Jan 29, 2012 | edocr |
- 1 - Northwest Automotive Innovation Strategy 2009 April 2009 - 2 - Contents Page No. Executive Summary 3 1. Purpose of the Strategy 8 1.1 Key Objectives 1.2 Links to Regional Manufacturing and Economic Strategies 1.3 Measures of Success 1.4 The Northwest Automotive cluster 2. Policy Context 11 2.1 Background 2.2 New Automotive innovation Growth Team (NAIGT) 3. Map of Players Influencing Automotive Innovation 15 3.1 National Level 3.2 Regional level 4. Foresight Vehicle Technologies 17 5. Low Carbon Vehicle Programmes 19 5.1 TSB Low carbon Vehicle Integrated Delivery Platform 5.2 DfT Low carbon Vehicle procurement 6. Automotive Cluster Innovation Characteristics 21 6.1 Northwest Activity in Foresight Vehicle Technologies 6.2 Low Carbon Vehicle Developments 6.3 Innovation Support Infrastructure 6.4 Automotive Cluster Innovation Characteristics 7. Strategic Themes 40 8. Measures of Success 44 9. Implementation 45 Appendix 1 References Appendix 2 List of Organisations Consulted Appendix 3 Summary of Northwest Automotive Cluster Strategy: 2009 - 2019 - 3 - Executive Summary The innovation strategy presented is aimed at the automotive cluster and identifies a number of themes and actions that will complement strengthen and intensify the existing regional innovation activities. The North West automotive sector has been at the forefront of incremental process innovation. Many of the larger companies in the North West are recognised as best practice examples of Lean Manufacturing and this type of incremental process innovation as a result of interventions arising from the recommendations of the original Automotive Innovation Growth Team (AIGT) has been delivered by the NAA and widely taken up by the automotive suppliers. The AIGT also played a part in the development of a government sponsored Foresight Vehicle Programme. This programme led to the development of a Technology Road Map in 2004 which identified the technical priorities for technologies in five thematic areas including Engine and Power Train, Hybrid Electric and Alternatively Powered Vehicles, Advanced Sensors, Software and Telematics, Advanced structures and Materials and Design and Manufacturing processes. Collaborative research and development projects addressing these themes have been undertaken. Funding for this programme ended in 2006 and the Technology Strategy Board (TSB) formed around the same time is now delivering government funded collaborative research, technology and development programmes aimed at key industry sectors. Climate change and reduction of greenhouse gas emissions have become major drivers for product and process innovation. As a result innovation systems for low carbon technologies are receiving a higher degree of intervention from government sources than other technologies. Such intervention takes the form of technology push or in market pull or both. For example, Low Carbon Vehicle (LCV) is a key innovation platform within the TSB programme and programmes in this area are facilitating the development of new low carbon technologies, products and systems which have the potential to disrupt the traditional vehicle supply chains (Technology Push). The Department of Transport through its Low Carbon Vehicle Procurement programme is aiming to accelerate the market entry of innovative low carbon products (Market Pull). These programmes are encouraging more radical product and process innovations The Innovation Strategy presented therefore recognises that in addition to continuing activities aimed at incremental innovation, support for radical innovation is also required. However in this difficult and tense economic situation there is an understandable reluctance for vehicle manufacturers to invest in new product and process innovation. Intervention support by government, government agencies and regional stakeholders is therefore needed to ensure that the North West automotive sector remains competitive when the market returns to normality. The Innovation Strategy is structured around seven underpinning strategic themes. For each theme a number of proposed actions to support their delivery are proposed. Consideration has been given to: • The global trends and drivers affecting the automotive industry, • Relevant Foresight Vehicle Technologies specifically those aligned with the Low Carbon Vehicle agenda • The present situation in the cluster relating to practices and activities known to encourage and support innovation. Extensive consultation has taken place with key stakeholders including automotive companies, Higher Education Institutes, North West Development Agency staff and other cluster organisations within the region. The strategy has taken cognisance of developments in CENEX, the Centre of Excellence for Low Carbon and Fuel Cell Technologies and related developments in Low Carbon Vehicles sponsored by the Department for Transport and the Technology Strategy Board. Supporting research from a number of sources including the Innovation White Paper 1 , Regional Innovation Strategy, the initial findings from the new Automotive Innovation 1 Innovation Nation, published March 2008 - 4 - Growth Team expert groups on Technology and Low Carbon Product Development and Technology and Low Carbon Infrastructure have informed the strategy. The overall vision for the cluster set out in the Automotive Cluster Strategy 2009-2019 is to have “A globally competitive cluster with world-class standards of excellence in Manufacturing, Engineering, Supply Chain Management, Innovation and Workforce Skills”. The Innovation Strategy is a key pillar of this Cluster strategy. A network meeting comprising a cross section of key regional stakeholders consulted during the evidence gathering phase has been held to review the strategic themes and gather further input. The objectives of the Innovation Strategy are to: • Provide support to industry to increase