Catapults (Science and Technology Committee Report) — House of Lords, 2022-05-19
Topic: Technology
Joan Walmsley (Liberal Democrats, Centre to centre-left): My Lords, it was a privilege to be a member of the Science and Technology Select Committee, under the able leadership of the noble Lord, Lord Patel, when we produced the report on catapults. I congratulate the noble Lord, Lord Mair, on his excellent introductory speech. He emphasised the need to increase the scale of funding for the catapults, commensurate with the Government’s great ambitions. I knew little about catapults before I heard the evidence to the committee, bar the fact that they hurt when somebody fired one at you in the playground. That is a serious point, because catapults often hide their light under a bushel, despite their important role to assist the transfer of research into industry, jobs and profitability. The noble Lord, Lord Willetts, mentioned that they were not on the Liberal Democrat manifesto in 2010, but I am pleased that they were finally introduced under Vince Cable, a Liberal Democrat Secretary of State for Business. He supported them very enthusiastically Even the DCMS does not seem to know much about them. That department recently published a report about translating artificial intelligence R&D into commercialisation. There was no mention of the commercialisation and translational role that catapults could play, even for the most successful ones, such as the Digital Catapult, which is the one most relevant to artificial intelligence As I see it, there were four themes to our recommendations. The first was the role of catapults in delivering the Government’s objective to spend 2.4% of GDP on R&D by 2027. The second was the need for strategic decisions from Government on matters affecting private investment decisions to assist the catapults in their role to deliver more of that; and the noble Lord, Lord Patel, focused on this. The third was what can be done to correct the imbalance between collaboration and competition to enable universities and industry to work better. The noble Lords, Lord Patel and Lord Willetts, both spoke about that. The fourth was an enhanced role for the catapults in delivering the Government’s levelling-up agenda As you might imagine, our witnesses from the catapults suggested ways in which they could get their hands on more cash to fund their projects. The noble Lord, Lord Bilimoria, asked for more flexibility about funding. Some of our recommendations agreed that this could be done in a number of ways. We asked UKRI to allow catapults to bid for research council funding, where there are clear advantages for research and innovation. I am pleased that the Government’s subsequent review of the catapults agreed this should be done. We also asked that Innovate UK should raise the cap on the share of collaborative research funding for which catapults can bid, particularly where more than one such organisation is involved. I echo the request for that from the noble Lord, Lord Mair, and the noble Lord, Lord Kakkar, said that failure to do so has had a chilling effect Again, the Government agreed to ask UKRI and Innovate UK to make these changes, so I ask the Minister whether there are any figures on how much additional funding has become available to the catapults since that change was agreed in the Government’s review. This would be money well spent. Catapults can deliver enormous leverage for the funding they receive, though some are better at it than others. For example, the Digital Catapult core grant is £12 million. It calculates the yield as £436 million over four years, from the funds raised by the businesses it supports. The noble Lord, Lord Holmes, also mentioned this and the noble Lord, Lord Kakkar, mentioned the great success of the Cell and Gene Therapy Catapult. There is of course some variation in the success enjoyed by the catapults. Some are better at working with universities than others, and we recommended that more could be done, perhaps through adjusting the universities’ KPIs, to encourage them to collaborate with catapults to increase translational work. Some are better than others at helping small businesses grow, and I would like to see more opportunities for the less successful ones to learn from the leaders in the catapult field When we wrote the report, we believed that there needed to be more clarity in the Government’s plan for their innovation ambitions, a matter we are pursuing further in our current report on the R&D landscape. In their response, the Government restated their confidence that their target of reaching a spend of 2.4% of GDP on R&D would be achieved by 2027, though unfortunately, as mentioned by the noble Lord, Lord Mair, the latest data available says we have reached only 1.7% to date The Government have accepted that more private funding is essential to their ambition, but we recently heard from a senior industry witness that they are not engaging with industry sufficiently well to achieve that. There is a lack of confidence in the clarity and consistency of the Government’s science strategy to encourage such investment. I realise the response was published a year ago—we have been waiting that long for a debate on this—but I wonder whether, in his reply, the Minister will tell us whether that situation is improving and through what actions I heard that the Government’s innovation strategy, published several months after our report, contained a mention of the role of catapults, so I had a look at the "implementation" section. I found multiple strategies, missions, forums, reviews, assessments, headline pledges and even a new organisation—ARIA, the Advanced Research and Innovation Agency, which, as the noble Lord, Lord Holmes, pointed out, cannot seem to find a chief executive Eventually, I found a mention of catapults on page 110. First, I found the review of catapults, which, as I have mentioned, was carried out last April just after our report. I found an acknowledgement of the role of catapults in the levelling-up headline ambition, as they are in 40 different locations across the country and are charged with creating jobs and improving skills by helping industries to grow. I found that the review published last April recommended: "Innovate UK will ensure that Catapults deliver on their full potential for business. This will include growing their capabilities to support skills development in the sectors they support, contributing to levelling up, driving research commercialisation, and enabling global innovation collaborations." Our committee also had a recommendation about this. The catapults work in the regions, but the strength in places funding stream from UKRI is tightly ring-fenced. This means that they sometimes cannot work in places where they might have added value. We asked the Government to look at this and I hope the Minister will tell us that they have. I therefore wonder whether that recommendation and various others about scaling up funding are being carried out, and I look forward to what the Minister has to say about that. I have one or two more points. The noble Lord, Lord Mair, asked about our suggestion that UKRI should support researchers to work at the interface between universities and industry, in the exact place where the catapults work. Support for such professionals would allow them to make a valuable contribution to any catapult. Has there been any progress on this idea The noble Lords, Lord Willetts and Lord Holmes, mentioned skills, and they might like to know that our next report will be on what can be done to increase the science and skills people pipeline. I look forward to further debates on that when it comes out but, for now, I look forward to the Minister’s response.