January 2009

NEWS

The Bank of England’s initial rate cut was welcomed by Prime Minister Gordon Brown, who remarked: “You will see interest rates at a relatively low level for some time now because inflation and the cost of oil [are] coming down.” Employers’ organisation the CBI also welcomed the reduction, describing it as a “big strike” on rates. However, Ian McCafferty, the organisation’s chief economic adviser, warned that “what is critical for business and consumers alike is that this reduction is passed on [by the banks]”.

In a piece of good news for the UK’s financial sector, US investment bank JPMorgan has agreed a $332 million deal with property company Canary Wharf Group to develop a new building in the Docklands financial district of London. The bank has bought a 999-year leasehold on the Riverside South development and has obtained planning permission for up to 1.9 million sq ft of space, almost 10 per cent of Docklands’ total, although it has not specified how much space it will actually occupy. Infrastructure work has already begun, and the building is expected to be completed within four to five years.

A person close to the deal said that the new building would serve as the headquarters for all of JPMorgan’s European operations and, as such, represented a vote of confidence in the Docklands area and in London in general. The same person, however, described the deal as “the only piece of good news in 9–12 months” for the capital’s commercial property sector and predicted that it would be at least the end of 2010 before space shortages appeared again.

In the meantime, Canary Wharf Group is in talks with Nomura about its potential occupancy of an office block in the City of London formerly occupied by Lehman Brothers, after the Japanese bank acquired parts of its US counterpart in 2008. Bank of America, currently based in Canary Wharf, is also reportedly considering a move to the City.

Emphasis on innovation as UK space sector aims high
The Department for Innovation, Universities and Skills (DIUS) has released its first Annual Innovation Report, which examines progress made on innovation to help transform public services and ensure that UK businesses benefit from the $245 billion spent annually through Government procurement. Key achievements over the past year, according to the report, include a commitment from every government department to use its procurement budget to encourage innovation in business and a new pilot programme that will help UK businesses benefit from the specialist expertise of further education colleges.

DIUS used the Downing Street launch of the report to announce the establishment of a new Innovation Research Centre, which will conduct research to help meet challenges such as climate change and the current economic downturn. This will be funded by DIUS, the Economic and Social Research Council (ESRC), the National Endowment for Science, Technology and the Arts (NESTA) and the Technology Strategy Board (TSB). Between them, the partners will contribute a total of $7 million over five years.

Statistics contained in the report indicate signs of improvement in the UK’s innovation performance but also show that more remains to be done. For example, the proportion of innovative businesses in the UK increased from 49 per cent in 2001 to 68 per cent in 2007 and spending on research and development by business and government increased by 4 per cent in real terms in 2006 to $32.5 billion. Between 2003 and 2007, the number of degree level qualifiers increased by 36,220 and doctorate qualifiers by 2,632.

Science and Innovation Minister Lord Drayson said: “Publication of this First Annual Innovation Report delivers on a recommendation first set out by Lord Sainsbury in his 2007 review, ‘Race to the Top’. It presents a picture of a nation that is both good at innovation and getting better at it. However, we need to maintain this progress to cope with the economic downturn and to emerge stronger from it. We must continue to invest in talent, science and innovation. Our future depends on it.”

In one strikingly innovative sector, a European Space Agency (ESA) research centre is to be established in the UK, after Lord Drayson signed an agreement in principle at the ESA Ministerial meeting in The Hague in November. The research centre, which will be based at the Harwell science and innovation campus in Oxfordshire, South East England, could be up and running within a year.

Once it is established, ESA money will be used to fund new work on climate change modelling using space data and the development of technologies for a new era of planetary exploration, including robotics and novel power sources. Lord Drayson said: “This centre represents a first for the UK. It will direct more ESA business and funding to our shores, which of course is very important for our economy. But also the establishment of a new ESA centre is extremely encouraging for British scientists working in space science, as they will have closer involvement in international space programmes.”

At The Hague meeting, the UK Government committed to invest $114.8 million in the ESA’s flagship Global Monitoring for Environment and Security (GMES) programme, in a package of subscriptions totalling over $420 million. The GMES programme will provide observations to monitor climate change and will include a key satellite mission to measure chemicals in the atmosphere; it is expected that the UK space industry will play a leading role in developing the satellites.

The UK made contributions to seven optional ESA programmes, including Advanced Research in Telecommunication Systems (ARTES), which will draw on British expertise in satellite communications technology, and the Aurora Enhanced Exo Mars Mission Component and Exploration Programme. Exo Mars, which is expected to launch in January 2016, will search for evidence of life on the planet. It will consist of a stationary lander and a rover vehicle, which is to be constructed by UK company Astrium. The UK also agreed investments of around $328 million in the ESA’s mandatory programmes over the next three years.

