Select committee: Science and Technology Committee

2nd Report - Catapults: bridging the gap between research and industry

Published 5 February 2021

At a glance12 recommendations and 5 conclusions · Government response published 6 April 2021 (deadline 5 April 2021)

The government's response

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response sets out its R&D funding plans and agrees with the Committee on several points on Catapults, while pointing to a forthcoming Innovation Strategy and Places Strategy for further detail.

  • On funding, it states that the 2.4% of GDP R&D target will not be achieved "through public spending alone", and that BEIS "will provide a breakdown" of its R&D spending when final allocations are published "later in the year".
  • On collaboration, it says it agrees with the Committee's findings that funding constraints could be reducing Catapults' ability to collaborate with universities, and has asked UKRI to review whether Catapults could bid for relevant Research Council funding.
  • On review and performance indicators, it agrees that it should focus on how to support Catapults rather than whether they should exist, and will work with UKRI / Innovate UK to agree bespoke KPIs with the Catapults as part of the five year review cycle.
  • On scaling the network and regional policy, it seeks a balance between opening new Catapults and funding existing ones, and says priority technologies "will be considered as part of the upcoming Innovation Strategy", with further local impact details in the Places Strategy.

Read the government's response ↗ Report an error

Sources

Recommendations and conclusions 17

  1. 1
    The funding available for innovation in the UK does not appear to be commensurate with... Conclusion · paragraph 28 Conclusion (the committee's words)
    The funding available for innovation in the UK does not appear to be commensurate with the Government’s ambitions, as set out in the R&D Roadmap. Rules governing funding for innovation create barriers to collaboration between for Catapults and universities, and can deter industrial partners. First, the cap on collaborative R&D funding for public sector bodies inhibits collaboration between Catapults and universities. Leveraged funding requirements place too much risk on industry in transformative R&D projects. Finally, lack of access to Research Council funding puts Catapults at a disadvantage compared to universities.
  2. 2
    We recommend that the Government, UK Research and Innovation, and Innovate UK set out a... Recommendation · paragraph 29 Recommendation (the committee's words)
    We recommend that the Government, UK Research and Innovation, and Innovate UK set out a clear plan for how public sector resources and private investment can be made to match the scale of ambition in the R&D Roadmap.
  3. 3
    We recommend that UK Research and Innovation allows Catapults to bid for Research Council funds... Recommendation · paragraph 30 Recommendation (the committee's words)
    We recommend that UK Research and Innovation allows Catapults to bid for Research Council funds where there are clear advantages in terms of both research and innovation.
  4. 4
    We recommend that Innovate UK shows more flexibility in permitting public sector bodies to have... Recommendation · paragraph 31 Recommendation (the committee's words)
    We recommend that Innovate UK shows more flexibility in permitting public sector bodies to have a larger share of collaborative R&D funding, particularly when more than one such organisation is involved.
  5. 5
    We recommend that Innovate UK and other funding bodies support transformative innovation more effectively, including... Recommendation · paragraph 32 Recommendation (the committee's words)
    We recommend that Innovate UK and other funding bodies support transformative innovation more effectively, including by shifting the balance between public funding and industrial match funding, in order to reduce the risks to industry and encourage its participation in risky R&D projects. They should consider arrangements for more translational funding to increase the flow of projects from universities to Catapults and industry.
  6. 6
    We recommend that Innovate UK ensures that Catapults’ key performance indicators focus on delivery of... Recommendation · paragraph 39 Recommendation (the committee's words)
    We recommend that Innovate UK ensures that Catapults’ key performance indicators focus on delivery of effective collaborations and successful innovation and commercialisation, and reflect their contribution towards key policies such as the net zero economy and regional development.
  7. 7
    We recommend that UKRI ensures that universities’ key performance indicators (under the Research Excellence Framework... Recommendation · paragraph 40 Recommendation (the committee's words)
    We recommend that UKRI ensures that universities’ key performance indicators (under the Research Excellence Framework and the Knowledge Exchange Framework) provide stronger incentives for commercialisation of research findings in relevant disciplines.
  8. 8
    The UK’s innovation system has the necessary components to be successful, but more strategic decisions... Conclusion · paragraph 50 Conclusion (the committee's words)
    The UK’s innovation system has the necessary components to be successful, but more strategic decisions are needed from the Government, UK Research and Innovation and Innovate UK—as set out in the recommendations below—in order to optimise the performance of the organisations and maximise innovation and commercialisation.
