COLLABORATE TO INNOVATE Developing UK access to Framework Programme 9 March 2018

Transcription

1 COLLABORATE TO INNOVATE Develping UK access t Framewrk Prgramme 9 March 2018 Intrductin The UK s business cmmunity has benefited greatly frm wrking with their EU cunterparts n science and innvatin prjects. EU businesses and universities see the UK as an integral part f their wn innvatin ecsystems and are keen this cntinues. But the UK s vte t leave the EU has thrwn int dubt the UK s future rle and relatinship with the EU s innvatin base. CBI members tell us this uncertainty is affecting innvatin investment decisins. The Gvernment has taken gd steps s far, but needs t g further, securing the strng links that will drive investment and cllabratin. This will reassure businesses and shw the UK maintaining a leading rle in the glbal science and innvatin cmmunity. The alternative t deep UK participatin wuld be huge, unnecessary investment. The UK wuld need t duplicate EU assets while the EU duplicates UK assets. Key messages EU innvatin matters t UK business as well as the science base Engagement with the EU s framewrk prgrammes (FPs) benefits UK business. Lng-term funding, cllabrative pprtunities and the ability t influence regulatins are all valued by enterprises f all sizes. CBI members want these links t remain after the UK leaves the EU. Uncertainty ver access t future funding is affecting UK investment in innvatin Lng term business R&D investment is the fundatin fr the UK s future ecnmy. The uncertainty abut future engagement in the FPs is nw causing businesses t recnsider R&D investment, r mve it t ther cuntries. This will set back prsperity and reginal grwth. T nip this uncertainty in the bud, gvernment shuld state the intentin t achieve an enhanced assciate status fr the UK in Framewrk Prgramme 9 (FP9) Achieving enhanced assciate status will in return, mean making a financial cmmitment t FP9. This will prvide the reassurance that business needs t invest and highlight t the EU ur cmmitment t FP9. Outside f the EU, as an assciate cuntry, the UK can prvide a mre glbal utlk fr FP9 The UK s reputatin as a wrld leader in science and research can create a new dynamic fr assciated cuntries in the EU framewrk system. The UK can help the Cmmissin meet its gal f making FP9 mre pen t the wrld.

2 EU innvatin matters t UK business and the ecnmy UK participatin in Hrizn 2020 and previus FPs has been hugely beneficial fr British businesses alngside the research cmmunity. The FPs are an imprtant surce f lng-term funding, prvide unique cllabrative pprtunities and ffer an pprtunity t influence regulatins frm the earliest stage. Under Hrizn 2020, the UK is placed secnd nly t Germany in the number f prject participants and share f funding i. Lng-term funding: CBI members have tld us that as well as being an additinal surce f funding fr science and innvatin, FP funding is cmmitted ver a lnger timeframe than dmestic funding. This prvides certainty and stability t supprt businesses wn investments. In additin, many businesses rely n a range f EU innvatin supprt prgrammes as UK innvatin supprt cvers a narrwer range f areas. Fr example, UK participatin in prjects led by the Eurpean Institute f Innvatin and Technlgy and frntier research wrk by the Eurpean Research Cuncil are imprtant t businesses. Hrizn 2020 funding has benefitted the UK thrugh: 3.9bn wrth f funding since 2014 equivalent t almst 1bn per year UK businesses have received ver 780m this wrks ut at just ver 260m a year ii a substantial additin t Innvate UK s budget f 770m in 2017/18. UK industry is currently ranked fifth in the EU fr the amunt f Hrizn 2020 funding it receives. This funding ges t a variety f UK cmpanies with smaller scale businesses and thse wrking in research intensive industries benefitting the mst: SMEs have accunted fr 65% f funding granted t UK cmpanies in previus FPs iii despite nly accunting fr 5% f UK BERD iv investment Cmpanies wrking in the manufacturing and science/research intensive activities have received the highest levels f industry-related funding frm Hrizn 2020 in the UK. Manufacturers have received arund 36% f funding, with 39% f the ttal mnies distributed t date ging t research-intensive sectrs v. Cllabratin: Innvatin is challenging. T innvate successfully, cmpanies require access t a range f resurces, facilities, expertise and finance. These resurces can be finite, limiting a cmpany s ability t innvate. Cllabratin can help businesses access facilities and specialist knwledge. This matters as the pace f technlgical change is increasing, with skills becming mre specialist. Fr industrial innvatrs, wrking with thers is increasingly imprtant. These cllabratins als benefit the businesses that d nt directly apply fr EU supprt by raising the quality f research prduced by UK universities, which can then be develped and explited. UK SMEs have benefited frm wrking with EUbased partners by frming relatinships that have helped them t grw exprts. The UK and EU s innvatin capabilities cmplement each ther in terms f assets and expertise. Crssbrder wrking is nw essential in bringing tgether capabilities n single prjects and areas such as medicine, cyber-security, rbtics and big data. These issues are bth EU and UK pririties, reflecting the need fr cntinued cllabratin. The alternative t deep UK participatin wuld be huge, unnecessary investment. The UK wuld need t duplicate EU assets while the EU duplicates UK assets. The unique multilateral nature f the FPs wuld be very difficult t replicate at a natinal level given their depth and spread. The UK is currently develping an internatinal research and innvatin strategy but this wuld in n way cmpare with the benefits f FP9 engagement.