“Historically, the UK has made smart investments in robotics and micro-satellites and this has enabled us to develop world-class leads in these areas. The UK is the fourth highest contributor to ESA’s programmes, and I’m determined that we remain a significant player in European space,” concluded Lord Drayson.


New university networks launched to boost business skills
A new government initiative has been launched that aims to give around 100,000 students and graduates the chance to develop world-class skills as entrepreneurs and business leaders. The first three University Enterprise Networks (UENs) will focus on the areas of science, technology, engineering and maths (STEM), innovation and the nuclear sector, and will be managed by the National Council for Graduate Entrepreneurship (NCGE).

The UENs will aim to establish a culture of enterprise in universities by providing training, advice and encouragement to students and graduates who want to develop their business ideas or wish to become innovative employees. Each network will be further supported by sponsorship from privately-owned companies and Regional Development Agencies (RDAs), which will give students first-hand experience of enterprising workplaces.

David Lammy, Minister of State for Higher Education, said: “We need stronger links between business and higher education so that we can make full use of the expertise and talents within our universities and colleges. University Enterprise Networks are a new kind of partnership that will nurture the enterprise skills and entrepreneurial spirit of tomorrow’s business leaders, while also helping universities engage more closely with the needs of employers today.”

The STEM UEN will be led by the South East England Development Agency (SEEDA) in collaboration with the East of England Development Agency (EEDA) and will be sponsored by Microsoft and other major companies. A number of universities in the region have already expressed their commitment to the scheme, including Cambridge, Cranfield, Oxford and Reading. The Innovation UEN will be led by Advantage West Midlands and supported by Hewlett-Packard’s MAEI (Micro Enterprise Acceleration Institute), BT and CISCO, with Coventry University. It will focus on helping students understand how web-based technologies can be exploited in the creation of new business ideas. The Nuclear UEN will be led by the Northwest Regional Development Agency (NWDA) and supported by Westinghouse UK. A fourth network will be launched early in 2009, also led by NWDA and focusing on Advanced Manufacturing.

The Engineering and Physical Sciences Research Council (ESPRC) meanwhile has announced the UK’s largest ever investment in training for the technology sector, with a $350 million initiative to establish 44 education centres and support more than 2,000 PhD students, in a bid to turn out more scientists and engineers. The new centres include Security Science at University College London, Advanced Metallic Systems at Sheffield University and Efficient Power from Fossil Energy and Carbon Capture Technologies, based at the University of Nottingham. The centres will work on challenges such as developing clean renewable energy, fighting high-tech crime, reducing carbon emissions and investigating healthcare solutions for an ageing population. In addition to pure research, 17 facilities will conduct industrial and business training to encourage students to turn entrepreneurial ideas into new products and services.

Outside the university sector, a new business incubation centre in Harlow in Essex has been officially opened by the Business Secretary, Lord Mandelson. The Harlow Enterprise Hub, part-funded with $4.2 million from the East of England Development Agency, will provide premises for 55 small companies, along with advice and support as they grow. Elsewhere, work has started on the Canterbury Innovation Centre in Kent, a venture between the University of Kent, the South East England Development Agency and the East Kent Spatial Development Company. Due to be completed in October 2009, the enterprise hub will provide almost 25,000 sq ft of offices, studios and workshops to be used for the incubation and support for high-tech firms.

University of Cambridge leads on research and innovation
The Centre for Business Research at Judge Business School, University of Cambridge in Eastern England and the London-based Imperial College Business School have set up a new collaborative venture, the UK Innovation Research Centre (UK IRC). The new centre will carry out research into how innovation can make businesses more competitive, improve public services delivery and help the UK meet the social, environmental and economic challenges it faces.

Dr Ammon Salter, Director of Research at the UK IRC and Reader in Innovation Management at Imperial College Business School, said: “The IRC will explore the relationship between innovation and business performance and how this affects the national economy and the individual organisation. This will feed directly into both innovation policy and practice, for example in helping to open companies up to new forms of collaboration and policy-makers to develop new instruments and strategies to promote innovation and knowledge exchange.”

