The document outlines the UK government's industrial strategy to promote partnership between government and industry. It discusses the need for the strategy due to changes in the global economy and the UK's relative position. The strategy focuses on strategic partnerships in key sectors like aerospace, offshore wind, and construction. Progress to date includes commitments in life sciences, automotive investments, technology investments, improving access to finance, procurement, and skills. The overall goal is to promote long term growth through these partnerships and investments.

1. Industrial Strategy:
government and industry in
partnership
March 2013

2. Structure
Why we need to act
Industrial Strategy
Progress to date
2

3. Why we need to act
No return to the old growth model
A stable macro business environment is key to enabling growth
• Previous growth model based on
Net Trade
government spending, 4.0%
3.5% 2.7%
3.0% 3.0%
consumption and property 3.0%
Change in
Inventories
speculation 2.5%
2.0%
Government (C+I)
2.0%
• Contribution to GDP from 1.5%
Dwellings
Investment
0.8%
Government activity grew from 1.0%
Business
0.3% between 1990-99 to 0.7%
Investment
0.5%
Private
between 1999-2008, becoming
0.0%
consumption
-0.5%
the second most important -1.0%
GDP
driver of growth
2012 2013 2014 2015 2016
• The deficit means Government spending cannot contribute to
growth to the same degree 3

4. Why we need to act
UK’s relative position is under threat
If the UK stands still there is a danger we will be left behind
• Globalisation and rise of BRICS
are changing UK’s relative
position in global economy
• Developing countries are
competing higher up the value
chain, threatening the UK’s
traditional comparative
advantage
4

5. Why we need to act
A stable macro environment is key UK exports of Goods and Services to:
• The Coalition has laid the broad 250
foundations … 200
o responsible government 150
£ billion
finances 100
o a competitive currency 50
o support for science, 0
Other emerging countries BRIC Other advanced economies EU27
1998 2008 2009 2011
o promoting exports, especially
2.2
2
to emerging markets
Currency Unit per £
Euro US $
1.8
o competitive business taxes 1.6
1.4
• … But more is needed to keep a 1.2
sustained advantage
1
Jan- Jun- Nov- Apr- Sep- Feb- Jul- Dec- May- Oct- Mar- Aug- Jan- Jun- Nov-
07 07 07 08 08 09 09 09 10 10 11 11 12 12 12
No business would operate without a long term plan 5

6. Industrial Strategy
Industrial Strategy:
government and industry in partnership

7. Industrial Strategy
Strategic partnerships – the sectors
Early 2013 Spring 2013 Summer 2013
Aerospace Offshore wind Construction
Aim: Maintain existing UK Aim: Increase inward Aim: Improve
market share; secure UK investment in energy competitiveness and
employment supply chain productivity to support
increasing exports
Nuclear Information Professional Business
Aim: Increase inward Economy Services
investment in energy Aim: Optimise ICT Aim: Export opportunities
supply chain use by business in developing economies
Oil and Gas Agri-tech Automotive
Aim: Increase inward Aim: Developing and Aim: Repatriate
investment in energy exporting innovative supply chain and
supply chain technologies e.g. in exploit low carbon
food security technologies
Life Science
Strategy Dec 2011 Education
Aim: Grow UK
Life Science Strategy education exports
one-year-on
Dec 2012 7

8. Progress to date
Progress
Sectors
•Life Sciences: commitment to sequence the whole genome of 100,000 NHS patients
•Automotive: levered over £6bn investment into the UK. £3bn of additional supply chain
opportunity: e.g. GM at Ellesmere Port, Bosch in the Midlands
•£125mn invested in supply chains to encourage advanced manufacturing investment
Technologies
• Seven Catapult Technology and Innovation Centres
o High Value Manufacturing, Cell Therapy, Offshore
Renewable Energy, Satellite Applications are open Big data Space Synthetic Advanced
o Connected Digital Economy, Future Cities and technology biology materials and
nanotechnology
Transport Systems open by June 2013
• Support for “eight great technologies”
Robotics Energy Agri-
o £600 million funding in Autumn Statement 2012 science
Regenerative
storage Medicine
• Patent Box introduced progressively from April 2013
will provide reduced corporation tax rate of 10% for
companies exploiting patented inventions

9. Progress to date
Progress
Access to Finance
• Funding for Lending scheme is encouraging the banks to lend more - if it can mobilize
the projected £60-£80bn
• The first steps in creating a £1bn Business Bank to support SMEs
• UK Green Investment Bank operational since October 2012 - funded with £3bn
Procurement
• Government is making it easier for businesses to see what it is buying, by publishing
£84bn of Procurement pipelines
• Addressing strategic capabilities, e.g. tunnelling
Skills
• Employer Ownership Pilot gives employers direct access to public investment for
training through a competitive fund
o £90m of funding to support 37 projects in the first tranche; more than matched
by £115m of employer contributions
o Second round closes 28 March 2013; prioritising industrial strategy sectors 9
• £6m for 500 people to study Masters level degrees in aerospace engineering

10. Progress to date
Progress
Access to Finance
• Funding for Lending scheme is encouraging the banks to lend more - if it can mobilize
the projected £60-£80bn
• The first steps in creating a £1bn Business Bank to support SMEs
• UK Green Investment Bank operational since October 2012 - funded with £3bn
Procurement
• Government is making it easier for businesses to see what it is buying, by publishing
£84bn of Procurement pipelines
• Addressing strategic capabilities, e.g. tunnelling
Skills
• Employer Ownership Pilot gives employers direct access to public investment for
training through a competitive fund
o £90m of funding to support 37 projects in the first tranche; more than matched
by £115m of employer contributions
o Second round closes 28 March 2013; prioritising industrial strategy sectors 9
• £6m for 500 people to study Masters level degrees in aerospace engineering