High Value Manufacturing - Strategy 2012-2015
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High Value Manufacturing Strategy 2012-2015
02
EXECUTIVE SUMMARY
The resurgent UK-based auto As part of the process of
industry exported a record- reviewing our existing strategy
breaking 84% of production we have drawn extensively
in 20117. Underpinning these on the findings of the Institute
important statistics is an average for Manufacturing (IfM)
annual productivity increase of study, A landscape for the
3.6%, two and a half times greater future of UK manufacturing,
than the UK economy as a whole4. that we commissioned and
subsequently published in
Despite these strengths, February 20128. In working
globalisation has continued to with IfM to progress this study,
drive production activities towards we have consulted extensively
countries with the lowest labour with industry, academia and
costs and/or the largest markets, other organisations. Our
and the UK remains vulnerable corporate strategy Concept
to eroding manufacturing to Commercialisation9 also
investment and capability. This, underpins this work.
coupled with the financial crisis
Manufacturing contributes over £6.7tr to the global economy1 and highlighting the UK economy’s
the UK is a major competitor. In terms of manufacturing Gross Value over-dependency on service
Added (GVA), it is in the world’s top 102, generating 10% of UK GVA3. sectors, has led the
UK manufacturing directly employs 2.5 million people, generates UK Government to aim
half of UK exports and accounts for three quarters of business R&D to increase the role that
conducted in the UK4. The UK ranks second only to the US in the manufacturing plays in the growth
aerospace industry5, and two out of the top six pharmaceutical of the economy. Innovation
companies are headquartered in the UK6, where they also support in manufacturing, through
significant manufacturing assets. commercialising the world-class
output of the UK science base, is
fundamental to these long-term
growth ambitions.
High Value Manufacturing | 2012-2015
03
Our strategy • investing in the High Value ‘High value manufacturing accounted for 35% of all
Manufacturing (HVM) Catapult to
We aim to ensure that high value provide the cutting-edge equipment UK exports in 2010, contributing £151bn to the UK
manufacturing is a key driver of UK
economic success.
and the skilled resources our balance of payments.’ 10
businesses need to commercialise
We will help accelerate businesses on their world-class technologies
their innovation journey from concept to • providing open access to the most
commercialisation by: effective platforms for knowledge
• doubling our direct investment exchange, such as the Knowledge
in high value manufacturing Transfer Networks, Knowledge
innovation to around £50m a year Transfer Partnerships, Special
(a number of other sectors and Interest Groups and HVM Catapult,
technology areas in the Technology that will help businesses combine
Strategy Board, e.g. advanced the best manufacturing innovations
materials, biosciences, transport to create world-beating products,
and energy will also invest in processes and services.
manufacturing innovation specific
to their target areas).
Why high value manufacturing? What makes a sector attractive for
• focusing our investment in the our investment?
High value manufacturing is the application of leading-
most attractive technologies and
edge technical knowledge and expertise to the creation of
market sectors where the UK can
products, production processes, and associated services
become an important player in
which have strong potential to bring sustainable growth
large global markets
and high economic value to the UK. Activities may stretch
• making our investment choices from R&D at one end to recycling at the other. Such
using a set of 22 manufacturing potential is characterised by a combination of high R&D H IGH VALU E
competencies (as identified and intensity and high growth (see right). MANUFA CTURING
defined in the landscape study)
to ensure our support is focused
on where there is the greatest
GROWTH
potential to deliver high-value
economic impact across multiple
global market sectors
R&D INTENSITY
High Value Manufacturing | 2012-2015
EXECUTIVE SUMMARY continued
04
What are the challenges to What are the opportunities
innovation? for business? The set of 22 competencies
To innovate in manufacturing, new Opportunities for UK high value is grouped around five
knowledge must be applied to generate a manufacturing may arise in new markets, strategic themes:
new product, process or service, or new new technologies, and through addressing
technology utilised to improve an existing the challenges above. But if we were • resource efficiency
process. In each case, businesses face to analyse them purely in this way we
the challenges of securing the supply would inevitably come to a very narrow • manufacturing processes
of resources as well as the need to view of what the opportunities are for
take risks to achieve significant impact. innovative businesses. • materials integration
Manufacturing new products or adopting
In aiming to look at the ‘bigger picture’
new manufacturing processes both require
we have identified a set of high value • manufacturing systems
demonstration at commercial scale and this
manufacturing competencies necessary to
step up is often expensive and risky. This
deliver innovation across a broader range of • business models.