product, process and service innovation • Position the cluster at the forefront of technology innovation and on the shortlist for new investment • Increase collaborative R&D between industry and research organisations • Aim for international excellence in technology and innovation to ensure that the region is seen as a preferred location for inward investment • Grow and sustain the cluster The strategic themes recommended address the weaknesses and constraints observed in the assessment of key practices and activities that drive and support innovation. ASSESSMENT OF CURRENT CLUSTER INNOVATION CHARACTERISTICS An assessment of the characteristics and key practices that drive and support innovation within the cluster was derived from the primary and secondary research. The assessment is as follows: • Innovation Culture – The Innovation Culture that exists within the larger automotive companies has driven Lean Manufacturing, an incremental innovation process, to world class standards. Products from these companies are characterised by strong innovative design features. In other companies such as Scorpion Electro Systems, Torotrak and Clean Air Power, good examples of product innovation can be found. There are also excellent examples of leading edge research in Foresight Vehicle technologies taking place within some of the region’s universities. However there is a need to increase the capacity and capability to innovate within the wider cluster. • R&D Intensity – There has been a relatively low level of Automotive Sector engagement with funded Research Technology and Development (RTD) programmes such as the Foresight Vehicle Programme 2 , and the TSB programmes, regional programmes such as Grants for R&D and the European Framework 7 programmes etc. This is thought to be due to lack of awareness of such programmes, complexity of administrative processes to participate in such programmes and their apparent relevance and applicability, etc • Skills – A recent mapping study of the cluster highlighted a skills deficit at graduate engineer and technician level – as the pace of Low Carbon Vehicle technology quickens it is envisaged that different skills will be needed to support these developments • Finance – The credit crunch is affecting the ability of companies to invest, resource and participate in large scale RTD projects • Technical Capability – There is a strong capability in Foresight Vehicle technologies such as (Materials, Electrical Engineering, Electronic, Design and Manufacturing) within some of the region’s Universities. There is also a critical mass of companies working on Low Carbon Vehicle activities but increased effort is required to intensify both the level of activity and bandwidth of capability to position the region nationally and internationally. 2 The Foresight Vehicle is now administered by SMMT - 5 - • Communications Internal - The business to business and business to HEI communication of technology capabilities and technology needs is weak. • Communications External – Despite its position as the second most significant region for automotive manufacture in the UK, knowledge of the technology strength and capability of the Northwest automotive sector is relatively low at a national level and the cluster appears less well connected and influential in shaping agendas with government bodies such as BERR, DIUS and DfT and their respective innovation partners such as AIGT2, TSB and Cenex • Inter Industry Linkage – There is an apparent gap in the inter industry linkage between the automotive cluster, environmental technology, chemical and aerospace clusters and the wider road transport sector. The latter sector is important as it is likely to feature in ‘green procurement’ initiatives. • University/College Interaction - Collaboration between companies and regional universities is weaker in comparison to other comparable UK automotive regions. The research indicates that Loughborough, Warwick, Cranfield and Birmingham universities enjoy major collaborative public/private funded projects with the automotive sector. • Technology - Good examples of advanced technology exist in companies and in HEIs. The region is host to the only volume producing Truck Company in the UK and also a major Bus Company. However there is an apparent disconnect between the technology roadmaps and technology themes that are being identified by bodies such as TSB and AIGT2. The focus of these groups is currently car centric. Unlike other UK regions, little is taking place in the way of Public Sector sponsored Low Carbon Vehicle Demonstrator projects. • New Products – The processes to support small business and enterprise to pull through automotive and automotive related products from invention, product development to commercialisation are weak and fragmented. There is a need to form better connections between funding sources and early stage development and at the later stages to intensify the activities and routes to market for Low Carbon Vehicle products, components and systems for commercial vehicles, buses and niche vehicles • New Processes – Manufacturing and related manufacturing processes are covered in the NAA Supply Chain Development Strategy. Greater emphasis within the cluster is required on sustainable manufacturing processes to reduce carbon footprint and material waste. To support the enterprise innovation process a more joined up support process for the (Concept- Commercialisation) stage delivered by experts with vehicle knowledge is required • New Markets – Greater focussed activity is required to support export and inward investment activities through greater promotion and marketing of the region’s automotive manufacturing capabilities and regional strengths in foresight technology. • ICT – The region has a number of ICT assets which are underexploited by the automotive sector. For example the Daresbury Science and Innovation supercomputing and high