NORTHERN POWERHOUSE: CHEMICAL & PROCESS SECTOR Science and Innovation Audit - A Science and Innovation Audit Report sponsored by the Department ...
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NORTHERN POWERHOUSE:
AU T U M N 2 018
CHEMICAL & PROCESS SECTOR
Science and Innovation Audit
A Science and Innovation Audit Report sponsored
by the Department for Business, Energy & Industrial Strategy
Foreword Introduction
In autumn 2015 the UK Government announced regional Science and Innovation Audits
This audit sets out to assess the chemical and processing sector innovation (SIAs) to catalyse a new approach to regional economic development. SIAs enable local
ecosystem across the Northern Powerhouse. The vision and impact of the consortia to focus on analysing regional strengths and identify mechanisms to realise
their potential.
study is to ensure that the Northern Powerhouse contributes to the successful
delivery of the Strategy for Chemistry fuelled growth and by 2030 for chemistry This Science and Innovation Audit has been developed Geographic Coverage
using industries to increase their contribution to the UK economy from to identify the global competitiveness of the chemicals
and process sector across the Northern Powerhouse
£195billion to £300 billion. (NPH). The SIA has reviewed for the first time, the
The audit geography is the Northern Powerhouse
which covers all 11 North of England Local Enterprise
pan Northern Powerhouse chemicals and process Partnership (LEP) areas . The area is shown in Figure
The purpose of the Audit is therefore to identify the networks, skills, capabilities sector industrial proposition and the continuing fitness 1. Allowing for overlap of these areas means the
of purpose of the associated regional innovation
and facilities needed to ensure continued global competitiveness and to identify ecosystem.
effective Science and Innovation Audit geographic area
comprises the three North of England regions (North
actions that the consortium can take or investment needed to fully realise the East, North West and Yorkshire and Humber) plus the
vision. The SIA recognises the maturity of the sector and Sheffield LEP districts that lie within the East Midlands
existing support structures and seeks to future proof region.
its global competitiveness by identifying emerging
technological opportunities and their consequential
requirements on the regional innovation ecosystem.
This Science and Innovation This Science and Innovation
Audit, clearly places both the Audit is a clear mandate for Figure 1: The SIA region comprising the LEP areas; North Eastern,
Northern Powerhouse and the businesses, Government and Cumbria, Tees Valley, York, North Yorkshire and East Riding, Tees Valley & Durham
Lancashire, Leeds City Region, Liverpool City Region, Greater
chemicals and process sector Universities within the chemicals
Manchester, Humber, Sheffield City Region and Chester and Total GVA £21,312m
as key contributors to the UK’s and process sector across the Warrington. Sector GVA per employee £154,000
growth. Northern Powerhouse to unite
Average Wage £37,543
to deliver the shared goals Location Quotients 3.7
The chemicals sector is a hidden and new delivery mechanisms 163 establishments
gem of British manufacturing, at recommended in the report.
once globally competitive and
at the same time an integral The Northern Powerhouse
part of many supply chains across the wider advanced chemicals and process proposition articulated in this Humber
manufacturing sector. It is essential to build on existing audit is a powerful tool to reacquaint many investors,
academics and business people across the UK and Total GVA £18,378m
critical mass, both within industry and our excellent
beyond of what we have here in the North: An industry Sector GVA per employee £215,000
innovation ecosystem and where possible reshore
of global scale and competitiveness which can fuel our Average Wage £35,923
activity and invest in new value adding activities. Location Quotients 4.1
Future growth is dependent on developing and next industrial age.
192 establishments
promoting globally the strength which a combined
Northern Powerhouse manufacturing and research
proposition can bring.
Liverpool & Cheshire
JAKE BERRY PAUL BOOTH Total GVA £60,196m
MINISTER FOR THE CHAIR OF TEES VALLEY
NORTHERN POWERHOUSE LOCAL ENTERPRISE PARTNERSHIP Sector GVA per employee £449,000
Average Wage £35,923
Location Quotients 3.0
373 establishments
Northern Powerhouse
2 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 3
The Chemical and Reg
En
ulatory vironmen
t
Process Sector Tech
nical Consultancy Figure 2: Chart illustrating
the sectoral definition for
the Chemicals and Process
Sector and relationship with
chemical using industries.