so-called ‘Valley of Death’ – where many
applications. Each competency represents
innovations fail – represents a significant
a group of technology-related capabilities These strategic themes offer
barrier to innovation in manufacturing, and pivotal opportunities for
which, if held by a number of companies/
one which the new Catapults are designed
to address.
organisations, will enable high value businesses and we will use
manufacturing across several different market them to inform our investment
Small and medium-sized enterprises sectors. An example is the development
(SMEs) will play an increasingly important and application of advanced coatings which
decisions for high value
part in achieving economic growth, and impacts many sectors – from food and manufacturing over the
connecting these companies to the global healthcare, to aerospace, oil and gas. coming years.
players who often represent valuable routes
to market is a specific challenge.
We believe that, in order to tackle such
challenges, businesses need to acquire
certain ‘competencies’ that will equip them
with the means to meet the challenges head-
on, turn them to their own advantage, and
enable them to exploit the opportunities.
High Value Manufacturing | 2012-2015
Making choices
We will focus our investment and
support activities where we believe
UK businesses stand to gain most
success and where our funding will
make the most difference.
The five strategic themes
reflecting business opportunities. We will focus our innovation support
on the pre-competitive stages of
05
There is strong overlap between these themes. technology development between
Global competitiveness underpins all the themes proof of concept and commercial
and new business models are essential for the demonstrators, through investment
realisation of value. in collaborative R&D projects and the
core capabilities of the HVM Catapult.
We will invest about half of our
budget in the Catapult. This will
assist businesses requiring higher
levels of investment in equipment
and expertise in ‘platform’
technologies than is possible through
Securing UK manufacturing our collaborative R&D programme,
technologies against scarcity of energy and make such resources more
and other resources affordable to SMEs.
In making choices we will use:
• sector attractiveness
• the 22 national competencies
Increasing the global
competitiveness of UK manufacturing • technology readiness level
technologies by creating more efficient and effective • additionality (the potential
manufacturing systems for the Technology Strategy
Board investment to make a
Creating innovative difference).
products, through the integration Developing new, agile, as our key selection criteria.
of new materials, coatings and more cost-effective manufacturing
electronics with new manufacturing processes Specific investments in high value
technologies manufacturing will be detailed in
the Technology Strategy Board
annual Delivery Plan published at
B u ild ing new busi ness m odel s www.innovateuk.org
t o rea lise superi or va l ue sy stem s
High Value Manufacturing | 2012-2015WHY IS HIG H VA LU E M ANU FACTU R ING
Why is high value SMEs in the value chain
manufacturing a priority Of the 4.5 million businesses in the UK,
for us? approximately a quarter of a million (5%)
06 Manufacturing in general represents an operate in the manufacturing sector,
important strategic competence within with manufacturing SMEs representing
the UK economy, but it is high value a third of total manufacturing turnover12.
manufacturing specifically where we see the Large manufacturing companies often
most opportunities for innovative businesses have a multitude of SMEs in their supplier
to succeed long-term. base and together companies large and
small operate in a connected value
‘High value manufacturing is the application chain structure.
