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University of Manchester Centre for Service Research 22 April 2009 Innovation in services: the contribution from Engineering and Physical Sciences Vince Osgood, Associate Director, Economic Impact. Presentation to cover:. Role of EPSRC Our approach to working with businesses

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  1. University of Manchester Centre for Service Research22 April 2009Innovation in services: the contribution from Engineering and Physical SciencesVince Osgood, Associate Director, Economic Impact Version 1.0

  2. Presentation to cover: • Role of EPSRC • Our approach to working with businesses • Examples of service sector investments • Examples of research projects • Future Opportunities • Issues/challenges • Questions Version 1.0

  3. EPSRC Purpose: Charter • Support high quality basic, strategic and appliedresearch, and related postgraduate training • Advance knowledge and technology to meet the needs of users and beneficiaries • Thereby contribute to the UK’s continued economic competitiveness and quality of life • “Excellence with Impact” Version 1.0

  4. The Whole EPSRC Picture “Other cross council themes” Living with environmental change (£9M) Global Uncertainties: security for all in a changing world (£6M) Ageing: life-long health and wellbeing (£11M) Commitments 2008-11 Version 1.0

  5. Aerospace, Defence and Marine Transport Systems and Vehicles Electronics, communications and IT Creative industries Manufacturing Medicines and healthcare Infrastructure and Environment Energy Cross cutting themes Working with Businesses Version 1.0

  6. Version 1.0

  7. Strategic Partnerships • To develop a shared research and training vision between businesses and the research base • Technology Strategy Board: Innovation Platforms/Integrated Development Programmes; Collaborative R&D; IKCs; KTNs; ICASE; KTPs • EPSRC £50M: TSB £54M – 128 projects • Company Partnerships: range of sectors, organisations in the public, private and third sectors. • Wellcome; Cancer Research UK; BAE Systems; Proctor and Gamble; Mobile VCE; NPL;Microsoft Version 1.0

  8. Focused “service” investments • Digital Economy Programme - £103M over 3 years • HACRIC: Salford, Imperial College, Loughborough, Reading- £10M over 5 years • IMRC at Loughborough on retail and logistics - £18M over 5 years • Advanced Institute of Management Research – jointly funded with ESRC • Strategic Partnerships with key organisations (e.g. Technology Strategy Board, Proctor and Gamble; Mobile VCE) Version 1.0

  9. Digital Economy Programme Cross Research Councils (EPSRC, ESRC, MRC and AHRC) programme, aimed at realising the transformational impact of ICT for all aspects of business, society and government. • Ubiquitous Computing • Rural UK • Changing Business models in the Creative Industries • Doctoral Training • £120M over 3 years, 2008/9 – 2010/11 research and training: Version 1.0 9

  10. Advanced Institute for Management Research (AIM) • To significantly increase UK capability in management research and to impact on management practice • Warwick Business School and Cambridge University (+ others) • Jointly funded by EPSRC/ESRC • Fellows, scholars, collaborative research • Dissemination and best practice • Strong links to UK businesses and public policy makers • Productivity and performance; sustainable innovation; public services; promising practices; services • Contact : Prof Andy Neely@eng.cam.ac.uk Version 1.0

  11. Fundamental Physics into Services • Fibre Optics: original work in 1800s, more recently (1955 onwards photonics) applications in service sectors such as communications, entertainment, healthcare, virtual and remote networking • Lasers: principle originally conceived by Einstein, but only in the past 40 years have they been applied to rapid communication through broadband network, fast data storage through CD/DVD technologies, medical diagnosis and treatment; • Liquid Crystals: origins in early 1900s , from the 1950s simple displays in watches, calculators, now more complex displays in mobile devices, phones, computer screens, TV, advertising; • GPS: moved from military to civilian usage and from tracking to satellite navigation and internet-based tracking of stolen cars.Courtesy of IOP Version 1.0

  12. Case study example from research • DAME (Distributed Aircraft Maintenance Environment) e-Science programme: • York, Leeds, Oxford, Sheffield Universities; Rolls-Royce, Data systems and Solutions, Cybula • Use of grid technologies to implement a distributed decision support system for deployment in maintenance applications and environments • In-service engine health monitoring • Enables company to offer “power by the hour” service • Service aspects: safety and reliability; cost reduction; early-stage monitoring; greater in-service availability Version 1.0

  13. Case study example from research • VALID (Value in Design) Construction Project: • Loughborough Innovative Manufacturing research Centre with construction companies and professional institutions • Aims to help the sector create buildings which better meet customer aspirations • Build in expectations of relevant stakeholders through the design evolution and construction process • Outcomes have been development of training courses for companies, application of the approach by the Dutch Government Building Agency, and an EngD project in collaboration with Manchester City Council Version 1.0

  14. Case study example from research • Quantitative financial risk • Quantitative Financial Risk Management Centre, Imperial College: • funded through an EPSRC Strategic Partnership with the Institute of Actuaries with additional funding from ESRC • Aim to develop tools for understanding and controlling risk in the retail banking sector by developing enhanced models for individual customer risk, through to models which incorporate macroeconomic factors • Looking at how banks can analyse risk in retail banking and reduce bad debt Version 1.0

  15. Case study example from research • SSME Network, University of Manchester (Prof L MacAulay) • Involves 6 other universities • Founding member companies (IBM,HP, BT, Uxonline, Abacus Billing Ltd) • Aims to develop the wider services, management and engineering research agenda • Develop a shared understanding of goals and opportunities • Cohesive research and education programme to enhance UK capacity in services science research and education Version 1.0

  16. Training in services science: DTCs • 44 New Centres for Doctoral Training £280M: • Digital Economy Innovation Centre • Digital Music and Media for the Creative Economy • Web Science • Financial computing • Urban Sustainability and Resilience • Technologies for Sustainable Built Environments • Digital Media, Special Effects and Animation • Systems Integration Version 1.0

  17. Funding opportunities: Current and future • Designing effective research spaces (with AHRC and British Library) • Digital economy – research in the wild • Cold water cleaning (with P+G) • Science and heritage (with AHRC) • Information Infrastructure Protection (with TSB, CPNI) • ICT Discipline hopping • Ideas factory: Detecting terrorists at a distance • TSB Collaborative R&D Calls • Carbon capture and storage (with NERC) • Next Generation Healthcare • Fellowships • Innovation and Knowledge Centres (with TSB) Version 1.0

  18. Some Issues/Challenges • Many service companies are new and have little previous interactions with the science base or research councils • Existing sectors/companies becoming increasingly “customer focused” rather than technology/product push, but need help to achieve the transformation • But this transformation itself requires new research and skills development – how best can this be provided • So how best to improve the absorptive capacity of businesses to adapt to the new service environment ; • How to influences changes to existing business models/sectors/businesses • Role of regulation and procurement in stimulating innovation, commercialisation and growth in service sectors Version 1.0

  19. Questions • Is it any longer meaningful to distinguish between service and other sectors (e.g. manufacturing)? • With continued fall in UK manufacturing output/exports, can services realistically make up the “Trade Gap”? • With continuing increase in productivity in manufacturing (output/no of employees) can services realistically make up the “employment gap”? • How best to bridge the skills divide in the service sector (jobs at both low skill/low wage and high skill/high wage) elements in the sector and economy? • To what extent do HEI IP policies help/hinder innovation in the service sectors? Version 1.0

  20. Thanks for listening Vince.osgood@epsrc@ac.uk Version 1.0

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