Raw
materials &
The chemical and process sector feedstocks
encompasses the range of industries International context
in which raw materials are processed
Global chemical sales in 2016 were led by China (€1,331bn),
through chemical conversions to
give finished products. The sector
USA (€476bn) and Germany (€185bn). The UK continues By-products Chemical Bulk
inputs to a range of chemistry
to be a significant player in the global chemicals market,
presently ranked 10th with €60bn sales 2.
and waste Process Chemicals
using industries in sectors such as
material Sector
The most significant growth has been in the emerging
aerospace and automotive through markets in China, India and Brazil. The global market is
the provision of coatings, adhesives, expected to grow by a further 3% in the next 20 years as
rubbers and plastics, as well as Asian and Middle Eastern demand and capacity continues
Speciality chemicals Automotive
to grow. By 2030, Asia is expected to account for almost
providing intermediary ingredients formulated products
two thirds of the global chemical industry market 3. Chemistry-
to the pharmaceutical, cosmetics, and advanced using
agrochemical, personal care, paint Demand for chemicals, particularly intermediate and materials industries
finished goods, continues to expand both in Britain and
and home care sectors. globally. However, what is in question is the UK’s ability to
Construction
meet both indigenous and export demand, as increasing Aerospace
Whilst the upstream competition from both East (e.g. China) and West (e.g. USA)
chemicals and process is driving down revenues and making it harder for UK-
sector accounts for
£212bn downstream
based firms to compete in the global marketplace.
212=
£28bn upstream
Consumer
approximately £28bn, Agriculture Products
Pharmaceutical Composites Polymers
15.8% of manufacturing The chemicals and process sector has traditionally had a
output, it has a very strong export orientation, presently representing 18%
downstream impact on of UK export trade. Figure 3 (overleaf) shows an upward
approximately £212bn trend in trade over the period 1996 to 2017 4. 2013 was the
or 90% of the UK first unfavourable imbalance in trade for the chemicals and
28+=
manufacturing sector. related products sector. This fall can largely be attributed
The sector accounts for to a number of Astra Zeneca products going off patent in Export Activities by Country
140,000 employees, 6% 2011/12 5.
of UK manufacturing Scale of Sector Country Sales (Billion €) Population (Million €) Sales per head of
workforce. Workers in this The reduction in exports has been across the board population (€)
sector make a significant contribution to the UK including price sensitive sub sectors such as the China 1,331 1,415 941
economy with an average GVA per employee manufacture of organic chemicals, pharmaceuticals and
of £144,000, significantly higher than both the fertilisers and nitrogen. US 476 326 1,460
aerospace (£65,000/ employee) and automotive Germany 185 82 2,256
(£108,000/ employee) sectors 1.
Japan 140 127 1,102
£144k South Korea 113 51 2,216
£108k France 70 65 1,077
144+=
£65k
108+=
India 76 1,354 56
Taiwan 63 23 2,739
Spain 63 46 1,370
65+=+
UK 60 66 909
Chemicals Aero Automotive Brazil 59 210 281
& Process
Netherlands 55 17 3,235
GVA Per Employee
Italy 52 59 881
4 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 5
Net Trade for Chemical Products Sector characteristics
The chemicals and process sector across the UK and particularly in
the Northern Powerhouse is mature, both in the technology being
used and also the sectoral age profile. There are relatively few
new business start-ups and the churn rate is low (i.e. few company
closures). In addition, the sector is highly concentrated 6.
