John Denham - Innovate 2007

Introduction

Thank you Declan. Hello everyone.

I am pleased to be able to stand before you as the first Secretary of State for Innovation, Universities and Skills.

Since the Prime Minister created DIUS back in July, a number of people have commented that it is one of the very few Departments of State in history to have an abstract noun as part of its title.

The noun in question is 'innovation'.

I want to talk to you today about why they are wrong. In this Government's eyes at least, innovation is not abstract, but concrete. Properly understood, it is a practical process for the improvement of real lives of real people. And not just boffins, but ordinary men and women.

I don't know if there are students of medieval literature among you. But I suspect that many of you enjoyed - or suffered - bits of the Canterbury Tales. If you did, you may recall that the origin of the word innovation is pejorative. To innovate was to create dangerous novelty. To depart from the assurance that precedent offers was to invite error.

The history of scientific and technological innovation is indeed littered with errors. Twenty years before the Wright brothers, people were trying to build aeroplanes powered by coal-fired steam engines. Just because something is innovative does not mean that it isn't completely mad.

But when innovation works, when those who encourage and finance innovation back the right horse, then the world changes.

Technology Strategy Board's role

It is the first conference since the Technology Strategy Board was set up as an executive NDPB, sponsored by my Department, on July 1 2007. I would like to pay tribute to all the hard work setting up the Technology Strategy Board. I would also like to congratulate Iain Gray on his appointment as its new full time CEO - I am confident that the new business led Technology Strategy Board will make a real difference.

The context

A global economy. Climate change. Extraordinary new technologies. People, money and knowledge ever more mobile.

Huge emerging nations with justifiably great ambitions - my recent visit to China has brought this home to me.

These are powerful forces; enough to make anyone feel insecure. And they can have the harshest impact on those least equipped to respond.

But what I know is that together we can respond. Today's changes can be tomorrow's opportunities.

But only if we make the most of the talent and ability of every individual. Only if we carry out world class science, research and scholarship. Only if we turn fundamental research into world beating products and services.

Not just things to sell, but bringing the world solutions to sustainable energy, cures for diseases, answers to an ageing society.

That's how change becomes an opportunity.

Role of DIUS

I am determined that, under my direction, DIUS will be the primary advocate of innovation in Government. I want DIUS to lead thinking and policy-making on innovation across Government.

I am clear that no one sector should lay claim to innovation. We often associate innovation purely with New Media or high tech companies. We musn't. Innovation is going on right across our economy - both in the public and private sectors. I want to see more Innovation across the board: in the health service, in our manufacturing sector, in construction, and in our service industries.

DIUS' work on innovation will affect everyone - helping business to succeed, and improving public services to meet the challenges of the 21st century and improving individuals' life-chances. We will invest in research and learning to maintain this country's position at the forefront of knowledge and we will invest in the skills that will give everyone in the UK a chance of fulfilling their innovative potential.

DIUS will be at the centre of the government's effort to support innovation - sponsoring and working with the Technology Strategy Board, the UK Intellectual Property Office, the British National Space Centre, the Energy Technology Institute, the Design Council, and the overseas Science and Innovation teams.

To ensure we drive progress, I have appointed David Evans as Director of Innovation at Board level in my department. David was previously interim CEO of the Technology Strategy Board. Under my direction and working closely with Ian Pearson, the Science and Innovation Minister of State, he will push forward the Innovation agenda, including a cross government drive to improve public sector innovation.

We will be working with government departments to support the creative services sector and work with the MoD on the defence industrial strategy. I have asked him to produce the first annual Cross-Government Innovation Report, in line with the recommendation from the Sainsbury Review, for publication next Autumn. This will track innovation activities right across Government.

As part of our response to the review, we have made a commitment to publishing a Science and Innovation Strategy in the Spring. I regard this as a key priority, and as such I have asked David to lead on this work - reporting directly to me and to Ian Pearson. It will be a major opportunity to set out our direction and to reach out for new ideas - preferably innovative ones! I want to work to work with Technology Strategy Board and with business community to take this forward.

I want to reach out to key partners who can inform our thinking and enhance our policy making. The National Endowment for Science, Technology and the Arts is now part of the DIUS family. NESTA's mission is 'to transform the UK's capacity for innovation' and I see it as one of the Department's key means of delivering our innovation agenda. I have already met NESTA to listen to their ideas and to discuss working more closely together. They have done some excellent work, such as the Innovation Gap, identified areas of hidden innovation across the UK economy. I am pleased to report that government is already working on a project looking at Innovation in the service sector.

I'm also very pleased to welcome the Design Council to our extended family. DIUS will work with the Design Council to deliver the department's strategic objectives through the exploitation of creativity and knowledge.

Skills

In order to innovate successfully, we need skills and the expertise. It is clear to me that we will never realise the full potential of innovation without a workforce that has the skills it needs to rise to the challenge.

To compete in the global economy of the 21st century, we need a workforce with the skills to match the best in the world. A highly skilled workforce is a more productive one, a more adaptable one, and a more innovative one.

The issues at stake are not only economic. Improving our skills will help us create a society in which everyone can rise as far as their talents will take them, improve their lives and those of their families. The case for action is compelling.

