Science, Research & Innovation

Science, research, and innovation are increasingly seen as crucial ingredients to a country’s economic performance. They are also at the centre of the response to global challenges as immediate as covid or tackling climate change, and unsurprisingly therefore require international collaboration. There are broad policy challenges involved from attracting and retaining the best researchers, through to seeking commercial exploitation of the innovations. These continue to be hugely important to the UK’s future prosperity.

This meeting of the UK Trade and Business Commission considered in particular the international dimensions of science, research and innovation. This included the basis for collaborations, the regulatory infrastructure, and our visa regime. Such collaborations normally take place outside of trade agreements, but issues such as the UK’s continued participation in the Horizon programme are a fundamental part of our EU relationship were discussed.

Professor Shearer West CBE and Dr Geoff Mackey co-chaired this session.

Witnesses:

• Jamie Arrowsmith, Assistant Director, Policy, Universities UK International

• Professor Chris Pearce, Vice Principal, Research, University of Glasgow

• Martin Smith, Policy & Advocacy Manager (UK & EU), Wellcome Trust

• Geeta Nathan, Head of Economics and Insights, Innovate UK

• Irene Graham OBE, CEO, ScaleUp Institute

• Naomi Weir, Head of Innovation, Confederation of British Industry (CBI)

INTRODUCTION

Science, research, and innovation are increasingly seen as crucial ingredients to a country’s economic performance. They are also at the centre of the response to global challenges as immediate as Covid or tackling climate change, which require international collaboration. There are broad policy challenges involved, from attracting and retaining the best researchers, through to using these innovations commercially. Ultimately, science, research and innovation are hugely important to the UK’s future prosperity.

In this session the UK Trade and Business Commission considered the international dimensions of science, research and innovation. This included the basis for collaboration, the regulatory infrastructure, and our visa regime. Such collaboration normally takes place outside of trade agreements, but areas such as the UK’s continued participation in the Horizon programme comprise a fundamental part of our EU relationship

ISSUES AND RECOMMENDATIONS

INTERNATIONAL COOPERATION:

• Deepen science and innovation discussions with trade partners, building on clauses in trade deals such as in the UK - Australia Free Trade Agreement

• Reduce the cost and complexity of the UK visa system. The cost of skilled worker and academic visas is roughly 5.5 times more expensive than UK’s competitors (source: Royal Society). The UK should bring in sponsors to support applicants through the initial cost via loans, reduce surcharges, and streamline the system

• Improve cooperation between government departments to reduce fragmentation of digital regulation and make the UK an attractive place to innovate in the digital sphere.

REGULATORY STABILITY:

• UK research needs at least a decade-long programme of activity and funding, which is not subject to sudden politically-motivated changes (for example, concerns and confusion around Horizon funding, or recent cuts to Official Development Assistance which will negatively impact research)

• The temporary and uncertain nature of the EU’s data adequacy decision on the UK threatens international clinic trials and sharing of necessary information with EU scientists, e.g. Open Data has been a key driver for the green economy

• Set out a credible plan to meet the 2.4% investment target, with clear evidence of where funding will come from.

FUNDING STRUCTURES:

• Ensure equitable funding outside the ‘golden circle’. Important for the UK’s ‘scientific superpower’ reputation to present to the world a UK-wide and comprehensive research environment. That requires cooperation and communication between stakeholders in universities, Whitehall and devolved administrations

• Allocate universities flexible resources to invest in strategic relationships and research partnerships through dual support systems

• Need to free domestic funding, especially pension and insurance funds invested in green technology in the long term - insolvency rules are a barrier which needs to be overcome to match Canada and US funding. Innovate UK, Breakthrough Fund can only stretch so far, the UK must scale up funding alongside ensuring its stability

• Build on the opportunity of the Subsidies Bill and divergence from EU subsidies and state aid rules, to invest in green technology and net zero innovation.

KEY QUOTES

“European funding supported major R&D collaborations as well as supporting knowledge exchange, and enabled lasting partnerships to be developed. Over the last few years a lot of those partnerships will have dissolved." Professor Chris Pearce, University of Glasgow

“The cuts to, in particular, the Global Challenges research funding, due to the removal of the ODR target of spending 0.7% of GDP on development, created really significant challenges for universities… There are research projects where there were legal commitments and contracts in place where funding has been cut, and I think that can only have a negative impact.” Jamie Arrowsmith, Universities UK International

"There is real potential for research and development to help drive forward the economic recovery post-Covid and to ensure that we maintain and develop the UK as a global leader. What we have heard clearly demonstrates the appetite and ambition to do just that, although there is frustration about vacillations in research funding over the last few months. A longer term strategy from the Government is essential to ensure this ambition can be delivered.“ Professor Shearer West CBE, Vice Chancellor & President of the University of Nottingham"But then we have these ludicrous situations where suddenly it looks like we might have a £1 billion cut to research funding and we have to suddenly mobilise a huge campaign to stop the Government from doing something that’s just really stupid, and completely the opposite of what they're trying to achieve.” Martin Smith, Policy and Advocacy Manager at the Wellcome Trust

“Trust, aligned aims, certainty - lots of this has been eroded somewhat with the UK as being a trusted partner in recent years. It’s important the UK’s brand is seen as a trusted partner, and is helpful for our businesses and for others looking to make those collaborations. And anything we can do in terms of long-term certainty around funding for programmes and infrastructure will really help with that.” Naomi Weir, Head of Innovation at the CBI