Technology Innovation Centres
Written evidence submitted by TWI Ltd (TIC 57)
Technology Innovation Centres
0. Summary
0.1. The Fraunhofer model applies to a network of research institutes in Germany. The model involves core funding in addition to bid for public and industrial funding. This core funding allows Fraunhofer Institutes to support the national industrial strategy. Although operating as individual entities, Fraunhofer Institutes have central coordination and a strong "brand". The core funding and network brand component of the model could be applicable to the UK, where there is already an infra-structure of effective, industry focused applied research institutes.
0.2. Although there are no existing, directly equivalent Fraunhofer-type research centres in the UK, there is an infrastructure of research centres with similar aims operating effectively and successfully. These are technology focused institutes, working with academia and industry to implement new technologies. They are often working with organisations worldwide as well as in the UK. Currently, the missing components of the Fraunhofer model from these UK research centres are the core funding that allows support of national industrial strategy, and the strong, common branding.
0.3. There a number of models for research centres oriented toward applications and results, both in the UK and overseas. However, the key common factor is not the specific operation model, but rather their role in providing an applied research and development service to industry.
0.4. The Technology Strategy Board is the appropriate organisation to coordinate research in a UK-network of innovation centres.
0.5. The introduction of Fraunhofer-type institutes, based on the current infrastructure of organisations with a proven track record of excellence, will have a beneficial effect on Public Sector Research Establishments and other existing research centres, and be an effective, efficient way of supporting the national industrial strategy. Ignoring the existing infrastructure, and setting up duplicate research organisations will be highly detrimental to the viability of both the new and existing research organisations.
1. What is the Fraunhofer model and would it be applicable to the UK?
1.1. The Fraunhofer funding model is one in which ~40% of funding for individual research institutes comes from local and central government. The remaining 60% is from industry and from competitively bid projects from public sources. The government funding enables the institutes to make strategic investments in equipment, technologies, facilities and projects that support the clearly identified development needs of regional and national industries. Additionally, the funding directly from government provides the freedom for institutes to lead and participate in strategically important projects funded by sources that require a degree of funding match.
1.2. Fraunhofer Institutes cover a range of technical areas including construction, energy, ICT, electronics, surface technologies, photonics, production engineering and materials. Each institute is linked with an academic institute with appropriate technical expertise and has a leadership team comprising of staff with strong academic credentials. Research is mainly carried out by post graduate and post doctorate staff who typically use the institutes as a stepping stone to working in industry.
1.3. The work undertaken at Fraunhofer Institutes covers the full range from fundamental research to full industrial implementation, but is often focused in taking technologies from the point at which they have been demonstrated in an academic environment to a level of development at which industrial application is feasible. Individual projects have strong industrial "pull" and clearly defined routes for implementation and exploitation.
1.4. Each Fraunhofer Institute has a degree of independence in terms of technical specialism, and has the ability to build their own expertise and capabilities to best suit their understanding of regional and national strategic requirements.
1.5. The "Fraunhofer" brand is well established and recognised worldwide, which is in contrast to other, more academically focused organisations in Germany that claim to operate in similar fields to the Fraunhofer Institutes. The global recognition of the Fraunhofer name is beneficial in achieving involvement of individual institutes in, for example, EU Framework projects as they are often the partners of choice for less well established and promoted organisations.
1.6. Individual Fraunhofer Institutes have developed strong, strategic relationships with relevant industrial companies, and it is not unusual for such companies to have their own ring-fenced facilities within a Fraunhofer Institute.
1.7. The Fraunhofer model involves a significant, continuing investment of public funds at the state and federal level. These funds have been restricted in some German states recently, limiting the activities of individual Fraunhofer Institutes.
1.8. Fraunhofer Centres have been set up outside of Germany (eg US and France). These Centres have not experienced the same level of success as the institutes in Germany.
1.9. Applying the Fraunhofer model in the UK, by setting up a new series of research centres, is unnecessary and potentially catastrophic, as it will replicate the existing, successful infrastructure of research centres. However, strategic investment in core funding of existing research centres will be a cost effective way to ensure these organisations will have a significant impact on UK industry and the UK economy.
2. Are there existing Fraunhofer-type research centres within the UK, and if so, are they effective?
2.1. There are no directly equivalent Fraunhofer-type research centres in the UK, in terms of ownership and governance. However, there are UK research centres with the same objectives of working with both industry and academia, to ensure new technologies are refined and implemented in a low risk manner.
