Memorandum 67
Submission from the Hertfordshire Business
Incubation Centre
INTRODUCTION
1. This submission is from HBIC (Hertfordshire
Business Incubation Centre) UK Space Incubator for ESA through
its ESINET project (European Space Incubator Network and also
the UK's centre for the Galileo Masters UK Challenge—Europe's
SATNAV Competition. HBIC also manages a number of other European
FP programmes identifying and supporting downstream activities
derived from SPACE applications.
EXECUTIVE SUMMARY
2. The UK is a dominant partner in the European
space sector, it not only drives forward the economic activities
from the upstream industry, but the presence and understanding
of space is motivating the UK in identifying the sector as an
enabling platform, from which to take forward new ideas in services,
applications and technologies which are creating new marketplaces
downstream.
3. This is evident in the significant take
up and development of over 130 ideas being brought forward from
the UK into the Galileo Masters UK Challenge in 2005 and 2006;
this represents 40% of the ideas from across Europe. It is further
highlighted by the fact that the UK Winner in 2005 has been invited
to obtain significant assistance by EADS Space in the development
of his idea and that the UK Winner in 2006 has gone on to win
the whole competition and will be recognised at the European Galileo
Master 2006.
4. The significance to the space sector
is that this level of interest is due to the UK's presence in
the upstream area and the knowledge that is being shown is in
abundance. The estimation on the new marketplaces opening up due
to Galileo is approx €10 billion per annum by 2010 with over
five billion global users.
The impact of current levels of investment on
space-related activities on the UK's international competitiveness
in this sector
5. Currently there are new calls taking
place within the FP7 framework under the thematic theme "Transport"
that are looking to take forward the development of the space
sector through its downstream markets. The current funding for
this is estimated to be in the region of €300 millon over
seven years (approximatley €43 million per annum).
6. The Galileo Masters UK Challenge has
limited investment in the programme from across the UK; it draws
support through its partners EADS Astrium, Thales, BNSC (British
National Space Centre) and local government, although this is
limited. Without a more structured fund and investment into this
programme with links to other investment sources, the ideas being
developed by the SME's and HBIC may be lost, leaving the UK behind
its European and Asian partners.
7. HBIC is also the UK lead for INVESaT
which is a consortium under Europe INNOVA; this project addresses
the lack of interest by investors due to the difficulty they have
in understanding the space related technologies and the way they
connect to new ideas being raised by SME's into the downstream
markets. This has been evidenced by the technology offered by
Galileo and the extensive work already being carried out for the
Galileo Masters UK Challenge.
8. With such emphasis and significants being
thrown upon the downstream markets due to the space sector in
which the UK has such a significant presence, to lose this lead
in the upstream would inevitably cascade into the downturn of
the UK's involvement in the downstream areas.
The benefits and value for money obtained from
participation in the European Space Agency and other international
programmes
9. HBIC the UK Space Incubator and UK industry,
is gaining a significant amount of support and development through
participation in ESA and other international programmes; HBIC
continues to strive to develop relations with other partners,
to ensure that it has the ability to bring forward new innovations
to drive forward the UK and the economy.
10. ESA one of the European partners and
supporter of the Galileo Masters Competition, is leading the development
of innovation through SME's, by its European network of incubation
centres.
11. ESA also has a role in the FP6 INVESaT
programme, lending it support to the brokerage, networking, technology
transfer and development of the initiative.
12. It is vital for the success of the space
sector that the development and exploitation of the downstream
markets is harnessed. This is through the dissemination of space
technology, enabling ideas to be supported to break forward into
new marketplaces.
Maximising commercial benefits, wealth creation,
innovation and knowledge transfer from UK space-based technologies
13. Does the cost and tragedy of natural
disasters like Tsunami, earthquakes and volcanic activities, (the
worst example being the tsunami on 26 December 2004 in the Indian
Ocean, that took the lives of almost 300,000 people in countries
as far apart as Indonesia, the Maldives, Sri Lanka and Somalia)
and the decline in natural resources (oil, gas and water), outweigh
the debate going on across Europe regarding the uncertain overspend
on the revolutionary answer to GPS, Europe's Galileo Satellite
Navigation System?
14. A UK entrepreneur believes that it does,
as he has gone ahead to develop an exciting new system that could
help to predict such events. Due to the timing signals from Galileo
(GNSS) it can measure the speed of sound underground, in particular
in earthquake or volcano prone regions; variations in the measured
speed of sound will indicate changes in the subsurface state,
stress and composition. These variations could be used as an early
warning system of earthquake or volcanic events.
15. This idea is, therefore, only capable
of being realised due to the revolutionary and enabling technology
that is being developed for space.
16. It shows that without Galileo and the
UK involvement in upstream and downstream activities, we could
lose more than just a market share of the predicted €10 billion
per annum marketplace.
17. As the management organisation for Galileo
Masters UK Challenge, HBIC considers the UK Challenge to be a
leading example of an innovative platform which brings together
the public and private sectors, in a way which see's them supporting
new ideas pre-investment.
18. The programme has to be seen as an asset
to the UK; the ongoing support that we receive from our sponsors
in industry, government and institutions is invaluable, but significantly
more will ensure that the UK can continue to progress new innovative
ideas to a marketplace that will be worth billions to the UK economy.
19. This is the right time to recognise
space as an opportunity
The delivery of public benefits from the space-related
activities of different Government departments (eg DEFRA, MoD,
DTI, DfT), and the co-ordination of these activities
20. The downstream marketplaces that will
develop due to Galileo are immense and are not directly associated
with SPACE, as noted by this year's Galileo Master; they range
from Mobile Comms, Medical, Environmental and Logistics, through
to Agriculture and natural resources.
21. Last year's UK Winner, Tracker<<Back
has developed a duty of care technology which is unique in ensuring
secure transfer of goods. This is a technology which is ideally
placed to support and combat the growing trend for fly tipping,
which costs local and national government millions of pounds each
year. It is also undergoing trials by EADS Astrium as a live case
study and is being reviewed by investors as significant technology
which fits a wide range of uses.
22. What has also been seen by the development
of space in the UK, and the visibility of the downstream through
Galileo Masters UK Challenge is a unique platform being created
which Government departments could use for ideas or challenges
and thereby identify opportunities to fit their ambitions.
23. Probable Applications & Markets
(downstream/service provision)
(a) Security—Tracking of valuable equipment
and confidential documents.
(b) Vehicle insurance, tax control, monitoring
(safety of life in accidents for emergency services).
(c) Environmental and Humanitarian aid—Advanced
warning on natural disasters, location of natural resource (oil,
gas and water).
(d) Agricultural—live stock tracking
for land and fishery, crop and harvesting.
(e) Education in technology and markets,
engineering and advancement in technologies.
November 2006
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