ECONOMIC IMPORTANCE AT A GLANCE of leading-edge technical knowledge
and expertise to the creation of products, Manufacturing represents a number of value
• Manufacturing contributes over £6.7tr to the global economy chains and is itself part of a wider industrial
production processes, and associated
and the UK is a major competitor. services which have strong potential to bring system for value capture13 enabling new
sustainable growth and high economic value ideas to reach their markets, with each
• In terms of manufacturing Gross Value Added (GVA), it is in the stage adding value to the output of the
to the UK. Activities may stretch from R&D
world’s top 10, generating 10% of UK GVA. at one end to recycling at the other’11. previous stage. These value chains have
become complex global systems with the
• UK manufacturing directly employs 2.5 million people, sequential stages often being carried out in
generates half of UK exports and accounts for three quarters of different countries.
World-class
business R&D conducted in the UK.
The UK retains a world-class science and
• The UK ranks second only to the US in the aerospace industry. technology base and this is particularly
important for high value manufacturing
• Two out of the top six pharmaceutical companies are which is becoming increasingly knowledge-
headquartered in the UK, where they also support significant based. Recent research indicates that a
manufacturing assets. country’s ability to innovate in manufacturing
is strongly linked to the presence of an
• The resurgent UK-based auto industry exported a record- indigenous manufacturing base, where the
breaking 84% of production in 2011. opportunities for innovation can be quickly
identified and acted upon, ensuring that
local manufacturing technologies remain
globally competitive (the learning curve
effect), as we still demonstrate today in our
aerospace and pharmaceutical industries.
This is a model on which we need to build in
other market sectors.
High Value Manufacturing | 2012-2015A PRIORITY FOR US?
Sustainable high-value Key elements of sustainable manufacturing
manufacturing
In reviewing the basic design/make/sell
model for a product lifecycle we have worked
with Forum for the Future14 to develop our
extended view of the product lifecycle as
shown on the right, which illustrates how
recycling and retrieval of products and
materials should be an integral consideration
07
Resource management activities to optimise
at all stages of processing, manufacturing
environmental impact and economic value
and consumption. We believe that the
emphasis of activities in the UK should
extend beyond the core competencies
of design and production increasingly to
encompass the provision of a lifetime service
around the manufactured product, designing
in options to manage the material resource
over multiple product lifetimes.
PROCESSING MANUFACTURING CONSUMING
R&D Design Make Sell R&D Design Make Sell R&D Design Make Sell R&D Design Make Sell
RAW RESOURCES INTERMEDIATES PRODUCTS SERVICES
(fibres, polymers, metals, other)
Chemistry Forming Distribution
Harvesting Machining Maintenance
Excavation Assembly Recovery
Discovery, enabling technologies, design, formulation, engineering, ICT, machinery, methods,
standards, legislation, validation, business models, supply chains, markets.
High Value Manufacturing | 2012-2015WHAT ARE THE CHALLENGES FOR HIGH
Responding to global Innovating to compete in Continuing higher economic growth rates of
megatrends global markets the BRIC (Brazil, Russia, India and China)
economies represents a major challenge
We consider sustainability in its broadest The UK’s innovation capability is critically and, at the same time, an opportunity.
(economic, social and environmental) sense dependent on manufacturing as the However, anecdotal evidence suggests that
to be the most important challenge for route to achieving rapid and profitable increased transport cost and decreased
high value manufacturing. The increasing commercialisation of new products, security are encouraging repatriation of
cost and scarcity of some materials is processes and services. In many cases some manufacture back to Europe, and the
highlighting the importance of security this innovation will involve the assembly of UK must position itself to exploit this change.
of supply and driving the search for new supply chains or the adoption of new
replacement, renewable raw materials. business models. Government too plays a vital role in this – in
08 At the same time, there is a drive to
develop products and processes requiring
Manufacturing new products or adopting
ensuring consistent and supportive fiscal
policy and legislation that creates the best
new manufacturing processes both require environment for UK business to optimise
less energy and/or greater conversion
demonstration at a commercial scale. This the potential of its high value manufacturing
efficiencies and a greater use of other
step up in scale from prototyping is often capability both at home and abroad. This
renewable resources.
expensive whilst still representing significant is critical to the process of de-risking
The ageing population is another major risk – often referred to as the Valley of Death investment in new ideas.
challenge facing the developed world. As – a significant barrier to innovation in high
people are living longer, whole markets value manufacturing.
are facing new challenges around
healthcare provision and independent
living. This is having a significant impact
on these markets as well as offering major
opportunities for high value manufacturing.