performance and distributed computing & data services with capability in complex computational fluid dynamics. • Customers - Supplier development programmes delivered by the NAA have made good progress on facilitating incremental process innovation with benefits in cost, quality and delivery. Programmes aimed at customer led collaborative product and service innovation are required. • Suppliers – Developments in Low carbon vehicles have the potential to disrupt traditional supply chains. Action is required to identify and scope supply chain required for Low Carbon Vehicles e.g. electric motors, batteries, power electronics, energy storage, control software and identify capability and gaps within existing vehicle supply chains. There may also be potential for new supply chains for electric vehicle charging infrastructure Based on this assessment and supporting background research the following strategic themes (ST) and supporting actions are proposed: - 6 - ST1 Promote and develop the regional technology capability particularly around Vehicle Foresight Technologies. 1.1 Promote the HEI capabilities in key Foresight Vehicle Technologies inter cluster and outside of region to policymakers, influencers and stakeholders 1.2 Identify, develop and monitor advances in key Foresight Vehicle Technologies appropriate to the North West region e.g. Low carbon Vehicles, Materials and Design and Manufacturing Processes 1.3 Encourage industry and HEI ownership of the strategic theme ST2 Develop an Innovation Support process to lead companies through the key innovation stages by , 2.1 Setting up robust system to capture pipeline of innovation concepts and ideas 2.2 Effective proof of concept evaluation TRL1-TRL3 3 2.3 Access to funding and finance (private and public sector) 2.4 Supporting and monitoring progress through TRL1-TRL4 2.5 Developing routes to market ST3 Enhance the business to business and business to HEI innovation collaboration by 3.1 Developing a process to facilitate innovation collaboration 3.2 Supporting industry led, collaborative innovations which address key innovation platforms 3.3 Supporting innovation projects which lead to economic impact and longer term sustainability ST4 Increase the level of regional activity in collaborative research and development by 4.1 Establishing a regional cluster innovation network 4.2 Synchronising network meetings with scheduled R&D competition programme calls 4.3 Forming innovation special interest groups ST5 Establish regional ‘test bed’ for Low Carbon Technology Development 5.1 Scope facilities and evaluate market demand for facility for Low Carbon Technology development ST6 Improving Innovation Culture by 6.1 Improving leadership and unlocking potential in small companies 6.2 Developing innovation skills 6.3 Identify appropriate innovation benchmarks for the cluster ST7 Progressing Delivery of the Strategy by 7.1 Establishing a regional automotive innovation growth team 7.2 Align regional Innovation areas and direction with AIGT2 and TSB developments 3 Technology Readiness Level is a term that is now being commonly used to measure and characterise the level of maturity of technology from level 1 Concept through to Level 8 Commercialisation - 7 - The strategy supports the 2009-2019 Automotive Cluster Strategy and will be delivered through the proposed 3 year action plan which is presented in Appendix 2. - 8 - 1. Purpose of the Strategy The automotive sector in the Northwest has been identified as a key internationally competitive sector for the region. Innovation is critical to long-term economic growth. Innovation in the sector thus far has been focussed on incremental process innovation. However this incremental innovation alone is not adequate to ensure sustained growth and competitiveness of the sector. Sustained growth can occur only with the continuous introduction of new products, processes and services arising from radical innovation. The strategy seeks to identify themes and priorities to support and intensify the innovation activities in the sector. 1.1 Key Objectives The key objectives of the strategy are to: • Provide support to industry to increase product, process and service innovation • Position the cluster at the forefront of technology innovation and on the shortlist for new investment • Increase collaborative R&D between industry and research organisations • Aim for international excellence in technology and innovation to ensure that the region is seen as a preferred location for inward investment • Grow and sustain the cluster 1.2 Links to Regional Manufacturing and Economic Strategies The strategy for the automotive sector is aligned with the regional manufacturing strategy and regional economic strategy. More specifically the strategy seeks to, • Help businesses to increase their capacity and capability to innovate • Improve the interaction between businesses and the science/HEI base • Help companies respond to global opportunities and risks • Support companies to use resources efficiently and respond to climate change • Develop a highly skilled workforce at all levels • Improve the image of manufacturing • Ensure that places, spaces and infrastructure are fit for the purpose of manufacturing. 1.3 Measures of Success The key measures of success of the strategy are: • Continued investment into the regionally based global automotive companies by their parent companies. • Increase in GVA of the cluster. • Increased regional participation in collaborative RTD programmes - 9 - • Increased collaboration business to business and business to HEI i.e. Engagement of companies and universities with technology development initiatives relevant to the design, development and manufacture of future vehicles • Increased business expenditure on research and development • Increased level of employee skills relevant to the current and future needs of the companies in the cluster. • New inward investment into the region. 