Written evidence submitted by the NCC (IGR0056)

 

The NCC, established in 2011 and based at the Bristol and Bath Science Park, is a national innovation facility and platform that provides access to state-of-the-art capabilities and technology. Collaborating to address the most complex engineering challenges of our time, we deliver pioneering innovation to drive industrial transformation across key priority sectors. Part of the High Value Manufacturing Catapult, we collaborate with innovators of all sizes, the supply chain and academia, providing businesses with an environment to design, develop, test and scale their ideas, products and processes, to get to market fast.

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

 

Effectiveness of Policies:

Government policies, particularly those focused on place-based innovation, are starting to play a significant role in strengthening regional innovation ecosystems. However, systemic challenges remain. Evidenced by the UK’s stagnant productivity growth and ability to capitalise fully on the opportunity to pull-through research into industrial applications and their adoption to drive sector transformation.

The Innovation Research Caucus (IRC) emphasises that policy alignment between national and local governments is critical to fostering innovation. Through a step change in the scale of business led innovation, innovation adoption and diffusion and use of supporting infrastructure the UK can solve the above challenges.

Reinforcing existing clusters – and then going further - over the long term, including with targeted public and private investment, enables stronger interconnections between industries and regions, fostering knowledge spillovers and wider benefit. Today, the UK’s clusters and areas of market growth are underutilised. Action is needed to vastly accelerate these areas of demonstrable strength, deploying them for unconstrained growth.

While there is a role for new clusters to address visible gaps and opportunities, government must ensure they are backed by evidence and there is a push-pull opportunity with industry and the market. This is required to avoid short-term catalytic effects, which falter without ongoing public/private support. Spreading investment across too many new clusters may lead to suboptimal outcomes, as opposed to focusing on reinforcing (scaling) clusters to achieve critical mass and maximising use of existing infrastructure.

Established clusters serve as anchors that radiate benefits across geographies and sectors. Existing clusters such as WoE already possess critical resources, such as skilled talent, research capabilities, and industrial infrastructure, but they still require scaling to ensure these advantages are fully utilised, amplified and deliver impact. Aligning significant clusters such as WoE with mission-led mandates creates a clear critical path while allowing action in adjacent sectors due to their agility

Recommendation – Government must continue to invest in existing clusters, to an extent which they can deliver a step change in growth and faster returns. Removing the ceiling on their ambition, supported by interventions will allow them to scale while leveraging existing infrastructure, capabilities, and networks – building on their track record.

Role of Devolution and Local Government:

Devolution empowers local governments to tailor their strategies to regional opportunities. For example, the WoE Combined Authority (WECA) will align its Local Growth Plan with national missions and the Industrial Strategy, with innovation led growth being a central pillar.

Devolution for WoE should come with three essential conditions for success:

This should allow the region to channel resources into critical sectors of current and future multi-generational prosperity, such as aerospace, renewable energy (off-shore wind), and artificial intelligence. Doing so as part of nationally connected industrial pathways where regions deliver technology and product leadership across sector value chains.

Recommendation - Echoed through research undertaken by the IRC is that local government act as conveners to bring together businesses, universities and other stakeholders around an ambitious central plan for growth (the LGP). However, they should leverage the capability available through organisations like NCC and institutions, to prioritise and delivering in partnership.

Influence of Regulatory Frameworks, and Standards:

Simplified, clear and pro-innovation regulatory and policy frameworks, play a crucial role in enabling businesses to have the confidence to invest in new products and services. The IRC highlights that predictable and transparent standards facilitate the growth of emerging sectors by providing clear pathways for technology adoption and scaling.

Recommendation – The UK’s Regulatory Innovation Office should deliver its mandate with pace and by leveraging the knowledge held within key industrial sectors and those which are emerging. They should learn from previous endeavours such as the Taskforce on Innovation, Growth and Regulatory Reform.

Challenges in Spinning-Out or Scaling-Up:

Key challenges for start-ups and spin-outs include:

 

Figure 1 – connected pathway from research to industry, West of England, NCC, High Value Manufacturing Catapult. Growth through strong foundations (research, discovery and enterprise) through industrial demonstration at scale. A strong region to region and region to nation ecosystem.

 

iCOMAT: iCOMAT is a success story from the NCC and Bristol Composites Institute (BCI) partnership. This University of Bristol spinout, supported by NCC’s Technology Pull-Through and Core Programmes, is advancing automated layup machines for defect-free fibre steering. Combining academic research with industrial expertise, the Bristol-based SME is driving innovation to reduce weight, cost, and environmental impact in composites. With support from the NATO Innovation Fund and others, iCOMAT recently secured more than £17.5m in funding to deliver lighter transport solutions faster and at a lower cost.