The UK’s ability to respond to these
trends will depend on us having the skilled
workforce necessary to innovate in HVM.
The skills shortages in science, technology,
engineering and mathematics disciplines
represent a significant challenge to highly
innovative businesses being able to take their
innovation forward and compete globally.
High Value Manufacturing | 2012-2015 High Value Manufacturing | 2012-2015VALUE MANUFACTURING INNOVATION?
Restoring the health of the
UK supply chain
A progressive depletion or ‘hollowing out’
of the UK-based supply chain over recent
decades represents a long-term threat to
our manufacturing capability and its future
prosperity. An everyday example of this
would be to lift the bonnet of a British-
built car: many of the major components
come from overseas. This means that an
SME with an innovative new technology
developed for one of these components
needs to find an overseas client to sell its
product. Given the key role of SMEs in the
supply chain, the need to actively re-build
09
and sustain SMEs is a major structural
challenge for the manufacturing industry.
Case study
‘We believe that, in Collaborative R&D transforms production
order to tackle such
The high growth and high R&D intensity of the pharmaceuticals sector
challenges, businesses exemplifies high value manufacturing. A collaborative R&D project led by
need to acquire certain GlaxoSmithKine PLC – and co-funded by Technology Strategy Board – aimed to
national competencies transfer tablet production from a batch process to a continuous flow process.
that will equip them with The project has been successful and the technological achievements are
being exploited. It is expected to deliver a 10 fold improvement in process
the means to meet the development productivity, better quality control and significant commercial
challenges head-on, cost savings. GlaxoSmithKline has made a multi-million pound investment in a
pilot plant to industrialise the technology in Ware, with the consortium partners
turn them to their own continuing to work together to refine it.
advantage, and enable Consortium Partners: Newcastle and Warwick universities, GEA Pharma Systems, Siemens
them to exploit the and Sagentia.
opportunities.’
High Value Manufacturing | 2012-2015W H AT A R E T H E O P P O R T U N I T I E S F O R
1. Resource efficiency: Securing 2. Manufacturing systems:
UK manufacturing technologies against Increasing the global competitiveness
scarcity of energy and other resources of UK manufacturing technologies by
The study on A landscape for the future of The landscape study suggested that creating more efficient and effective
UK manufacturing identified some clear acquisition of key competencies is likely Energy generation, storage, manufacturing systems
areas of consensus on trends and drivers, to be a critical factor in equipping UK management and security
challenges and opportunities which are manufacturing companies for future Process engineering capability across
set out and explained in the report in success in exploiting the big opportunities Energy storage, energy management food, pharmaceuticals and chemicals
further detail.15 Business opportunities of tomorrow. We would expect successful and transport focusing on energy
for UK manufacturing may typically arise companies to have, or acquire, a world- cost, security and novel generation Development and application of common
in new markets or new technologies, but class manufacturing capability focused technology. New energy sources capability across food processing,
analysing them in this way can lead to a on one or more of the competencies including next generation nuclear and pharmaceuticals and chemicals.
very narrow view of innovation opportunity listed here. energy transmission with low loss and Redesigning processes to increase yields
and miss the ‘bigger picture’ provided low visual impact. and operational efficiency.
