Southampton12 june


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TSB presentation at SETsquared IGNITE your... event 12 June 2012

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  • This slide represents the usual types of ProjectResearch Councils fund Early Stage or Blue sky Projects.Venture capitalists will be attracted to projects which are closer to getting to market (less risk)TSB operates in between these two, and tries to encourage R&D where sometimes it’s more difficult to obtain(as more risk)“Applied Research / Experimental development”
  • Southampton12 june

    1. 1. Technology Strategy Board Dr James Clipson EU Business Manager Technology Strategy BoardMark Glover12th January 2011
    2. 2. What is the Technology Strategy Board?UK national innovation agency set up to invest in businessinnovationWe work across business, universities and governmentWe mostly come from business - 180 people with over 2,000years of business experienceWe were responsible for investing c. £350m a year
    3. 3. New Government – New Reality...• Emergency budget & 4 yr CSR • Priority on tackling the deficit• Less interventionist philosophy/religion • From Industrial activism to...• Major changes and re-organisations • RDAs, MoD and Health• Another bonfire of the Quangos • All NDPBs require a clear rationale for existence• Need to play to different priorities • Re-balancing of the economy • Increased focus on SME support and Government 3
    4. 4. The Strategic Plan• Entering our second phase of existence • Phase 2 – Embed • Build on foundations, increase effectiveness, demonstrate impact , become core policy• Theme “Accelerating Concept to Commercialisation” • Stakes out our broad role in the innovation journey • Indicates focus on commercialisation & realising economic value • Dont just move the valley of death further along the road 4
    5. 5. Published new strategy in May 2011The Strategy -• Builds on the first 3 years• Provides the strategic direction for next 4 years• Supported by over £1 billion of funding• Develops role as UK innovation agency Our goal is to accelerate economic growth by stimulating and supporting business-led innovation 5
    6. 6. The TSB Rationale• TSB Role / Mission • Accelerating sustainable UK economic growth through stimulating and supporting business innovation• As an NDPB we dont exist to self perpetuate rather to help reduce the barriers to business innovation.... solve specific challenges.... 6
    7. 7. The Problem• Business investment is too low and too late • Constrained by Technical and financial risks & access to Capital• Innovation disrupts value chains and business models • New partnerships are required to build new supply chains • Investment and innovation is required at multiple points• Longer term trends not visible to all players • Impact and opportunities from emerging technologies & policies• Innovation infrastructure complex and inefficient • Fragmented and difficult to navigate, knowledge flows impeded• Government does not make best use of its levers • Procurement, regulation, standardisation, fiscal incentives 7
    8. 8. Our 5 Strategic Focus Areas• Accelerating the journey - concept to commercialisation • Understanding the non-linear journey and how best to support• Connecting the innovation landscape • Developing the strategic relationships we need in UK, EU & Int.• Turning Government action into business opportunity • Where Government procures, regulates, standardises...• Investing in theme areas based on global potential • Building a synergistic programme based on data driven choices• Continuously improving Organisational capability • Impact assessment, metrics, measures, efficiency, effectiveness.. 8
    9. 9. The Toolset Range of Tools with different objectives / characteristics Collaborative Smart R&DLaunchpadInnovation Innovation and Entrepreneur Vouchers Knowledge Centres Missions
    10. 10. Investing in priority areas based on potential
    11. 11. Thematic Programme Budget 14/15
    12. 12. Who Gets the Grants (£ awarded)100%90%80%70%60% Unkown50% SME40% Large Company30% Academia20%10% 0% 2009 2010 2011 12
    13. 13. Tool Engagement by Company Size 100% 90% 80% 70% 60% academic 50% large 40% medium 30% 20% small 10% micro 0% 13
    14. 14. Tool Engagement by Company Age100 90 80 70 60 >10yrs old 50 40 5-10yrs old 30 <5yrs old 20 pre-start 10 0 Improving SME 14
    15. 15. TSB interaction with universities • Two thirds of our projects by value involve at least one university partner. • 36% of the grant money goes to universities (this includes RC co-funding). 20% of our TSB grant goes to universities. • 72% of total grant to universities goes to 25 organisations. • 15-20% KTN members are from academia. • 18% _connect members are from academia.
    16. 16. Criteria for investment• UK capacity to develop and exploit the technology• The size of the global market opportunity• The right potential for impact in the right time frame• A clear role for the Technology Strategy Board to add value
    17. 17. Thematic PrioritiesMark Glover12th January 2011
    18. 18. Investing in priority areas based on potential
    19. 19. Development• Emerging Technologies and Industries – Synthetic Biology – Energy harvesting – Energy Efficient Computing – Graphene• Design and the Creative Industries• Financial Services• Personal Safety
    20. 20. European and International• Increasing UK business success in accessing European funding and maximising benefit.• Influencing European programmes.• Increasing international activities.• Bilateral activities which align with our strategic priorities and where there is benefit for UK business.• Exchange of information on innovation.
    21. 21. Catapult CentresMark Glover12th January 2011
    22. 22. What is a Catapult centre?Business-focused centre that makes world-leading technicalcapability available to businesses to solve their technicalchallenges. • Access to world-leading technology & expertise. • Reach into the knowledge base for world-class science. • Capability to undertake collaborative R&D projects with business. • Capability to undertake contract research for business. • Strongly business focused with a professional delivery ethos. • Create a critical mass of activity. • Skills development at all levels.