A new report by Library House, the Cambridge Cluster Report 2008, highlights the University of Cambridge’s prolific knowledge transfer activities, ranking it first among all UK higher education establishments for its 2006-07 performance across a number of categories. The study found that the university generated $69.2 million from collaborative research over the year while its licensing income made a further $4.8 million, in addition to spin-out activities creating 944 new jobs in the local area. It ranked joint ninth for new spin-out formation, with two firms launched in 2006-07, and claimed third place for its number of active enterprises, with 45 firms remaining in the market. Recent projects at Cambridge have seen scientists examine a new drug to halt the advance of multiple sclerosis, identify the genetic factors of a common childhood brain tumour and collaborate with the Japanese government on nanoscience.

Maintaining its research momentum, the University has opened a new research centre which brings together physics and medicine, to carry out multidisciplinary research for the medical sector. Combining physical, life and clinical sciences, the Centre for the Physics of Medicine will allow researchers from different fields to work together on cutting-edge developments. Projects to be based at the facility include studies examining optical fibres, computational molecular biology, tissue scaffolds and membranes. According to Professor Peter Littlewood, Head of the Department of Physics at Cavendish Laboratory, allowing researchers from different fields to work together will create an incubator for next-generation tools and ideas. In 2008, the University announced that it would collaborate with the National Health Service (NHS) to develop ways to boost healthcare for hospital patients.

Cambridge is also at the forefront of fundraising efforts. It recently announced one of the biggest donations ever made to a British university, with Lord Sainsbury of Turville, the businessman and former junior minister for science and innovation, giving $123 million for a laboratory to study plant development. Lord Sainsbury, part of the Sainsbury supermarket family, graduated from King’s College, Cambridge, in 1963 after studying natural sciences.

The gift brings Cambridge closer to its target of raising £1 billion ($1.4 billion) from benefactors by 2012, and demonstrates the ability of Britain’s most famous universities to raise money even during the current financial crisis. The Sainsbury Laboratory will house 120 scientists, as well as the university herbarium – a collection of more than 1 million pressed and dried plant specimens, including those collected by Charles Darwin during his voyage on the Beagle – and aims to become a world-class centre of plant science. The donation is the second largest ever received by the University, exceeded only by a gift by the Bill and Melinda Gates Foundation in 2000.

Not to be outdone, the University of Oxford in South East England has opened a new $70 million biochemistry building. The 129,000 sq ft centre, designed with distinctive coloured glass facades, will house 300 lecturers, researchers and students previously scattered across separate buildings. According to the University, research has become increasingly interdisciplinary, and bringing the science community together is important to enable researchers with different areas of expertise to interact and collaborate. A second-phase extension is planned that will provide space for another 500 researchers. The university’s Biochemistry Department is the largest in the UK and is internationally renowned for its research on the understanding of DNA, cell growth and immunity.

The London Business School, meanwhile, has been ranked fifth in BusinessWeek’s annual listings of International MBA programmes. The School excelled in a number of key areas, ranking first for the quality of its intellectual capital and claiming the highest number of alumni reporting job offers at graduation, with 96.9 per cent versus an average of 85.2 per cent at the other top ten schools. It received an A+ grade from recruiters for its general management and analysis, and an A+ from students for career development. The result makes London the only European business school to have reached the Business Week top five in each of the last five rankings.

Northern Ireland invests in innovation for the long term
Spending on R&D in Northern Ireland increased to reach $49.1 million in 2007 – a rise in real terms of $15 million, or 3.1 per cent, over the previous year. Data from the Northern Ireland Executive showed that business accounted for 52.7 per cent of the total spending, with 43.1 per cent coming from the higher education sector and the remainder from government. Enterprise, Trade and Investment Minister Arlene Foster welcomed the increase, saying: “Innovation is an engine for growth, irrespective of the size of the company. Improved products and services that are cost-competitive will continue to attract market share.” She added that Matrix, the Northern Ireland Science Industry Panel, would continue to promote market opportunities that the R&D sector could exploit.

Meanwhile Invest Northern Ireland has launched a new programme of R&D support for companies across the province. Its ‘Grant for R&D’ scheme, which is part-funded by the European Regional Development Programme, will make it easier for companies to access financial support from the $70 million allocated by the agency to promote investment in innovation-focused projects from 2008 to 2011. The new programme is available to companies regardless of their size or previous experience of R&D activity and includes guidance from dedicated ‘Innovation Advisors’.

Launching the programme in Belfast, Arlene Foster said: “When this downturn ends, the strongest global economies, and those that will recover quickest, will be built on businesses that have maintained their R&D capabilities. … The recent Matrix report has set out a blueprint for future market opportunities. … Grant for R&D will help to stimulate greater levels of forward thinking and innovative future planning, enabling more companies to improve the effectiveness and competitiveness of the Northern Ireland economy, over the medium to long term.”