The UK possesses a unique set of
by looking at opportunities that can be
opportunities. This is due to its large Design and manufacture for Design and manufacture for small-
exploited through high-impact, cross-
and diverse markets, potential to sustainability and through-life scale and miniaturisation
cutting manufacturing innovation. In our
establish high-technology clusters as a
strategy, we address this by considering
result of close geographical locations Design and manufacture of sustainable Miniaturisation, design and manufacture
the ‘competencies’ necessary to deliver
and networking advantages and a and innovative products including of smaller products such as specialised
innovation across a broader range of
10 market sectors.
unique combination of challenges and
capabilities. Investing in competencies
cleaner processes, low-carbon
outcomes and less waste. Robust
drugs, batteries and electronics. High
precision and micro/nano-engineered
By a competency, we mean a group of that have an impact on multiple market assembly for disassembly (recycling) products and processes and integration
technology-related capabilities held by sectors will ensure maximum leverage of and through-life engineering. with macro-scale.
a number of companies/organisations every pound of our investment to yield
enabling high value manufacture across better results in terms of stronger and Design and manufacture for lightweight Systems modelling and integrated
several different market sectors. The 22 wider business impact and greater value vehicles, structures and devices design/simulation
key competencies detailed opposite are for money.
Light-weighting to reduce energy Systems modelling and simulation tools,
grouped into five strategic themes in the
consumption and emissions, reduce integrated system design, simulation
panel below.
costs and increase efficiency. and validation. Virtual prototyping,
Composite, new and hybrid structures materials models, functionality and
design, fabrication, joining and design. System integration of high-
assembly. Multifunction component complexity products.
• resource efficiency design and manufacture.
Automation, mechanisation and
• manufacturing systems Biotech, biological and synthetic human/machine interface
biology processing
• materials integration Process automation and human/
Alternative bio- and synthetic bio-based machine interface. Autonomy
• manufacturing processes
sources for new and existing products and applications, particularly in production
• business models. processes. Processing of biologics for and servicing.
pharmaceutical and medical applications.
High Value Manufacturing | 2012-2015BUSINESS?
3. Materials integration: Creating 4. Manufacturing processes: 5. Business models: Building new
innovative products, through the Developing new, agile, more cost- business models to realise superior
integration of new materials, coatings effective manufacturing processes. value systems
and electronics with new manufacturing
technologies Flexible, adaptive manufacture Managing fragmented value chains to
support HVM
‘Plug and play’ manufacturing Smart, hybrid and multiple materials Flexibility of production and manufacture
supporting customised and rapidly Managing complex value delivery across
Application of modularity to develop a Design, modelling and manufacturing reconfigurable manufacturing. Adaptive the value chain in multiple locations and
high-volume production environment, processes of multi-metallic components manufacturing including single-step, exploiting ‘economies of small scale’
where the production units can be and high-performance materials. flexible reconfiguration and process to develop and produce close to the
combined in a flexible manner and Structures and components with technology that can adapt to feedstock customer.
serviced more effectively. integrated functions and tailored of different types and compositions and
material properties and location-specific mass customisation techniques. Building new business models to
Novel mechanical conversion properties. Enhanced, faster joining support HVM
processes for scale, economy capability with a range of materials. Combining product development steps
and efficiency in parallel/concurrent engineering New business models, with flexible
Intelligent systems and embedded arrangements to create new value.
The application of new primary and electronics Real-time market analysis and response
secondary mechanical conversion and systems to reduce development Developing and retaining skills to
technologies and processes, for Robust ‘live’ data capture and time. Combining marketing, design, support HVM
example, low-energy forming/forging, comprehensive capture and use of manufacturing, standards, regulations and
product/process information. New procurement and early user engagement. Associated training and skills in HVM,
tool-less and one-shot manufacturing,
sensor/non-destructive testing (NDT) provision of employees with cross-
new machine tool technologies and
welding processes/applications devices and smart and multifunctional
components which are embedded and/
Additive manufacture disciplinary skills and the ability to
combine knowledge.
11
including, for example, welding to Application of layer manufacturing
titanium and magnesium. or intelligent. Large-area, printable,
cheap electronics, integrated with other techniques or other freeform techniques for Managing risk and resilience to
manufacturing processes for energy joining materials to fabricate intermediate support HVM
Understanding, designing and
management, security, packaging and and end-use products including direct
manufacturing formulated products Mechanisms to ensure HVM strategy
light-weighting. Integration of electronics digital manufacturing methods.
and associated product strategies are
Understanding design and manufacture into product and materials design.