■■ The top four large firms account for 16.5% of total sector
employment, 38% of turnover;
The reduction in exports Figure 3: Net Trade for the Chemicals
has been across the board and related products 1996-2017. ■■ The top seven large firms account for 23% of total sector
employment, 41% of turnover.
including price sensitive
sub sectors such as the Goods trade in Chemicals & related products, UK, 1996 to 2017 Overall the chemicals sector has a higher proportion of mid-sized
manufacture of organic businesses (£25-£500million annual turnover) 7 than the economy
chemicals, pharmaceuticals 60
as a whole. Most mid-sized companies are indigenously owned and
generally compete in terms of price.
and fertilisers and nitrogen. 55
50 The proportion of SMEs is at variance to the wider economy
The UK chemical sector is facing in which there are circa 88% micro and 98% small enterprises
45
a challenge of diminishing cost compared to circa 12% micro and 30% small enterprises for
competitiveness due to increasing 40
Trade in Chemicals (£ million)
the chemicals sector. There is also greater variance in the
costs related to energy and 35
composition of the sector by scale than between sectors, with the
feedstocks particularly in relation 30 pharmaceutical sector having the greatest preponderance of micro
to lower value intermediary goods. enterprises, which reflects the higher number and proportion of
25
The knock-on effect of reduced new starts within this subsector.
production of these goods leads to 20
greater fragmentation of existing 15
The sector has a high proportion of mid-sized and large-scale
supply chains and a diminished 10 companies, with the former generally delivering intermediate
export orientation across the sector. goods to the latter for subsequent exporting. There is a significant
5
This decline in export orientation proportion of the larger companies under international ownership
may have a causal effect on the level 0
with, in some cases, a perception of “branch plant” status with
of innovation activity undertaken -5
higher value adding functions such as headquarters and research
and be a consequence of reduced
1996
1197
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
bases sited overseas.
indigenous investment in Research
and Development and Innovation. Whilst large firms account for over two-thirds of turnover, the mid-
sized firms also make a significant contribution (26.4%) to turnover
Goods trade in Medicinal and pharmaceutical products, UK, 1996 to 2017
for the sector, however they only contribute around 4% of R&D
expenditure 6. The low level of R&D spend within the mid-sized
30,000
and small enterprises suggests an imbalance within the sector,
skewed towards the larger firms. This has highlighted the need to
25,000 encourage greater take up of innovation, in particular by mid-sized
enterprises, with interventions being tailored to meet their specific
characteristics.
20,000
Trade in goods (£ million)
15,000
10,000
5,000
0
1996
1197
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
-5,000
6 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 7
Our Vision Key Strengths Highly trained and responsive
workforce.
The NPH employs 44% of the UK Chemical
and Process sector work force 9. The NPH
Strong and connected clusters Universities provide a quarter of the UK science,
Our vision is that over the next 12 years, the Northern technology, engineering and mathematics
Powerhouse chemicals and process sector will: At £13.40bn GVA, the NPH contributes 48% of the UK’s graduates representing a significant opportunity
chemical production and is by far the largest region in terms of to meet local demand for professional talent.
■■ Be the most competitive location, by building upon its existing output for the sector. In addition, the sector contributes 26.5% In 2016/17, 39% of all chemical sciences
‘‘To ensure that the Northern highly efficient bulk chemicals infrastructure, further driving of all NPH manufacturing GVA, compared with the UK average apprenticeships were started in the NPH 10. The
of 21.2% 8. demand for apprenticeships is high. Data from
Powerhouse contributes to down costs through accessing (existing and emerging)
the Working Futures report 11 shows a trend
affordable feedstocks and utilising nascent technologies;
the successful delivery of The Northern Powerhouse chemicals proposition is based upon towards a more highly skilled workforce both
■■ Regain lost export markets and re-shore the production of high three strong clusters interlinked by strong East-West supply within the NPH and nationwide.
the Strategy for Chemistry value intermediary goods and R&Di functions of locally based chains and associated pipeline connectors of key raw materials:
Centres for Doctoral training (CDTs) represent
Fuelled Growth that by global concerns;
■■ Tees Valley and County Durham; strong vehicles for engagement with industry
2030, chemistry using ■■ Diversify into new geographic and sectoral supply chains; and also train postgraduates as future
■■ Humber LEP area; and employees within the sector. There are presently
industries will increase ■■ Deliver more knowledge transfer between industry of all 9 Centres for Doctoral Training (CDTs) in support
■■ A combination of Cheshire and Warrington and of the sector with a further 6 under application.
