Recommendations & Conclusions
21 items
2
Conclusion
Fifty-Sixth Report - Industrial Strateg…
We are not convinced that UKRI’s and the Department’s approach to intellectual property generated by the Fund adequately protects taxpayers’ interests. Taxpayer funding invested through the Fund creates a ‘bridge’ between pure research investment and commercial development. There will potentially be value in the intellectual property associated with the projects …
Government response. agree with the conclusion that DHSC and NHS Digital took too long to identify all clinically extremely vulnerable people. Given the data available at the time, and the novelty of shielding policy, NHS Digital, DHSC, and frontline clinicians worked as …
HM Treasury
3
Conclusion
Fifty-Sixth Report - Industrial Strateg…
The Department has not yet made clear how it will make sure the UK will meet the target to spend 2.4% of its GDP on R&D by 2027. The government has a target to 6 Industrial Strategy Challenge Fund increase the UK’s public and private investment in R&D to 2.4% …
Government response. agree with the conclusion that there was huge local variation. NHS Digital and DHSC have already written to the Committee with an initial analysis of the local variation in growth of the Shielded Patient List (SPL). This found that most …
HM Treasury
5
Conclusion
Fifty-Sixth Report - Industrial Strateg…
UKRI is not doing enough to make sure the Fund is attracting successful bids from across the country. Funding awarded by the Fund is distributed unevenly across the regions of the United Kingdom. By October 2020, just over 63% of the Fund had been awarded to organisations registered in London, …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 5.2 The department and UKRI recognise that all R&D funding has a key role to play in the levelling-up agenda. As outlined in The Queen’s Speech 2021, …
HM Treasury
6
Recommendation
Fifty-Sixth Report - Industrial Strateg…
The elongated time taken by the Department and UKRI to provide funding to successful bidders risks putting off businesses from applying for the programme. It took UKRI, the Department and HM Treasury 72 weeks to select and approve the challenges that were given funding in 2019–20. It took UKRI on …
Government response. 2021. This is the Government’s response to the Committee’s report. Relevant reports • NAO report: management of the Industrial Strategy Challenge Fund – Session 2019-21 (HC 1130) • PAC report: Industrial Strategy Challenge Fund – Session 2019-21 (HC 941) Government …
HM Treasury
7
Conclusion
Fifty-Sixth Report - Industrial Strateg…
Powers currently delegated by the Department and HM Treasury to UKRI do not strike the right balance between the governance necessary to support efficient decision making and unnecessary bureaucracy. The Department and HM Treasury set the governance arrangements for UKRI’s oversight of the Fund, including the requirements for approving new …
Government response. 7.1 The government disagrees with the Committee’s recommendation. 7.2 The department and UKRI are working closely together to consider the future design of challenge funding and how it can continue to deliver government priorities, building on lessons learnt from the …
HM Treasury
1
Conclusion
Fifty-Sixth Report - Industrial Strateg…
On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy & Industrial Strategy (the Department) and UK Research and Innovation (UKRI) about the management of the Industrial Strategy Challenge Fund (the Fund).1 Assessing Fund performance
Government response. 1.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 1.2 The Department for Business, Energy & Industrial Strategy (the department) and UK Research and Innovation (UKRI) recognise that demonstration of outcomes and impact are the critical …
HM Treasury
4
Conclusion
Fifty-Sixth Report - Industrial Strateg…
The Department has five objectives for the Fund, to: • increase UK businesses’ investment in R&D, while also improving R&D capability, capacity and technology adoption; • increase multi- and inter-disciplinary research; • increase engagement between academia and industry on targeted innovation activities; • increase collaboration between new small companies and …
Government response. agree with the conclusion that a centrally directed system was chosen because of a lack of confidence in local authorities. Councils are crucial partners in delivery of shielding support to clinically extremely vulnerable individuals and since July 2020, councils and …
HM Treasury
8
Conclusion
Fifty-Sixth Report - Industrial Strateg…
We asked the Department and UKRI why it had not ensured that the taxpayer benefited from any intellectual property generated as a result of successful commercial development paid for by the Fund.19 The Department told us that securing intellectual property was not the purpose of the Fund—instead it was to …
Government response. 2.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2021 2.2 The government with UKRI will review the current approach to intellectual property (IP) and consider the issues raised in the Committee’s report and will write to …
HM Treasury
9
Conclusion
Fifty-Sixth Report - Industrial Strateg…
The government has a target to increase the UK’s public and private investment in R&D to 2.4% of gross domestic product by 2027. The Fund contributes to this target.24 In 2018, the most recent year for which data are available, the UK invested 1.7% of its gross domestic product in …
Government response. 3.1 The government disagrees with the Committee’s recommendation. 3.2 The government has committed to increasing UK investment in research and development (R&D) to 2.4% of gross domestic product (GDP). To achieve this target, the government has committed to raising public …
HM Treasury
10
Conclusion
Fifty-Sixth Report - Industrial Strateg…
In 2019, the Department announced that to achieve government’s target of 2.4% both public and private R&D investment would need to rise to around £60 billion.26We asked witnesses how, and by when, it was going to increase funding to meet the target. The Department told us that it hoped to …
Government response. 3.1 The government disagrees with the Committee’s recommendation. 3.2 The government has committed to increasing UK investment in research and development (R&D) to 2.4% of gross domestic product (GDP). To achieve this target, the government has committed to raising public …
HM Treasury
11
Conclusion
Fifty-Sixth Report - Industrial Strateg…