Net and near net shape manufacture inherently compliant with necessary
of all formulated products for relevant
Development and application of standards across the value chain.
sectors across the supply chain.
Initial production of items very close to Governance to ensure HVM product,
advanced coatings
the final net shape, reducing the need for service and process outcomes meet
Development and application of advanced surface finishing. Tool-less manufacturing strategic intent.
coatings across multiple sectors. with single actions to produce final parts
or one toolset for full production system
with one-pass production.
High Value Manufacturing | 2012-2015O U R S T R AT E GY
Sector attractiveness – defining the industry sectors
Scope with the most potential
Our focus is on innovation – the commercial exploitation of new ideas – within high value
manufacturing. In making choices we will use:
• sector attractiveness
Pharmaceuticals
High
Marine &
• the 22 national competencies Food & Drink Other Transport Aerospace
• technology readiness level
• the potential for the Technology Strategy Board to make a
difference (additionality)
as our key selection criteria.
Chemicals &
Relative Growth
Chemical Products
Sports Goods & Games
Machinery & Equipment
Medium
Printing & Paper inc. Nuclear Power Computers, Electronics &
Using the competencies and sector Fabricated Metal Goods Optical Products
Motor Vechicles & Parts
attractiveness gives us two different but Rubber & Plastics Metal & Castings
complementary perspectives for investment
allocation. Technology readiness level is Electrical Equipment
12 an internationally recognised guideline for
describing the maturity stages of innovation
activities; this helps ensure that our funding
does not significantly overlap with the other
main UK funding sources. Petroleum &
Coke Oven Products
Low
Tobacco
Textiles, Clothing &
Leather Goods
Low Medium High
R&D Intensity Source ONS16
High Value Manufacturing
High Value Manufacturing | 2012-2015We fund innovation from proof of concept to demonstration
UNIVERSITIES & TECHNOLOGY
BUSINESS
RESEARCH COUNCILS STRATEGY BOARD
Technology
readiness level 1 2 3 4 5 6 7 8 9
(TRL)
Discovery &
Activity Research Innovation Commercialisation
Actual system
System or System Actual system
Concept or System model or completed
Basic principles Concept or component prototyping mission-proven
TRL Experimental process validated demonstrator in and qualified
observed and application validated in demonstrator in in successful
description proof of concept in laboratory relevant test & demo
reported formulated relevant an operational mission
environment operational
environment environment operations
environment
Source: The NASA-developed Technology Readiness Level model17
Case study 13
Pan-European project targeting better ‘bots’
The European high-end manufacturing industry demands production systems that can quickly switch between diverse
machining operations with short changeover, programming and set-up times, without compromising quality, reliability or
life-cycle costs. Industrial robots seem ideally suited but have their limitations – such as the need for absolute positioning
accuracy and the lack of reliable programming and simulation tools to ensure right-first-time machining.
The 30-month COMET project, initiated by Delcam plc and funded with €8m in Factories of the Future EU funding, aims to
overcome these limitations. So far there are seven COMET robot ‘cells’ testing the project’s innovations across Europe.
High Value Manufacturing | 2012-2015O U R S T R AT E GY continued
The Technology Strategy Board will invest in core or platform technologies within the HVM Implementation
Catapult based on a further set of criteria. These serve to differentiate projects which
We expect to invest at least £50m a year
Technology Strategy need the specialised resources of the Catapult. Such proposals will progressively need to
to deliver the HVM strategy, with at least
Board investment demonstrate that their ‘capability need’ meets the additional HVM criteria outlined below:
£25m allocated to HVM Catapult core
criteria funding and around £25m for business
In line with the investment investment in process and product-related
criteria set out on page 21 of our collaborative R&D projects and other
corporate strategy Concept to innovation support activities.
