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Tees Valley
Innovation Strategy 2015- An innovation offer to the UK
Covers_Layout 1 29/05/2015 14:06 Page 1
Pages
Our Vision for Innovation - The Tees Valley’s Offer to the UK 2 - 3
Tees Valley’s journey of innovation 4
The Tees Valley Economy 5
How our focus on innovation boosts Tees Valley economic growth 6 - 7
Developing Our Strategy 8
What we will do 9
Page 1
Contents
Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Above photo courtesy of ©Cal Carey Photographer
©Teesside University (www.tees.ac.uk/theforge)– All Rights Reserved
Advanced Manufacturing Process
Digital Healthcare
© Centre for Process Innovation Ltd (CPI) (www.uk-cpi.com)– All Rights Reserved
©Teesside University (www.tees.ac.uk/theforge)– All Rights Reserved
Our Vision for Innovation- The Tees Valley’s Offer to the UK
Innovation is central to the future development of our economy, sitting at the heart of Tees Valley’sgrowth plans. Our vision is of the Tees Valley offering innovative solutions to UK problems, particularlyin advanced manufacturing. We have the assets, sites, skilled workforce and export-led outlook topilot and test new ideas and processes. By building on our track record of innovation success andexploiting the commercial opportunities that flow from invention and research, we will deliver for UKplc. Our vision is for a Tees Valley, which in 2025:
� Plays a major part in developing, manufacturing and delivering technologies to support a lowcarbon UK economy;
� Is home to innovative businesses that easily and frequently access bespoke, flexible support andan internationally connected and multi-disciplinary innovation knowledge network;
� Allows opportunities provided by technologies to be readily developed into solutions to meet challengesin the advanced manufacturing, process and healthcare industries to the benefit of the UK.
Focus upon 4 Key Growth Sectors
Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Advanced Manufacturing: � Advanced materials (steel, thermaltechnologies and photonics) – Existing strength
� Low carbon (offshore wind,bioindustries) – Growth potential
� Engineering design (wide expertiseincluding nuclear and construction)– Existing strength
� Offshore (vibrant cluster servicingoil and gas and offshore wind) – Existing strength ©
TWI Ltd. All rights reserved.
Page 2
Process: � Carbon capture and storage(innovative industrial scheme) – Growth potential
� Sustainable chemicals, energy fromwaste polymers and hydrogen – Existing strength
� Biorefining, formulation andindustrial biotechnology – Growth potential
Gasification facilities at MPI’s thermal
technology photo courtesy of Materials
Processing Institute
“Innovation sits at the heart of economic growth The Tees Valley boasts nationally significant innovation assets – particularly in relation to advanced manufacturing, industrial biotechnology, biologics and subsea engineering – all of which offer fantastic opportunities to generate significant economic growth for the area and for UK PLC.
Only by creating new products and processes and exploring new technology solutions, can we grow our business base, export our expertise and provide new jobs for our residents. Investing in innovation will help us live up to our historic reputation for being at the forefront of invention and innovation.”
Tees Valley Unlimited and key partners has developed this Innovation Strategy based uponthe principles of Smart Specialisation, that investment should be focused on the competitiveadvantages of an area, under the EU Research and Innovation Strategies for Smart Specialisation(RIS3) guidance. The Tees Valley is also a member of the EU Smart Specialisation (S3) Platform.
Page 3Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Healthcare: � Biologics and biopharmaceuticals(new national CPI centre) – Growth potential
� Digital care and assistivetechnology – Growth potential
The Gateway - Health and Wellbeing
Hub, Middlehaven
Digital: � Animation, computer gaming,simulation and visualisation – Existing strength
� Solutions for advancedmanufacturing, healthcare andprocess– Growth potential
©Teesside University (www.tees.ac.uk/
theforge) – All Rights Reserved
Nigel Perry, CEOCentre for ProcessInnovationChair of the InnovationLeadership Group,Tees Valley Unlimited
The Tees Valley is on a journey of innovation, with a history which places it at the forefront ofresearch and development in the UK. In this pioneering area – which covers Darlington, Hartlepool,Middlesbrough, Redcar and Cleveland and Stockton-on-Tees – the safety match was invented, thefirst major public steam railway in the world created and products from perspex and ammonia topolyethylene and nylon developed. Today this track record of innovation continues as we are home tothe UK’s largest hydrogen plant, the UK’s first biomass power station, a world leading grapheneplant, a subsea training facility unique in the UK and Tees Valley will shortly be home to one of thelargest advanced gasification facilities, the national centre for biologics and the UK’s first offshorewind validation centre.
The Tees Valley was named as the most innovative area in the North in an innovation mappublicised by Government in 2015. Tees Valley was seventh overall, higher than London,Birmingham, Leeds and Manchester.
