The future of manufacturing by Graham Wren for the TCI Oceania meetup in Sydney, October 2017

1. 1796
The University
of Strathclyde
The
FUTURE
OF
MANUFACTURING
UK Industrial Strategy
&
Public/ Private/ Academia
Collaboration
Professor Graham Wren

2. 1796
The University of
Strathclyde
The
FUTURE
OF
MANUFACTURING
1. A International Perspective:
• UK Industrial Strategy
• The Challenges and the Actions;
2. A UK National Approach:
• A National Research Centre Network:
Catapult Centres;
3. University / Industry Example Projects;
4. Key learnings

3. Coordinating
Industry Demand
with Policy and
Support for
Industry
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Strathclyde
Economic
Growth
Societal
Outcomes
Government
Public SectorStrategy
Legislation
Funding
Research
Development
Consultancy
Common
Objectives
Academia
Competence
Capacity
Focus
Industry
Solutions
Innovation
Demand
Requirements
FundingIndustrial
Strategy:
Key Challenges

4. Industrial Strategy Key Challenges:
Converting Research Excellence into
Economic Growth
Universities, research
organisations and
innovators
UK Catapults
Co-ordinated
National
Translational Centres
‘Valley of Death’
Industry and
companies
Basic
principles
observed
and reported
Technology
concept
and/or
application
formulated
Analytical and
experimental
critical
function
and/or
characteristic
proof of
concept
Component
and/or
validation in
laboratory
environment
Component
and/or
validation in
relevant
environment
System model
or prototype
demonstration
in a relevant
environment
System
prototype
demonstration
in an
operational
environment
Actual system
completed and
qualified
through test and
demonstration.
Actual system
proven through
successful
operations
R 1TRL 1 TRL 2 TRL 3
TRL 7 TRL8 TRL 9
TRL 4 TRL 5 TRL 6
UK Based Industry
Collaborations
Co-Ordinated and
accelerated access to
Research and
Development
UK National centres
Co-Ordinated EPSRC
National Fundamental
Research Centres
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5. UK Industrial Strategy – Update
What is it?
• A plan post Brexit;
• A plan for prosperity and growth for the whole of the
UK;
• A consultation led approach putting industry in a
leadership role;
Greg Clark
Secretary of State for
Business, Energy
and Industrial Strategy
What are its key components?
• Building collaborative activity between Government,
Industry and Academia;
• Central Government intervention in Transport, Broadband
& Energy;
• Sector Deals led by industry sectors;
• Industrial Strategy Challenge Fund;
• Strengthening translational research centre - Catapults.

6. 1. Investing in science, research and innovation – Government will invest
£4.7 billion by 2020-21 in R&D funding through the new Industrial
Strategy Challenge Fund.
2. Developing skills – focus on technical education; boosting STEM;
3. Upgrading infrastructure – digital (5G and Broadband), energy,
transport, water and flood defence infrastructure, alignment of central
government infrastructure investment with local growth priorities
4. Supporting businesses to start and grow – emphasis on access to finance
and management skills with scaling SMEs an emerging priority
Ten Strategic Pillars

7. 5. Improving procurement - strategic government procurement;
6. Encouraging trade and inward investment policy;
7. Delivering affordable energy and clean growth – coordinate changes to
energy infrastructure brought about through a focus on next generation
technologies
8. Cultivating world-leading sectors – focus on competitive advantage and help
new sectors to flourish. Science and Innovation Audits will help make the
case for sector deals;
9. Driving growth across the whole country - frameworks to build particular
strengths of different places and address factors that hold places back
10.Creating the right institutions to bring together sectors and places;
Ten Strategic Pillars

8. Industrial Strategy: Challenge Fund
• £4.7Bn 2017 to 2021;
• Foci:
• Smart Energy Technologies, £264M faraday Fund announced
2017;
• Medicines & Healthcare, £197M Medicines Manufacturing
fund announced 2017;
• Biotechnology and biosciences;
• Satellites and Space, £99M 2017;
• Robotics £93M and Artificial Intelligence, £63M announced
2017;
• Transformative digital technologies;
• Target of +£2Bn/a for science and engineering research by 2020;
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9. Strengthening High Value Manufacturing – UK
Catapult Investment
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NCC
MTC
AMRC
NAMRC
WMG
CPI
AFRC
HVM Catapult
• £500m invested to date
• + £200m core funding
over next 5 yrs
• + £200m+ further
investment
• 1000 staff
How it Works:
• UK national system: High Value
Manufacturing Translational
Research Centres;
• Industry led research club;
• Chaired and led by industry for
industry;
• Subscription model;
• Highly Geared £1 from industry
generates £6 of total research;
• Clusters markets and supply
chains;
• Scale £10M/a to £20M/a;
• Typically 100 specialised staff;