their contribution to the UK size and ownership structure and the regional innovation
Liverpool City Region LEP (Cheshire and Merseyside).
ecosystem to enhance productivity and ensure global
economy from £195 billion competitiveness;
These sub areas have a location quotient of 3.4, compared with
to £300 billion’’. ■■ Be a globally recognised centre for the application and testing 1.8 across the NPH as a whole against the average of 1 for the
of industrial digitisation and circular economy solutions to the UK as a whole.
chemicals and process sector; and
The region has a strong tradition in exporting, dominated by the
■■ Lead the adoption of bio-processing solutions for chemicals large companies and supplied by largely indigenously owned
production. mid-sized and smaller companies.
8 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 9
An asset-rich innovation ecosystem
The effectiveness of the innovation ecosystem of the Figure 4 presents the analysis of research quality (as
Growth Opportunities
NPH was assessed using the following key variables: measured by the field weighted citation index) across the
perspectives of academic research quality, University key innovation needs identified across all six chemical
engagement with industrial base, business R&D spend, and process sub-sectors against publication quantity for The SIA has identified a number of growth Benchmarking against best practice in international
Government innovation support, Intellectual Property the Universities within the SIA. The combined scale and opportunities: comparator regions*, as illustrated in Figure 5 assumes that if
filed and Research and Technology Organisations’ (RTO) quality of research outputs if deployed collectively would cumulatively delivered, the Northern Powerhouse vision has
activity. outstrip larger national comparator institutions several- ■■ Increase in demand in global markets for the potential to contribute £23bn of additional output to the
fold. intermediate and higher value adding goods UK economy, dependent on the following components and
The NPH region contains 32 higher education There is a northern cluster of nationally and ■■ Use of nascent technologies and new energy interventions:
institutions with 522,000 students 12 and includes the internationally important Catapults and other National feedstocks
N8 research partnership of eight research intensive Innovation Centres that support the chemicals and ■■ New feedstocks could increase output by 30%
Universities (Durham, Lancaster, Leeds, Liverpool, ■■ Increased demand for reshoring and use of
process sector. The key players are the Centre for circular economy solutions ■■ Industrial digitisation could increase output by 20%
Manchester, Newcastle and York) 13. While the Northern Process Innovation (CPI), the Materials Processing
Powerhouse is a comparatively small region, it has a Institute, TWI, the Royce Centre and Materials Innovation ■■ Opportunities for the use of industrial ■■ Supply chain diversification could increase output by 10%
number of individual academic institutions which have Factory. Driven by the needs of industry, these digitisation
international status and continue to attract significant UK innovation centres work closely with academia and ■■ Opportunities to utilise sectoral free trade ■■ Circular economy could increase output by 10%
and foreign research investment. industry to foster and encourage innovation in key areas. zones in conjunction with block chain ■■ Skills development could increase output by 5%
The leading academic research institutions within the The innovation strength of the chemical sector is solutions
SIA area demonstrate strong research quality across all reflected in the predominance of patents filed on ■■ Opportunities to use Northern Powerhouse Strong enabling structures are proposed to deliver this vision
six sub-sectors of the chemical and process industry with chemical sector technologies, which represents 38% international networking including the development of:
particular strengths highlighted in materials sciences, of all patents filed in the NPH. The NPH exhibits a
chemical synthesis, chemical measurement, atmospheric ■■ New models for commercialising ■■ Northern Powerhouse Development Vehicle.
particularly strong specialisation when compared technologies: public/private partnerships and
physics and chemistry 14. with the rest of the UK in basic materials chemistry, associated financing mechanisms ■■ A coordinated University translation vehicle, working
This high-quality research on an individual institutional macromolecular & polymer chemistry, materials & closely with the RTOs and industry.
level indicates that there is strength in depth across the metallurgy, surface coating and technologies 15. ■■ Significant opportunities for scale and growth
chemical process sector within the SIA area that should particularly in mid-sized companies through * Rheinhessen-Pfalz; Antwerp- Rotterdam; Geleen; Gulf Coast (USA); Singapore; and Busan
be utilised to deliver innovation and further enhance the supply chain/export diversification. (formerly Pusan) South Korea
region.