UKRI considered that meeting the target as very challenging but also described it as plausible if it could, for example, maintain the momentum the Fund had generated around private investment. It asserted that having an ambitious target was important “otherwise, one won’t even meet unambitious targets, let along ambitious ones”.30 …
Government response. 3.1 The government disagrees with the Committee’s recommendation. 3.2 The government has committed to increasing UK investment in research and development (R&D) to 2.4% of gross domestic product (GDP). To achieve this target, the government has committed to raising public …
HM Treasury
12
Conclusion
Fifty-Sixth Report - Industrial Strateg…
In the third and most recent wave of funding that started in 2019–20, it took UKRI, the Department and HM Treasury 72 weeks to select and approve challenges.32 We asked the Department and UKRI why it took them over a year to select and approve challenges. The Department told us …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 6.2 The government recognises the impact that an elongated approvals process can have on the participants to Challenges. A key consideration in the design of the delivery …
HM Treasury
13
Conclusion
Fifty-Sixth Report - Industrial Strateg…
The Department told us that part of the reason for the delays in approving challenges, and ultimately projects, lay with drawn-out approval processes.34 The Department and HM Treasury are responsible for approving business cases for challenges. The Department told us that the process for selecting and signing off challenges started …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 6.2 The government recognises the impact that an elongated approvals process can have on the participants to Challenges. A key consideration in the design of the delivery …
HM Treasury
14
Conclusion
Fifty-Sixth Report - Industrial Strateg…
We were concerned that lengthy approval times, combined with changes in coinvestment requirements, could deter participation from some small and microsized companies.39 For example, we received written evidence from Tees Valley Combined Authority which told us that it had submitted three successful and sequential bids relating to industrial decarbonisation for …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 6.2 The government recognises the impact that an elongated approvals process can have on the participants to Challenges. A key consideration in the design of the delivery …
HM Treasury
15
Conclusion
Fifty-Sixth Report - Industrial Strateg…
Delays in getting new challenges approved have had a knock-on effect on UKRI’s ability to start spending. For example, in 2019–20, UKRI had underspent by £86 million, equivalent to 14% of its budget for the Fund the year. During 2020–21 UKRI agreed to re-profile £165 million from the current budget …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 6.2 The government recognises the impact that an elongated approvals process can have on the participants to Challenges. A key consideration in the design of the delivery …
HM Treasury
16
Conclusion
Fifty-Sixth Report - Industrial Strateg…
Lack of staffing capacity within UKRI may also have impacted the time taken to approve bids. At the start of Waves 2 and 3, UKRI faced significant challenges recruiting staff to oversee and manage the challenge programmes. Of the 186 full-time-equivalent staff UKRI estimated it needed to administer the Fund …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 6.2 The government recognises the impact that an elongated approvals process can have on the participants to Challenges. A key consideration in the design of the delivery …
HM Treasury
17
Conclusion
Fifty-Sixth Report - Industrial Strateg…
One of the Fund’s five objectives is to increase collaboration between new small companies and those that are established. Analysis undertaken by the National Audit Office showed that UKRI had initially succeeded in attracting a range of different sized companies to participate in the Fund. However, in the third wave …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 4.2 UKRI is committed to increasing engagement with small and medium sized enterprises (SMEs) within the research and innovation system. The NAO report notes the Fund has …
HM Treasury
18
Conclusion
Fifty-Sixth Report - Industrial Strateg…
There are several reasons why the proportion of smaller businesses receiving funding could have fallen including the increase in UKRI’s requirements for coinvestment from participants for wave 3 funding. UKRI increased the co-investment requirement from industry in wave 3, responding to a requirement from the Secretary of State for Business, …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 4.2 UKRI is committed to increasing engagement with small and medium sized enterprises (SMEs) within the research and innovation system. The NAO report notes the Fund has …
HM Treasury
19
Conclusion
Fifty-Sixth Report - Industrial Strateg…
Other factors that may have influenced the reduced participation of smaller businesses include insufficient communication about the Fund reaching SMEs, limited capacity within SMEs to participate in collaborative bids, and the lengthy approvals processes for funding.51 We received written evidence from Universities Scotland, which told us that “insufficient communication and …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 4.2 UKRI is committed to increasing engagement with small and medium sized enterprises (SMEs) within the research and innovation system. The NAO report notes the Fund has …
HM Treasury
20
Conclusion
Fifty-Sixth Report - Industrial Strateg…
Whilst UKRI does not have an explicit objective to consider the regional balance in its funding awards, the 2017 Industrial Strategy did include a focus on ‘prosperous communities’ across the UK.55 The government’s 2020 Roadmap for R&D expenditure sets out its intention that spending on R&D and innovation should contribute …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 5.2 The department and UKRI recognise that all R&D funding has a key role to play in the levelling-up agenda. As outlined in The Queen’s Speech 2021, …
HM Treasury
21
Conclusion
Fifty-Sixth Report - Industrial Strateg…
UKRI recognised the need to think about R&D expenditure in terms of what it described as the ‘place part of the agenda’.58 Comparing the distribution of the Fund with what it described as normal R&D expenditure, UKRI asserted that it thought that investment through the Fund in London was “very …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 5.2 The department and UKRI recognise that all R&D funding has a key role to play in the levelling-up agenda. As outlined in The Queen’s Speech 2021, …
HM Treasury