Queen’s University Belfast is to establish an innovation centre for information technology. The Centre for Secure Information Technologies (CSIT) has been awarded a total of $32.6 million by the university, the ESPRC, the Technology Strategy Board and industry partners and will use the funding to develop security infrastructure for electronically-stored information. The facility, based at the Queen’s Institute of Electronics, Communications and Information Technology (ECIT), will look into areas such as intelligent surveillance technology, network security systems, wireless-enabled security and data encryption. Earlier in December, Queen’s received investment worth $9.8 million from the Cross-Border Research and Development Funding Programme to support work in the medicine, telecommunications and food science fields.

Toyota’s new model marks vote of confidence in UK production
Japanese car giant Toyota has started production of a new Avensis car, its European flagship model, at its plant at Burnaston, Derbyshire, in the East Midlands. The vehicle’s 1.6- and 1.8-litre petrol engines will be produced by Toyota’s plant in Deeside, North Wales. The third-generation Avensis will be available in two body shapes – saloon and wagon – with four equipment grade levels.

The new Toyota Avensis is being produced in the East Midlands

It comes equipped with ‘Toyota Optimal Drive’, a new environmental concept that offers reduced fuel consumption and low CO2 emissions. Safety levels have been enhanced, with seven airbags and active front-seat headrests to reduce whiplash injuries in rear-end collisions. Additional safety technologies include Vehicle Stability Control (VSC+), a Pre-Crash Safety (PSC) system and adaptive cruise control. The car also features a premium satellite navigation system with a built-in hard drive for storing music files.

The new Avensis went on sale in the UK on 1 January, with on-the-road prices from $22,064. Toyota has set an annual European sales target of 115,000 units, and will also launch the car in Africa, Central and South America and Oceania. The company hopes that the new model will boost its fortunes in the current tough market. In November 2008, Toyota announced a 69 per cent fall quarterly profits, due to slower consumer spending in the US, and slashed its earnings forecast for the year. It temporarily suspended the night shift making its Auris model, and in February and March this year plans further halts in production.

Geoff Hoon, Secretary of State for Transport, said at the official launch: “The investment Toyota has made in this new model is a real vote of confidence in both the workers at the Burnaston and Deeside plants and in the future of car manufacturing in the UK.” Katsunori Kojima, managing director of Toyota Manufacturing UK (TMUK), added: “Our world-class team here in the UK continues to deliver the quality, efficiency and flexibility needed to meet the demands of our customers. In challenging economic conditions, the new-generation Avensis offers customers advanced fuel-saving technologies and reduced emissions, as well as enhanced levels of safety. This truly reflects our commitment to delivering the right cars, for the right place, at the right time.”

TMUK is the sole global production centre for the Avensis. Since the first-generation model was launched in 1997, over 1.45 million Avensis vehicles have been built at Burnaston. The company also manufactures Auris models at Burnaston, as well as petrol engines at Deeside. In 2007, TMUK produced 277, 854 vehicles, 185,736 fully-assembled engines and 159,230 engine sets for export and local assembly at plants across the world. To date Toyota has invested over $2.6 billion in its UK manufacturing operations and currently employs over 4,600 people in the country. The introduction of the new Avensis will represent an annual spend of over $700 million with UK business partners.

Performance car group Lotus meanwhile has been awarded Autocar magazine’s prestigious ‘Editor’s Special Award for Excellence’. Autocar editor Chas Hallett cited the company’s growth as a world-leading ecological automotive engineering consultancy and the unveiling of the exciting Lotus Evora, its first new model for 13 years, as key reasons for the accolade. The Lotus Evora is a 2+2 mid-engine V6 sports car, and first deliveries to customers are expected to commence this spring. It will join the Lotus stable of Elise, Exige, Europa and 2-Eleven high-performance sports cars. Over the past 12 months Lotus Engineering has grown its global third party customer base and won new contracts worldwide – 340 projects with over 140 clients. Customer demand has led to the creation of new departments focused on biofuels, electric and hybrid electric vehicles. Lotus Evora, V6 sports car

UK is digital communications leader, says Ofcom report
A new report from Ofcom, the UK’s telecoms regulator, suggests that the UK is one of the most digitally advanced nations in the world and is making increasing use of cutting-edge digital technology. According to the watchdog’s third International Communications Market Report, global revenues for the communications sector amounted to $1,214 billion in 2007, with the UK accounting for $54.6 billion, or 4.4 per cent of the total. The report examined the take-up of communications services in 12 established industrialised economies, as well as the fast-growing economies of Brazil, India, Russia and China. Its findings included the facts that China had over 88 million new mobile phone connections in 2007, more than the entire number of mobile phone subscriptions in the UK, while Italy had the highest number of mobile-only households at nearly 40 per cent.