FIGURE 5: GROWTH TRAJECTORIES OF POTENTIAL INTERVENTIONS
Oxford 55
3 Cumulative impact of all interventions - £53bn
Lancaster
Liverpool Cambridge 50
2.5
York Imperial
Quality of output (FWCI)
Durham N8 Research
Partnership 45
2
Leeds Manchester
Newcastle
Sheffield
£ (Billion)
1.5
40
New feedstock (e.g. shale) 30% increase
1 Impact of industrial digitisation 20% increase
35
Circular economy 10% increase
0.5
Supply chain diversification 10% increase
30 Skills development 5% increase
0
0 1000 2000 3000 4000 5000 6000 Enabling Structures
(University translation vehicle/ Northern Powerhouse Development Vehicle)
Scale of output (number of publications)
25
KEY
Figure 4: Scale and quality of research, the N8 Research Leading UK Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
potential impact of collective R&D delivery. Partnership Comparators
10 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 11Gap Analysis Action Plan
Table 2: Proposed Action Plan
We have utilised TOWS (Threats, Opportunities, Weaknesses and Strengths) analysis to
develop workable solutions to the opportunities/challenges identified in the SIA. Table 1 Intervention Implementation
summarises the key conclusions:
Acting at Global NPH Chemicals and Process Sector Development Vehicle: Augmenting existing sectoral
scale representative bodies, it will be tasked with delivering an enhanced business support
Table 1: TOWS analysis of opportunities and challenges function, including but not limited to: supply chain /export diversification and foreign direct
investment. Success will be enhanced added value being delivered within the NPH.
Unifying the Technology translation: Creation of an innovation delivery system to valorise the academic
Internal Strengths and Internal Weaknesses and
External Opportunities External Opportunities Key ambitions/proposals innovation research base and maximise the economic impact on the sector. Establish an integrated
In response to the findings the following ecosystem science and technology innovation network (a ‘knowledge-based growth hub’) integrating
(S-O)- how can they use (W-O)- how can they use with the innovation scale-up of CPI and the other specialist Research Organisations in
the strengths to benefit opportunities to overcome proposals have been developed:
the NPH. This to provide a strong, agile translational interface accelerating the translation
from existing external the organisation’s internal of University research into Industry, closely coordinating with the N11 local enterprise
opportunities? weaknesses? Develop a unique selling point for the
Northern Powerhouse in conjunction with partnerships and science/business parks to drive infrastructure provision in support of
associated mechanisms and institutions relevant inward investment.
Need to match local research High feedstock costs,
strengths to emerging global opportunity to use circular to promote the region and ensure global
competitiveness, including a Sectoral Free Accelerate Technology Commercialisation: This would require new venture capital funding
demand for R&Di; and economy solutions; and to commercialise research and provide finance for emerging companies and initiatives to
Trade Zone Proposition;
promote clustering and sharing between the public and private sectors.
Increasing global demand Fragmented supply chains, Masterplan for Northern Powerhouse
development, building the capabilities and Increasing Resource Efficiency: Develop new feedstock base for chemical industry: Consider the
for chemicals, with enhanced opportunity to use circular productivity options that (existing and emerging) affordable feedstocks (e.g. hydrogen, carbon dioxide,
opportunities for reshoring economy and industrial skills to deploy the following supports:
through new shale gas) may give the North. Recognise the opportunities that the bio-economy presents
due to levelling out of costs in digitisation to promote local feedstocks, the to feedstock and product development as well as the strength of companies in the NPH.
Far East. sourcing. ■■ Development of new feedstocks;
■■ Impact of industrial Digitisation/Sectoral use of nascent This would require feasibility studies and a roadmap for industry development, as well as
Free Trade Blockchain Solution; technologies and aligning the different stakeholder interests.
