Government must pick winners
R&D Society meeting on "Why choose the UK as a location for corporate R&D?"
With Tony Meggs (Chair); Jackie Hunter, GlaxoSmithKline; Ric Parker, Rolls Royce; Michael Walker, Vodafone
The Government must be prepared to pick winners in its science and innovation policy if it is to get maximum economic benefit out of the excellent research base in the UK, concluded the latest R&D Society meeting, held on Monday night. There was clear support for the Government's new policy to pick winners in areas of high growth potential, where the UK has a competitive advantage and could realistically be number 1 or 2 in the world. However, there was concern about the decision-making process and about whether the Government could be sufficiently "joined-up" to follow through and purchase the results of the R&D.
The meeting was chaired by Tony Meggs, former Group Vice President for technology at BP. In his opening remarks Tony said that the UK needed to improve its cross-disciplinary and inter-university collaborations to be able to tackle major global issues, referring to his experience of this being done much more effectively in the USA. He also picked out new energy technologies for special attention, saying that "it is all very well for the Government to want the UK to be the leader in R&D for sustainable energy, but this needs to be supported by an industrial infrastructure and a strong Government policy to adopt new energy technologies".
Jackie Hunter, Senior Vice President of GlaxoSmithKline welcomed the Government's new focus on picking winning areas to support through its science and innovation policy. Jackie said "the UK needs to focus and to be prepared to seize opportunities" and added that "we need a thriving biotechnology industry supported by intelligent and strategic Government policy".
Ric Parker, Director of Research and Technology at Rolls Royce suggested that the Government should look at President Obama's substantial increases in the science budget and argued that maintaining current spending levels was not sufficient to maintain the UK's international competitiveness. He said that rather than reducing VAT, “the Government should invest in R&D to achieve the same short-term stimulus, but with long-term strategic benefits”.
Professor Michael Walker, Group R&D Director of Vodafone, was critical of short-term thinking in the UK and urged the Government to invest in opportunities with potential to be world leading. “If we have a world-leading position, we should invest in it.” While welcoming the Government's intention to pick winners, he urged that the Government take care to use the right processes. “The science and engineering base, including industry, must be heavily involved – they know where we could be better ”. Mike picked out Mobile VCE, the Virtual Centre of Excellence in Mobile & Personal Communications, supported equally by Industry and EPSRC, as a model for effective collaborative R&D.
The panel and event attendees praised the UK’s international strengths, especially our science base, which produces talented researchers and world-leading “blue skies” research. The UK’s multicultural society encourages and enables companies to bring researchers from across the world to UK-based research departments. Staff in companies and universities were also praised for their ability to accept innovative and creative methods of working together. However, this was tempered by concern that Full Economic Cost (FEC) requirements – where universities recover the full cost of research cooperation from research partners – could hamper university/business collaboration. Businesses appreciated the necessity to cover costs, but thought that an across-the-board requirement for FEC recovery did not recognise the full range of benefits that business-university collaboration brings. The meeting agreed that the Government should offer FEC “top-ups” of around 20% for university/industry collaboration, which would support industry, universities and stimulate economic growth.
Before the meeting, David Kingham, Chairman of the R&D Society said "Globalisation is a critical challenge, and a key opportunity for UK research and development. With companies now operating on a global scale, they can choose to locate their R&D functions anywhere in the world. Countries are competing to attract these high-value, high-skill jobs. The UK has a strong tradition of corporate R&D from British and foreign-owned companies and a world-renowned science base. But is that enough for the future?"
Reflecting after the meeting, David Kingham said: "The purpose of our meeting was to give originally British, but increasingly global, companies based on science and technology the opportunity to express their views on R&D in the UK. We were delighted by the forthright views expressed, but it does raise a concern about whether Government policy makers are really listening and paying attention."
David Kingham continued: "it is clear that while there is strong support for the Government to be bold and pick some winners, this should be extra investment in selected areas and not come at the expense of basic science. Meanwhile there are grounds for concern about the process for picking winners and about whether the Government will then be sufficiently joined-up to then purchase the winning new technologies that it has supported."
Notes for Editors
- The Research and Development Society is a UK-based organisation which aims to promote the better understanding of R&D in all its forms and to make the UK the best place in the world for R&D. It is unique in the UK in covering all types of business and industry with an interest in R&D, enabling common issues and solutions to be discovered, shared and solved. With a membership spread across the full range of UK R&D community, it holds regular meetings on a wide variety of topics relating to innovation and R&D management best practice. The R&D Society’s administration is provided by the Royal Society, but the R&D Society is independent, being a company limited by guarantee funded and run by its members through a Board of Directors, chaired by Dr David Kingham.
- Future meetings of the R&D Society in April and May will feature David Willetts, Shadow Minister of Science and Innovatuion and Lord Drayson, Minister of Science and Innovation, respectively.