 

Recommendation - While spin-outs and start-ups are important, greater emphasis should be placed on growing and scaling businesses, especially high growth SME’s who poses innovative solutions today. It is essential that these stages of the innovation pathway have maximum support (mid to late stage financial, infrastructure and skills pipeline). We cannot address the UK’s growth challenges without a pronounced shift to near term business led economic impact, while still sustaining a level early pipeline support.

 

 

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

 

The West of England (WoE)

The West of England is home to a productive and dynamic research, innovation, and industrial ecosystem. Some examples include:

Together, these create the ‘success conditions’ that give rise to highly productive clusters; the WoE region is the UK’s most productive technology cluster.

These regional attributes will be reflected in the Local Growth Plan which when combined with Government’s growth Mission and the new Industrial Strategy represent a unique opportunity.

Effectiveness of Regional Innovation Hubs and Clusters:

Innovation and industry assets like the NCC, Science Creates, IAAPS, Quantum Technologies Innovation Centre, GKN’s Global Technology Centre, Airbus design, test and manufacture footprint in the WoE are national and regional engines of economic growth. The NCC has delivered £300m in gross value added (GVA) over five years and supports creation and safeguarding of 10,000 jobs, along with significant supply chain benefit.

Local assets such as the NCC enable collaboration between academia and industry, which translates into tangible outcomes like job creation and sectoral growth. For example:

 

The IRC highlights that clusters succeed when they foster collaboration and focus on building long-term relationships between key players, rather than short-term gains.

ACTUATION LAB: The NCC supported a University of Bristol spin-out company in its next phase of development in addressing the problems of high-servicing requirements of machines in the marine, mining and offshore industries. Actuation Lab received a £300,000 grant from Innovate UK, which - alongside private investment - helped the company to take what is a lab-proven technology through to products ready for industrial trials. They were co-located with the NCC, giving them access to the materials, facilities, and expertise they need to develop their components further. The SME has since been awarded a £3 million contract from the DESNZ’s Net Zero Innovation Portfolio to support development and certification. They have partnered with the University of South Wales (USW) Hydrogen Research Centre to demonstrate their technology on a hydrogen flow loop in 2024.

 

Measuring, Mapping, and Monitoring Cluster Growth:

Effective measurement of cluster growth requires a combination of qualitative and quantitative approaches. NCC is tracking metrics such as:

  1. Job Creation: Both direct and supply chain jobs created by the cluster.
  2. Economic Output: Contributions to regional GVA.
  3. Innovation Outputs: Patents filed, technologies commercialised, and products and services improved.

It is clear that evaluation, evidence and insights can support evidence-based policymaking, helping local leaders identify strengths, weaknesses, and opportunities within their clusters.

Unlocking Investment at Scale:

Unlocking large-scale investment for innovative science and technology companies is key to regional growth. The IRC suggests that regional funding bodies could focus on creating "investment-ready ecosystems" by aligning local opportunities with national and international investors and funds.

As demonstrated through large scale investments such as Tata’s £4bn investment into the Agratas battery manufacturing plant in Bridgewater, South West backed through Government’s Automotive Transformation Fund, the combination of public and private support is leading to growth and supply chain security. This capital investment is further supported through access to national and regional innovation support such as the Faraday Battery Challenge and ATF R&D grants e.g. https://www.londonstockexchange.com/news-article/IKA/agratas-joins-goliath-industrialisation-programme/16441752.

In the WoE, the success of the NCC has seen it grow from 5 founder members including Airbus, Vestas and Rolls Royce to over 70 today, plus an extensive regional and national network of non-member businesses. Through access to regional and national funding, effective engagement and delivery with local clusters in the region has been possible. The Digital Engineering Technology & Innovation (DETI) programme is a strategic programme of the West of England Combined Authority (WECA), delivered by the National Composites Centre, in partnership with the Centre for Modelling & Simulation, Digital Catapult, the University of the West of England, the University of Bristol, and the University of Bath. Industry partners include Airbus, GKN Aerospace, Rolls-Royce, and CFMS, with in kind contributions from UWE, Digital Catapult and Siemens. DETI was funded by £5m from WECA, with co-investment from the High Value Manufacturing Catapult and industry.

Recommendation – UK Government must provide a radical uplift in conditions (access and resources) for ambitious large-scale public and private investment to flourish. Catalysed through innovation and industrialisation of key sectors, which takes place within the right regions based on their strengths, networks and decisions.

Region-Specific Innovation and Growth Policies:

Region-specific policies tailored to local strengths ensure that innovation efforts are targeted and impactful.