    23. 23. UK Landscape & ContextTRL:1 2 3 4 5 6 7 8 9 Universities TIC / Institutes Industry Research Centre Catapult centre Industry (Large & SME’s) UniversityMap the landscape from Research through to Challenge Areasfor each key technology & application areas:Research Research Centres Technology & Innovation RTOs, PSREs, Industrial Industry Commitment UK Prioritiesexcellence Centres Science parks, R&D Centres TTOs, etcRCUK to RCUK , charity & RDA/DA centres, etc. Other Major R&D -Opportunities for UK - Low Carbonidentify other centres and - Existing organisations in centres & - Willingness to -Digital Economy institutes (IMRC’s - Proposed the area. incubators co-invest - Energy IKC’s EIT’s etc) - Potential - Health/Medicine
    24. 24. Impact & ScaleA critical mass to anchor globally mobile companies & reflect the UK contextFunding Model: • ⅓ = business funded contracts = competitive • ⅓ = CR&D projects = competitive • ⅓ = Core public investmentTotal revenue ~£20-30m pa (or greater) equates to 100-200 staff £10-15m pa from businesses
    25. 25. Catapult Centres 1st Centre open for business• High Value Manufacturing • Cross Sector, broad technology base • Embracing broad range of manufacturing • Metals & composites, process manufacturing incl. bio-processing 2nd and 3rd Catapults to be launched 2012• Cell Therapies• Off Shore renewable Energy4th Catapult announced on 4 January 2012• Satellite applications
    26. 26. Catapult Centres Three more Catapult centres announced• Connected Digital Economy• Transport• Future Cities
    27. 27. Closing the gapbetween concept andcommercialisation
    28. 28. Applying for R&D Funding
    29. 29. Support for business: Collaborative R&D EU Grant opportunities Catapult Centres Smart Grants Small Business Research Initiative (SBRI) Eurostars _Connect Knowledge Transfer Partnerships Knowledge Transfer Networks
    30. 30. Common factorsMark Glover12th January 2011
    31. 31. Types of Project Commercialisation Prod. Prototype System Qual. System Dev. Technology Demo Technology Development Feasibility Blue skyResearch Commercial Investment Basic Applied Experimental Venture CapitalCouncils TSB and its co-funders funding Market readiness
    32. 32. Types of ProjectResponse Thematic• Always open • Single competitions – Batched assessment several – One off times a year • Specific competition brief• Any technology or sector – Deadlines• Funds – Topic area – Spread over the year – Funding level• Resubmission permitted within limits • No resubmission to the same competition
    33. 33. Key Points:•Grant funding determined by time to market•Response or thematic competitions•Most competitions open to wide variety of applicants
    34. 34. Competition Process
    35. 35. TSB Strategic Criteria• Does the UK have the capability?  Significant research capability/capacity to exploit opportunities.• Is the idea “ready”?  Clear opportunity to which this is a timely response.  Speed progress towards more sustainable economic growth.• Is there a large market opportunity?  What is the size of the global market opportunity?  Will it create added value in the UK, taking into account the global market potential?• Can the Technology Strategy Board make a difference?  Can we add value?  Will our investment promote sustainability and quality of life?
    36. 36. The “Ideal Project”• A clear commercial opportunity to open up or exploit a significant growth market.• A technical challenge that requires the creation of an industrially driven consortium and innovative and risky research and development to solve.• A realistic project with deliverables and applications that are innovative, commercially exploitable and of wider benefit.• A demonstrable need for support.
    37. 37. Collaborative R&D - Thematic• Collaborative... UK business-led• Typically in the category of Applied Research (attracting 50% public funding for eligible project costs)• Competitions announced on TSB website and also via TSB newsletter –
    38. 38. Specific SME support• Small Business Research Initiative• Smart Awards
    39. 39. Procurement Process – procuring R&D • Govt Dept/Agency/other public sector body identifies a particular need or problem • SBRI enables them to engage with business to find & procure novel ideas and solutions • Businesses bid in with their ideas – those selected get development contracts • 20-30 opportunities per yearDevelopment Contracts • 100% funded R&D • IP rests with business - encouraged to use and exploit IP • Staged payments on deliverablesMay lead to longer term supply contract
    40. 40. SBRI - Progress• From April 2009 to present: – 60 competitions – 1800 businesses have applied – 550 contracts awarded to date – Total contract value £36+m – Currently working with 24 Government Departments and other public sector bodies
    41. 41. Smart
    42. 42. Overview• Assist micro, small and medium sized businesses and pre-start-ups• UK wide – Supersedes RDA scheme – Working alongside Devolved Administration schemes – Discussing to align with DAs• Single company grants• Deliver successful new products, processes and services• Economic Growth
    43. 43. Grant Types• Proof of Market – assess commercial viability – market research – initial planning for commercialisation• Proof of Concept – initial feasibility studies – basic prototyping, specialist testing and or demonstration – investigation of production options. – Pre-clinical research studies• Development of Prototype – pre-production prototype – IP protection – trials and testing (including clinical) – identifying routes to market
    44. 44. Grant TypesGrant Type Intervention rate Max grant level Max duration (responsive mode)Proof of Market 60% £25,000 (max 20% 9 months upfront payment)Proof of Concept 60% £100,000 (lower of 20% 18 months or £10,000 upfront payment)Development of 35% medium £250,000 24 monthsPrototype enterprises 45% small and microIntervention rate = grant / total project costPoM project costing the company £41,667 may receive a grantof £25,000
    45. 45. Eligibility• UK based SMEs and pre-start-ups• Fewer than 250 employees• Turnover < €50m• Balance sheet < €43m• EU definition:
    46. 46.