The Tees Valley Innovation Strategy, developed by public and private sector partners, builds uponthese ground-breaking assets and our innovative company base to help increase rates of start-up,spin-out, commercialisation and research and development, fostering a culture ofentrepreneurialism and innovation to the benefit of employees, businesses and supply chainsacross Tees Valley and the UK. We believe the Tees Valley, due to this unrivalled history ofadvanced manufacturing research and invention, can continue to provide innovation solutions forthe UK boosting UK competitiveness.
Tees Valley’s Journey of Innovation
Page 4 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
The current build of the: CPI National
Biologics Centre, Darlington
© Centre for Process Innovation Ltd (CPI)
(www.uk-cpi.com) – All Rights Reserved
Researcher scanning electron microscope
at MPI - Photo courtesy of Materials
Processing Institute
The Tees Valley has a population of 660,000 people and contributes £11billion a year to the nationaleconomy through its major hub status for the process and chemical industries and its growing reputationfor advanced manufacturing excellence (particular specialisms include oil and gas, subsea, biologics andautomotive), low carbon (offshore wind and energy from waste) and the digital/creative economy.The Tees Valley boasts many competitive advantages; we are home to major industries that exportproducts and services across the globe; a skilled workforce supported by leading colleges, universitiesand national knowledge centres; and a major port, airport and direct rail routes to key locations.
Key Innovation Assets
The Tees Valley Economy
Page 5Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
� Centre for Process Innovation (part of HighValue Manufacturing Catapult)
� National Industrial BiotechnologyFacilities: biotechnology expertise
� National Biologics ManufacturingCentre: £38m biologics researchcentre
� Teesside University: Highly-regardedresearch centres, particularly manufacturing,construction and advanced project planning
� Durham University: Leading healthcareresearch university with a base in Tees Valley
� Digital City: Support for innovation andenterprise among digital industries, with acluster of over 200 firms supported by DigitalCity and Teesside University
� Materials Processing Institute: Steel, metalsand materials research centre
� TWI: Welding and inspection expertise,particularly low carbon
� C-State: First subsea training centre of itstype with £5m ROV capability
� Wilton Centre: Incubation space andaccelerator programme for process sector
� Applied Graphene Materials: Start up withgraphene production expertise
� Enabling organisations: North East ProcessIndustry Cluster, Digital City, AcademicHealth Science Network, NOF Energy
C-State ROV machine:
at the Subsea Training Facility
Photo courtesy of Materials Processing
Institute
Innovation Accelerator Centre -
The Wilton Centre
How our focus on innovation boosts UK economic growth
Tees Valley is uniquely placed to find solutions to global challenges and contribute to UK economicgrowth. Our innovation assets and key investments in future technologies, such as biopharmaceuticals,photonics, carbon capture and storage and offshore wind, means that we can help to pioneer theinnovation required to tackle a growing global population and the pressures placed upon health andnutrition, construction and housing, energy and resources and mobility and communications.
Yet Tees Valley faces obstacles in continuing to build an innovative, enterprising and entrepreneurialeconomy to provide these solutions. Barriers include available and appropriate finance (we believethere is a gap in equity, angel and grant provision for businesses at Technology Stage Readinesslevels 4 to 7, who need funds to develop, demonstrate and scale up), incubation space to pilot andtest new products, visible and accessible support to help SMEs to innovate and export, and certainskills shortages in innovation-led industries.
As a result, Tees Valley has placed significant emphasis upon innovation in its £90m Growth Deal withgovernment (2014) and has allocated £25m of ERDF towards innovation for the next Europeanprogramme (2014-2020), which, when matched, will bring total investment to over £40m. There areopportunities to maximise the EU Horizon 2020 scheme, worth £65bn over seven years, and to increase theengagement of Tees Valley businesses with the Innovation Toolkit of the Innovate UK. We will helpbusinesses access these opportunities under the banner of the Tees Valley Business Compass, the locationfor business support in Tees Valley. By placing such a focus on innovation we can capitalise commerciallyupon the world-leading research and global networks of the Tees Valley’s innovation assets, encourageproduction to return to the UK and ensure that SMEs in Tees Valley have access to new market opportunities.
Page 6 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
� Biotheraputics Factory of the Future: Part of £50mCPI project to develop process technologies and deliverpersonalised medicines via both conventional andsynthetic biology. Builds on the creation of the NBMC.
� Carbon capture and storage: Part of Tees Valley’s CityDeal to become a global pioneer in industrial carboncapture and storage and lead the way on innovativedistrict heating schemes.
