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

1. Technology Strategy Board
Dr James Clipson
EU Business Manager
Technology Strategy Board
Mark Glover
12th January 2011

2. What is the Technology Strategy Board?
UK national innovation agency set up to invest in business
innovation
We work across business, universities and government
We mostly come from business - 180 people with over 2,000
years of business experience
We were responsible for investing c. £350m a year

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. 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
• Don't just move the valley of death further along the road
4

5. Published new strategy in May 2011
The 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. The TSB Rationale
• TSB Role / Mission
• Accelerating sustainable UK economic growth through stimulating
and supporting business innovation
• As an NDPB we don't exist to self perpetuate rather to help
reduce the barriers to business innovation....
...to solve specific challenges....
6

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. 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. The Toolset
Range of Tools with different objectives / characteristics
Collaborative
Smart R&D
Launchpad
Innovation Innovation and Entrepreneur
Vouchers Knowledge Centres Missions

10. Investing in priority areas based on
potential

11. Thematic Programme Budget 14/15

12. Who Gets the Grants (£ awarded)
100%
90%
80%
70%
60% Unkown
50% SME
40% Large Company
30% Academia
20%
10%
0%
2009 2010 2011
12

13. Tool Engagement by Company Size
100%
90%
80%
70%
60% academic
50% large
40%
medium
30%
20% small
10% micro
0%
13

14. Tool Engagement by Company Age
100
90
80
70
60
>10yrs old
50
40 5-10yrs old
30 <5yrs old
20
pre-start
10
0
Improving SME
14

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.

17. 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

18. Thematic Priorities
Mark Glover
12th January 2011

19. Investing in priority areas based on potential

20. Development
• Emerging Technologies and Industries
– Synthetic Biology
– Energy harvesting
– Energy Efficient Computing
– Graphene
• Design and the Creative Industries
• Financial Services
• Personal Safety

21. 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.

22. Catapult Centres
Mark Glover
12th January 2011

23. What is a Catapult centre?
Business-focused centre that makes world-leading technical
capability available to businesses to solve their technical
challenges.
• 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.

24. UK Landscape & Context
TRL:
1 2 3 4 5 6 7 8 9
Universities
TIC / Institutes
Industry
Research
Centre
Catapult
centre Industry
(Large & SME’s)
University
Map the landscape from Research through to Challenge Areas
for each key technology & application areas:
Research Research Centres Technology & Innovation RTOs, PSREs, Industrial Industry Commitment UK Priorities
excellence Centres Science parks, R&D Centres
TTOs, etc
RCUK to RCUK , charity & RDA/DA centres, etc. Other Major R&D -Opportunities for UK - Low Carbon
identify 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

25. Impact & Scale
A critical mass to anchor globally mobile companies & reflect
the UK context
Funding Model:
• ⅓ = business funded contracts = competitive
• ⅓ = CR&D projects = competitive
• ⅓ = Core public investment
Total revenue ~£20-30m pa (or greater) equates to
100-200 staff
£10-15m pa from businesses

26. 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 Energy
4th Catapult announced on 4 January 2012
• Satellite applications

27. Catapult Centres
Three more Catapult centres announced
• Connected Digital Economy
• Transport
• Future Cities

28. Closing the gap
between concept and
commercialisation

29. Applying for R&D Funding

30. 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

31. Common factors
Mark Glover
12th January 2011

32. Types of Project
Commercialisation
Prod. Prototype
System Qual.
System Dev.
Technology Demo
Technology Development
Feasibility
Blue sky
Research Commercial Investment
Basic Applied Experimental Venture Capital
Councils
TSB and its co-funders funding
Market readiness

33. Types of Project
Response 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

34. Key Points:
•Grant funding determined by time to market
•Response or thematic competitions
•Most competitions open to wide variety of applicants

35. Competition Process

36. 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?

37. 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.

38. 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 – www.innovateuk.org

39. Specific SME support
• Small Business Research Initiative
• Smart Awards

40. 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 year
Development Contracts
• 100% funded R&D
• IP rests with business - encouraged to use and exploit IP
• Staged payments on deliverables
May lead to longer term supply contract

41. 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

42. Smart

43. 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

44. 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

45. Grant Types
Grant 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 months
Prototype enterprises
45% small and
micro
Intervention rate = grant / total project cost
PoM project costing the company £41,667 may receive a grant
of £25,000

46. Eligibility
• UK based SMEs and pre-start-ups
• Fewer than 250 employees
• Turnover < €50m
• Balance sheet < €43m
• EU definition:

47. www.innovateuk.org
james.clipson@tsb.gov.uk