Memorandum from Pace Plc (YH 04)Document DetailsResponse to the Regional Select Committee for Yorkshire and Humber into the work of Yorkshire Forward
1.1 Revision History
1.2 Definitions/Abbreviations
2 Executive Summary· Pace has been succefull in the past with grants to large companies for R&D (YF-IRD), this has enabled us to innovate and reach new markets beyond our core business · Yorkshire Forward plays a key role in supporting R&D within the region · The performance and accountability of Yorkshire Forward is clear, further evidence would be appreciated into how it performs against other RSCs · Little is currently understood on the Integrated Regional Strategy and its direct impact on R&D
Submitter Pace develops and delivers technologies, products, and services for the digital TV markets, these products enable entertainment and converged communication services inside, outside and around the home, and within Multidwelling units. Pace are currently ranked 3rd in the World for Set Top Box shipments. Darren Fawcett, the submitter, is a Chartered Engineer with 20 years in the electronics industry spanning both the telecommunications and broadcast markets. Over the past 9 years Darren has worked within the broadcast industry, working with customers, partners, and standards bodies to ensure seamless transition of technology from ideas to production. Since 2005, in his role as Chief Technologist, he has been responsible for Pace's wireless technology portfolio and strategy, including the development of platforms needed to meet the converged market space such as mobile broadcast systems and broadband wireless systems Factual Information
Pace has successfully applied for and received an award for funding from Yorkshire Forward in November 2005. This was for the "MDU" project. The project started in November 2005 and ended in October 2007. The Yorkshire Forward reference number for the project is B118. This project was completed on time and met all the project objectives; it has since enabled us to diversify into new markets beyond the Set Top Box market. Pace also successfully applied for and received an award for funding from Yorkshire Forward in September 2006. This was for the "Enabling Broadband Wireless" project. The project started in October 2006 and ended in August 2008. The Yorkshire Forward reference number for the project is B299. The technology developments and capabilities developed during this project are being factored into a new product range. Both projects combined advanced technology research and enabled Pace and our regional partners to carry out new R&D with commercial potential outside of our core markets and customer base. The projects while very promising were of a higher risk than we would have ordinarily taken. The grant enabled us to improve upon our capabilities, accelerate the pace of innovation, strengthen the scientific and technological base of the region and the company, and conduct R&D work with regional Universities.
The role and responsibilities of Yorkshire Forward Yorkshire Forward played a key role in enabling the business to develop new technologies and ready our capabilities above and beyond our existing skill base - supporting research, new processors and training. This has enabled us to explore new markets and lay a foundation for our future. The region has some great assets, however, we operate in a fast changing highly competitive environment. Over the last ten years we have completely outsourced manufacturing and focused on high value engineering. This has enabled us to grow as a company and expand into new regions. But the need for innovation has never been stronger, Yorkshire Forward has played and continues to play a key role in supporting the development of our skill base and ability to innovate and deliver in far reaching technologies by providing assistance where sound and relevant justification can be made through the YF-IRD scheme.
The mechanisms by which Yorkshire Forward is held accountable Mechanisms on how Yorkshire Forward is measured against its performance targets are satisfactory and transparent. However, improved visibility into how the Yorkshire and Humber Regional Committee is performing in comparison to other RC's would be welcome.
The process by which the Regional Economic Strategy (RES) was drawn up and the level of involvement of regional stakeholders in that process. This strategy was drawn up before Pace had any involvement with Yorkshire Forward, and therefore we have no comment on this process. However, the 10 year strategy is now half way through its execution. We would welcome involvement in a review process.
The effectiveness of the RES for Yorkshire and the Humber in delivering against its targets. Based on previous experiences we have been able to increase our efforts in high value R&D, this has fostered innovation and R&D within the region and enabled us to strengthen out skill base improving our capabilities. This is driven directly from the RES and has been highly effective through the Grant for Research in Large company's scheme (YF-IRD). This is fundamental if we are to raise the regions investment in R&D from the current 0.5% of GVA.
The effect of the current financial and economic situation on businesses, including the effect on different sectors and on skills and employment in the region. Pace's ability to successfully second guess market trends has been a key element of its continued success. Pace has a proven innovation track record within the industry, its visionary R&D culture ensures it remains ahead of its competitors and maintains its position as one of the world's top three players. Nevertheless whilst Pace forecasts further growth in 2009/10 the recent economic downturn cannot be ignored and long term profit levels and sustainability would be hurt if we couldn't invest in R&D. Although other industry sectors and consumers alike are reducing spend, market intelligence suggests that high quality home entertainment remains important to consumers. However, whilst Pace continues to be bullish about the future, it must carefully prioritise its R&D spend and ensure that it focuses on new technologies which offer the strongest possible opportunity of long term security and ROI to the business and ultimately the Region. Likewise, while our business continues to perform well, the impact on the region in retaining highly skilled people, or indeed attracting people to the region cannot be overlooked - Yorkshire Forward plays a key role in attracting investors into the region and raising the Yorkshire and Humber region's profile as a place to live and do business.
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