1.4 The Northwest Automotive Cluster Economic Profile The core of the Northwest automotive cluster directly generates some £6bn of the total UK automotive manufacture economy which relates to approximately 13% of the UK total, placing it as the second most significant region for automotive manufacture. If the related industries e.g. logistics and transport, general engineering and service industries which form part of the cluster are included then this figure increases to circa £9bn. During the period 2002 to 2007 there has been an estimated overall increase in turnover of circa 38% following an investment of some £2bn in the region’s major vehicle manufacturing facilities by their owners. Turnover was forecast to increase over the next 5 years by a further 24% particularly in the regions volume car manufacturers, with the already committed further investment in the General Motors manufacturing facility at Ellesmere Port and the potential for further investment at the Jaguar/Land Rover facility, subject to future business decisions by Tata Motors. This growth is now subject to review because of the current recession and the longer term impact this might have which is uncertain at the moment. Employment in the core of the Northwest automotive cluster is currently estimated to be approximately 23,000 and was expected to remain around this level for the next 5 years as companies seek to increase sales whilst maintaining headcount. This has been recently affected by the downturn in the market which is leading to significant redundancies in the short term. If the related industries in the cluster e.g. transport and logistics, general engineering, sub-contract engineering and service industries are included then this figure increases to circa 40,000. Annual output from the region in 2007 was approximately 220,000 cars and 20,000 trucks which are supplemented by truck bodies and trailers, specialist vehicles and automotive components. This was expected to rise during the next 5 years by approximately 30% mainly with the increased volumes at the General Motors Manufacturing EP facility and potential increased volumes at the Jaguar Land Rover facility. Currently output in the region is expected to drop dramatically in 2009 due to the current economic climate. More recently the reverse takeover of East Lancs Coachworks by Optare and the decision to re-locate its manufacturing base to a new larger facility in Blackburn will lead to increased output and the need for new locally based suppliers. Size and Scope The strength of the sector in the Northwest lies in it’s diversity, ranging from volume car manufacturers, including prestige and niche car manufacturers to truck and specialist vehicle manufacturers. Figure (1) illustrates the structure and scope of the automotive cluster in the - 10 - Northwest based on the industry classification system. The main strength in the region is the presence of the five vehicle manufacturers who account for approximately 80% of the total turnover and approximately 50% of the total employment in the core of the cluster. High Presence/Activity Medium Presence/Activity Low Presence/Activity Figure (1) Structure of the Northwest Automotive Cluster The cluster is characterised by the following sub-sectors: • Volume car manufacturers (>100,000 units p.a.) • Prestige cars • Commercial vehicles • Specialist and low volume vehicles • Coach, trailer and body builders • Body shell and trim • Power unit and drive train • Chassis equipment and systems • Body equipment and systems These sub-sectors are supported by related and supporting industries such as logistics and transport logistics, sub-contract engineering services, general engineering, design and test. Design & Test Consultants Professional Services Business Services Private Training Providers Business Support Colleges Universities Trade Associati ons Volume Cars Body Equip Chassis Power Unit Coach and Body Body Prestige Cars Specialist / Sports Cars Commercial Vehicles Core of Cluster NWest RoEU RoUK Asia USA RoW Markets Logistics Gen. Eng. Sub- contract Engineering Materials Supporting Industries - 11 - 2. Policy Context 2.1 Background The primary context for this strategy is the Automotive Cluster Strategy 2009-2019 and the Northwest Manufacturing Strategy and the actions identified within these strategies. Other national strategies on Innovation (1) and Manufacturing (2), (3) and (4) Northwest Regional Policy on Innovation (5). Other policy documents and studies to inform policy have been consulted and references to these documents will be presented in later sections of this report. 2.2 New Automotive Innovation and Growth Team (NAIGT) Innovation initiatives for the UK Automotive sector over the last six years have been based on the findings and report (6) of the original Automotive Innovation and Growth Team Report. The recommendations from this report gave rise to a number of government supported interventions such as the National Supply Chain Groups Programme; the Low Carbon Vehicle Partnership; the Automotive Academy (now part of the National Skills Academy for Manufacturing); two technology centres of excellence – Cenex for Low carbon and Fuel Cells Technologies and innovITS for Intelligent Transport Systems and Services and the Foresight Vehicle Programme a government funded collaborative Research and Development programme to support technology developments in key foresight technology areas. A Foresight Vehicle Technology Roadmap (7) which informed the technology and research directions for future road vehicles was produced by the Society of Motor Manufacturers and Traders (SMMT). With the exception of those that continue to play a role as Knowledge Transfer Networks such as Cenex and innovITS the other programmes proposed by the AIGT are mainly complete and the SMMT Knowledge Transfer network for the automotive industry promoted