Select Committee on Science and Technology Third Report


7  INNOVATION AND KNOWLEDGE TRANSFER

59. The Science and Innovation Investment Framework 2004-2014 has knowledge transfer at the heart of its agenda: "UK business has access to a science base that is excellent, but there is an economic imperative to make sure that scientific knowledge is used by business to create wealth".[84] In total, DTI spends approximately £300 million on knowledge transfer each year. Table 7, below, shows how this expenditure is broken down:Table 7: DTI expenditure on knowledge transfer (£ million)

  
2002-03
Outturn
2003-04
Working
provision
2004-05
Plans
2005-06
Plans
TOTAL
of which:
337.3
283.7
341.2
361.5
Knowledge Transfer
136.8
109.9
150.6
159.2
Exploitation of Investment in
Science Base
51.6
64.0
80.0
91.4
Technical Infrastructure
63.8
76.9
77.7
78.0
Space - BNSC
85.1
32.9
32.9
32.9

Source: Department of Trade and Industry, Departmental Report 2004, Cm 6216, April 2004, p 49

Regional Development Agencies

60. The Lambert Review of Business-University Collaboration has prompted Government to give the Regional Development Agencies (RDAs) a greater role to play in the promotion of business-university links. The Committee has in the past expressed doubts about the scientific capabilities of the RDAs.[85] Similarly, witnesses to the 2003 inquiry by the House of Lords Science and Technology Committee into Science and the RDAs expressed concerns about their lack of scientific and innovation based expertise. Our contacts with businesses and universities in the UK have tended to reinforce this view, although there are good examples in some regions, such as the North East and the North West. The House of Lords Committee called for the RDAs to review their capabilities in this area.[86] We understand that the level of expenditure on science, engineering and technology is variable across the regions.

61. Since the above criticisms were made, however, the Government has taken a number of steps to improve the scientific capabilities of the RDAs. The Science Minister told us that, by the end of 2004, all the RDAs would have established Science and Industry Councils "with on the whole good people on them representing both academics and industry".[87] Collectively the RDAs invested £250 million in science, engineering and technology-related activities in 2002-03, representing approximately 15% of their budgets.[88] It is too early to tell whether or not the establishment of Science and Industry Councils within RDAs will improve their performance on science, engineering and technology-related matters. We look forward to reviewing the situation in next year's Scrutiny Report, when the Councils will have been in operation for a year.

Technology Strategy

62. The Innovation Report, published in early 2004, identified the need for the Government to adopt a more strategic approach to technology innovation. The Government has promised to use the new Technology Strategy to achieve this goal. The Strategy is designed to provide "a business-driven framework for identifying emerging technologies which will have a significant impact on sectors where the UK has the potential to exploit such technology and the research capacity to maintain a leading global position, as well as deriving wider economic, social or environmental benefits".[89] DTI's various business support schemes have been rationalized to allow the redirection of funds towards technological innovation. These funds will be spent in line with the Technology Strategy and administered by a Technology Strategy Board.[90] DTI has pledged to invest at least an annual £178 million in the Technology Strategy by 2007-08.[91]

63. The new business-led Technology Strategy Board was appointed in October 2004. It is chaired by Graham Spittle, Director of IBM's Hursley Laboratory. The remainder of the membership consists of five further representatives from business, all recruited through open competition; two venture capitalists with a technology interest; one regional representative with a background in business and one Research Council Chief Executive, representing the interests of all the Research Councils. A number of Government officials will also sit on the Board.[92] The Technology Strategy Board first met on 1 November 2004.

64. The new Technology Strategy is a step in the right direction, and the attendant rationalization of DTI's existing business support schemes is welcome, if overdue. In particular, we welcome the tacit acknowledgement that civil servants in Whitehall are not necessarily best placed to identify opportunities for investment in innovation.



84   Investment Strategy, p 69 Back

85   Fifth Report of the Committee, Session 2003-04, Too little too late?: Government Investment in Nanotechnology, HC 56, para 66 Back

86   Second Report of the House of Lords Science and Technology Committee, Session 2003-04, Science and the RDAs: follow-up, HL 103 Back

87   Q 191 [Lord Sainsbury of Turville] Back

88   Investment Strategy, p 143 Back

89   As above, p 70 Back

90   Q 1 ["Science Question Time"] Back

91   HM Treasury, 2004 Spending Review: New Public Spending Plans 2005-2008, Cm 6237, July 2004, p 141 Back

92   Ev 53 Back


 
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