The research found that consumers in the UK have access to the cheapest converged bundles of landline, mobile phone, basic pay-TV and broadband provision in Europe, paying an average of $162.40 per month, compared with $169.40 in Italy and $196 in France. Competitive markets are driving down prices and consumers are also shopping around for good value ‘bundled’ deals, the report explained.

The UK is also leading the take-up of digital TV in Europe, with 86 per cent of households having the service on their main set, while increasing numbers of people are using high-definition (HD) TV and digital video recorders (DVRs). Thirty per cent of people in the UK own a DVR, the most of any country surveyed. It also has the biggest number of HD households in Europe – at 700,000, more than the total in France, Germany and Italy combined.

Of the countries examined, an estimated 28 million pay-TV households had a DVR in 2007, up by 52 per cent year-on-year. Three countries accounted for 96 per cent of the total: the US (73 per cent), the UK (13 per cent) and France (10 per cent). Viewers in the UK watched 3.6 hours of television a day, slightly more than the average of 3.4 hours across other European countries, but nearly an hour less than the average 4.5 hours a day in the US.

In telecoms, some 87 per cent of the UK population has access to high-speed downlink packet access, which enables wireless broadband for 3G phones – although only 17 per cent of mobiles in use can actually access 3G networks. Along with Canada, the UK has seen the highest growth in telecoms service revenues, with a 5 per cent rise attributed to increased mobile phone and broadband take-up. In most countries, reductions in fixed-line call volumes have been offset by large increases in mobile call volumes, which in the UK grew by at least 20 per cent. Text messaging volumes increased by 36 per cent.

The report shows that there is nearly one broadband connection for every four people across the countries surveyed. With 26 connections per 100 people, the UK ranked third, behind the Netherlands (35 per cent) and Sweden (31 per cent). Average growth in connections between 2004 and 2007 was highest in the UK, France, Germany, the Netherlands, Sweden and Ireland, at 5 per cent per year. Internet users in the US spend the most time online – 15 hours each week, compared with just 7.5 hours in Spain. UK users ranked second behind the US, at nearly 14 hours per week. Internet use per user has risen the fastest in the UK over the past four years, at an average annual rate of 30 per cent.

The UK is the European leader in social networking, with 50 per cent of people using sites such as Facebook, Bebo and MySpace – up 11 percentage points year-on-year. Uploading photos to the web is the most popular activity, pursued by 43 per cent, with 59 per cent using their mobiles as still cameras. The internet’s share of total advertising spend is highest in the UK (19 per cent) and Sweden (17 per cent). Viewing of TV shows over the web is growing rapidly. US consumers download the most streams per head (26), with UK consumers next with eight. After the success of its iPlayer online video service, the BBC made its BBC One and BBC Two channels available live online in November 2008.

In the seven main countries surveyed, a third of the total population, on average, claimed to listen to radio online. The figure was highest in France, with 37 per cent, followed by Germany (34 per cent) and the UK (33 per cent). In the UK, 20 per cent of people claimed to be listening to less radio since getting access to the internet, but 35 per cent had tried audio downloads (music tracks and podcasts). Overall, the UK ranked fifth in terms of listening to radio, at 2.9 hours per person per day. It has the fourth largest radio market, with $1.82 billion ($29.40 per head), equivalent to around 5 per cent of world radio revenue.

Recorded music sales grew by over 20 per cent year-on-year in all the countries surveyed except France and Italy. Mobile music downloads now account for over half of all recorded digital music revenue in France and Italy and 90 per cent in Japan, compared with 29 per cent in the UK. Digital music makes up 8 per cent of the UK’s total music sales market.

The Government believes that the UK can lead the world in setting a commercially viable regulatory framework for online music, video games and other creative industries. Culture Secretary Andy Burnham recently chaired a forum in Liverpool of 22 creative industry ‘ambassadors’, ahead of a Davos-style summit of global creative industries planned in the UK later this year. The summit is a central plank in the Government’s support for a sector that has grown significantly in the past decade and one it believes will make a crucial contribution to the “new global economy” that will emerge after the recession, according to Burnham.