via the Foresight Vehicle web site http://www.foresightvehicle.org.uk/ . Dedicated funding for Foresight Vehicle research and development activities ended circa 2006. The Department for Business, Enterprise and Regulatory Reform (BERR) has commissioned a new AIGT (NAIGT) to facilitate a collective view from the UK automotive sector on the innovation and growth challenges it faces in the period to 2025. An industry-led Steering Group (chaired by Richard Parry- Jones CBE) has responsibility for gathering evidence and recommendations from a number of expert groups working in the areas of: • Supply Chain Development, Technology • Low Carbon Product Development • Technology and Low Carbon Infrastructure • Business Environment and Key Performance Indicators. The final report of the NAIGT is due around March/April 2009 with government response to recommendations by May 2009. Early indications are that there is a need to • retain both vehicle manufacture and maximise added value and future supply chain activity in the UK, • increase supplier competencies particularly at tier 2 and 3 levels in the supply chain, • strengthen the internationalisation of UK based suppliers • have a better framework for industry-university collaboration - 12 - • review ways to exploit the strength of the UK niche vehicle sector At an interim stakeholder meeting 5 th February 2009 the emerging findings from the expert groups were presented. The Competitiveness of the UK Automotive Sector & Key Performance Indicators group are proposing that the following Innovation Measures are used to track innovation at the product and process level. Market-related measures • Percentage of sales accounted for by new products. Note: This is the most commonly used measure for innovation, alongside the number of patents. The data is available through official statistics, also available across countries. However there is a need for it to be adjusted for lifecycle of the respective product. Carbon-related measures • Carbon emissions in production, by unit produced. • Well-to-wheel energy balance(more comprehensive than tailpipe) R&D related measures • Growth rate of R&D expenditure, UK overall. • R&D expense in the UK against other countries • R&D expenditure as % of total sales • Number of patents submitted, although it is acknowledged that patents are a poor proxy of innovation Innovation capability- related measures • Skills, number of engineers graduating in the UK • Interaction with Higher Education Institutions, in terms of £ spent on collaborative research between firms and universities The expert group responsible for addressing A Supportive Business Environment proposed the following. Strengthen certainty and credibility • Create a permanent Industry/Government forum "National Automotive Council" to manage the evolution of future automotive policy and provide business with certainty and credible governance to ensure focus, implementation and sustainability of the NAIGT's recommendations. • Provide long term 2025 framework • BERR to deliver further joining up across Whitehall and Agencies Improve UK investment offer • Simplify and maximize incentives and funding for upgrading and developing existing (and new) manufacturing locations (consistent with EU rules) • Examine scope for carbon footprint reduction incentives and possible links to EIB funding • Focused public procurement within EU rules to promote uptake of UK developed/made product - 13 - Widen collaboration • Provide forums and influence other IGT/RDA-driven investments to promote cross sector collaborations(e.g. aerospace, renewables, defence) and stronger business- university collaboration around science and technology development as part of integrated UK industrial and science policy • Expand role of Universities as cluster and cross-sectoral knowledge integrators Promote positive automotive industry image • Through SMMT, use Automotive Policy/NAIGT recommendations to promote a positive image for the industry and attract future talent from interventions in schools and higher education Get the monetary and fiscal message right • Credit Systems -lessons from current situation and temporary bank/credit actions to inform longer term if needed • Ensure alignment of fiscal measures and policy objectives understood –continue to ensure that UK systems (e.g. VED or congestion charges) are technology neutral and promote interests of UK industry as well as other goals (revenue, carbon reduction etc.) Protect flexible labour markets • Continue to protect and enhance existing labour-market flexibility, including temporary working arrangements Expand and deepen skills provision • Further develop sector skills (SEMTA) offerings to fully meet industry needs at apprentice, NVQ 2-4, management and leadership skills and HE automotive qualifications (e.g. degrees in automotive related topics) • Promote retention of key skills in UK (including UK trained overseas nationals) The Competitive Supply Chain group recommended • A continuous national strategic supply chain development programme is established • Industry and Government should review ways to increase supplier competencies • A joined up strategy should be developed through the creation of a “UK Automotive Sourcing Council” • A single framework for industry-university collaboration should be introduced The expert group on Low Carbon and Technology proposed the following: Create a leadership Team • Continue NAIGT beyond April to develop future automotive strategy in the UK • With ownership of underpinning documents • Bring clarity to the disparate array of stakeholders currently in the low carbon transport arena - 14 - • Developing and managing the transition to Low Carbon • The delivery of NAIGT recommendations Establish Test Bed UK • To create a formal partnership mechanism between regulators, industry and consumers • Assist OEM’s, technology driven SME’s and research establishments