Transcript UK and Regional Transport Funding

Driving Innovation
The Technology Strategy Board
UK and Regional Transport Funding
Stephen Hart – Lead on Transport Systems
Driving Innovation
A brief history…
• The original DTI Innovation Unit and advisory “Technology Strategy
Board” was set up in 2004
• It was spun out of government as a “non-departmental public
body” in July 2007, relocated to Swindon and staffed with people
from business
• Since then our budget has increased from £250m to £440m a year
• Independent evaluation suggests that we have increased the return
on that investment from £4 to over £20 for every £1 used by
focussing on challenges and building the community
• We are now the UK’s Innovation Agency
Driving Innovation
What is the problem we are addressing?
• Business investment is too low and too late
• Technical and financial risks need to be mitigated
• The time for financial return is too long for many players
• 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
• Government does not make best use of its levers
• Procurement, regulation, standardisation, fiscal incentives
Driving Innovation
What are our Criteria?
• Market
– What is the current and projected size, how fast is it growing, who are the
competition?
• Capability
– Does the UK have a strong research base in the area, the skills, the business
capacity?
• Timing
– Is the cost curve balanced by the value curve?
• Additionality
– Why should the taxpayer support this project?
Driving Innovation
Thematic Focus
Driving Innovation
Lets Take a close look at Transport?
• Today's transport will be tomorrows challenge,
The scale of demand for global transport is astonishing,
its essential in every aspect of our daily
lives, supporting the UK economy
through the movement of people and goods, getting
people to work and food to the supermarkets.
• With a world population now standing at
seven billion people, the expansive global network
of 30 million miles of roads carries a staggering
80 billion kilometres of passenger travel and nearly
30 billion tonne kilometres of freight every day. Meanwhile a massive merchant
fleet of 50,000 vessels delivers 570 million containers to ports around the world.
Driving Innovation
Transport is the means.....................
Driving Innovation
Mega
Trends
Urbanisation &
Smart cities
Congestion
Business Sectors that
rely on transport – the
customer
Social & life
style
Energy
Pollution & resources
Utilisation
Healthcare
Retail
Demographics
Open platform and Smart and
reactive architectures
Logistics &
Freight
Tourism
Technology &
innovation
Smart
Infrastructure
Manufacturing
Transportation means
Road
Rail
Sea
Aviation
Researching the trends for future markets
Driving Innovation
Sizing the market for transport - evidence
• In the UK, we travel some 670 billion kilometres each year by car, bus, and rail,
spending around £190 billion on cars, commercial vehicles, roads, fuel and
related motoring expenditure, railway and bus tickets and infrastructure
subsidies. Households spend around half of this, with fuel making up the lion’s
share (£26 billion per year) followed by vehicle purchases (£19 billion per year)
with repairs and servicing making up another £7 billion per year. Globally is
£11.5tr
• Quarter of a trillion tonne kilometres of freight is moved around within the
country every year. While 70% of this travels by road, a surprising 19% travels
by water with the remaining 10% travelling by rail. While valuing this is difficult,
CEBR estimate that road freight costs companies around £42 billion per annum
compared to only around £1 billion for rail freight.
• Total trade in physical goods has risen from £3.4 trillion to £11.4 trillion
between 1997 and 2012. World trade encompasses 25% of total world GDP
compared to 18% in 1997 which illustrates the increased openness of the global
economy.
Driving Innovation
Users: Account for ~30% GDP and over £600bn revenue, potential to unlock vast productivity gains in 4
industry sectors alone.......
£126
Billion
UK Healthcare
Spending 2011/12 (UK
Treasury)
£292
Billion
2010 Retail sales exc.
Automotive Fuel (ONS)
£115
Billion
Value of Direct and indirect
tourism to the UK (Visit
Britain)
£75
Billion
Value of logistics to the UK
economy (Skills for Logistics)
Projections in capacity growth .......
35%
Estimated growth EU
passenger mobility
2007-15, with 50%
increase in freight
21%
AM Train Services to
London with
overcrowding (ORR)
101%
Increase in RoRo traffic
2005-30 (DfT)
127
(000)
Chinese tourist visits to the
UK 2010, compared to 500700k in France/ Germany
(GLA)
Driving Innovation
Is capacity the problem?
• A reported statistic from the CBI value’s congestion at around £20 billion per annum = lost
revenue to the UK’s GDP, and to businesses
• Although people are frustrated with the frequent delays, we still persist in “thinking
inside the box”, using and installing fragmented and local solutions and with the limited
infrastructure to throw more vehicles at the problem, rather than thinking more
intelligently, and using the intelligence within the system, to optimise assets and inform
our actions, or needs. Acting in isolation is congesting our environment and our ability to
function.
• How we move people and goods more intelligently relies heavily on interaction and
interchange of a number of components, transactions, interdependencies and
connectivity; it is inefficiencies between these that create wastage in the overall system,
which, in its own right leads to additional overheads to manage those interactions.
Equally, this wastage between interactions results in lost time, poor flow and inefficiency
in the overall transport system, thus hindering our ability to move people and goods more
efficiently.
Driving Innovation
Time to think “out of the box” and
transform.............!
Driving Innovation
Transport systems integration
• Systems integration which in engineering terms is the process of bringing together the
components and subsystems of transport into one, or a more connected local system to
ensure they function more systematically together, therefore, the act of “gluing”
different transport systems physically, virtually or functionally so to act as a coordinated
whole, or part, provides opportunity in overcoming wastage, using innovation to drive
change.
Driving Innovation
Market opportunities – est £900bn
• The vision for the future is that user’s will demand more from innovation and technology
as capacity saturation grids to a holt, the user becomes the customer, setting
specification and requirement for innovation that's is likely to be centred around
configuring cross mode and node products and services that are, flexible, informative,
decisive, and above all reactive to the pace of innovation.
• To do this he UK needs to engineer future skeleton and reactive architectures, integrate
systems to address the issues of wastage across borders. To bring into existence the
ability to interpret between components, data and information, thus seeking to create
an industry which will make work complex interfaces by translating language between
technical, commercial products, services. Driving collaboration across sectors and
attracting new and emerging industries into the transport arena.
Driving Innovation
Competitions
Collaborative Research and Development
Used to drive engagement between businesses or
with universities – in themed areas and
communities
Feasibility Studies
Used for early stage ideas in thematic areas to test
potential
Smart
Used to support single companies in areas they
choose
SBRI
– Contracts with Government Departments that lead
to procurement
Driving Innovation
Other Mechanisms
LaunchPads
• 2 minute video Application process
• 50% funding offered “up front” …with 12 months to
match
• First run in Tech City in 2011 - 15 of 18 companies
successful
Missions
• Joint activity with UK Trade & Investment (UKTI)
• Take new companies to a global centre in their area
where they meet potential customers, suppliers,
competitors and funders - First 4 raised over £100m of
funding
Driving Innovation
Knowledge Transfer Partnerships
Access knowledge, technology and skills
from the UK knowledge base
Embeds a recent graduate within a host company to transfer knowledge and
skills from academia into industry.
National Network of Advisors help identify the needs in companies and
match with the knowledge within the research base.
Training and development support given to the “associate” along with close
supervision from a senior academic supervisor
Driving Innovation
http://www.innovateuk.org/transport
Stephen Hart
Lead on Transport Systems
Email : [email protected]
Mobile 07833437099
THANK YOU