Bringing together responsibility for higher education, skills and innovation is a therefore a real opportunity to address this issue. I am committed to the ambition of becoming a world leader in skills by 2020.

Meeting the toughest challenges we face

The challenges of climate change, economic stability, globalisation and the knowledge economy can seem overwhelming, but we need to recognise that Innovation is one of the best ways of tacking them.

I am therefore pleased to see the progress the Technology Strategy Board has made with their work on Innovation Platforms. They will allow us to generate more innovative solutions to major policy and social challenges.

The Assisted Living Innovation Platform, being launched today, is aimed at significantly advancing technology to meet society's increasing demand for independent living amongst those with long term conditions.

And the next couple of months will see the launch of a Low Impact Buildings Innovation Platform, focusing on improvements to the energy efficiency of new and existing build. This has been developed in close partnership with stakeholders including business, and relevant government departments.

Growing investment

I recognise that we also need to continue to invest heavily in science research. Since 1997, we have increased the science budget dramatically - my department is now investing £3.4 billion in this financial year.

This research has dramatically improved the lives of people in the UK and abroad, boosting our prosperity, health and quality of life. It has uncovered the structure and function of DNA that has since transformed the nature of forensic science. It has led to pioneering work on mobile communications and medical imaging. It has also achieved major advances in our knowledge of environmental change. And it has profoundly shaped government policy to combat social exclusion.

We jointly established the new Office for the Co-ordination of Strategic Heath Research. One of the key roles of this body is to facilitate more efficient translation of health research into health and economic benefits.

And I recently launched the Energy Technologies Institute. This is an excellent example of the public and private sectors working together to meet one of the most pressing challenges. The ETI is backed by up to £550 million of Government funding and over £450 million of private sector funding. In partnership with some of the world's biggest companies, the Institute will deliver solutions to help make the energy in our homes and businesses safer, cheaper and more sustainable for the future.

Driving innovation across government

I recognise that Government procurement can act as a powerful stimulant to innovation. It is worth over £125 billion per year - a figure that may interest a few of you! I want my Department to take a key role in ensuring that we use this position as a key customer to drive innovation in the goods and services that the public sector buys. With the Office for Government Commerce, my department recently published guidance for policy makers and procurers on Finding and Procuring Innovative Solutions.

The future

We are doing a great deal, but I recognise we have to do even more. That's why I have announced that the Science investment will rise to £4 billion by 2010-11. My Department will provide a new package of support for technology and innovation in business, with £1 billion to support the Technology Strategy Board over the next three years, including contributions from the Research Councils and Regional Development Agencies.

We are also committed to doubling the number of Knowledge Transfer Partnerships, to get more highly qualified science and technology graduates working with businesses to develop new products, services, and processes.

As part of this package of investment, I can today announce a £100 million for collaborative research and development proposals in eight key technology areas to open this month. The investment will...

Help the global effort to tackle climate change...

• New materials for the generation of efficient energy production - for example in the production of wind turbines or tidal barrage systems.
• Lower energy, advanced lighting, lasers and displays, could for example, help reduce the energy consumed by lighting and help develop energy efficient signage for shop fronts displays.
• Low Carbon Technologies could help the development of systems to enable national grids to make the best use of local, small scale energy production and intermittent power sources.

Support business competitiveness...

• New High Value Manufacturing techniques will help secure the nation's future manufacturing base with research on the next generation of production techniques.
• The Creative industries call will help to maintain the UK's position as a global leader in this area, it could help ensure that we are well placed to develop and produce future generations of video games and films.
• Gathering data in complex environments could improve the collection of important information in the aftermath of natural disasters, to ensure data from the emergency services, environment and transport can be used and analysed simultaneously.

Improve healthcare...

• New Cell Therapies, to support the application of the latest medical techniques that have the potential to treat problems such as chronic wounds and possibly laying the foundations for new techniques that could in future help repair damaged organs.
• Technologies for health will help the development of new technologies to enable the monitoring of patients with chronic conditions without them even leaving home.

What next? - Science and Innovation Strategy

As I mentioned earlier, I have decided that there will be a new Science and Innovation Strategy. The strategy will report on our implementation of Lord Sainsbury's excellent review of Science and Innovation. I would like to thank David for such a thorough and stimulating document. We are already progressing many of his recommendations.

I want to see the best possible conditions for innovation -

• that's why we are taking new measures to improve further the teaching of science, technology, engineering and mathematics (STEM) subjects;
• that's why we are modernising and reforming the Intellectual Property system
• that's why will be working across government to ensure regulation doesn't hinder innovation - it should stimulate it.

But I want to go even further - I am convinced there are new ideas that we need to capture so that we can further stimulate innovation in the UK - we need to look to the next set of challenges and solutions. I want the Strategy to be an opportunity to set out our vision to you, but perhaps more importantly an opportunity for you to share your vision with us!

Conclusion

Innovation will be the main driver of our prosperity in years and decades to come. Without it, our industries will not be able to compete with the growing economic powers of East Asia. Without that prosperity, it is hard to see how we will be able to achieve a more cohesive society and the wealth of aspiration that we all want to see. I want us to work together both to meet the challenges and to grasp the opportunities.