Rail enhancements set to improve capital’s connections
Work will commence in 2012 on a $75.6 million scheme to create an enhanced freight route through north London. A major element of the North London Route Improvement Plan will see the line to Camden Road doubled in size from two tracks to four, allowing freight to grow alongside passenger services. Secretary of State for Transport Geoff Hoon said: “We are increasing the capacity of this line because we want to make it easier for companies to transport goods across the country by rail, which will ultimately mean there are fewer trucks and lorries on Britain’s roads.” The project, which also includes improvements to signalling and track layout, will begin after the London Olympics and will be completed in 2014.

The North London Line is a vital cross-London trunk route for freight, connecting North Thameside, the Great Western, West Coast and Great Eastern main lines and routes south of the River Thames. It is also the primary route for maritime traffic between the Port of Felixstowe and the Midlands, North West and Scotland, as well as for aggregate traffic originating in the Mendips destined for North Thameside and Essex. There is some Channel Tunnel traffic on the route, and in 2011 London Gateway port will come on stream, creating a need for additional freight paths.

Energy initiatives look to secure sustainable future
A group of British and French firms have joined forces to build what could become the first of a series of new-generation nuclear reactors in the UK. French nuclear firm Areva, engineering giant Rolls-Royce and construction firm Balfour Beatty will together engineer and construct new plants in the UK. Areva is already working closely with energy companies E.ON of Germany and EDF of France. Both these companies are expected to participate in the new-build construction programme planned for the UK’s nuclear industry. The revival of the industry is the Government’s response to concerns about predicted energy shortages, as well as part of its commitment to reduce carbon dioxide emissions.

Areva is also part of private consortium Nuclear Management Partners, which has taken over the management of the Sellafield nuclear plant in Cumbria. Luc Oursel, president and chief executive of Areva, said that nuclear new-build would “foster new jobs and significantly enhance skills and capabilities in UK manufacturing and construction”. Mike O’Brien, the energy and climate change minister, added that the latest agreement would “provide up to 15,000 British manufacturing and construction jobs for 25 years”.

Sellafield nuclear power station, North West England.
Picture courtesy of Dr Jeremy Burgess / Science Photo Library

The Department of Energy and Climate Change (DECC) has made an additional $16.8 million available for industry, businesses and community organisations in England to help towards the cost of installing biomass-fuelled heating and combined heat and power projects, including anaerobic digesters. Grants of up to $700,000 are on offer in the latest round of the Bio-energy Capital Grants scheme, to pay for up to 40 per cent of the difference in cost between a biomass boiler and its fossil fuel alternative. Some $77 million has been allocated through previous rounds of the scheme to help set up biomass power stations, biomass-fuelled combined heat and power plants and biomass heating systems. The scheme is open to new applications until at least 30 April 2009.

The DECC has granted approval for the construction of the world’s second largest offshore wind farm off the coast of North Wales. Gwynt y Môr Offshore Wind Farm, combined with three other nearby offshore facilities, will provide enough electricity to power the equivalent of 680,000 homes. The 750MW development by Npower Renewables Ltd will comprise up to 250 turbines and will lie eight miles off the coast, ten miles from Llandudno and 11 miles from the Wirral. A spokesperson for the British Wind Energy Association said: “Gwynt y Môr is a landmark project both for Wales and the UK as a whole. It brings the total of offshore projects with planning approval to 4.5GW, solidifying the UK’s position as a leader in offshore wind energy. It will also set us well on our way towards reaching our 2020 renewable energy targets.”

A new facility to create sustainable clean-energy developments such as carbon capture and offshore power has been established in Scotland. The Scottish European Green Energy Centre, based in Aberdeen, will work with universities, science facilities and the commercial sector to “internationalise, complement and add value to” renewable power projects already being carried out. In particular, the base will work to raise the importance of marine and tidal power projects, promote offshore wind deployment and examine smart distribution grids. It will also form partnerships on policy priorities of carbon capture and renewable heat. Recently, late in 2008, the Scottish Government announced that it would carry out a study into the potential of the country’s offshore wind power sector.

A $6.3 million research project to boost the efficiency of environmentally-friendly petrol and diesel is being carried out by St Andrews-based Sasol Technology UK. The company, whose parent is South African, will examine ways to improve the catalyst performance of fuels made from crude oil alternatives. The four-year project, which has received a $980,000 grant from Scottish Enterprise, will also look at how nanotechnology can manipulate the structure of materials in order to reduce the levels of sulphur in emissions. Bob Tooze, MD of Sasol, commented: “This opportunity allows us to create high-quality jobs and a centre of excellence here in Scotland, the developments from which could have a global impact.” Earlier this year, Scottish Enterprise revealed that companies invested more than £100 million in R&D in the first half of 2008. Projects included Ineos Refining’s attempts to create biodiesel through hydrogenation and work to increase clean energy technologies conducted by Doosan Babcock.
 