10. More resources at:
hvm.catapult.org.uk
Members

11. Academic Collaboration

12. 2016-2017 performance in numbers
Total value of our assets Private sector clients Size of order book
Number of private sector projects SME clients Number of employees
1,730
£617M
2,1141,383
56% of total numberof private sector clients
3,387 £205m
40%
Up 16%
from 2014-15 Over53% of whichcame from CR&D
53%

13. The funding model and 2016-17 actuals
Core public funding
Commercial
Competitively won CR&D
33%
£73m
36%
£78m
31% £68m
33% 33%
33%
Core funding received to date
£107m
Collaborative R&D Funding levered
£290m
Net benefits for the UK economy
£1.6bn
Potential net benefits by 2020
£6.1bn
Date of next evaluation: 2017
£15
£1
net benefits to the UK
economy from every
core public
funding received

14. UK Research &
Innovation
(Merging 7 Research
Councils, Innovate UK
and HEFCE Research
Funding)
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Industrial Strategy: Simplifying the funding landscape

15. Cockcroft Institute March 2015SCAPA dino@phys.strath.ac.uk
Scottish Universities
Physics Alliance

16. Where have we come from?Advanced Forming Research Centre
• Aerospace, Defence, Oil & Gas.
• Rapid access to new technology – eg 50%
weight reduction, 95% reduction in
manufacturing times….
• £160M/ 8 Years/ 10:1 gearing;
• Scale, pace, expertise;
• International membership;

17. • New manufacturing technology for
Pharmaceuticals;
• 70% reduction in capital plant costs;
• 100% reduction in intermediates;
• Creating new markets – Personalised
Medicines;
• £150M / 7 Years/ 10:1 gearing;
• Rapid route to market;
• International membership, International
research cluster, 8 Universities;
• Now bidding with industry to build a
translational scale up centre;

18. Power Network Demonstration Centre/ Off Shore Renewable Energy
• Smart Grids and
Renewable energy;
• 50% reduction in
generating costs;
• Enabling smart grid
technology
• £50M / 7 Years/ 10:1
gearing;
• Scale, pace, expertise;
• International
membership;

19. Industrial Strategy: Sector Deals
• Led by industry sectors;
• Addressing regulatory barriers to innovation and
growth;
• How can trade and investment deals increase
exports;
• Creation of new institutions to:
• Provide thought leadership;
• Support innovation;
• Boost Skills;
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Aerospace;
Maritime;
Nuclear Energy;
Automotive;
Pharmaceuticals;
Advanced Manufacturing;
…….

20. Sector Deals: Examples, Nuclear Energy
Aims:
• Decarbonising energy production;
• Creating an export market;
• Radically reducing costs;
• Making Nuclear energy the cheapest energy source;
Example projects:
• Small Modular Reactors;
• Waste categorisation;
• Decommissioning costs;
• Modular build;
Who:
• Whole Industry

21. Sector Deals: National Manufacturing Institute
• £1Bn Innovation District, co-invested by Public
Sector (£100M) and Industry, (£900M);
• 10,000 high value manufacturing jobs;
• Co-location of research, skills development,
services and high value manufacturing industry;
• Three public sector investments:
• Skills Academy – Apprentices to PhDs;
• Digital Factory of the Future, 4.0 and beyond;
• A Collabatorium – the ability to trial at scale;
Partners:
• UK Government / HVM Catapult;
• SG, SE, SFC, SDS, HIE, SRPE, Glasgow Airport;
• Industry;

22. Sector Deals Example:
Medicines Manufacturing Industry Centre, MMIC
What is MMIC?
• An open access c£55M co-invested Industry/ Government funded medicines manufacturing scale
up and demonstration centre;
• A centre which will help translate Strathclyde’s and other’s low TRL research to industry and
accelerate its adoption;
• A collaboration between: Industry, Universities (through Strathclyde) and public sector;
• A centre providing GMP primary and secondary manufacturing development and testing facilities,
regulatory interface and proof of concept facilities;
• CPI (part of HVMC) will own (or co-own with industry) MMIC;
• Strathclyde is the Strategic research partner;
• Creating a new world leading industry in the UK;
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23. Governance and leadership
• Strathclyde lead on behalf of SG;
• UK HVM Catapult extension;
• Scotland – A National Institute;
• Link to all Scottish Universities through SRPE;
• UK Universities via HVMC;
Outputs:
• A International Landing site for business;
• World class skills and skills pipeline;
• Integrated industry/ government/ academia
approach to success;
• 10,000 high value manufacturing jobs;
• Highly leveraged research;
• Rapid accelerator for new technologies to
profits;
National Manufacturing Institute for Scotland

24. Key Learnings
1. Coordination: Aligning industry demand with policy and support for
industry from Academia is critical;
2. “Valley of Death”: To exploit research, it needs an effective route to
market. In the UK, we have developed translational manufacturing
research centres – Catapults;
3. Working with Industry: UK has launched Industrial Strategy with strong
commitment to key sectors
• Challenge-led funding
• Industry-sector driven funding
• Major infrastructure investment
• STEM skills
4. Leadership and Championing – Action Centred Leadership.
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