Internal Strengths and Internal Weaknesses and ■■ Supply chain consolidation and decarbonisation
External Threats (S-T) how External Threats (W-T)- diversification; Accelerate the move towards industrial digitisation. Northern chemicals sites could
can they benefit from their how can they minimise ■■ Impact of the circular economy; and provide testbeds for the trialling of industrial digitisation and 5G solutions to address issues
strengths to avoid or lessen weaknesses and thus avoid ■■ Development of a programme of support related to fragmentation.
(potential) external threats? potential threats? for leadership training/talent attraction
and retention. Develop the circular economy proposition to mitigate feedstock concerns. Northern
chemicals sites could provide a base for new industries. This would require active
Loss of management and Address local of local engagement with the players developing these industries, as well as the development of a
leadership skills in region: intermediaries, develop Building upon these proposals, Table 2 sets
out an ambitious action plan to deliver major number of pilot / demonstrator projects.
Address perceptions of lack of capacity and growth ambition
critical mass within the sector of local management; and growth to the sector. Consolidating and Programme of support aimed primarily at mid-sized chemical companies, including
and overcome denudation of diversifying supply provision of skills, innovation and networking support for diversifying supply chains.
higher value-added functions; chains
and
Delivering skills Programme of support to develop talent across the NPH. Development of an integrated
Increased R&Di being Too few new entrants, to meet sector training and skills programme, primarily focused on the coordinated delivery of
undertaken out with of the development of patient/risk ambition apprenticeships, including: recruitment, training and placement across the region. This will
region, need to highlight capital to promote start-ups. be primarily aimed at mid-sized businesses across the region.
the research proposition of
Northern Powerhouse and In addition, work with existing knowledge providers to impart specialist leadership
also attract private sector and technical training driven by industry. This will in large part be driven by emerging
R&Di back into the region. technological absorptive incapacity in, for example the circular economy and industrial
digitisation.
The integrated model would address the issue of emerging fragmentation across the sector
and will therefore significantly benefit both business and individuals if cross-company
apprenticeships could be supported.
12 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 13Networking & Collaboration References
The SIA has been delivered though a core project delivery group led by the Tees Valley 1. Office for National Statistics, Annual Business Survey: 2016 Provisional Results, 2017.
Combined Authority (TVCA). This group comprised representatives from the TVCA,
Durham and Teesside Universities, North East Process Industry Cluster (NEPIC), Centre for 2. CEFIC, Landscape of the European Chemicals Industry, 2018. Available: https://www.chemlandscape.
cefic.org/
Process Innovation (CPI), Materials Processing Institute (MPI) and TWI, with representation
from Innovate UK and the BEIS appointed SIA consultants, Technopolis. 3. CEFIC, Facts and Figures 2017 of the European Chemical Industry, 2017.
An initial desk-based review of secondary research analysis for the CGP on a UK wide assessment of key Available: http://www.cefic.org/Facts-and-Figures/
identified a number of gaps in existing knowledge of the innovation parameters as supporting evidence for
sector within the Northern Powerhouse, which in line the sector deal proposal currently being prepared for 4. HM Revenue & Customs, HM Revenue & Customs Trade Statistics, Available: https://www.uktradeinfo.
with the original hypotheses, necessitated extensive Government. com/Statistics/Pages/Statistics.aspx
primary research including: Stakeholder Interviews;
International benchmarking against six comparator ■■ Industrial consultation has been through the sector 5. Astra Zeneca, 2013 Annual Report, 2013. Available: https://www.astrazeneca.com/investor-relations/
national and sub-national entities; and 3 Stakeholder bodies and also through one to one interviews with annual-reports.html
workshops. The SIA has networked extensively though businesses conducted as part of the stakeholder
close consultation and engagement with interview activity.