demonstrate their expertise in LCV to UK • Provide a compelling reason for 1 st and 2 nd tier suppliers to be in the UK • Promote UK plc to a wider worldwide audience Release and maintain roadmaps and research agendas to focus spend and collaboration Establish Government funding mechanism to support product development and industrialisation phase of R&D Evaluate new test procedures based on Well to Wheel methodology and energy focused rather than current Tank to Wheel These recommendations from the groups will be reviewed by the NAIGT top level groups and presented to Government for a response. This process is expected to complete by May 2009. Recognition of the interim developments has been taken into consideration in the development of the strategy. - 15 - 3. Map of Players Influencing Automotive Innovation 3.1 National Level At a national level a number of government departments and agencies influence innovation in the automotive sector. These include DBERR (Department of Business Enterprise and Regulatory Reform), DIUS (Department of Industry Universities and Skills) and DfT (Department for Transport). Other organisations and bodies such as TSB and Cenex support delivery of government policy. At a European level the European Union determines the overall European policies and frameworks. There have also been studies commissioned by government departments such as the King Review which examined the vehicle and fuel technologies which could help decarbonise road transport, particularly cars, over the next 25 years. Other groups such as Knowledge Transfer Networks have been set up to appraise departments of emerging technologies and technology development. The use of expert industry bodies such as the NAIGT discussed in the previous section is also a mechanism used to inform policy making. Some of the known programmes associated with the national and European bodies that help influence and support innovation in the cluster are shown in Figure 2. Figure 2 Map of Players and Programmes Influencing Automotive Innovation at National Level. Output in the form of strategies, policy documents, support programmes and reports is formidable and often only known to those who have been involved in their production. Our primary research indicates that many of the large companies in the region’s automotive cluster are often unaware of what interventions and programmes are being DBERR DIUS DfT EU Manufacturing Strategy Innovation Strategy Competitiveness & Innovation Framework New Automotive Innovation Growth Team •Supply Chain Development •Technology and Low carbon Product Development •Technology and Low carbon Infrastructure •Business Environment Technology Strategy Board •High Value Manufacturing •Advanced Materials •Nanotechnology •Electronics, Photonics and Electrical Systems •Information and Communications Technology Platforms •Intelligent Transport Systems and Services •Low Carbon Vehicles •Integrated Delivery Programme Foresight Vehicle Programme •Design and Manufacturing Process •Hybrid, Electric and Alternatively Fuelled Vehicles •Engine and Power Train •Advanced Structures and Materials •Software, Sensors, Electronics and Telematics King Review Low Carbon Cars CENEX Delivery Partner for Low Carbon Vehicle Procurement programme Link Future Integrated Transport Programme Key Programmes •EU Framework7 programme •Europe INNOVA •IMP3rove project aimed at improving innovation management capacity of enterprises. Automotive Innovation Growth Team •Supply Chain Development •Foresight Vehicle •Automotive Academy •Low carbon Fuels-CENEX Local Authorities RDAs Influencers Supporters - 16 - proposed, recommended and also lack understanding and knowledge of the themes, scope and objectives of innovation support programmes. 3.2 Regional Level At a regional level the players influencing innovation in the automotive cluster include the Northwest Development Agency, the Science Council, cluster bodies, the region’s universities, Business Link and the Learning and Skills Council. Figure 2 Map of Players and Programmes Influencing Automotive Innovation at Regional Level The above map does not include prospective Investors and Venture capital organisations which also play a key role in the support of early stage funding and commercialisation of product and process innovations. Company Product development and research departments are included within the automotive cluster. The knowledge of the national innovation programmes by the clusters in the region is patchy and although there is regional presence on some of the national bodies that have been mentioned e.g. NAIGT. The communication of developments taking place on such programmes is at best modest and often too late to allow participation by the companies. Our primary research with smaller enterprises indicates that advice and technical support to evaluate potential inventions, information on sources of funding for proof of concept and early stage development is weak. Northwest Development Agency •Regional Economic Strategy •Innovation Policy Funding Programmes •Grants for R&D •Innovation Voucher •Single Programme Appraisal •ERDF UK Trade and Investment •Inward Investment •Trade Missions Science Council •Science Strategy Manchester University Liverpool University Lancaster University MMU Liverpool JM University Salford University Bolton University UCLAN Automotive Aerospace Chemicals Energy Environmental Technologies Business Link LSC Automotive Cluster Influencers Supporters North West University Association Cluster Bodies - 17 - 4. Foresight Vehicle Technologies ddfsdfgdsfgsdgsdfgsdgg The Foresight Vehicle Technology roadmap produced in 2002 and updated in 2004 identified the technology and research directions for future road vehicles. The roadmap and technologies identified remain broadly relevant to the automotive sector today and the roadmap provides a valuable resource for encouraging innovation