Written evidence submitted by Mr Dan Morris (IGR0022)

Dear Chi Onwurah, MP

The West of England is home to a thriving economy valued at over £40 billion, contributing significantly to the UK’s productivity. With an annual growth rate consistently above the national average, the region is poised for future expansion, driven by its dynamic sectors and world-class research institutions. Forecasts suggest that by 2030, the region’s economy could grow by an additional £10 billion, provided the right infrastructure and innovation support mechanisms are in place.

Our region’s potential is underpinned by nationally and internationally leading sector strengths in Advanced Manufacturing, Quantum and AI, Clean Energy Industries, Life Sciences, and Creative Industries.

The relationship between innovation investment and economic growth is clear in the West of England. For example, targeted investments in quantum technologies have not only bolstered the local economy but also contributed to the UK’s global leadership in this sector.

1. How does the Government drive research and innovation in our regions?

Government initiatives, including Innovate UK’s funding streams, UKRI investments, and Catapult Centres, are pivotal to supporting the West of England’s innovation ecosystem. However, a greater emphasis on regional context is needed. National policies often favour established clusters in the Greater South East, leaving other regions underrepresented in key funding opportunities. For example, the West of England’s advanced manufacturing sector—with globally significant strengths in aerospace and defence—requires tailored government support to capitalise on opportunities in emerging technologies such as sustainable aviation and defence AI.

My Mayoral Combined Authority, with its convening power and local expertise, plays a critical role in identifying strategic sectoral opportunities and aligning investments with regional strengths. For instance, it’s work on scaling quantum innovations through our £30m investment in the Quantum Technology Innovation Centre demonstrates the potential of collaborative governance to drive economic growth.

Start-ups and spin-outs in the region face challenges such as limited access to venture capital, inconsistent tax incentives, and regulatory hurdles. Enhanced investment tax relief and simplified pathways for scaling innovation-intensive businesses would support regional growth. Support with addressing infrastructure gaps, for examples affordable lab and office space for life sciences and creative businesses, is essential to enable start-ups and spin-outs to thrive.

2. How does research and innovation in our regions drive growth and prosperity in those regions?

My Mayoral Combined Authority has published the Plan for Innovation, which acts as a challenge-led framework to ensure that research and innovation directly enhances the quality of life for residents through job creation, improved access to cutting-edge technologies, and advancements in public services. Our life sciences cluster is developing diagnostics and devices that improve healthcare outcomes, while clean energy innovations are making strides toward more sustainable and affordable energy solutions for households. Investments in creative industries, including immersive media, not only generate high-value jobs but also enrich cultural experiences for communities.

The West of England’s innovation hubs, such as the Mayoral Combined Authority-funded Institute for Advanced Automotive Propulsion Systems, The MyWorld programme, and the Bristol Robotics Laboratory, drive local prosperity by fostering collaboration between universities, businesses, and public bodies. These hubs anchor critical sectors and deliver benefits like high-value job creation and enhanced skills development.

Scaling investment in science and technology enterprises is critical. For example, our life sciences sector, with strengths in diagnostics, advanced therapeutics, and assisted living, could benefit from dedicated regional innovation funds. The West of England welcomes the Government’s recent commitment to work with established mayoral strategic authorities to develop a future regional innovation funding programme. This initiative has the potential to support the West of England’s ambitions by unlocking the potential of high-growth sectors and driving regional prosperity.

3. How is research and innovation diffused or supported to drive productivity and growth in the regions, wherever it may come from?

Adopting existing innovations is as vital to regional prosperity as developing new ones. Programmes like Made Smarter in the West of England exemplify how targeted support can help businesses integrate advanced digital technologies, boosting productivity and resilience. For manufacturing SMEs in particular, embracing Industry 4.0 solutions—such as automation, IoT, and data analytics—is critical to remaining competitive in global markets. Scaling up innovation adoption programmes would ensure broader access to these transformative benefits across sectors.

Initiatives like the SETsquared partnership have successfully commercialised academic research, particularly in quantum and AI. Strengthening funding for collaborative R&D and addressing barriers to intellectual property commercialisation would unlock further growth. The Catapult Network plays a vital role in technology diffusion, and in the West of England, the National Composites Centre and Digital Catapult have fostered collaboration between academia and industry, driving commercialisation and supporting local SMEs. Expanding the Catapult Networks and increasing their joint regional focus would enhance their impact, particularly in quantum technologies and net zero innovation.

The West of England is well-positioned to lead in delivering the Government’s innovation-driven growth ambitions. With world-leading capabilities in priority Government sectors, our region exemplifies the potential of the UK’s innovation ecosystem. However, achieving this requires coordinated efforts across national and local government, enhanced investment in regional assets, and targeted interventions to address structural barriers. I look forward to working with the Department and Great British Energy to ensure we meet our shared goals. If you require further information on any of the projects or points raised in this letter, I would be happy to provide further evidence.

Yours sincerely,

Dan Norris, MP

Metro Mayor for the West of England

13 January 2025