Bristol is named European City of the Year

Temple Quay offices, Bristol

Bristol in South West England has been named European City of the Year in the annual awards of the Academy of Urbanism, a think tank whose 100 members include industry-leading architects, planners, engineers, developers and designers. The city, which beat off competition from fellow finalists Manchester and Newcastle, was singled out for its strong city-region economy, including a dynamic business sector and a skilled workforce; a distinctive sense of place and history; superb quality of life and a vibrant culture; its green credentials, including quality open space and a base for environmental organisations such as the Soil Association, Sustrans and the Environment Agency; and a focus on mixed-use developments, including sustainable transport, as well as good transport links. Chris Balch, one of the panel that assessed the finalists, said: “Bristol is a vibrant and cosmopolitan European city – its international profile reflects a rich fusion of cultural heritage, surrounding natural beauty and a bustling mix of communities. Importantly, Bristol’s residents feel relatively safe by comparison with other cities.” Other winners in the Urbanism Awards 2009 were Richmond, North Yorkshire, which was named Great Town; the Jewellery Quarter, Birmingham (Great Neighbourhood); Skipton High Street, North Yorkshire (Great Street); and Oxford Castle, Oxford (Great Place). Back in Bristol, meanwhile, one of the city’s biggest employers has unveiled plans to build a new engineering and technology campus, with the help of local colleges. Aerospace giant Airbus – which employs 5,000 people at its plant in Filton – is planning to use 17 acres of its extensive site around Pegasus House to set up the new campus.

Regional news
The European Parliament has agreed an indefinite opt-out that will allow the UK to continue its use of the mile to measure road traffic distances, the pint for draught beer, cider and bottled milk, and the troy ounce for precious metals. The UK government claimed the decision as a victory, after it opposed European legislation that would have required the UK to sell beer in litres and to measure roads in kilometres. It also secured the future use of imperial units for all other uses, provided they are used alongside metric equivalents in the form of dual labelling. Secretary of State for Innovation, Universities and Skills, John Denham, whose department is responsible for weights and measures, said: “People in Britain like their pint and their mile. They should be able to use the measures they are most familiar with, and now they can be sure that they will continue to do so.”

A new innovation centre that will support start-up and growing technology, biotech and other innovative companies opened in December in Abingdon, Oxfordshire in South East England, to coincide with Global Business Incubation Day. Business park developer MEPC Milton Park and innovation centres operator Oxford Innovation are behind the new centre, Number 99 Milton Park, which will house up to 60 companies. Tenants will benefit from funding assistance, networking events and mentoring from the two firms.

The Investment Dar Company (TID) of Kuwait has acquired a 40 per cent stake in Oxfordshire-based Prodrive, one of the world’s leading motorsport and automotive technology businesses. “This investment follows a year of planning, during which time we have identified a number of opportunities to expand our motorsport and road car activities, said Prodrive chairman David Richards. TID and Prodrive have collaborated in the past on a number of projects, including the acquisition of Aston Martin from Ford. Prodrive runs motorsport programmes for Aston Martin and Subaru, and also works with vehicle manufacturers to develop new technology for the road. The company has an annual turnover of $140 million and employs 1,000 people at bases in Europe, Australia and Asia-Pacific.

Malaysian airline operator AirAsia X is to launch the first low-cost, non-stop flights between London and Kuala Lumpur from Stansted Airport. The new service will also offer the first low-cost air link to Australia from the UK. Tickets will be priced at $140 each way between Stansted and the Malaysian capital. “The new service, with low-cost connections across Asia and to Australia, is certain to be extremely popular with business and leisure passengers seeking affordable long-haul travel options,” said Nick Barton, Stansted’s commercial and development director. Azran Osman Rani, CEO of AirAsia X, added: “The London route is a significant achievement for us, allowing those who have always wanted to travel between Europe and ASEAN to achieve their dream, at an affordable price. We are looking to expand from five flights per week to a daily service in the near future.”