and a useful framework for supporting collaboration, decision making and action within the road transport sector. A number of technology themes have been identified and these include: Engine and Powertrain (EPT) The Engine and Powertrain (EPT) technology theme includes the following vehicle functions and systems: • On-vehicle fuel filling systems and fuel types. • Conversion of energy in fuel to useful mechanical power. • Transmission of power to wheel hub. • Associated and auxiliary systems such as air flows, after treatment, lubrication systems, generators, alternators and climate control. Hybrid, Electric and Alternatively Fuelled Vehicles (HEAFV) This technology theme includes the following vehicle systems and functions: • Application of new and alternative fuel types, such as hydrogen, LPG, CNG, LNG, bio-diesel and bio-ethanol/methanol. • Conversion of energy in conventional and alternative fuels to useful mechanical power. • Electrical motors for vehicle propulsion, storage systems, hybrids and fuel cells for converting fuels directly to electrical energy. Advanced Software, Sensors, Electronics and Telematics (ASSET) The ASSET technology theme includes the following vehicle functions and systems: • Onboard systems for road travel, vehicle and driver assistance (including electronics and sensors), • Information/communications and control, and high voltage electrics to support future engine systems. • Interfaces with the road traffic specific infrastructure. The Advanced Structures and Materials (FASMAT) FASMAT includes the following vehicle functions and systems: • Supporting structure (body) which is an integral part of many other systems and features of the vehicle, such as style, glazing, heating and airflow systems. • Structural components, including suspension, hard and soft trim. Design and Manufacturing Processes (DMaP) This technology theme is broad, covering the full life cycle of road vehicles, with strong links to the other technology themes: • Design, engineering, prototyping, manufacturing, assembly, use and recycling/regeneration. • Other business processes, including supply chain management, marketing, logistics, distribution and retail. The Foresight Vehicle Programme was a government supported R&D initiative which funded projects addressing Foresight Technology themes and officially ended 2004. Funding for collaborative R&D innovation resides mainly with the TSB and with the - 18 - exception of the Low Carbon Vehicle innovation platform, There is little direct correspondence between TSB themes and Foresight Vehicle themes. - 19 - 5. Low Carbon Vehicle Programmes The issues of Climate Change, Energy Security and Global Population Growth will put unprecedented pressure on the earth’s natural resources. UK has committed to 60% cuts in CO2 emissions by 2050. Transport contributes c25% of UK CO2 emissions and is growing and of this, road transport accounts for c80%. This focus by national governments on reducing CO2 emissions will create opportunities for new product and process innovation and according to Ian Pearson ‘There are rapidly expanding markets for low-carbon products and services the world market for environmental goods and services is projected to grow from $548bn in 2004 to $800bn by 2015’ 4 . Reference (8) points to the fact that road transport is the second largest emitter of carbon dioxide in the UK and is one of the few major sectors of the economy in which emissions are rising. It also highlights that a range of vehicle technologies and fuels exist which could lower the carbon footprint of road transport and suggests that developments in internal combustion engines and hybrid and electric vehicles are two major opportunity areas for UK manufacturers. The UK government has put in place schemes to support R&D in Low Carbon Vehicle Technologies. These include: 5.1 TSB Low Carbon Vehicle Integrated Delivery Platform Initiatives The programme launched in September 2008 is aimed at stimulating innovation throughout the entire supply chain from the science base through collaborative R&D to fleet users. Circa £100m of public sector co-funding has been secured from DfT, TSB, Engineering and Physical Sciences Research Councils (EPSRC) and a number of regional development agencies. The ambition is to grow this funding further over the coming five years to help focus the R&D activities to focus attention on innovative medium to longer term low carbon transport solutions. The TSB Low Carbon Vehicle initiative is a competitive process which invites industry led bids against specific programme calls. A two stage process is used and the first stage takes the form of an Expression of Interest (EOI) by the lead partner of the collaborating consortium which is then independently evaluated and if successful the consortium is invited to develop a full blown proposal (Final Stage) which undergoes further independent evaluation. If successful at this stage, contracts between TSB and the collaborative consortium are formed. The process can be rather daunting and is unlikely to be suited to smaller companies that don’t have experience of constructing first and second stage bids. Even larger companies that do not have the in house expertise of competitive bid processes may be disappointed with the outcomes. Success is not guaranteed and there is a substantial requirement to demonstrate new innovation and significant potential for exploitation in the bid. Success rates vary depending upon the theme and number of applications. As this is the main channel for industry funded innovation, there are a high number of applications. 5.2 DfT Low Carbon Vehicle Procurement Programme The theory of public procurement as a driver for technology innovation is that by stating its future needs the public sector can stimulate ideas and innovation and by forward committing to purchase, the public sector can enable ideas to become new products. Furthermore by acting as an early adopter, the public sector can accelerate the market entry of innovative products. 