3 Regulatry influence: After Brexit, whether the UK chses t develp its wn regulatry systems r nt, a framewrk that helps with selling innvative gds and services int the EU will need t be develped. Participatin in EU FPs enables ur scientists and ur businesses t influence the directin f regulatin in the EU right frm the start. This is hugely beneficial fr building the best regulatins and culd help the UK cntinue t influence EU regulatin even utside f the blc by helping t reduce duplicatin f effrt and resurce fr business and the regulatry authrities. This relatinship wrks bth ways: UK expertise is valued by ur EU partners and has been highly influential in helping t generate gd regulatin acrss Eurpe. CASE STUDIES Frmal funding prgrammes, such as Hrizn 2020, play a particularly critical rle in facilitating pre-cmpetitive and public health research by bringing parties frm different sectrs tgether, in bth Eurpean Unin member states and ther participating cuntries. Pharmaceuticals & life sciences cmpany, Suth East Wrking with end users f the technlgy we prduce slutins that will meet the real needs f ur custmers. As a result f this, ur new tl received fcussed testing and evaluatin frm a very early stage in its develpment. The funding we received allwed us t dedicate effrt t earlier research activities rather than fcusing nly n shrtterm utcmes. We have fund participatin in EU research prgrammes t be extremely beneficial t ur business strategy. We gained access t the latest research by wrking with academic partners and ther leading-edge cmpanies... it was especially useful t wrk with ther tl cmpanies t establish a cmmn frmat that can be used by multiple tls. Hi-tech tling prducer, Yrkshire. Uncertainty ver access t future EU funding is affecting UK investment in innvatin Underinvestment in R&D is a chrnic prblem fr the UK. CBI members tell us business investment levels especially n R&D investment are nw suffering further due t cncerns abut ur future participatin in EU science and innvatin prgrammes. If allwed t cntinue, there is cncern this dubt will damage the UK s verall cmpetitiveness. Businesses R&D investment plans are lng-term. This uncertainty abut future engagement in FP9 is nw causing businesses t recnsider R&D investment, r mve it t ther cuntries. This is reflected in the perfrmance f UK cmpanies and the funding they have received frm Hrizn Latest figures frm BEIS shw that when cmpared with Octber 2016, UK businesses have fallen frm the secnd highest recipients f funding in the EU t fifth verall vi. This is because uncertainty is impacting n UK businesses relatinships with EU partners. Evidence frm EU business rganisatins suggests numerus cllabrative prjects invlving British researchers and cmpanies have been thrwn int dubt since the referendum. EU businesses want t wrk with UK cmpanies and universities but they are reluctant t d s when there are dubts abut the nature f the future relatinship. The UK gvernment has taken the right steps t date. Guaranteeing Hrizn 2020 funding and shaping the directin f FP9 thrugh engagement with the Cmmissin are psitive steps. Gvernment needs t act nw t signal t business they can cntinue t invest and cllabrate.

