Written evidence submitted by Society
of Motor Manufacturers and Traders (SMMT) (TIC 64)
ABOUT SMMT
1. The Society of Motor Manufacturers and Traders
(SMMT) is the leading trade association for the UK motor industry,
providing expert advice and information to its members as well
as to external organisations. It represents companies throughout
the automotive sector ranging from vehicle manufacturers, component
and material suppliers to power train providers and design engineers.
The motor industry is a crucial sector of the UK economy, generating
a manufacturing turnover of £51 billion, contributing over
10% of the UK's total exports and supporting around 800,000 jobs.
2. SMMT welcomes the opportunity to respond to this
inquiry into Technology Innovation Centres (TICs) and would be
pleased to provide further information on issues raised in this
submission.
SUMMARY OF
COMMENTS
3. In summary the automotive industry supports the
formation of TICs and calls for:
- The automotive industry to be a priority area
for the formation of a new Technology Innovation Centre - building
upon existing work of the Automotive Council, together with the
TSB, to identify low-carbon technology opportunities and strengths
within the UK.
- Adequate funding for both the establishment and
continued investment in TICs to ensure a real contribution to
rebalancing the economy and future sustainable growth.
- Limited funds to be targeted to areas of best
value for money - such as the areas of world leading expertise
in the UK identified by the automotive industry.
- Clarity over future continued funding for TSB
innovation competitions - TIC funding should be additional to
the previous work of the TSB not instead of if UK competitiveness
for R&D and innovation is to be improved.
INTRODUCTION
4. In September, the Centre for Economics and Business
Research (CEBR) published an SMMT commissioned report on R&D,
investment and credit in the automotive sector. The paper reflected
on the significant investment automotive companies make in the
UK. The report also found that the UK is behind other countries
in supporting investment which is intrinsically liked to long-term
growth. The role TICs can play as an additional tool to help leverage
investment in innovation in the UK is important and the committee
should consider their competitiveness in comparison to not just
the Fraunhofer Institutes, but similar initiatives in other European
member states and globally.
5. As a global industry we have relationships between
automotive businesses and academia in many countries around the
world. There is significant global competition when business decisions
are made on which country they should invest in to undertake innovative
research and development. The automotive sector is well-placed
for a TIC and it would be an additional factor influencing the
attractiveness of the UK as a place to invest and as a place to
do business. The world-class research undertaken by the automotive
sector in the UK, and its readiness at the forefront of low-carbon
technology development (see paragraph 11), give us a strong basis
for further development and investment opportunities.
A FOCUS ON
GROWTH
6. The coalition government has recognised the need
to rebalance the economy and the need for private sector investment
and job creation. As a dynamic and globally competitive industry,
the automotive sector sees itself as key to achieving this ambition.
The automotive industry is a significant part of the economy and
a contributor to prosperity and growth, exporting more than 75%
of domestic production and generating revenues of £55 billion.
7. Government initiatives, such as Regional Growth
Funds and TICs are welcomed by industry. However, it is essential
that government and industry work together to identify the priority
needs and maximise the impact of the fund. It must be ensured
that limited funds are not spread too thinly but targeted and
focused where they can have the biggest impact.
THE AUTOMOTIVE
COUNCIL - IDENTIFYING
PRIORITY TECHNOLOGIES
AND TARGETING
SUPPORT
8. The UK Automotive Council represents a strong
collaborative partnership between industry and government; and
has established a clear, long-term strategy for the UK automotive
sector. It seeks to make the UK a leading player in the transition
to ultra-low carbon vehicles with particular emphasis on encouraging
R&D and rebuilding the UK supply-base for current and emerging
technologies.
9. The Automotive Council's Technology Group has
developed a long-term technology roadmap that represents a shared
vision of manufacturers and suppliers in the UK of how new innovations
in reducing CO2 will come to market.[84]
10. The Technology Group, together with the Technology
Strategy Board (TSB) has utilised this roadmap as a basis to evaluate
which areas of future low carbon technology the UK has the greatest
expertise in, when compared to other global automotive producers.[85]
This evaluation incorporated the views of global automotive manufacturers,
suppliers and SMEs - the future purchasers and suppliers of this
technology.
11. The headline technology the Council identified
the UK as well placed for globally, include:
- Internal combustion engine (ICE)
- Energy storage and energy management
- Lightweight vehicles and powertrain structures
- Power electronic and electrical machines
- Intelligent transport systems (ITS)
12. The report also went further, highlighting where
in the sub-technologies for each area, the UK has expertise to
bring leading technologies to market in the short, medium or long-term
if competitive levels of industry and public sector investment
are secured. The shorter term strengths relate to where expertise
is already within manufacturers or the supply chain. The medium
to longer term expertise sits across industry and/or UK academia.
13. SMMT believes this collaborative effort of the
automotive industry, government and its agencies provides an excellent
basis for the development of a TIC to support opportunities in
the UK auto industry. It is a sectoral approach and a basis for
directing funding to areas of highest potential for the UK. The
UK automotive has significant potential for greater collaborative
working, research and development.
FUNDING AND
RESOURCES OF
THE TECHNOLOGY
STRATEGY BOARD
14. In 2011, the Automotive Council Technology Group
will complete work on funding and academic partnerships; focusing
on the development of collaborative projects and partnerships.
Industry already has extensive experience of working with a range
of partners, for example through TSB competitions, which bring
together companies of all sizes and academia, with significant
value-added outcomes for industry.
15. SMMT is concerned that the level of funding the
TSB will have for collaborative research and future technology
competitions is still very unclear. Over the last 4 years, through
its Innovation Platform Programmes these have made a very significant
contribution to UK industry with relatively modest sums. For instance
the most recent major TSB competition secured the development
in the UK of three new plug-in hybrid vehicles by Lotus, Nissan
and JLR.
16. The delivery of TICs should be additional to
and not instead-of continued TSB funding of innovation competitions.
17. Another concern is the adequate resourcing of
the TSB in terms of people and funds to take on the responsibility
and initial funding for TICs as well as their core programmes.
In addition the TSB is also being asked to take on the previous
role of the Regional Development Agencies (RDAs) in supporting
innovation investment at the sub-national level. Resourcing must
reflect this expanded remit.
SMMT
2 December 2010
84 UK OEM Consensus Technology Roadmap, www.automotivecouncil.co.uk/technology-group/strategies Back
85
Automotive Technologies: The UK's current capability, June 2010
www.innovateuk.org/_assets/pdf/automotive%20technologies%20-%20the%20uks%20current%20capabilities.pdf Back
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