Engaging with ESCO December 2013 Alastair McGibbon

1. Engaging withESCODecember 2013Alastair McGibbon

2. The ESCO Report

3. Electronic Systems Technologies ... Are Key Enabling Technologies They are already fundamental to society and the solutions to society’s challenges We are dependent on them today; and will become even more so in future We must develop a situation of mutual co-dependence Within the UK As a key node in the global eco-system We start from a surprisingly good position today But have significant challenges to overcome

4. Electronic Systems in the UK Employs more than 850,000 in the UK today ... Half in 30,000Enterprises working with ES Technologies Half in EmbeddedinBusinesses that depend on Electronic Systems Directly contributing £78.5Bpa to UK GDP in 2012 (5.4%) With an indirect impact many times that Working with technology that is mostly invisible to the end-user

5. Ambitions & Strategy

6. The Meaning of ESCO: Keeping the brand • Was: • Is :

7. Five themes of BIS Industrial Strategy: Industrial Strategy • A spectrum of support for all sectors; • Supporting emerging technologies including the “8 Great”; • Working with business to help develop skills that businesses will need; • Working to improve access to finance for businesses; • Giving confidence to business by publishing a forward look of government contracts.

8. ESCO Council • Warren East – Chairman • Michael Fallon – Minister for Business & Innovation – Co-Chair • Juergen Maier – Siemens UK • Indro Mukerjee – Plastic Logic • Stephen Pattison – ARM • Keith Williams – Altran Intelligent Systems • Joe Wilson – Emerson Process Management • Sir Hossein Yassaie – Imagination Technologies • Chris Carr – BIS • Derek Boyd – NMI • Graeme Philp – GAMBICA • Ian Osborne – techUK • Peter Brooks – ESCO Executive Forum

9. Vision for Leadership • Industry and Government partnership, jointly investing in skills, Building on UK strengths in • Processors, Sensors, Communications, Embedded software, Power Electronics… • Creating leadership in • Electronic Systems Engineering (Healthcare, IoT, Energy, Digital Economy) • Autonomous Systems, Robotics and Automation (Manufacturing) • Delivering • The best hi tech workforce in the world • Environment and culture of innovation • Superior Economic Growth • Rejuvenated manufacturing sector • The best Healthcare system worldwide • A real Internet-enabled society • More UK origin Electronic Systems enabling key UK Industry sectors • More direct export revenue from UK Electronic Systems

10. Philosophy • Seeking to develop and approach that is specific to the UK • UK does not want do Asia-style government central planning approach • UK does not have the entrepreneurial scale found in the US • 2013-2020 likely constraints on public funding • Industry – government partnership • Similar to approach in Automotive / Aerospace • Enabling technologies • Intersections with industrial applications • Enabling new markets • Approach • What are we good at that we can exploit further? • What should we do ourselves and ask from Government? • Let’s look at a prioritised but not an exhaustive list i.e. get the journey started and make a difference in a few key areas

11. Government Action Thank you .......keep at it • Patent Box – a real help • R&D Tax Credits • Investment – Green Investment Bank, Start-up fund • Spectrum allocation – inching towards white space • Climate Change Levy – tax relief for the biggest energy users Good.....but we could do even better together • Innovation/R&D Funding – better contacts ESCO/TSB should help • Skills STEM - ESCO supports UKESF, need role models • Skills Immigration – ESCO seeks to join the debate New things to consider • Procurement from Government agencies – NHS, MOD, Smart Meters • Political support: focus on growth prospects for the sector (even in debates on data): promote UK high tech image abroad (Not intended as an exhaustive list)

12. Strengths • Key technologies in UK Electronic Systems • Electronic Materials • Plastic & printed Electronics • Sensors • Optics & Photonics • Microprocessors & Embedded software • Communications • Graphics, Video & Cameras • Industrial automation • Robotics & Autonomous Systems • Power Electronics & Power Management • A horizontal layer of enabling technology vital to today’s industries and tomorrow’s and many aspects of life in future

13. Impact of Electronic Systems on UK Industrial Strategy R Relevant RR Important RRR Vital

14. Impact of Electronic Systems on Societal Challenges R Relevant RR Important RRR Vital

15. ESCO focus areas • Skills • Technology • Healthcare • Industrial Automation • Robotics & Autonomous Systems • Internet of Things

16. ESCO Technology GroupDecember 2013

17. An industry and a key enabler • Electronic Systems company R&D as a percentage of turnover is high (typically 10-20%) and growing. • R&D is often naturally focussed towards product development – highly innovative systems thinking gives business advantage. • Better Industry - Academia alignment is needed to help define a common technology direction and build business R&D capability. • R&D supply chain behaviour is complex and feeds into multiple end markets. Activities can be defined in term of ecosystems. • Public Sector intervention is at about the right level, but better public-private partnership is required to focus on key areas such as European Programmes and Systems Integration

18. Principal Recommendation Public Sector Stakeholders • Create an ESCO Technology Group • Facilitated by ESCO Associations, bringing Industry and Academia together • Create strategic research agendas & address system thinking • Work in partnership with TSB, EPSRC, BIS and the Catapults Electronic Systems Community Multi-sector End Market Customers ESCO TG Catapult Centres

19. What the ESCO TG is • A strategic technology forum run under the auspices of the Electronics systems council and chaired by an industrial member of the council. • Lead Council facilitator: NMI. • A forum of lead industrialists and academics from the electronics systems community. • An authoritative voice on technology issues and priorities, informing government. • A partner with other related technology groups in enabling technologies (such as eFutures, Power Electronics and Photonics) • A conduit between the Electronics Systems Technology Community and Public Sector partners

20. What the ESCO TG is not • It is not a duplicate of existing public sector contracts such as the KTN – The ESCO TG is about a coherent technology voice for Electronics Systems Community that informs and assists public sector activities • It is not forum for individual company priorities – it is about overall industry benefit. • In workstreams and activities, it will not duplicate existing initiatives or SIGs. If it is already being done in a way that is good for the industry, the ESCO TG will say so (as it also will if it isn’t!)

21. Early task - impact matrix R Relevant RR Important RRR Vital

22. Possible Delivery Structure Working group 1 • Prioritised by ESCO TG working with key verticals & stakeholder bodies • Aligning thinking across stakeholders • ESCO TG • Define deliverables • Prioritise focus & scope • Co-ordinate & engage resources • Develop strategic connections • Regional • National • International Working group 2 Working Group 3 Working group n

23. Next Steps Dec/Jan: • Validate ESCO findings with industry and academia in a small. focused workshop • Establish government and stakeholder partnerships and buy-in Feb/Mar: • Hold 1st formal Forum (around 20 community technology leaders) • Establish the quick wins and deliver. • Continuously work with the wider community through eFutures etc. Call to action – let us know… …Your inputs and thoughts …If you want to participate as the activities develop.