1. State-of-the-art, high-cost capital equipment and related
Commercialisation9, assessment of Our implementation framework on the
infrastructure not available/accessible to them elsewhere
all HVM project funding applications right reflects the five main focus areas set
will be made against these criteria: in UK. out in our corporate strategy Concept to
2. Specialist technical skills and elements of future supply Commercialisation to ensure alignment
• is there a large market with the overall aims and objectives of
opportunity? chains associated with the application of this equipment, the Technology Strategy Board.
able to develop innovative manufacturing technologies
• does the UK have the and capabilities.
capability?
3. Engagement and application of the above resources for
• is the idea ready? significant and sometimes intense cycles of innovation
• can the Technology activity, over an extended period (longer than 18 months,
Strategy Board typically more than two-three years).
make a difference 4. Business leadership in the UK with proven ability to
(additionality)? deliver an innovative, pre-competitive manufacturing
capability or ‘technology platform’ which is capable of
subsequent commercialisation.
5. Strategic help to link up a new supply chain with potential
14 impact going well beyond the participating companies.
Due to the nature of this investment, lead times for establishing new capabilities in the
HVM Catapult will generally be measured in years not months. Therefore, assessment
of current and new capabilities will be carried out at least once a year against a time
window of what is needed approximately three-five years ahead.
High Value Manufacturing | 2012-20151. Accelerating the journey between 2. Connecting the innovation landscape 3.Turning government action into 5. Continuously improving our capability
concept and commercialisation business opportunity
We will: We will:
We will: We will:
• continue to work across the Knowledge • continue to listen to the voice of industry,
• utilise the HVM Catapult to provide the Transfer Networks, including _connect, to • be proactive in connecting manufacturing academia and other organisations to help
industry with access to world-class enable businesses to find new partners, businesses with opportunities in us understand the changing landscape
assets and talent. This will help de-risk sources of expertise and investment government procurement, such as in which UK businesses must compete
investment in innovation and inspire, train through our innovation platforms or our to succeed
• actively encourage new connections
and up-skill staff SBRI programme
with SMEs in support of potential new • hold ‘open review’ events on this strategy,
• use collaborative R&D to support supply chains and the restoration of lost • work with business, academia and inviting stakeholders from all areas of UK
and de-risk projects, promoting the UK capabilities manufacturing organisations to influence manufacturing to help us review progress
establishment of new value chains the development of regulation and on implementation and impact. This may
• continue to develop ‘joined-up’ delivery
from within the collaborative partner legislation, in order to incentivise lead to changes in the 22 competencies
with the research councils, particularly
companies, and the development of new innovation where the UK has the over time
the Engineering and Physical Sciences
business models capability to establish leadership.
Research Council (EPSRC), through • assess the impact of our investments and
• carry out feasibility studies to build the its Manufacturing the Future18 strategy, use this to tailor future approaches.
readiness of individual companies and and the Biotechnology and Biological
4. Investing in priority areas based on
consortia for commercialisation of ideas Sciences Research Council (BBSRC)
potential, making choices
or further collaborative R&D (including the
• forge strong links between the HVM
European Framework programme 7 and As set out in this strategy,
Catapult and the appropriate EPSRC
Horizon 2020) funding, and to enable us
Centres for Innovative Manufacture and We will:
to evaluate new ideas more quickly
BBSRC Institutes, as well as with other
• invest in projects in those areas
• consider Smart (formerly Grant for R&D) university-based centres of excellence, so
showing greatest potential to deliver
to support SMEs that, for example, strategic investments in
step-change innovation and high-value,
EPSRC Centres and the HVM Catapult will
• run grand challenges and demonstrator sustainable growth
be closely aligned, to ensure a connected
projects where increased scale and
innovation journey from TRL 1 to 7 • invest in the HVM Catapult according
additional collaboration is key
to our investment criteria plus specific
• help UK companies to access European
• work to achieve optimal alignment criteria developed for the Catapult.
funding (Framework Programme 7 and
between HVM funding and
Horizon 2020) more easily, by signposting
European programmes (especially
Nanotechnology, Materials and
Production (NMP), Manufuture,
them to it through our National Contact
Points19 and the HVM Catapult 15
Knowledge-Based Bio-Economy (KBBE), • encourage UK companies to leverage
and SusChem). competencies in other parts of the EU, the
rest of the world and supply chains that
link these.