6. Bureau van Dijk, ORBIS Database, Available: https://orbis.bvdinfo.com/version-2018523/home.
■■ HEI Research institutions: 15 Universities formed ■■ Other key consultees have included Innovate UK, the serv?product=OrbisNeo
the core consortium. including the N8 research KTN, EPSRC, the Smart Specialisation Hub, and the
partnership of the eight research intensive BEIS chemical sector team. 7. Department for Business, Energy & Industrial Strategy, The Mid-sized Businesses Growth Review,
Universities within the NPH (Durham, Lancaster, 2012.
Leeds, Liverpool, York, Manchester, Newcastle and The SIA has built upon the learning in the SIAs in Waves
York) and also a further seven key additional NPH 1 and 2. Several common themes run through these 8. Office for National Statistics, Nominal and real regional gross value added (balanced) by industry,
Universities with strong links to the chemicals and audits in particular, the importance of coordinated ONS, 2017.
process sector including Teesside, Bradford, Chester, innovation and business support; strategic investment
Huddersfield, Hull, and Northumbria and Sunderland. and access to finance; and recognition of the sector
identity through a single body. These closely align with 9. Office for National Statistics, Annual Business Survey - Regional Results 2015, 2017.
■■ Economic Development agencies: The project the conclusions arising from our work.
delivery lead, Tees Valley CA has liaised with the 10. Skills Funding Agency, The Skills Funding Agency (SFA) Full Year Data Cube February 2018, 2018.
11 LEPs that reside within the NPH, with close There are very clear technological linkages in particular
engagement with the locations of the key chemical with the work of the Applied Digital SIA in the application 11. UK Commission for Employment and Skills, Working Futures 2014-2024, 2016. Available: https://
clusters in the Humberside LEP and Liverpool City of digitisation to the chemicals and process sector www.gov.uk/government/publications/uk-labour-market-projections-2014-to-2024.
Region LEP respectively. and both working groups have closely collaborated
in developing their conclusions and actions and have
■■ National Innovation Centres: CPI, MPI, TWI and the agreed to continue to work collaboratively as they move 12. Higher Education Statistics Agency, HESA - Higher Education Statistics Data, 2017. Available: https://
Royce Centre and Materials Innovation Factory into implementation phase post-completion of the audit. www.hesa.ac.uk/data-and-analysis/students
through their Manchester and Liverpool University
leads. The SIA has identified the Circular Economy and 13. N8 Research Partnership, N8 Research Partnership, Available: https://www.n8research.org.uk/
resource efficiency as strong enablers that cut across
■■ Sectoral bodies, NEPIC has acted as the lead the key sub-sectors as a means of reshoring activity 14. SCOPUS, Citation Analysis 2013-2017 of Chemicals Literature, Available at https://www.scopus.com/
coordinating sectoral body, working with counterparts and driving growth. This is showing close alignment search/form.uri?display=basic
in Chemicals NW, HCF-CATCH and YCF. Input on the with messaging on the importance of eco-innovation
important pharmaceutical intermediates sub-sector and clean growth within the North West Coastal Arc
has been provided through the First for Pharma Clean Growth SIA. Both groups have been in preliminary 15. EPO-PATSTAT. Worldwide Patent Statistical Database (Spring 2017 version).
organisation. discussions and will seek to continue dialogue on
coordinated and collaborative interventions post-
■■ The Chemistry Growth Partnership (CGP) has been completion of the audit phase
consulted in the audit through engagement with their
secretariat, the Chemistry Industries Association. Full report
Alignment has also been through CGP Board member,
Paul Booth’s Chairmanship of the SIA project delivery The full report; The Northern Powerhouse Chemicals and
group. The SIA has coordinated its evaluation of the Process Sector: A Science and Innovation Audit Report
key innovation themes with the work undertaken sponsored by the Department of Business, Energy and
by the Innovation Committee of the Chemistry Industrial Strategy can be downloaded from
Growth Partnership on key priorities for innovation www.teesvalley-ca.gov.uk/research-intelligence/sia
and investment and indeed has undertaken further
14 Northern Powerhouse | Chemical and Process Sector Northern Powerhouse | Chemical and Process Sector 15You can also read
