Select Committee on Trade and Industry Written Evidence


APPENDIX 1

Memorandum by the Aerospace Technology Steering Group (ATSG)

1.  INTRODUCTION

  The Committee has requested written evidence on the progress towards the implementation of the recommendations of the Aerospace Innovation and Growth Team (AeIGT). This submission addresses progress to date in respect of the AeIGT recommendations on Technology Strategy.

2.  PROGRESS TOWARDS THE IMPLEMENTATION OF THE RECOMMENDATIONS OF THE DTI SPONSORED AEIGT ON TECHNOLOGY STRATEGY

  The report of the AeIGT, published in July 2003, recommended the establishment of a National Aerospace Technology Strategy (NATS) as a partnership between Industry, Government and Academia. This recommendation was based on the following:

    —  The success of the UK Aerospace Industry depends on the ability to deploy world class technology which requires long term investment in research.

    —  Aerospace is a safety critical and highly regulated industry. New technology therefore requires a lengthy phase of focused research and validation before it can be applied in aerospace. The strength of the UK Industry today stems from a history of research and validation programmes promoted by Government in close collaboration with Industry aimed at bridging the gap between pure science and industrial exploitation.

    —  UK Government investment in this vital area has fallen over the years (despite the increased support for pure scientific research) and is now well behind the level of competitive nations.

    —  The major aerospace companies in the UK have a global footprint. While prepared to invest heavily in technology acquisition they will tend to do so where conditions are most favourable and, in particular, where they can work in close partnership with Government funded research and validation. Product development and production inevitably follow research and technology.

  These points were also identified in Industry evidence to the Select Committee in January 2001 and hJuly 2003.

3.  NATIONAL AEROSPACE TECHNOLOGY STRATEGY

  The NATS envisages that investment should be concentrated on the major research themes and related technology validation programmes critical to the UK industry. The AeIGT established that this requires industry investment to be matched by an increase in Government civil expenditure and an increase in the proportion of MOD research funding spent with industry. The themes and validation programmes broadly address environmental targets (the NATS has adopted the EU ACARE targets for reduced emissions), defence (in accordance with Defence Industrial Policy), and product competitiveness.

4.  NATS IMPLEMENTATION

  Following acceptance of the AeIGT recommendations, implementation commenced in September 2003 under the leadership of the ATSG, representing Industry, Government and Academia. A comprehensive National Aerospace Technology Strategy Implementation Report was published in July 2004 and is attached as a supplement to this submission.

  Intensive work has continued on developing specific research and technical programmes in detail and in assessing regional impact. Work has also continued in conjunction with the National Defence Industries Council Research and Technology Sub Group on harmonising the NATS with MOD Technology Strategy.

5.  FUNDING THE NATS

  In the past the DTI has funded aerospace research and technology demonstration through the Civil Aircraft Research and Technology Demonstration Programme (CARAD). Following the December 2003 Innovation Review, CARAD is due to terminate. In consequence the NATS will have to compete for funding on a non-sectoral basis, and is already doing so. It is already clear that the innovation funding available to the DTI is inadequate to support the NATS on the basis originally envisaged and that the public share of funding for the NATS will have to come from Regional Development Agencies (RDAs), Devolved Administrations and Research Councils as well as the traditional DTI and MOD Sources.

  The challenge that this represents has been recognised, and in February 2004 the Prime Minister assigned the task of co-ordinating public funding for the NATS to the Minister for Science and Innovation who convened a National Aerospace Strategy Group for that purpose. Specific issues being addressed are.

    —  The ability and willingness of RDAs to participate in funding the NATS—this requires amendment to the existing Tasking Framework which does not provide for investment in research.

    —  MOD support.

    —  The relationship with the Research Councils.

6.  CURRENT STATUS

  The principle of a National Aerospace Technology Strategy has been accepted as vital to the continued success of the UK Aerospace Industry. It is now essential that real progress should be made in launching major elements of the Strategy in Spring 2005.

  This will require:

    —  The UK Aerospace Industry to commit funding and resource as defined in the Implementation Report.

    —  Central Government to demonstrate its ability to deliver a long term national strategy which has to be, in large part, implemented and funded regionally.

W K Maciver

Chairman, Aerospace Technology Steering Group





 
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