4 Ian Pearson, MP, Climate Change and Environment Minister (now Minister of State (Minister for Science and Innovation) - 20 - The public sector is also a major purchaser of vehicles. For example: • Public sector fleet estimated as 100,000 heavy duty and 200,000 light duty vehicles (AEA Technology study, 2007) • Around 13,000 new heavy duty and 75,000 new light duty vehicles procured by public sector organisations each year • Main vehicle types are cars, small and large panel vans, mini-buses and refuse collection vehicles • Public sector influences bus market mainly through contracting structures Funding of £20m is available to support phase 1 with potential to increase to £50m if projects are successful. The first phase concentrates on cars and light vans, later stages may be focused on buses and trucks. The project is managed by CENEX who is the delivery partner. A number of potential suppliers of vehicles have been selected and strategic public sector partners and pilot local authorities have been identified. These include: A number of providers of Low Carbon and all electric vans have been shortlisted. With the exception of involvement by Liverpool Council as one of the pilot local authorities involvement by Northwest companies is low because of the focus of this programme. As this programme moves to a second phase involving commercial vehicles and buses, the Northwest Automotive cluster needs to position itself as a prominent participant in the provision of appropriate vehicles. Initial Strategic Partners Pilot Local Authorities Government Car & Despatch Agency Coventry Royal Mail Newcastle & Gateshead HM Revenue and Customs Liverpool Environment Agency Glasgow Metropolitan Police Transport for London - 21 - 6. Automotive Cluster Innovation Characteristics The previous sections have highlighted the background secondary research that has been considered in the development of the strategy. In this section the information gathered to define the Northwest Automotive innovation characteristics and support the development of the Innovation strategy will be discussed. Figure 3 shows the sources of information that have been used. Figure 3 Sources of Information Appendix 2 provides a list of the organisations consulted/researched during the information gathering stage. Information gathering took the form of ‘one to one’ meetings, group meetings and presentations, email correspondence and secondary research. The output from this stage is presented in the following sections. • Northwest Capability in Key Foresight Vehicle Technologies • Low Carbon Vehicle Developments in the North West • Innovation Support Infrastructure – Invention to Innovation • Innovation Assessment and Findings 6.1 Northwest Capability in Foresight Vehicle Technologies The Northwest regional capability in foresight vehicle technologies has been assessed using: 1. Data relating to the Northwest organisations participation in projects supported by the Foresight Vehicle (FV) 2. Information from meetings with organisations listed in Appendix 2 and secondary research. Northwest Participation in Foresight Vehicle Programme Analysis of Foresight Vehicle Programme data established the level of activity by Northwest organisations (companies and universities in this programme). The results of this analysis provided a starting point to establish innovation active universities and companies and also determine levels of FV thematic interest. The data also provides a relative comparison of the North West with the other recognised automotive regions namely West Midlands (WM) and East Midlands (EM). Regional Companies Automotive Automotive Related Related Cluster Bodies etc Research Funding Agencies TSB, EPSRC, EU FP7 Government Departments Berr, TSB, DIUS Market Reports Regional, National, International Other Research Schemes Grants for R&D, POC NWDA RES, RIS, Science Council Private Equity Funding Start Ups, Growth etc NAA Innovation Strategy Regional Universities Regions IP Stock Patents etc Business Link Innovation Initiatives - 22 - Figure 4 presents the number of supported projects by FV thematic area. The scope of each theme has been added for reference. Figure 4 Supported Projects by FV Theme Figure 5 shows a comparison of the Northwest FV activity with WM and EM. Figure 5 Comparison of FV Project Activity by Automotive Regions The Foresight Vehicle programme has generated over 100 programmes since its launch. However this programme has now largely been superceded by the TSB initiatives and programmes which, with the exception of the Low Carbon Vehicle Platform, do not explicitly map directly to the foresight vehicle themes. 0 5 10 15 20 25 30 35 HE&AFV FASMAT E&PT DMAP ASSET Thematic Area N u m b e r o f p ro je c ts HE&APV Hybrid, Electric, Alternatively Fuelled Vehicles Application of new and alternative fuel types, such as hydrogen, LPG, CNG, LNG, bio-diesel and bio- ethanol/methanol. Conversion of energy in conventional and alternative fuels to useful mechanical power. Electrical motors for vehicle propulsion, storage systems, hybrids and fuel cells for converting fuels directly to electrical energy. Advanced Structures and Materials FASMAT Supporting structure (body) which is an integral part of many other systems and features of the vehicle, such as style, glazing, heating and airflow systems. Structural components, including suspension and hard and soft trim. E&PT Engine Powertrain On-vehicle fuel filling systems and fuel types. Conversion of energy in fuel to useful mechanical power. Transmission of power to wheel hub. Associated and auxiliary systems such as air flows, after treatment, lubrication systems, generators, alternators and climate control Design & Manufacturing Processes The DMaP Thematic Gr
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