk

National Biomanufacturing Centre http://www.biomanufacturing.co.uk Neutec Pharma

http://www.neutecpharma.com

Nexia Solutions

http://www.nexiasolutions.com

Northwest Science Alliance

http://www.ccl.ac.uk/Home/WEBNAME=ScienceAlliance

Northwest Science Fund

http://www.northwestscience.com

Novartis

http://www.novartis.co.uk

Novel Technical Solutions

http://www.atomisation.co.uk

NTEC: Nuclear Technology Education Consortium

http://www.ntec.ac.uk

Nuclear Decommissioning Authority

http://www.nda.gov.uk

Nucleus Centre

http://www.thenuclearacademy.com

Nutrinnovator

http://www.nutrinnovator.com

Northwest Composites Centre

http://www.futurecomposites.org.uk

Northwest Embryonic Stem Cell Centre

http://www.ls.manchester.ac.uk/research/ themes/stemcellresearch/stemcellcentre

Northwest Genetics Knowledge Park

http://www.nowgen.org.uk

49

Northwest Institute for Biohealth Informatics http://www.nibhi.man.ac.uk Northwest Laser Engineering Consortium

http://www.lasers.org.uk/nwlec

NWDA

http://www.nwda.co.uk

NWUA

http://www.nwua.co.uk

Oncoprobe

http://www.umip.com/spinout_list/?letter=O

GONW

http://www.gos.gov.uk/gonw

Organic Materials Innovation Centre (OMIC)

http://www.omic.org.uk

Photon Science Institute

http://www.psi.manchester.ac.uk

Pilkington

http://www.pilkington.com

Platform Diagnostics

http://www.platform-diagnostics.com

Proudman Oceanographic Institute

http://www.pol.ac.uk/home

Provexis

http://www.provexis.com

Renovo

http://www.renovo.com

Rolls-Royce

http://www.rolls-royce.com

Sanofi Aventis

http://www.sanofi-aventis.co.uk

Sector Skills and Productivity Alliance

Alliance between employers, training providers and government to provide the skills needs for a particular sector

Selective Finance for Investment (SFI)

http://www.nwda.co.uk/Business

Synprotec

http://www.synprotec.com

TEChINVEST

http://www.techinvest.org

TrusTech

http://www.trustech.org.uk

Sellafield Technology Centre

http://www.nexiasolutions.com

Teva Pharmaceutical Industries

http://www.tevapharm.com

University of Central Lancashire (UCLAN)

http://www.uclan.ac.uk

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Northwest Science Strategy 2007-2010

UK Biobank Ltd

http://www.ukbiobank.ac.uk

UK Centre of Excellence in Biocatalysis, Biotransformation and Biomanufacturing (CoEBio3)

http://www.coebio3.manchester.ac.uk

UK Tissue Regeneration Centre

Website under development

Unilever

http://www.unilever.com

US Global Nuclear Energy Partnership

http://www.gnep.energy.gov

UCB Group

http://www.ucb-group.com

Westlakes Research Institute

http://www.westlakes.org

Wide Chord Hollow Fan Blade Centre of Excellence

http://www.rolls-royce.com/civil_aerospace/technology/widechord.jsp

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Contact: PO Box 37, Renaissance House, Centre Park, Warrington WA1 1XB

www.northwestscience.co.uk

NWDA KADM 04/07 20492