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European Structural and Investment Fund (ESIF) Strategy:

Strengthening Research, Technological Development & Innovation

Overview

• Context

• Investment Priorities

• Funding

Context (1)

Manufacturing remains a significant employer within the Coventry and Warwickshire area supporting the employment of over 47,000 people.

o The manufacturing sector is dominated by high tech manufacturing, which in terms of classification comprises the manufacture of computer, electronic and optical products, the manufacture of

electrical equipment, the manufacture of machinery and equipment, the manufacture of motor vehicles, trailers and semi-trailers, and the manufacture of other transport equipment.

o These areas collectively account for 50% of all manufacturing jobs in the LEP area. This “Advanced Manufacturing & Engineering” sector within Coventry & Warwickshire is a clear specialism and differentiator, and a key focus for the CWLEP.

o The manufacturing sector makes a disproportionately large contribution to R&D activity in the CWLEP area, indicating the strength of the automotive sector and its importance for the local economy.

The LEP area also has a strong employment profile in the Wholesale and Retail Trade (70,533 jobs), Human Health and Social Work (47,428 jobs) and Education (44,158).

o The service sector accounts for 5% of private sector R&D expenditure in Coventry and Warwickshire, while nationally it accounts for 55% of R&D investment.

Context (2)

Coventry and Warwickshire boasts some world class innovation-related assets. It is home to several of the UK’s most innovative companies and universities producing cutting-edge research.

Total R&D employment in the private sector is far higher than comparator LEP areas.

A relatively large proportion of private sector R&D is concentrated in Stratford-on-Avon with several large automotive R&D campuses (including Jaguar Land Rover (JLR)) based in Gaydon in the north east of the district.

Stratford-on-Avon accounts for 47% of R&D expenditure and 41% of R&D employment. Patent activity follows a similar pattern: From 2001 to 2011 nearly half of all successful patent applications were registered in Coventry and Stratford-on-Avon.

There continues to be a long tail of less innovative, less productive businesses in the area and it is crucial that they are supported to engage in more innovative activity in order to increase the area’s economic resilience and rates of sustainable growth

IntroductionIn the European Commission’s proposal for cohesion policy in 2014-2020 it is a precondition for using the

European Regional Development Fund (ERDF) that investments in research, development and innovation are made based on a smart specialisation strategy that supports integrated, place-based economic transformation.

Sector Specialisation in Research, Development and Innovation • This theme will prioritise support for research, development and innovation in: high-value manufacturing

including low carbon vehicles, intelligent mobility; computer gaming and serious gaming; and healthcare (social innovation and innovation in health).

Support for Business Innovation • This theme will seek to increase research, development and innovation activity in sectors and business

groups that are less intensive in research and development in the LEP area.

Investment Priorities (1)

Introduction• The theme will support activities which:

• Disseminate and support the adoption of new technologies (key enabling technologies) through cooperation between research and education, technology transfer, applied research, technology development providers and demonstration facilities

• Invest in innovative solutions, research infrastructures (research facilities and technology centres, competence centres and science parks) and equipment

• Focus on enhancing applied research, through reinforced cooperation with industry to leverage private R&I investment.

• Support for clusters, cooperative partnerships between research, education and innovation actors, business R&I infrastructures

Investment Priorities (2)

Introduction• The theme will support activities which:

• Promote R&I business advisory services

• Create more demand for innovative products through public procurement of innovation

• Encourage cooperation (pilot projects and the development of new products, practices, processes and technologies, including the introduction of low carbon and green technologies) between the agriculture, food and forestry sectors and other actors and the creation of clusters and networks

• Establish rural advisory services to improve economic and environmental performance

• Set up operational groups involving farmers, researchers, advisors, civil society and businesses involved in the agriculture and food sectors in order to develop and implement innovative projects on topics of common interest

Investment Priorities (3)

IntroductionSector Specialisation in Research, Development and Innovation

– £13,271,000 ERDF Grant

Support for Business Innovation – £5,779,000 ERDF Grant

• Accounting for:– 33% of the ERDF Budget– 16.5% of our notional ESIF allocation

Funding

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European Structural and Investment Fund (ESIF) Strategy