©Teesside University (www.tees.ac.uk/
theforge) – All Rights Reserved
Key Future Investments
Where we are nowIndicator Baseline 2012/3 Position Source
Percentage of firms introducing newproducts/services 24% 4th highest in England (out of 39
Local Enterprise Partnerships) HEFCE
Percentage of graduates staying in thelocal area 77.8% Tees Valley 7th highest LEP in
England (national average 68%). HESA
Percentage of firms introducing new tothe market innovation 53% 15th highest in England (out of 39
LEPs) HEFCE
Percentage of firms undertakingResearch & Development 18% 16th highest in England (out of 39
LEPs) HEFCE
Level of R&D Tax Credits take-up £29 per FTE (NE) 2nd lowest region in the UK, belowthe national average HMRC
Innovation is central to our vision for Tees Valley to create 25,000 net new jobs over the next decadeand move to a high-value, low-carbon, diverse and inclusive economy. Through our businesses,particularly our Small and Medium Sized Enterprises (SMEs), adapting and innovating, we will beable to increase our global competitiveness, maximise the success of new industries, growdeveloping sectors and create the jobs that our economy needs.
There are many opportunities to exploit, particularly in the low-carbon, advanced manufacturing, digitaland healthcare sectors, building upon Tees Valley’s industrial expertise and nationally significantknowledge assets. However, we recognise that innovation spans geographical boundaries and thatpartnership working is vital to deliver for businesses in the Tees Valley and across the country.
Encouragingly, Tees Valley’s business birth rate, at 15.6% in 2013, was significantly higher than the UKrate, above any UK region outside London and the highest since 2007. This rise, alongside the wideninggap between births and deaths, demonstrates continued economic recovery and a rise in enterpriseactivity. By boosting the ability of our businesses to start-up, commercialise, grow and expand, wewill catalyse economic growth and employment opportunities for the benefit of Tees Valley residents.
Page 7Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
� Materials Processing Institute: £10minitiative from Tata Steel, along with corepartners, to provide open access tolaboratory, pilot and demonstration spacefor companies to test new products.
� National Horizons Centre for Innovationand Skills: Part of £50m joint TeessideUniversity - CPI project to deliver provisionin biologics, industrial biotechnology,subsea engineering and digitalmanufacture and design.
� Teesside Advanced Manufacturing Park:£6m development includes TWI researchand validation centre for offshore windtower manufacturing.
� Biorefinery: The term ‘Bioeconomy’ describesthe use of biological feedstocks, or processesinvolving biotechnology, to generate economicoutputs in the form of energy, materials andchemicals. A Bioeconomy utilises newtechnologies such as synthetic biology andbio catalysis, together with chemical andengineering disciplines to make bothexisting and novel products.
These technologies can reduce the dependence on non-renewable feedstocks, includingfossil fuels and can utilise carbon-containing by-products and wastes. Such wastes includemunicipal solid waste (MSW), agricultural and forestry residues, and waste gases such asflue gas from coal based energy stations. The term used to describe the development ofmulti-input and multi-output bio-based-processes is a ‘Biorefinery’.
Industrial Biotechnology and Biorefining
at CPI - © Centre for Process Innovation
Ltd (CPI) (www.uk-cpi.com) – All Rights
Reserved
Artists Impression of the new TWI
Technology Centre in Middlesbrough
Our offer to SMEs sits at the centre of achieving this:
How Tees Valley Supports SMEs
In the last five years, Tees Valley has attracted over £1.36bn of private sector investment, supportingthe creation of over 3,000 jobs and safeguarding a further 2,000. Tees Valley is quickly growing areputation as an area that is attracting significant investment, particularly in innovative technologiesand processes.
Our ERDF activity has been designed to boost innovative activity across Tees Valley:
Page 8 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
1. A single routeway (via the Tees Valley Business Compass) to find the best support for yourbusiness to help innovate and to raise awareness of available products, schemes and funding
2. Advice on access to finance (such as InnovateUK products and EU funding) and investmentreadiness
3. Knowledge Transfer Partnerships that allow you to derive practical benefit from Universityand academic expertise
4. A focus on innovation at our two universities to provide the skilled graduates that yourbusiness needs
5. Innovation centres that offer practical support, pilot facilities and space to trial andcommercialise new products and processes
6. Sector specific innovation support and market knowledge for our key growing industriesand future growth sectors
7. Financial support (through the Tees Valley Business Compass and other routes) to encourageR&D activity
The Tees Valley Innovation Strategy results from over 18 months of research, consultation anddevelopment by Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley. The processengaged stakeholders from Tees Valley companies, business and industry representative bodies,universities and specialist innovation centres to produce a strategy which aligns to both national andEuropean innovation priorities, whilst reflecting the specific opportunities and challenges of the TeesValley. This builds upon our history of innovation and our innovation assets which are alreadysignificantly contributing to innovative activity across the UK with Tees Valley leading the way.