UK company Pelikon, a world leader in the development of printed segmented electroluminescence (pSEL) flexible display technology, is to be acquired by Multi-Fineline Electronix, Inc (MFLEX) of the US. MFLEX, a leading provider of flexible printed circuit and value-added component assembly solutions, has operations in Anaheim, California and Jiangsu province in China. Pelikon’s R&D base is located in Cambridge, Eastern England, while its head office is in Cardiff, Wales. The company’s technology is used to create reconfigurable, or ‘morphing’, keypads that provide tactile feedback to users of products such as smart mobile devices, home appliances and control panels, depending on the application in use. Michael Powell, Pelikon’s CEO, said: “By joining forces with MFLEX, Pelikon technology helps gain access to MFLEX’s strong customer base of the leading portable electronic device OEMs. Our technology is proven, is easily scalable and is an extension of current MFLEX capabilities and processes.”

The Yorkshire city of Sheffield, with the help of development company Creativesheffield, has launched the Sheffield China Business Network, designed to help Chinese companies looking for investment and trade opportunities in the region. The network, backed by the city’s two universities and a number of firms from the public and private sectors, will address issues such as differing business cultures and fluctuating exchange rates that tend to hamper inward investment. “It is vital that Sheffield companies engage with this dynamic Chinese market to ensure our city continues to thrive and remains competitive,” said city councillor Sylvia Anginotti. The next event for the Sheffield China Business Network will take place on 26 January, the Chinese New Year.

WANdisco, a California-based provider of distributed software development solutions, has moved its European headquarters from London to Sheffield in Yorkshire and Humber, with the help of Creativesheffield’s Business Investment team. The company chose to make the move because of the competition for specialised jobs in London. Other benefits included the number of graduates turned out by the city’s two universities every year and its “amazing green spaces”, said the firm. WANdisco has provided software to a number of Fortune Global 1000 companies, including Honda and Motorola.

A $44.8 million link road in the Aire Valley area of Leeds, Yorkshire and Humber is set to bring new inward investment possibilities, opening up 250 hectares of land and providing opportunities for local businesses. The East Leeds Link Road will connect the area with the national motorway network. “Aire Valley Leeds promises to lead the city’s economic development over the next ten years with a million acres of employment space creating up to 27,000 jobs,” said Andrew Carter, leader of Leeds city council. Aire Valley Leeds is already home to around 420 businesses employing more than 15,000 people.

The University of Liverpool in North West England is to become a key centre for research into medicines for epilepsy and cancer. The university’s Clinical Trials Research Centre has been selected as one of seven sites responsible for developing clinical trial methodology, as part of a scheme run by the Medical Research Council and National Institute of Health Research. Staff from Lancaster and Bangor universities will form part of the new Northwest Hub for Trial Methodology Research, which will be based in Liverpool. Its work will include research into the design and analysis of clinical trials, both early and late phase, focusing on medicine for children, drug safety and treatments for cancer and epilepsy. Merseyside is home to several other research centres, including the Liverpool School of Tropical Medicine and the National Biomanufacturing Centre in Speke.

Liverpool Science Park is looking for companies to rent space in a second-phase $12.6 million innovation centre that will open in March. The iC2 facility will enable companies to tap into university and specialist skills in the city. It will provide 40,000 sq ft of office and laboratory-compatible space in addition to the 36,000 sq ft contained in its first phase. Launched in 2006, the first phase is currently 87 per cent full. Elsewhere, more than 50,000 sq ft of warehouse space is available at Quayside Point, one of Liverpool’s most sought-after locations. The space, which can be split into two separate units and comes with a 1.5-acre yard, is situated one mile from the city centre, next to the waterfront and major arterial routes. Other accommodation is available in Fox Street in Everton, further from the city centre.
 

Transitive Corporation, a high-tech company founded at the University of Manchester, is to be acquired by global IT systems giant IBM. The company grew out of a 1990s academic research project at the university’s School of Computer Science, which resulted in the development of technology that allows applications to run on multiple operating systems. The company has gone on to establish a blue-chip client base that includes both Apple and IBM, and has gained more than 70 patents worldwide. Transitive Corporation is now headquartered in Los Gatos, California, but has retained its R&D base in North West England. Its growth was helped by backing from the Manchester Technology Fund, which supports companies formed following successful research work at the university.

The Northwest Regional Development Agency (NWDA) has provided $560,000 of funding for skills training in the region’s Advanced Flexible Materials (AFM) sector. The North West has a high concentration of AFM companies and good prospects for growth. AFM materials are widely viewed as a ‘platform technology’ – a base upon which other important clusters such as aerospace, automotive, chemicals, construction, biomedical, environmental technology, maritime and sport depend. The new project will concentrate on developing skills in two key areas, new product development and outsourcing. Working with partners at NWtexnet, the regional cluster organisation for the AFM sector, the NWDA funding will provide training modules, train trainers and pilot the scheme.
 

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