The recent devolution bill, and its emphasis around greater autonomy for regions is welcome and NCC supports greater settlements to e.g. WECA to invest in areas of growth as to be defined in the Local Growth Plan and Local Investment Strategy.

Examples of where success and impact has been seen include the DSIT funded Innovation Accelerators programme delivered by Innovate UK.

Recommendation – MCAs be afforded settlements to direct innovation led growth opportunities, working with national bodies to delivery efficiency and positive alignment. For example we strongly advocate for the WoE to be awarded an Innovation Accelerator, one which can be developed with local leadership and key stakeholders e.g. Innovate UK and Government.

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

 

Ensuring Tangible Outcomes from Innovation Investments:

To maximise outcomes from innovation investments, it is essential to (industrial strategy focus):

 

In the WoE, investments in high-value sectors like defence and clean energy are driving growth and prosperity. The NCC’s work in offshore wind technologies is a prime example of how regional capability can deliver benefits across the UK. In 2024, the NCC was named as one of Vestas’ only 3 global technology partners due to its expertise, knowledge and thought leadership in the development of future off-shore wind technology.

The NCC’s and WoE’s engineering and innovation capability is its strength, driving technology and product leadership that anchors manufacturing and supply chains often elsewhere nationally. Building this capability through new enabling technology such as AI and digital technologies will help scale the intrinsic value of this capability for national gain. For example through the greater attention to design, digitally enabled test, verification and validation as the route to secure higher value (but lower cost) products and in a more productive way.

VERTICAL AEROSPACE: In 2020, then-SME Vertical Aerospace partnered with the NCC to develop critical components for their VX4 electric aircraft prototype. Prioritising safety and reliability for commercial certification, the NCC’s design-for-manufacture expertise improved the structural capability of lighter propeller blades, crashworthiness of fuselage (main body) and airframe; and enhanced pilot safety in emergencies. The NCC’s capability directly supported Vertical Aerospace’s rapid growth in electric flying taxi technology. The company has since tripled its workforce; estimated to be worth $1tn by 2040. It has secured £37 million in UK government grants towards revolutionising urban air mobility. International orders have been secured from American Airlines, Virgin Atlantic and others.

 

 

Recommendation – the NCC recommends that the Government commit to:

Role of Catapults in Technology Diffusion:

Building on the points made throughout this submission, Catapult (Centres) like the NCC play a vital role in bridging research, innovation, sub-scale and full-scale demonstration, test and verification to industrial manufacturing and deployment.

They provide access to advanced facilities, foster collaboration, and support businesses in taking technologies to market.

The NCC delivers knowledge exchange, providing access to advanced infrastructure, and supporting businesses in navigating technological and market challenges. These are essential ingredients in aiding technology diffusion. AS a national asset the NCC operates beyond its WoE geography, with dedicated activity down into the Great South West (Plymouth) to Manchester where it is supporting the future development of an interconnected materials cluster.

Recommendation - The IRC highlights the need to expand the capacity of Catapults to ensure that their benefits are accessible to more regions and sectors.

University-Business Coordination:

The WoE’s academic intuitions play a strategic role in providing insights and intelligence to inform regional, sector and technology strategies; providing regional leadership alongside local partners and building workforce competencies.

Universities and businesses in the WoE have achieved notable successes in developing and commercialising research. For instance:

             

LINEAT:  Lineat, founded in 2020 through the NCC’s SME Connect programme, has rapidly developed its HiPerDiF carbon fibre recycling process. Starting with just three people in a small flexi cell at the NCC’s Bristol headquarters, the company has grown to a team of 11 and built the world’s first commercial fibre alignment machine for producing highly aligned recycled carbon fibre tapes. Collaborating with the NCC enabled early material validation and direct engagement with OEMs and Tier 1 members, integrating Lineat’s technology into joint R&D projects. Now headquartered in Chepstow, Lineat targets £10 million revenue by 2028, creating 24 new jobs.

What is the relationship between investment in innovation and economic growth, both regionally and nationally?

Innovate UK, part of UKRI is providing expert support for UK businesses, through its domains (net zero, Healthy Living and Digital & Technologies, Place leadership and portfolio of Products and Services. Ramping support through Innovate UK and the UK’s Catapult network for scale, growth, supply chain competitiveness and high value sovereign capability is strongly advocated.

It is essential that the balance of funding through UKRI into its Councils and Innovate UK is one which support’s Government’s Growth mission. While continued strong foundations at the start of the connected pathway are important, it is only through business led innovation and technology adoption will we address UK productivity growth. Every effort should be made to empower this.

 

24 January 2025