2.2. Many of these UK research centres are highly successful and effective, developing technology over the long-term, providing industry worldwide with support, and operating without core public support.
2.3. Where these UK research centres differ from the Fraunhofer Institutes is this lack of core funding, which limits their ability to:
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Support the national industrial strategy.
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Invest in new facilities and equipment.
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Renew core knowledge.
3. What other models are there for research centres orientated toward applications and results?
3.1. The models for research centres can be defined in terms of ownership, governance and funding. The existing research centres in the UK operate on a range of models based on different combinations of these three factors.
3.2. Ownership may be public, industrial sector, or private.
3.3. Governance may be public sector, university owned, company limited by guarantee, charity, corporate, public company limited by shares or private company.
3.4. Funding model may be based on proportions of public grant (for Public Sector Research Establishments with a national role), bid for public funding, and industrial funding in the form of research contracts and for some organisations, membership fees.
3.5. The key common factor for the infrastructure of research centres in the UK is not their specific operation model, but their role in providing an applied research and development service to industry.
3.6. France has recently carried out a similar exercise to develop "Fraunhofer-like" research centres. They too have a complex existing infrastructure, and introduced core funding for key organisations to allow them to perform a more strategic national role. The selected organisations, with a range of operational principles, have been designated "Institute Carnot", and this brand is being actively promoted.
4. Whose role should it be to coordinate research in a UK-wide network of innovation centres?
4.1. The coordination of a UK-wide network of innovation centres is consistent with the aims and objectives of the Technology Strategy Board (TSB). Therefore, it is the obvious body to undertake this role.
4.2. Setting up a new independent body to undertake the role will cause overlap with the TSB and confusion, and be an inefficient use of resources.
4.3. Providing coordination from a government department, such as the Department for Business, Innovation and Skills, will again cause overlap and potential conflict with the TSB. It will also represent a reversal of policy regarding the administration of UK public funds for applied research and development.
5. What effect would the introduction of Fraunhofer-type institutes have on the work of Public Sector Research Establishments and other existing research centres that undertake Government sponsored research?
5.1. The introduction of Fraunhofer-type institutes will enhance the activities of the existing infrastructure of research centres in the UK, provided these institutes build on and enhance the capabilities and reputation of existing, high performing UK research centres.
5.2. The introduction of a totally new infrastructure of Fraunhofer-type institutes, duplicating the technological scope of existing, effective research centres, will have a detrimental effect on the viability of both the existing and the new centres.
6. Declaration of interests
6.1. This submission is made by TWI Ltd., a Research and Technology Organisation.
6.2. TWI considers itself to be an appropriate organisation to become a Technology and Innovation Centre in High Value Manufacturing, under the proposed new network.
6.3. TWI is an independent research and technology organisations. With headquarters at Granta Park near Cambridge since 1946, TWI provides industry with engineering solutions in structures incorporating joining and associated technologies (surfacing, coating, packaging, cutting, etc.) through information and technology transfer, consultancy and project support, contract R&D, and training, qualification and personal membership.
6.3. It has regional UK offices and research facilities in Middlesbrough, Rotherham, Aberdeen and Port Talbot. There are also offices and training facilities in USA, China, Malaysia and the Middle East.
6.4. TWI is a non-profit distributing company, limited by guarantee and owned by its Members. It can therefore offer independent advice and is internationally renowned for employing multidisciplinary teams to implement established or advanced manufacturing technology or to solve problems arising at any stage - from initial design, materials selection, production and quality assurance, through to service performance and repair.
6.5. Over 600 skilled staff are dedicated to helping industry. Some 2000 companies and organisations – representing virtually all sectors of manufacturing industry from over 60 countries around the globe – benefit from TWI services. TWI also collaborates with more than 20 universities in the UK and worldwide.
6.6. TWI undertakes contract R&D in confidence for both industry and governments. It can offer individual experts or teams to help solve problems in manufacturing. It will send its specialists anywhere in the world at short notice on troubleshooting missions.
6.6. Know-how within TWI covers materials properties and applications (ferrous and non-ferrous metals, polymers, ceramics, advanced composites, structural integrity, fracture, design and NDT), joining, fabricating and assembling technologies (welding and cutting processes, surface engineering, brazing, soldering, adhesive bonding, electronic packaging), and manufacturing (project management, decision support, manufacturing systems, health and safety, quality assurance).
TWI Ltd
November 2010
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