Supplementary Memorandum submitted by
Department for Business, Innovation and Skills (UK Trade &
Investment)
ALLOCATION OF
THE £10 MILLION
STRATEGIC INVESTMENT
FUND PROVISION
AND THE
"UK GLOBAL CONNECTIONS"'
NETWORK
UKTI's allocation of the £10 million Strategic
Investment Fund provision
Reasserting the UK's worldwide business reputation
is central to economic recovery. UKTI's strategy is to market
the economic strengths of the UK and the innovation, creativity
and expertise of Britain in high value sectors. This attracts
potential investors to the UK and helps our exporters sell themselves
more effectively as international partners of choice.
The value of this strategy was confirmed in
the 2009 Budget, with £10 million of the Strategic Investment
Fund being channelled into UKTI, to be spent on events to promote
UK sector expertise both in the UK and abroad. The funds are to
help UK businesses to better showcase their strengths to overseas
customers and markets. All projects must meet the following criteria:
— High value and visibility to UK business.
— Early impact with strong legacy that
the private sector can run with.
— Directly related to the New Industry,
New Jobs (NINJ) strategy.
— Leverage multiplying effects from partners
to reach widest possible audience.
Commitments to date in 2009-10 (£4.5 million
to £4.8 million):
— Up to £1 million (with potential
to leverage £300k from the private sector) for a major security
sector event in March 2010, building on the success model offered
by the Farnborough International Air Show.
— A further package of up to £2.8
million in 2009-10 for events across the spectrum of NINJ sectors
(advanced engineering, creative industries, energy, low carbon,
construction, ICT and financial services). This kicked off in
September 2009 with London Fashion Week and the London Design
Festival. Other events included a showcase for the advanced engineering
sector in Brazil in October (in the margins of the Brazilian Grand
Prix), Technology World in Coventry in November, and a consumer
electronics show in the USA in January 2010.
— Investment of up to £1 million to
enhance showcasing of major sectoral business events and to extend
the UKTI Take It To The World campaign, encouraging UK
firms to grow their business internationally and helping them
benefit from global opportunities in a challenging economic climate.
— Over the summer, selected posts were
invited to bid for funds to promote the NINJ sectors through showcase
events (up to £500k earmarked). Some 60 bids were received
and 14 were approved, to deliver by the end of this financial
year.
Other activities in the pipeline:
— Other projects in development include
a global network of around 1000 influential voices to promote
the reputation of the UK (UK Global Connections). This is detailed
below.
— Beyond this, in 2010-11, a further package
of up to £2.5 million for sector based showcase events will
be available.
— Funding for NINJ events across 2009-10
and 2010-11 includes, as part of the suite of actions being coordinated
by the Office of Life Sciences, an investment of up to £1
million, over the two years, to promote UK life sciences and the
NHS at flagship events in the UK and overseas. UKTI will hold
a new high-level technology-partnering event later in 2010 that
will bring life sciences decision-makers to the UK.
"UK GLOBAL CONNECTIONS"
NETWORK
NB: "UK Global Connections" is the
current and correct name for the "Global Britons Network",
as first referred to by Sir Andrew Cahn at Q216 of the transcript
of the 14 July oral evidence session before the Committee.
The message that the UK is a great place to
invest, to find business solutions and suppliers is at its strongest
when it's given by people beyond the UK Government, in particular
business people and people from other markets. That is why UKTI
already makes good use of business and non-government contacts
in its activities. However, we want to do more.
Early in 2010, UKTI will launch a new global
network of people who have real influence and are willing to work
with us in promoting the benefits of the UK as a great place to
do business. The network will be called "UK Global Connections".
We will equip network members with the material they need to promote
our messages loud and proud to businesses and governments across
the world. The network will make it easier for UKTI people to
spot and deploy capable partners, from the network, willing to
work with us as speakers at our events, mentors to new exporters
or inward investors, people who can enable business opportunities
or influencers who can make the things we want to see happen.
Specific network objectives will be to:
— improve the UK's reputation as the international
business partner of choice;
— attract high value foreign direct investment
to the UK by communicating the strengths of the UK as a place
to do business; and
— help UK businesses internationalise by:
— sharing market insight and best practice;
— signposting and facilitating key
contacts; and
— identifying/encouraging/generating
offers that facilitate exports.
Although we will encourage members to seize
every opportunity to promote the UK, UKTI will seek to focus network
member activities in priority areas—particularly linked
to the NINJ agenda and priority markets.
Who will join the network?
Members will join the network by invitation
only. Prospective members will be recognised and influential voices
in their sectors or markets and would come to the network with
an existing positive impression of the UK/valuable know how/insights
they are willing to share with less experienced exporters and
the time and desire to work with us to do this. They will include
people based both in the UK and in markets overseas. Members need
not be UK nationals. Indeed members of other nationalities may
prove stronger advocates in communicating a positive image of
the UK. We expect to grow the network to about 1,000 members.
What will network members do?
Network members will become part of a database
used by UKTI staff to identify speakers for key events, participants
in round table discussions with potential overseas buyers or inward
investors and mentors for less experienced companies. In inviting
them to join the network, we will suggest that they participate
in at least two activities with us each year.
Members will also be equipped with key facts
about the UK that they will be encouraged to use informally, for
example when talking to usual business contacts. These messages
will promote the UK as the business location of choice in which
businesses in other markets can find excellent suppliers, innovative
solutions to business challenges and outstanding investment opportunities
that provide a springboard to global growth.
Why would members join?
In addition to a global network of UK ex-patriots,
there is a significant community of business people who have been
educated in the UK or whose positive experiences of Britain have
left them with a strong affinity for this country. Some people
will want to be part of the network simply because of that strong
affinity, but others will need to feel they get something back
from network membership. The principal value for members will
lie in:
— increased positive personal visibility;
— increased positive company visibility;
— business-to-business commercial opportunities
that may arise through their membership of the network; and
— extended/strengthened network contacts.
DELIVERY TIMELINE
Our plan is to launch the network early in 2010
and to use the first six months of the network's operation as
a learning phase during which we can fine-tune our approach. Our
aim is to have around 100 members initially, growing to 250 by
March 2010 and 500—1000 members by September 2010.
Progress so far
Initial member nominations have been sought
and received from across the UKTI network. These are currently
being reviewed and we will make initial invitations to join the
network in December.
Costs and Benefits
Key costs for the set up and ongoing operation
of the network will flow from the creation and maintenance of
a web portal for network members (currently estimated to be no
more than £75k) and to fund a small, lean secretariat (probably
two or three people). We are looking at whether there are opportunities
to merge this network secretariat with other work in UKTI to drive
out efficiencies. Our existing Performance and Impact Monitoring
System evaluation methodology can be adapted to incorporate network
activities so we can track the value add and play feedback into
the continuous improvement of network's operation.
24 November 2009
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