Regional development agencies and the Local Democracy, Economic Development and Construction Bill - Business and Enterprise Committee Contents


Memorandum submitted by Dr Simon Bennett, QinetiQ

  I am writing to you in my capacity as Managing Director of Applied Technology at QinetiQ in Malvern, Worcestershire. I understand you are gathering evidence for your inquiry into the role of Regional Development Agencies (RDAs) and I would particularly like to offer some thoughts and views on the impact Advantage West Midlands(AWM) has had on the regional economy.

  As you may be aware, QinetiQ is FTSE 250 technology company and has a considerable footprint in Malvern Worcestershire employing 2,500 staff on an 80 acre site. I do not particularly wish to promote QinetiQ in this letter, but I think it is worth placing the ensuing comments about AWM in the context —so the next few paragraphs explain what we are and what we do.

  QinetiQ (www.qinetiq.com) provide technological advice, research, technical consulting and technology services into the defence, security, energy and environmental market sectors. We pride ourselves on the fact that we bridge the "innovation gap" between universities and manufacturers & service providers. The diagram below is how we normally illustrate this.


  We have a very strong pedigree in science. For example, out of our 7500 UK employees we have 650 who hold PhDs, over 30 hold Visiting Chairs in universities and we have as many members of the EPSRC Peer Review College as BAe and Rolls Royce together and three times as many as GSK.

  We have an extremely successful track record in working with and transferring technology to industry. For example we did more than £200M of work for industry last year including some of the most prestigious global technology companies such as Intel, Boeing, and some of the Formula 1 racing teams.

  In summary, we know more than most about how to successfully bridge the difficult innovation gap and recognise that technology transfer is difficult and takes a thorough understanding of the tried and tested processes and techniques we apply.

  Returning to the purpose of this letter— AWM. Our first involvement with AWM was associated with the Malvern Hills Science Park (MHSP— www.mhsp.co.uk).This was set up by QinetiQ and the local authorities (Worcestershire CC, Malvern Hills DC and the local Chamber of Commerce) in 1998 and is an excellent vehicle for technology transfer. There are now 27 companies on the six acres (of the10 acre site) which have been developed. Five of the MHSP tenant companies are spin-offs from QinetiQ, 20 are technology start-ups and five have moved into the region. Most of the companies have grown by more than 50% over the past five years. From a standing start, 27 technology companies are now (10 years later) based in Malvern alongside QinetiQ. This has created a vibrant technology community with a new blend of entrepreneurial skills being added to the mix. The contribution to this process by AWM has been essential. Though not there at the inception, AWM recognised the importance and potential of MHSP and has been extremely supportive in the subsequent development phases, culminating in significant and innovative support over the most recent development, Phase 3.

  A further significant and fruitful interaction between QinetiQ and AWM has been in connection with the Technology Corridor to the SW of central Birmingham. This incorporates the former BBC Pebble Mill site, Birmingham University, the former Rover site at Longbridge and ends at MHSP/QinetiQ. QinetiQ were strongly coupled into the Working Groups and activities that ultimately led to the Central Technology Belt (www.centraltechnologybelt.co.uk) and contributed to the debate that has resulted in the science and technology park development that has been undertaken along the Corridor. This regeneration is not yet complete but the strategy builds on the MHSP experience and is expected to do much for a part of the WM that was frankly "on its knees" after the demise of Rover. AWM are to be commended for what they are doing here and they have taken the trouble to consult thoroughly with companies such as ourselves in the process.

  In 2007, AWM jointly created a joint venture project which is designed to transfer sensor technology to industry. The business model for this project is very innovative and both parties worked very constructively together to develop it. It is called the Advanced Sensor Innovation Projects (ASIP—www.qinetiq.com/home/capabilities/sensors.html). So far there are seven projects running in which sensors are being developed for innovative applications which will be transferred to companies in the healthcare, transport and environmental market sectors. This project builds on QinetiQ's strength, mentioned above, in understanding how transfer technology to industry. It is to AWM's credit that they have recognised this strength and have endeavoured to harness it for the benefit of both regional and UK industry.

  We are now in the early stages of working together on the Quantum Technology Partnership which is a partnership of QinetiQ and a number of national and regional universities who have come together to create a national Centre of Excellence in quantum technology based at Malvern. If this project succeeds it will create an important national asset that could be the springboard for a successful UK presence in an important emerging technology.

  Finally, as testament to the strong relationship between AWM and QinetiQ, QinetiQ have provided representatives to sit on the MHSP Board, the AWM Innovation and Technology Council, the Science City Board and there is bi-monthly dinner meeting between AWM the relevant local authorities and myself and other senior managers from the QinetiQ, Malvern site.

  To summarise, you will see from the above that it is the QinetiQ perception that AWM:

    —  have been extremely important in bringing business (such as ourselves), higher education and local authorities together, thus enabling strategic dialogue and action in key areas such as knowledge transfer, transport, site development and investment, and generally to build positive and constructive relationships. The CTB has been a key factor in this role.

    —  have seized the opportunity presented by Birmingham being designated a Science City to bring companies such as ourselves together with other key technology stakeholders to provide significant investments in regionally and nationally significant technology areas.

    —  have recognised and strongly supported knowledge transfer as a corner stone in building a stronger regional economy as evidenced by it support of science and technology parks and the ASIP project. This, of course, strongly underpins the aims of the TSB, research councils, DIUS, etc, linking with industry nationally and in the region.

    —  acts as the strategic lead, and the "glue" in building and cementing relationships between industry, the research base, central government departments and the rest of the public sector, including local authorities.

19 September 2008






 
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