Select Committee on Trade and Industry Written Evidence


APPENDIX 15

Memorandum by the Institute of Physics

  The Institute of Physics is a leading international professional body and learned society, with over 37,000 members, which promotes the advancement and dissemination of a knowledge of, and education, in the science of physics, pure and applied.

  The Institute welcomes the opportunity to respond to this important Inquiry.

  The White Paper, Our Competitive Future: Building the Knowledge Driven Economy, listed a number of Government commitments and measures which would strengthen the UK's capability to compete in the modern economy. These included to:

    —  boost science spending in partnership with the Wellcome Trust by an extra £1.4 billion;

    —  create a new reach-out fund to promote English university interaction with business;

    —  launch a £25 million Science Enterprise Challenge, creating up to eight enterprise centres in universities;

    —  establish a national network of Faraday Partnerships;

    —  launch a second round of Foresight and provide £10 million for a second round of Foresight LINK Awards; and

    —  provide funds for the Regional Development Agencies to promote collaborative strategies building on regional know-how.

  The majority of these commitments have been welcomed. However, one of the Institute's main issues of concern relates to the role of Regional Development Agencies (RDAs) in regional growth strategies. In the Institute's submission to the House of Lords Science and Technology Sub-Committee II's Inquiry, Science and the RDAs, it was stated that the RDAs are perceived as not being fully engaged with science, engineering and technology (SET) activity, which appears not to get the support it deserves as a significant source of new business and economic growth.

  The Sub-Committee in its final report, Science & the RDAs: SETting the regional agenda[75], concluded that there is a need for a rationalisation of all SET activity to better facilitate its exploitation, and that current accountability and targets for RDAs need to be revised to take account of the importance of SET in economic development strategies and to address the long-term nature of these activities.

  In addition, one of the challenges identified in the Institute's report, The Importance of Physics in the UK Economy[76], is that, despite some high-profile spinout activity in the UK, there appears to be a low rate of commercialisation of academic research in physics compared with other disciplines. To enable the UK to reap more of the commercial benefits of its physics base, university physics departments and related groups should be encouraged to exploit more of their research in industry. There is significant potential for exploitation and the RDAs are well placed to enable some of the necessary interaction between universities and industry. The Institute is committed to helping the UK physics community to realise its full potential, and sees collaboration with the RDAs as a means of achieving this.

  The Institute suggests that the Select Committee consider the Sub-Committee's recommendations on how to improve the working relationship between the RDAs and the SET sector, in order to support regional economic growth.

  In addition, if the UK is to realise its full economic potential in the medium- to long-term, then it will need to increase and improve the supply of SET graduates. As highlighted in SET for Success[77], the report of Sir Gareth Roberts's Review:

  ". . . graduates and postgraduates in strong numerical subjects, are in increasing demand in the economy—to work in R&D, but also to work in other sectors (such as financial services or ICT) where there is strong demand for their skills." Physicists fall squarely into this category.

  Physics is an integral part of our culture, providing the foundations for many scientific disciplines. The increase in wealth, economic globalisation, living standards and the quality of life in the 20th century have been largely based on technological progress, which in turn has relied heavily on innovative research in physics. In addition, physics education develops strong intellectual and practical skills, well matched to the evolving needs of employers, and also provides the foundation for all engineering and many scientific disciplines. However, as reported in Physics—building a flourishing future[78], the Institute's report into undergraduate physics in the UK, there are concerns, which are jeopardising the contribution that physics makes to wealth creation, innovation and economic growth. These include:

    —  changes in the nature of mathematics courses at school level have led to students being less proficient and confident in the mathematical skills required by physics degree courses;

    —  over the past 15 years, numbers taking physics degrees have held approximately level (against increasing higher education participation) with the proportion of women remaining around 20%. In England, physics has lost its status as the most popular science studied at A-level. Employer demands for scientists and engineers are not being met. More needs to be done to increase the flow of physics graduates into research in industry and academe, and to increase the number of people with the skills of a physics-based education for teaching, commerce, and the public sector;

    —  there is a crisis in the teaching of physics in schools—a large majority of the teachers of physics taught to the under-16s do not have a physics-based degree. Only those with confidence and competence can teach their subject well, engaging and enthusing pupils and motivating them to pursue careers in science and engineering. Unfortunately, teaching is not seen as an attractive career option for physics graduates, and the number entering is low; and

    —  the economics of university physics departments, including a chronic under-funding of laboratory infrastructure, has led to the loss of several departments in the past ten years. Larger areas of population and industry now have no convenient access to a local university physics department offering teaching or research. As the proportion of students living at home increases, as industry becomes more dependent upon high-technology knowledge and as the links between schools and universities become stronger, these regions will suffer from a lack of proximity to university physics.

  SET for Success, reported that the "disconnect" between the demand for skilled graduates and the declining number of physical sciences, engineering and mathematics graduates on the other hand, is starting to result in skills shortages. Furthermore, any attempt to address the issues associated with this decline requires action in schools, higher education, industry and the Government.

  In addition, the Institute's report, The Importance of Physics in the UK Economy, highlighted that physics underpinned 43% of UK manufacturing by 2000, and the percentage is growing. While "conventional" physics based industries (PBIs) are doing well compared with UK manufacturing as a whole, exciting new areas of industry are emerging based on developments in physics-based research over the past 20 years.

  However, there are some worrying trends that threaten to hinder the performance of PBIs over the next decade. In particular:

    —  investment in PBIs does not match that of other manufacturing sectors and there is limited availability of venture capital for start-ups and small to medium-sized enterprises (SMEs);

    —  commercialisation of physics-based research is limited, despite its potential for exploitation;

    —  there is evidence of a growing problem as the supply of trained physicists falls short of demand; and

    —  false perceptions of unattractive career prospects and low salaries in PBIs are deterring students from studying science and engineering.

  These issues require immediate attention if the UK is to maintain a healthy PBI base and UK PBIs are to continue to contribute to the growth of the economy. For instance, a modest increase in investment now could have a dramatic impact on the amount of physics based industrial activity in the UK and the success of its commercialisation. University physics departments are starting to become more active in transferring technology to industry and their attitudes to entrepreneurship are changing, but an acceleration of effort has to be encouraged.

  The Institute is playing its part by raising awareness of the highlighted concerns at all levels, and urges the Select Committee to review the recommendations detailed in the Institute's reports, SET for Success, the forthcoming report of the Lambert Review of Business-University Collaboration[79], and to scrutinise the Government's actions in response. If these concerns are not addressed effectively, the capability of the UK to participate in world-leading science and innovation will be severely diminished.

26 November 2003










75   http://www.publications.parliament.uk/pa/ld200203/ldselect/ldsctech/140/14001.htm Back

76   http://industry.iop.org/PBI.html Back

77   http://www.hm-treasury.gov.uk/documents/enterprise_and_productivity/research_and_enterprise/ent_res_roberts.cfm Back

78   http://policy.iop.org/UPI/index.html Back

79   http://www.hm-treasury.gov.uk/consultations_and_legislation/lambert/consult_lambert_index.cfm Back


 
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