  9. 9
    We recommend that UK Research and Innovation and Innovate UK address the imbalance between competition... Recommendation · paragraph 51 Recommendation (the committee's words)
    We recommend that UK Research and Innovation and Innovate UK address the imbalance between competition and collaboration in their frameworks such that CATAPULTS: BRIDGING THE GAP BETWEEN RESEARCH AND INDUSTRY 21 Catapults and universities can work together more easily on innovation projects.
  10. 10
    We recommend that UK Research and Innovation foster closer links between industry and universities and... Recommendation · paragraph 52 Recommendation (the committee's words)
    We recommend that UK Research and Innovation foster closer links between industry and universities and assist researchers to work at the interface between the two, including through supporting roles for academics at the Catapults.
  11. 11
    We recommend that The Department for Business, Energy and Industrial Strategy uses its current review... Recommendation · paragraph 53 Recommendation (the committee's words)
    We recommend that The Department for Business, Energy and Industrial Strategy uses its current review of the Catapults to give the Catapults assurance of long-term continuity—including longer-term certainty over funding and a commitment that reviews will be limited to once every five years, to match the five-year funding cycle.
  12. 12
    The Catapult Network can contribute to the Government’s levelling-up agenda and the R&D place strategy—whilst... Conclusion · paragraph 59 Conclusion (the committee's words)
    The Catapult Network can contribute to the Government’s levelling-up agenda and the R&D place strategy—whilst focusing on its primary purpose of facilitating innovation in sectors with promise for the UK. Catapults are one of several bodies that can contribute to regional development, and better coordination is needed at local levels. The CBI’s ‘Catapult Quarter’ proposal has strong potential for delivering innovation and local development.
  13. 13
    We recommend that the Department for Business, Energy and Industrial Strategy and UK Research and... Recommendation · paragraph 60 Recommendation (the committee's words)
    We recommend that the Department for Business, Energy and Industrial Strategy and UK Research and Innovation develop a more strategic approach across policies for innovation and regional development—such as broadening access to the Strength in Places Fund.
  14. 14
    The UK has an important national asset in the Catapult Network, which should be promoted... Conclusion · paragraph 64 Conclusion (the committee's words)
    The UK has an important national asset in the Catapult Network, which should be promoted more widely. Further steps would be needed if the Catapults were to have an impact similar to that of their key international comparators. The Catapults would need to become a more established part of the R&D system, such that they attracted more involvement from academia and more investment from industry. Innovate UK would have to expand the Catapult Network more rapidly than it has to date.
  15. 15
    We recommend that the Government prioritises scaling up the Catapult Network, without which it is... Recommendation · paragraph 65 Recommendation (the committee's words)
    We recommend that the Government prioritises scaling up the Catapult Network, without which it is unlikely that sufficient private sector investment will be committed and unlikely that the Government’s R&D spending target will be met.
  16. 16
    We were unconvinced by the Government’s approach to encouraging industry investment in R&D and expanding... Conclusion · paragraph 71 Conclusion (the committee's words)
    We were unconvinced by the Government’s approach to encouraging industry investment in R&D and expanding national assets such as the Catapults. The R&D Roadmap has insufficient detail about the Government’s objectives or its plans for achieving them. There does not appear to be a clear list of priority technologies for the UK, or a firm plan to expand the Catapult Network into sectors where the UK has strengths and the potential for economic gains. We recognise that in the wake of the pandemic there may be shifts in priorities for innovation and technology, including towards biotechnology and systems to support remote working. Nonetheless, the Government needs to have firm criteria for identifying key technologies and deciding on expansions of the Catapult Network, and these processes must be responsive to future challenges.
  17. 17
    We ask that, in its response to this report, the Government provides a detailed strategic... Recommendation · paragraph 72 Recommendation (the committee's words)
    We ask that, in its response to this report, the Government provides a detailed strategic plan for delivering its R&D ambitions, including: milestones for increased private sector investment towards the overall spending target; a list of criteria to be used to select technologies and sectors for further support and an explanation of how 22 CATAPULTS: BRIDGING THE GAP BETWEEN RESEARCH AND INDUSTRY these will be responsive to future challenges; and a list of technologies and sectors that are being considered for further support. We recommend that the Government makes the best possible use of the Catapult Network, promoting it as the UK’s national innovation asset, and using it as the default mechanism for exploiting promising technologies and sectors. We recommend that the Government promotes its R&D strategy confidently, in the UK and internationally.