The latest from the CBI Innovation team

This summer, the team at the CBI has been involved across major projects in the research and innovation landscape. Find out more about the updates, how they could impact your business, and where you can get involved to ensure your voice is heard.

1. Plan for alternatives to Horizon Europe published
2. Advanced Research and Invention Agency (ARIA) established
3. ‘Science and technology superpower: more than a slogan?’ published
4. The Grant Review published
5. The Tickell review published

1. Plan for alternatives to Horizon Europe

In July, the UK’s Department for Business, Energy and Industrial Strategy (BEIS), released details of transition arrangements to support UK research and innovation in the case of the UK not associating to Horizon Europe.

Horizon Europe is the EU’s flagship R&D programme – and with a €95.5bn budget, it’s an important source for long-term public research and innovation funding by:

• Enabling unique collaborative opportunities
• Raising the quality of UK research and innovation
• Giving UK businesses and universities a voice in shaping the international research agenda.

The CBI and our members see association with Horizon Europe as a priority. This is echoed by BEIS’ publication of alternatives, which continues to emphasise the UK government’s preference for association. These include:

• Reiterating that the funding committed to Horizon Europe in the 2021 Spending Review, will be used to fund UK R&D
• Short-term transitional measures like uplifts to existing UK grant funding, talent schemes and continuing access to all Horizon Europe schemes that are open to third country (non-associated) participation
• A high-level overview of what a ‘Plan B’ alternative UK funding programme might look like. This includes investment in end-to-end innovation and the wider R&D system, as well as support for global collaboration.

We anticipate decisions on the future of UK Horizon Europe association being made in early autumn. This will happen alongside increased business engagement on potential UK alternatives programmes. This will be an opportunity for your business to shape a programme that supports the UK’s ambition to be a science superpower and encourages business innovation. Contact Charlotte to find out more.

2. The latest developments on the Advanced Research and Invention Agency (ARIA)

The CBI welcomed the appointment of Ilan Gur, founder and ex-CEO of innovation non-profit Activate, and Matt Clifford MBE, co-founder and CEO of Entrepreneur First, as the first CEO and Chair of ARIA respectively.

ARIA will support high-risk projects – those with the potential to deliver transformative new technologies – playing a key role if the UK is to become a science superpower in areas of key strategic advantage, for example in AI, Quantum computing and low carbon technologies.

The Chair and CEO appointments are a step in the right direction of getting key R&D funding out the door. The CBI is keen to work with the new team to ensure ARIA brings business, government, and the research community together to deliver the best high-risk, high-reward research.

Reach out to ARIA to engage with their programme

ARIA is actively engaging with the research and innovation sectors to ensure ARIA receive the innovation expertise and input they need to deliver on their ambitions. They are recruiting for Non-Executive Directors, and you can sign up to host a roundtable with ARIA CEO to 'shape their vision'.

3. The House of Lords’ ‘Science and technology superpower: More than a slogan?’ report

The CBI responded to the House of Lords Science and Technology Committee’s inquiry into delivering a UK science and technology strategy. We collected a range of member views on the need for bolder strategy and investment, a more visible and navigable research, development and innovation landscape, support for business innovation and a need to harness levers such as trade, skills, procurement, and taxation.

The report reflects many of the CBI’s recommendations, particularly the need to take a longer-term view of innovation strategy and funding, and the importance of connecting the various levers across government to support the UK’s science and technology capabilities.

What’s in the report?

The report calls on the next government to stay focused on science and technology and commitments to public R&D funding. It also warns that the government’s ‘science superpower’ ambitions may remain unfulfilled without a clear implementation plan.

The report recommends the government should:

• Better define its science and technology strategy. The government needs to clearly set out the areas of science and technology it wants the country to specialise in
• Consolidate existing strategies and sustain these for the long term. This recommendation reflects business priorities, with a recent CBI survey showing that almost 80% of large businesses would increase their investment in innovation if there was longer term certainty on government innovation priorities and funding
• Explain what the ‘own-collaborate-access’ framework means. Set out in the Integrated Review, the government must tell business what it means for key technologies and how it will be applied
• Repair international relationships. Following the ongoing lack of association with Horizon Europe and cuts to Official Development Assistance, there is work to do on restoring our relationships abroad
• Set out specific reforms to areas such as public procurement, regulation, and R&D tax credits. Explain, for example, how the government plans to support innovation. The report calls for individual, accountable taskforces for R&D tax credits, intellectual property regulations and procurement reform, work across government, providing a single point of contact for industry feedback.

4. Grant Review of UK Research and Innovation (UKRI) published

The CBI was pleased to see the publication of the independent review of UKRI led by Sir David, that  outlines a number of steps for improving the efficiency of the organisation. The CBI is looking forward to working with UKRI as they continue to build the UK’s research and innovation capabilities.

Key recommendations include of Grant’s review include:

• Invest in harmonising IT systems
• Clarifying roles and responsibilities within UKRI and BEIS
• Focus on demonstrating outcomes from UKRI funding.

5. Tickell Review of research bureaucracy published

The independent review of research bureaucracy has now been published by BEIS. It outlines seven principles to reduce bureaucracy – a massive barrier to applying for R&D funding in the UK – and recommends government, funding bodies and regulators to reach out to research organisations prior to the introduction of new regulatory requirements, through a series of new consultations.

The CBI will continue to engage with BEIS and UKRI as they take forward the recommendations to ensure research bureaucracy is risk-based and proportionate. Getting this right is significant for supporting business innovation because, without a simpler process to access public funding, business could be deterred. This will risk the UK missing out on achieving its ambitions to spend 2.4% of GDP on R&D by 2027.