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Proposals to ensure British manufacturing remains competitive

TECHNOLOGY STRATEGY BOARD News Release issued by The Government News Network on 8 May 2008

ADDING VALUE AND INNOVATING - TECHNOLOGY STRATEGY BOARD OUTLINES ITS PROPOSALS TO ENSURE BRITISH MANUFACTURING REMAINS COMPETITIVE

* Investment in innovation required if the UK is to remain one of the world's leading manufacturing nations.
* Technology Strategy Board to invest in UK manufacturing companies to help them maintain and develop their international competitiveness.

UK businesses must respond to the challenges facing the manufacturing sector from global competition by accelerating its move towards high value products, processes and services.

This was the message from the Technology Strategy Board today as it outlined its proposals to invest in the development of the UK's manufacturing industry. At the launch of its three-year strategic plan in London, the Technology Strategy Board today set out its proposals for UK industry to respond to the challenges brought about by the lowering of economic barriers to trade, the reduction in transport costs, the effect of communications technology - and the gravitation of manufacturing to countries of lowest overall cost.

Speaking at today's launch, the Technology Strategy Board's lead technologist for advanced manufacturing, Peter Flinn, said: "Manufacturing in comparatively high wage economies such as the UK, has had to change radically to remain globally competitive. Rapid change will continue for the foreseeable future and the continuing development path for manufacturing in the UK is one where its composition will continue to move away from the traditional areas towards high-value, knowledge-intensive goods. The emphasis of activity will not just be on production, but will embrace provision of lifetime service, around a manufactured product."

In its strategy paper High Value Manufacturing 2008 - 2011, the Technology Strategy Board explains that the challenge for UK manufacturers is to remain competitive in this changing environment, which in turn translates into being continually innovative. Against this background, the Technology Strategy Board's broad aim is to invest in UK manufacturing companies to maintain and develop their international competitiveness. This aim will be achieved by focusing on innovation in four broad areas, that may be regarded as the four pillars of high value manufacturing:

- Products
- Processes
- Service Systems
- Value Systems

The key recommendations of the strategy document are that the Technology Strategy Board should, over the period 2008 - 2011, invest in the development of UK manufacturing industry by:

- Running broadly-based collaborative research & development programmes, as well as scoping studies, proof-of-concept and demonstration projects, covering a wide range of industries;
- Investing in knowledge transfer particularly through engagement with business and the science base;
- Supporting skills development;
- Promoting international engagement by investing in scoping studies which identify issues and barriers to the global success of UK manufacturing

Peter Flinn added: "The overall aim is for the Technology Strategy Board to invest in the development of the UK to maintain its place as one of the world's leading manufacturing locations. The UK has a broad range of world-class manufacturing companies, both small and large, and has demonstrated how a nation can evolve from a traditional manufacturing base by applying modern manufacturing philosophies and by applying technology. We want to present the UK as a country where high value manufacturing can prosper."

Notes to Editors

1. The Technology Strategy Board's strategy for High Value Manufacturing was announced on 8 May 2008, coinciding with the launch of the Board's strategic plan for the next three years (Connect and Catalyse: A strategy for business innovation, 2008-2011). Please visit http://www.innovateuk.org for further information.

2. The Technology Strategy Board is a business-led executive non-departmental public body, established by the government. Its mission is to promote and support research into, and development and exploitation of, technology and innovation for the benefit of UK business, in order to increase economic growth and improve the quality of life. It is sponsored by the Department for Innovation, Universities and Skills (DIUS). For further information please visit http://www.innovateuk.org.

3. Manufacturing globally is a key provider of wealth and employment, accounting for $4.4 trillion of value-added world-wide. Using the conventional international definition of manufacturing, the United Kingdom is the sixth largest manufacturer by Gross Value Added (GVA) in the world and has an industry which accounts for 14% - 15% of Gross Domestic product (GDP) and 50% - 55% of exports, as well as employing 3 million people. A wider definition, including industrial services, construction and oil & gas, results in a GDP contribution closer to 27%. Manufacturing is also one of the primary mechanisms for realising wealth from new technologies and is therefore critical to the UK.

Issued by
Technology Strategy Board
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