Supporting science-based businesses is one of key opportunities for boosting economic growth in the UK, particularly outside of London.
But finding the right mechanisms to help these businesses to grow is hard and the House of Commons’ Science, Innovation and Technology Select Committee is looking at the role of structural factors in its ‘Innovation, growth and the regions’ inquiry and how these impact on high-potential businesses. It is looking at the impact of the tax system, regulation and standards in influencing the success of start-ups and spin-outs, as well as the role of research clusters and infrastructure in making the UK’s regions an engine for growth.
This week the committee heard from Greg Clark, the Executive Chair of Warwick Innovation District and Chair of SCI's Board of Trustees, as well as entrepreneur Natasha Boulding, CEO of Low Carbon Materials.
Chair of the Committee Chi Onwurah MP opened the session by asking Boulding about the challenges facing founders in the science and technology sector, particularly outside of London and the southeast of the country.
“Public and private funding is scarcer into north than it is into the south. As a founder that represents huge challenges when funding is always the first thing on your mind,” Boulding said. She added that recruitment could also be difficult being a business outside of the southeast. “The C-suite and senior leadership hiring can be tricky. With people coming for interview perhaps never having been to the northeast of England, where Low Carbon Materials is located, they can be surprised by what is available in our location.”
Explaining that the strength of the UK’s startup ecosystem was pivotal in the growth of Low Carbon Materials, Boulding cited organisations such as Durham City Incubator and Northern Accelerator as key to the business’ growth. “We are very intertwined in the startup ecosystem which is absolutely key and pretty strong in the UK, but it is when you get to the scale up phase, that is where the gaps are as I see it,” Boulding added.
She also called for a new approach around public procurement. “I think we could do something with procurement. Low Carbon Materials decarbonises building projects across the country. We have received a lot of government funding. But if, for example, we hit certain commercial and technical milestones and the government could commit to a demonstrator, a first of a kind project, that would have a positive benefit on attracting investors.”
Commenting on the UK funding landscape, Clark said that backing research and universities was key but added that there are questions on how this could be done better. “There is an argument for collaboration between institutions,” Clark said. He highlighted Warwick Manufacturing Group and its joint work with Imperial College London focused on the automotive sector. “These are two excellent research-intensive institutions highly regarded in this country and around the world. This presents a great opportunity for them to join together for the benefit of London and West Midlands.”
He called for a more collaborative approach in the way funding was distributed. Asked if a new Industrial Strategy could go some way to creating this more collaborative approach in academia and business, Clark said that the strategy should have a national view of what technologies the UK is strong in - and could get stronger in - if firms had the right investment. But he stressed that it was important for the local clusters to involved in this process, adding that he hoped the strategy would recognise the importance of universities and their place in innovation.
Calling for “agility” in funding to support the growth of businesses, Clark said: “Innovate UK was meant to be source of funds that if there was an opportunity that arose, then a quick decision could be taken. There was a degree of risk that was recognised as being permissible and even desirable, so matching contributions could be made to secure globally mobile investment. What’s happened too much [at Innovate UK], since its formation, is that the grant culture of the research councils, which can take months for responses had prevailed. By time a decision has been taken on funding, the investment opportunity has moved overseas, it’s slipped through our fingers. That wasn’t the intention, we need to get back to that agility.”
Further reading:
- Decarbonising concrete: Low Carbon Materials secures £3m growth funding
- New UK Industrial Strategy coming soon, says Chancellor
- Greg Clark appointed SCI's Chair of Board of Trustees
- UK Industrial Strategy: Russell Group assembles expert panel
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