It is based upon the principle of Smart Specialisation; that investment should be focused on thecompetitive advantages of an area, where there is critical mass, the potential for sustainable growthand the ability to develop trade flow, value chain and investment connections with other areas. OurStrategy is founded upon a robust evidence base which analyses our sector strengths, competitiveadvantages and historic growth rates, meaning that the key sectors identified by the Tees ValleyInnovation Strategy meet all of the smart specialisation criteria.
Development of our Innovation Strategy has been driven by a private sector led Innovation LeadershipGroup chaired by the Innovation Champion for the Tees Valley, Nigel Perry, Chief Executive of CPI. TheGroup’s work – particularly on driving practical actions to fund key innovation projects and deliverdirect support for businesses – continues to progress to ensure that we create the most effectivepartnership to drive forward innovation in the Tees Valley and ensure stimulation, cooperation andcross-sectoral collaboration. The Tees Valley Innovation Strategy, therefore, will be updated annuallyto review and showcase the progress being made.
How our strategy fits with government policy
� Global challenges: identified by world organisations, of health and nutrition, energy andresources, mobility and communications.
� BIS Science & Innovation Strategy: 2014 strategy set the aim of the UK as being the bestplace in the world for science and business
� UK Industrial Strategy: The UK Industrial Strategy recognises the advanced manufacturingand digital expertise of Tees Valley.
� Government sector policy: Our Strategy fits with the Chemical Growth Partnership‘Strategy for Delivering Chemistry-Fuelled Growth of the UK Economy’ and NHS England’sInnovation, Health and Wealth Strategy.
� Innovate UK 2014-15 Delivery Plan: Our Strategy fits with the focus upon high-growthcompanies and developing Catapult Centres.
� Smart Specialisation in England: We have followed the smart specialisation principles asset out by the EU and BIS.
� Horizon 2020: Our focus aligns to the Key Enabling Technologies and challenges identifiedby the EU and Horizon 2020.
� Eight Great Technologies: The government’s eight great technologies match our key sectorfocus, particularly on synthetic biology, regenerative medicine, satellites, energy, advancedmaterials and big data.
Developing Our Strategy
Page 9Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
In developing this Tees Valley Innovation Strategy partners have collaborated to enable the TeesValley to take the next steps on its innovation journey. We have prioritised the following actionswhich will help to enable the Tees Valley to overcome barriers to growth, maximise opportunitiesand deliver our vision for innovation in Tees Valley to offer solutions to the UK:
In support of our Innovation Strategy, we will:
For more information on the Tees Valley Innovation Strategy and its next steps, funding through ERDFfor innovation or the support Tees Valley can provide for businesses looking to innovate, please contactTees Valley Unlimited, details found on the back page of this report.
What we will do
Page 10 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
1. Provide direct support for research andinnovation, particularly in the chemical/process, advanced manufacturing, healthcareand digital sectors.
2. Provide direct support to businesses forinnovation and the commercialisation of newproducts, processes and services, where thesemeet the strategic vision of Tees Valley.
3. Support collaboration in innovation led projects,particularly those working across sectors, toimprove innovation and competitiveness, workingwith other research based organisations.
4. Create, develop and enhance open accesstechnology centres, to promote specialisttechnical and business support tocommercialise research.
Funding and Targets
� European Regional DevelopmentFund 2014-2020: £25m allocated toInnovation (total investment of over£40m).
� Local Growth Fund 2015-17: over£15m allocated to innovation projects(total investment of over £60m).
� Other sources : Other Sources:Such as Horizon2020, InnovateUK,Research Councils UK.
Our aim is to increase thenumber of businesses inTees Valley and create
25,000 net new jobs by 2022
©Teesside University (www.tees.ac.uk/theforge)– All Rights Reserved
© Centre for Process Innovation Ltd (CPI)
(www.uk-cpi.com) – All Rights Reserved
Tees Valley UnlimitedCavendish HouseStockton-on-Tees
Tees ValleyTS17 6QY
Tel: 01642 524400Fax: 01642 632001Email: [email protected]: www.teesvalleyunlimited.gov.uk
Photographs used are copyright © 2015 Tees ValleyUnlimited, and its licensors. Images used in thisdocument are by kind permission from, TeessideUniversity, Nepic, DigitalCity, Materials ProcessingInstitute (MPI), Teesside Welding Institute (TWI), DaveCharnley photographer, Cal Carey photographer andCPI © Centre for Process Innovation Ltd (www.uk-cpi.com)– All Rights Reserved.
© TWI Ltd. All rights reserved.
Covers_Layout 1 29/05/2015 14:06 Page 4
