The document discusses approaches for supporting technology innovation in aerospace supply chains through regional clusters. It provides an example of the Midlands Aerospace Alliance's (MAA) Aerospace Technology Exploitation Programme that ran 10 successful projects from 2006-2012 piloting cluster solutions. The MAA model is proposed as the foundation for a new national programme called NATEP that would deliver over 100 technology projects across UK aerospace suppliers from 2013-2017 through regional alliances working collaboratively. The MAA approach successfully mobilized clusters, focused on the needs of small suppliers, and generated new technologies and business growth, establishing participating suppliers as benchmarks for peers.

1. Titel presentatie
[Naam, organisatienaam]
Working Day - Track: Modern cluster policy
A taste of worldwide cluster approaches
Andrew Mair,
Midlands Aerospace Alliance
Better technology innovation
support for supply chain companies

2. 2
Dr. Andrew Mair
Chief Executive
Midlands Aerospace Alliance
Better technology innovation
support for supply chain companies:
a regional cluster perspective

3. 3
Supply chain tiers: the aerospace example

4. The problem: collaboration in aerospace
R&D, what works, what doesn’t
Prime
Tier 1Tier 2Tier 3
Universities
Research funding agencies
Technology institutes
Supplychain
Knowledgebase
Ecosystem largely
fails to exploit
innovation potential of
supply chain below
the sub-system level
(components/ sub-
components/
equipment/ parts/
treatments) and in
manufacturing, which
customers buy on
piece-parts price, as
commodities without
exploring innovation
potential.

5. Typical R&D grant scheme for supply chain
companies
• Drivers
• Funding agency makes call based on policy rationale and timing.
• Stakeholders
• Knowledge comes from the “knowledge base:” The problem is how to commercialise it.
• Aerospace customers are motivated to support creation of IP at suppliers through collaborative
R&D projects
• Process
• Keep it simple, e.g. electronic forms, on-line.
• Proposals best assessed by neutral consultants
• Give budget as possible to companies; they know best how to spend it.
• Application process as hurdle -- if they can’t fill in an application form . . .
• Success?
• Measure of success is “number/proportion of SMEs”
• Funding R&D good in itself, measuring impact on economy is secondary
• Results
• low participation rates or superficial participation to make up numbers
• something isn’t working properly
5

6. A cluster perspective?
• What if we looked at technology development in the supply chain
through a cluster prism?
• Can we animate and mobilise industry regional cluster networks to
develop and support technology projects in the supply chain?
• Worth analysing how this might work; current ecosystem players
(technology elite) find clusters difficult to understand.
• Dialogue could be valuable.
• Compare to “open innovation,” “triple helix”
6
?

7. 7
Airframe
Gas turbine
propulsion
Control
systems
Electronics
Mechanical
& structural
parts
Fluids
Materials
suppliers:
metals,
composites
Systems for
engines/
airframes
(e.g. fuel)
Major
mechanical
components
Motorsport Automotive
Industrial
gas turbine
MedicalMarine
Equipment for design,
engineering, testing
Manufacturing
equipment
Support services
design, training, IT
Research
organisations
Metals
processing
Core aerospaceMidlands Support sector Diversified market
Wiring,
connectors
Midlands
aerospace
cluster

8. Midlands Aerospace Alliance
• Starts 2002, now 300+ paying member organisations from
global aerospace players to SMEs.
• Governed by senior managers from Meggitt, Moog Aircraft
Group, Rolls-Royce and UTAS Actuation Systems, elected
supply chain representatives and key regional partner
bodies (RTOs, government, trade union . . . ).
• Member, European Aerospace Cluster Partnership (EACP).
8
v

9. How regional cluster organisations might
perceive challenge and opportunity
9
Perspective of
cluster
organisations
Structural
problem of low
innovation in
lower reaches of
supply chain
Possible to exploit
know-how in
suppliers
commercially via
R&D
Valuable to inject
technology
innovation from
other sectors

10. Cluster ecosystems have good stakeholder groups
10
Cluster
organisation
perspective
Understandin
g specific
stakeholder
ecosystems of
suppliers
Cross-
industry links
to related
sectors in
cluster
Direct access
to OEM
experts to
understand
route to
market
Inter-cluster
networks give
links to
international
customers
Good
knowledge of
supplier
companies in
own cluster

11. Typical cluster
mindsets are helpful
11
Cluster
organisation
perspective
Focus on
generating IP at
suppliers
“They speak our
language”:
appropriate business
processes
Technology
managers branded
to cluster, with
personal attributes to
work with small and
large companies
Address every
market and policy
failure for
maximum risk
reduction and
effectiveness
Ownership by
supplier
community
fundamental to
trust
Loyalty to regional
cluster motivates
substantial in-kind
input

12. Cluster tool:
technology managers mentor portfolio of projects
1. Expert mentors bring vast industry
experience
2. Mentor projects from cradle to grave
3. Fill the classic gap in technology
management at small manufacturers
compared to big companies.
4. Ensure the highest possible number of
projects are completed successfully.
5. Personal attributes to work at
large/small company boundaries
6. Trusted because branded to cluster
organisations owned by suppliers
7. Not perceived as “consultants”
8. Leave legacy of
• technology project management
• design of experiments
• risk management
• technology roadmapping
• project dissemination

