Connected Digital Economy Catapult The compelling case

1. Connected Digital Economy CatapultThe compelling case Modern Universities Research Group 28 September 2012

2. The Vision To make the UK the best place in the world to develop and launch digitally-enabled systems, services and products • Why? To unlock the digital economy’s massive economic potential and support its rapid commercialisation by UK plc. • How? The Catapult will achieve this in a single physical centre forcing multi-disciplinarity working and by • being highly networked, collaborative and business led • developing world-class R&D&I expertise and facilities and above all, by bringing together large and small businesses, research organisations, and the public sector in ways that haven’t happened before.

3. The Global relevance Digital technologies are transforming most sectors of the economy at an accelerating rate. • The global digital markets are massive and growing • mobile transactions $241b (2011) → $1tn (2015) 43% growth pa • spend on “cloud” $70b (2010) → $180bn (2015) 21% growth pa • creative, digital & IT revenues: exceed $3tn (2013) • The digital sector is transforming other sectors • 75% value from the internet is from traditional sectors • 15-20% UK services (70% of economy) will be soon digital • 2.4 jobs are created for every job displaced

4. The UK situation The UK is ideally placed to profit from investment in the Catapult to support innovation in the digital economy. • UK position: leading the adoption of digital technologies • UK internet economy is the largest per capita • 13 creative sectors employ 1.3mn and export £17.3bn • UK capability: a leading developer of digital technologies • Deep strength in creative, analytics, comms, services, .. • Outstanding industrial developers & academic centres • UK reputation: a natural global centre of digital technologies • Increasingly, global companies are locating R&D here • UK is already seen as world-leading in many digital sectors • UK is home to existing world-class collaborative clusters

5. Wide-ranging consultation • Our dialogue with the community includes • In-depth interview with 60+ orgs (2011) • Meetings with large companies representing over $1tn • 11 round tables and several larger meetings • 280 responses to our questionnaire (2012) • This has resulted in • >80 formal requests to form “deep engagements” • Remarkable consensus on the Catapult’s • benefit to the UK innovation environment • scope of operations and remit

6. Why a centre is required • The consensus community feedback is that • The Catapult must be: • A physical, permanent centre • Fully engaged with users & developers • A catalyst for innovation by coordinating demand and supply The Catapult must help the community by: • Helping define industry-wide strategic innovation needs • Coordinating innovation demand and supply (cross-sectorally) • Steering joint development of industry-wide platforms • Giving the community access to shared expertise and facilities • Showcasing UK leading-edge innovations to global markets

7. Main market opportunities addressed In-depth consultation has identified 3 areas where the community expects the Catapult to add most value. • Media and Content • Supporting the development of leading-edge platforms and applications with SMEs and large companies • Digital adoption across all services sectors • Transferring expertise and models from sectors with high digital penetration (eg media) to newer sectors (eg education) and developing solutions to sector-level problems • Merging of physical and virtual worlds Supporting the development of “platform-level” solutions and making test beds and tools available to SMEs and large companies to develop applications

8. Core R&D and Innovation capabilities • Catapult world-class expertise in these areas will help its communities explore and develop massive opportunities in each of the market areas identified. • “Big Data” • There is limited ability to identify, access, interrogate, manipulate and re-use the vast data resources available via the internet • User centricity • There is weak understanding of user needs/expectations which are typically not embedded into all elements of system design inhibiting take-up & usability • Trusted internet Poor user identification and authentication, privacy, trust and security on the internet is inhibiting its adoption in a wide range of markets and applications • Infrastructure and mobile • The nature of emerging internet infrastructure is poorly understood yet its impact upon business models and markets will be • fundamental and extreme

9. Collaboration model for R&D&I • There will always be a much larger R&D and Innovation capacity hosted by UK partners than the Catapult itself. It is therefore vital that this community is happy to collaborate with the Catapult via • seconding staff • making expertise, IP and facilities available (on agreed terms) • forming consortia to access external grant funding (EC, TSB, ...) so that each project and core capability is highly collaborative between many partners. Further, to support “pathways to commercialisation”, the Catapult and this R&D&I community must support • where appropriate, developing emerging standards • Spin-out of Catapult ideas / opportunities • SME engagement

10. Catapult long term capabilities Major markets and sectors Driving digital services across sectors Merging virtual & physical worlds New value from content & media • Where available, strategic partners with relevant facilities and capabilities will be asked to make them open to others to access. • Where not available, the Catapult will develop these assets to support UK innovation. • Mid-term, this cube has a budget of £27million p.a. Ecosystem build and support Pilot, demo’ & test beds User centricity & experience Strategic applied R&D “Big data” Trusted internet CDE Catapult areas of expertise Infrastructure & mobile Closeness to market

11. Meeting rooms Raised lecture theatre Exhibition space Videowalls Reception “Flat” teaching & exhibition space Open access culture The Catapult has 3 categories of “space”. • 2nd In-house R&D space, supported facilities and collaborations • 1st Catapult front office plus SME advisors/networks • G “Public” space for exhibitions, teaching, etc creating SME awareness and creating new “supply chains” and communities Catapult R&D teams Collaboration space e.g. Catapult front office R&D grant finders Investor clubs IP Advisors The allocation of space to be determined by Catapult priorities & some of these facilities will be delivered by partners

12. Application of expertise R&D partnerships & projects building core distinctive pre-commercial capabilities CDE Catapult Collaborating on sector specific applications Supporting commercialisation in the community Rest of the World Satellite Apps Sustainability Healthcare Transport Cities Other Catapults CDE Catapult partners, networks, SMEs …

13. Building capabilities and activities • The Catapult delivery team is developing provisional programmes for its first year including a range of projects to deliver its vision. Each project must build Catapult capabilities which are: • valuable beyond the life of each project • synergistic with the Catapult’s emerging capabilities • platforms for collaborating and sharing with third parties Together the Catapult’s core capabilities/facilities must support: • wide-ranging collaborations • varied & novel innovation communities and value chains • pathways for the communities to commercialise innovation

14. Connected Digital Economy Catapult Opening in 2013 and configured to: • operate as a not-for-profit independent company • become a world-class centre of applied R&D • support the journey “research” “application” • collaborate widely and openly • support innovation & business in many “sectors” • build communities within and between sectors • provide test-beds, expertise and networks to SMEs • help UK be the place to innovate

15. Conclusion The Catapult will have massive economic and social impact on the UK by allowing its companies to fully exploit the opportunities which increased “digitalisation” is bringing to almost every sector of the economy. This view is reinforced by the very significant buy-in from large companies and SMEs from all relevant sectors and from universities across the UK who hope to collaborate and coordinate with the Catapult.

16. Questions and comments? Many thanks ... and please follow-up with thoughts or questions to Peter.Reid@TSB.gov.uk