4 T nip this uncertainty in the bud, gvernment shuld state the intentin t achieve an enhanced assciate status fr the UK in Framewrk Prgramme 9 (FP9) The gvernment shuld state its intentin t engage in FP9, with an assciatin deal that meets the fllwing criteria: Full access t all pillars f FP9: CBI members want the UK t play a full rle n FP9 in each f its cre prgrammes. Sme assciated cuntries have chsen nt t access all the pillars f Hrizn 2020 but prvided FP9 meets the UK s criteria, it is imprtant fr UK businesses that full access t the prgramme remains in place. Engagement in all three pillars f Hrizn 2020 has benefitted the UK innvatin ecsystem, such as helping bst technlgy readiness levels and prvide UK expertise in a variety f research areas. Chsing t cmmit t a limited number f pillars in FP9 wuld leave the UK s brader innvatin ec-system under-tled and culd damage the lng-term innvatin capabilities and relatinships with EU partners. The ability fr UK businesses and researchers t lead FP9 cnsrtia: Assciated member cuntries already lead Hrizn 2020 prjects and with the UK s extensive experience f leading different FP cnsrtia, UK cmpanies are well placed t d s in the future. Leading cnsrtia enables cmpanies t direct the research. Where cnsrtia are led by cmpetitrs, British cmpanies may be left ut, r have reduced influence. The ability t influence the develpment f the FP9 prgrammes: As a leading member f the EU s industrial science base, the UK has played a full rle in develping previus science and innvatin prgrammes and ur EU partners have valued this input. The UK s influence and rle needs t be maintained as discussins cntinue arund the verall directin and shape f FP9. As well as the ability t influence the verall shape f FP9: UK businesses and researchers need t be able t lead initiatives such as Public Private Partnerships and Jint Undertakings. Bth are imprtant tls fr UK businesses in shaping funding calls and research pririties. Bradly meets the recmmendatins set ut in the gvernment s FP9 paper: The gvernment is right t press fr FP9 t fcus n areas such as excellence, cllabrative wrking with nn-eu cuntries and a missin riented apprach. The gvernment shuld cntinue t cntribute fully in the nging FP9 cnsultatins. Jining FP9 means the UK will have t pay its fair share int the budget. The UK shuld make a cmmitment t paying int FP9 s budget: The sixteen Hrizn 2020 assciated cuntries cntribute t its budget based n a prprtin f their GDP vii. Offering t pay based n similar terms wuld demnstrate the UK s cmmitment t EU science and innvatin fr UK business and the EU alike. T realise the full advantages f participatin, it is imprtant that the UK and EU negtiate a cmprehensive agreement n migratin and mbility. Innvatin is a cntact sprt. Fr businesses, building face-t-face relatinships with partners and custmers matters. Cuntries that get the mst ut f FPs have gd crss brder mbility because all cnsrtia-led prjects in Hrizn 2020 must include at least three participants frm different member states r assciate cuntries. Many f the prjects are lng-term in nature, and participants are ften expected t attend and hst meetings with their partners, as well as attend key prject events such as cnferences. Achieving this means develping an immigratin system that wrks fr UK business and innvatin: Business accepts that free mvement will nt cntinue as we have knwn it. The new migratin system must supprt UK business and innvatin, and restre public cnfidence that migratin is cntrlled. T d s, the UK and EU must cnclude a cmprehensive agreement n migratin and mbility that:

5 Ensures frictinless access t the skilled wrkers that businesses need, nt nly t the brightest and best : Innvative businesses require peple with a range f skills and abilities. Any new immigratin deal must reflect this reality. Addresses the skills shrtages in different sectrs and meets the needs f the UK s regins and natins: Innvative businesses are lcated acrss the UK. These businesses must be able t attract and retain the labur needed t innvate, grw their businesses and sell their prducts r services. A new deal must be flexible enugh t meet the diverse needs f all the UK s regins and natins. Prtects mbility, allwing businesses t easily mve staff t and frm Eurpe n secndments and t visit custmers and partners: T innvate and exprt successfully, businesses must be able t engage face t face with custmers and partners. Maintaining this access is fundamental t the success f the UK s innvatin ec-system after Brexit. Outside f the EU, as an assciate cuntry, the UK can prvide a mre glbal utlk fr FP9 The UK s presence will alter the balance in the status and makeup f assciated cuntries. The UK shuld use its strength as a science and innvatin pwerhuse t push fr a strnger mdel f assciatin fr all nn-eu assciate cuntries. Wrking with ther assciated cuntries and the EU, the UK can help deliver the EU s missin t make FP9 mre pen t the wrld. Building n cutting edge research and develping new technlgies and markets increasingly happens between a hst f multinatinal partners. Internatinal cllabratins will be even mre imprtant in meeting the grwing scietal challenges f the 21 st Century. The UK can nw play a leading rle in making science and innvatin pen t the wrld. Wrking tgether with the EU and the UK s glbal partners shuld be a cnstituent part f the gvernment s wider internatinal research and innvatin strategy. i BEIS UK participatin in Hrizn 2020 September 2017 published Nvember 2017 ii BEIS UK participatin in Hrizn 2020 September 2017 published Nvember 2017 based n Private fr-prfit entities classificatin iii Technplis Grup The rle f EU funding in UK research and innvatin May 2017 iv Business Expenditure Research & Develpment v Technplis Grup The rle f EU funding in UK research and innvatin May 2017 vi BEIS UK participatin in Hrizn 2020 September 2017 published Nvember 2017 vii Nte Under Hrizn 2020, It is nrmal practice t negtiate the final amunt based n a simple rati f GDP f the cuntry t the GDP f the EU, hwever in sme cases the amunt set can be based n a frmula set ut in legislatin Fr further infrmatin r a cpy in large text frmat, cntact: Felicity Burch, head f grup, digital and innvatin, CBI T: E: felicity.burch@cbi.rg.uk Cpyright CBI 2018 The cntent may nt be cpied, distributed, reprted r dealt with in whle r in part withut prir cnsent f the CBI.