13. Cluster stakeholders:
inject industry expertise and guidance
13
Cluster R&D Steering Group (Midlands
Aerospace Alliance version)
ITP Engines UK, Manufacturing Technology
Centre, Meggitt Aircraft Braking Systems, Meggitt
Polymers and Composites, Ricardo UK, Rolls-
Royce, Teer Coatings Limited, TT Electronics,
University of Nottingham Institute for Aerospace
Technology, UTC Aerospace Systems - Actuation
Systems, UTC Aerospace Systems - Marston
Aerospace, Winbro Group Technologies Limited
• Experts from OEMs, Tier 1s, regional institutes
• Loyalty to regional aerospace cluster
• Personal commitment to support supply chain
• Experts serve as general “customer mentors”
• give in-depth feedback on R&D proposals
• find customer mentors for projects
• resolve issues and systematise how OEMs can best support projects

14. G&O Springs
Approx. 35 employees, approx. £2m turnover:
The project
• G&O Springs was craft-based make-to-print supplier
• Now possesses IP in spring design critical for
actuation systems
• Worked with Aero Engine Controls (now Rolls-Royce),
BAE Systems., new customer Goodrich Actuation
Systems (now UTC).
The results
• Since project, company sales up by 37%
• UTAS now account for >12% of turnover
• Knowledge gained helped gain more customer
approvals – Sikorsky, Fokker
• Completed legacy F22 parts for BAE Systems and
helped with new designs
Aerospring project

15. Computer-
designed-tyres
for safer aircraft
take-off and
landing
Ceramic
materials applied
to brakes give
them longer life
so better
economics
Computer-aided
spring designs for
mechanical parts
allow whole
systems to be
lighter
Casings for
moving parts
made from
composites are
much lighter than
traditional metals
New high-strength
metal alloys are
much less costly
than current metals in
aircraft and engine
mechanical parts
Chrome-free
coatings for
engine
components meet
environmental
standards
Innovative heat
exchangers to cool
engines working at
more efficient hotter
temperatures*
* 3 projects
New technologies from the Midlands manufacturing
supply chain for tomorrow’s aircraft:
 are light-weight (save fuel and CO2)
 work at high temperatures (more efficient, reducing CO2)
 are safer for passengers and the environment
 are less costly so better economics
New metal
joining methods
promise to
dramatically
reduce energy
use
Nano-coatings prevent
damage to moulds used
to make engine parts,
increasing quality and
reducing cost
All technologies funded by industry, Advantage West Midlands and
European Regional Development Fund; all projects managed by
Midlands Aerospace Alliance, 2006-12 under its Aerospace
Technology Exploitation Programme.
Participating companies:
Advanced Chemical Etching, Aero
Engine Controls, Aeromet, Airbus,
Alloy Wire, BAE Systems, CERAM,
Clean Burner Systems, Dunlop
Aircraft Tyres, G&O Springs,
Goodrich Actuation Systems,
Grainger & Worrall, HS Marston,
Indestructible Paint, Institute of
Spring Technology, London &
Scandinavian Metallurgical,
Meggitt Control Systems, RSM
Springs, Rolls-Royce, Teer
Coatings, University of
Birmingham, University of
Wolverhampton.
These aircraft and engine examples are used only
to illustrate potential technology applications
Midlands Aerospace Alliance ran 10
successful projects (2006-12) to pilot
cluster solutions

16. 16
Midlands Aerospace Alliance (MAA) one of five regional cluster
aerospace alliances in the United Kingdom
North West Aerospace Alliance
(ADS Scotland)
Aerospace Wales Forum
Farnborough
Aerospace
ConsortiumWest of England Aerospace Forum
(ADS Northern Ireland)
Midlands
Aerospace
Alliance

17. www.natep.org.uk
Can this model work “multi-cluster”?
What?
 Deliver 100+ technology projects in UK aerospace supply chain
 Deploy technologies on global aerospace platforms by 2020/25
 Strengthen technology development capabilities of 250+
suppliers
How?
 Use the proven MAA ‘ATEP’ model as the foundation
 Run £40m programme 2013-2017 in England: view projects as
portfolio
 Also runs in Northern Ireland, linked into programme in England
 Align aerospace OEMs, mid-caps, SMEs, research bodies within
national aerospace strategy
 Contract management by national body ADS. All frontline delivery
by regional aerospace alliances
 Inject project mentoring from customers, from experts
 Focus organisation to fit the business models of typical smaller
aerospace suppliers
 Projects
 Collaborative along
supply chain
 Up to £150,000
with typical duration
18 months
 Plus injection of
mentoring
NATEP

18. Scale of projects in Midlands: >100 activities
18

19. Impact on industry
• Cluster successfully mobilised
• Relentless focus on fit with needs of smaller suppliers produces results
• New technologies creating real business growth
• Cross-sector: half of participants from outside aerospace
• Suppliers learn to do systematic R&D projects not only informal innovation
• Participating suppliers becoming benchmarks for peers now attracted to
undertake R&D
• Scale sufficient to mobilise structured participation by OEMs and tier 1s to
share load of supporting supply chain
• OEMs/tier 1s start to incorporate this activity as part of technology portfolio
– to capture and develop innovation from the supply chain