High Value Manufacturing | 2012-2015References and sources 8 A landscape for the future of high value 14 Forum for the Future, action for
manufacturing in the UK, Published a sustainable world.
In developing this strategy we have by Technology Strategy Board – www.forumforthefuture.org/
drawn extensively on the outputs from the Study conducted by The Institute for
research study we commissioned from 15 A landscape for the future of UK
Manufacturing, Cambridge University,
the Institute for Manufacturing, which manufacturing, further details are given
2012, www.innovateuk.org under
closely involved the research councils on trends and drivers (pages 13-14),
Publications/corporate
and Department of Business, Innovation challenges (page 15) and opportunities
and Skills (BIS). We would like to thank 9 Concept to Commercialistion, (page 16)
all the companies, academics, industry Technology Strategy Board 2011,
16 Relative R&D intensity measured
organisations and individuals who have www.innovateuk.org under
by ‘Research and Development in
provided valuable input to this strategy. Publications/corporate.
UK Business, 2010 – Datasets, R&D
Source information 10 High value manufacturing is here intensity in manufactured products,
defined as high and medium-high R&D as % sales,’ ONS; Relative Industry
1 United Nations Statistics Division, technology manufacturing as defined Sector Growth as measured by ‘United
United Nations National Accounts Main by the OECD (SIC codes 20, 21, 25.4, Kingdom National Accounts, The Blue
Aggregates Database, Value added by 26, 27, 28, 29, 30.2, 30.3, 30.4, 30.6). Book, 2011 Edition, Section 2.4, Gross
Country, 2010 Exports of these goods totalled £151bn value added at basic prices: by industry,
2 UN Main Aggregates Database as in 2010 - 66% of total UK manufacturing Chained volume indices,’ ONS
above, UK ranks 9th by Manufacturing exports (at £228bn in 2010) and 35% of
17 NASA Technology Readiness Levels
GVA total UK exports of goods and services
defined at http://esto.nasa.gov/files/
(£437bn in 2010). Sources: UK Trade
3 UK National Accounts, ONS TRL_definitions.pdf
in Goods Analysed in Terms of Industry
4 Engineering Employers Federation, UK (ONS) and UK Balance of Payments: The 18 Manufacturing the future, EPSRC
Manufacturing 2012, The Facts Pink Book 2010 (ONS) Themes, www.epsrc.ac.uk/ourportfolio/
themes/manufacturingthefuture/Pages/ Technology Strategy Board
5 IMechE Publication 2011: Aero 2075: 11 High value manufacturing as defined
default.aspx
Flying into a bright future by Technology Strategy Board and North Star House
Institute for Manufacturing 19 National Contact Points North Star Avenue
6 ContractPharma Report 2011, World www.ukcds.org.uk/page-National_
12 Department of Business, Innovation Swindon
Top 20 Pharmaceutical Companies Contact_Point-67.html
and Skills, Economics Report 10B SN2 1UE
7 SMMT Motor Industry Facts 2012 (December 2010) Tel: 01793 442700
13 Royal Academy of Engineering: Email: enquiries@tsb.gov.uk
Industrial Systems report, 2012 www.innovateuk.org
16
The Technology Strategy Board is a business-led executive non-departmental public body, established by the Government. Its role is to promote and support research into, and development and exploitation of, technology and innovation for the
benefit of UK business, in order to increase economic growth and improve the quality of life. It is sponsored by the Department for Business, Innovation and Skills (BIS). T: 01793 442700 www.innovateuk.org T12/065 May 2012
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