Fifty-Sixth Report - Industrial Strategy Challenge Fund

The government's response addresses unrelated issues concerning the identification of clinically extremely vulnerable people and NHS data strategy, completely failing to address the recommendation for UKRI to re-examine its intellectual property approach for the Fund.

The government response discusses local variation in the Shielded Patient List and future analysis, which is unrelated to the recommendation about the UK's R&D spending target.

The government accepts the recommendation and commits to investigating the drivers behind regional disparity in the Fund's distribution, seeking to improve participation across the UK, and will write to the Committee by October 2021 detailing the inhibiting factors and steps to attract more interest.

The government's response provides only introductory text and lists relevant reports, failing to address the recommendation for the Department, HM Treasury, and UKRI to outline plans for speeding up approval times for challenges and projects.

The government disagrees with the specific recommendation but accepts the need to address the issues raised, stating that these will be considered and addressed as part of the forthcoming Spending Review 2021.

The government accepts the importance of demonstrating outcomes and impact for the Industrial Strategy Challenge Fund and commits to writing to the Committee by October 2021 to outline the expected short, medium, and long-term impact of existing challenges, focusing on jobs and economic benefits.

The government response does not address the committee's item regarding the objectives of the Industrial Strategy Challenge Fund, instead discussing the delivery of shielding support to clinically extremely vulnerable individuals.

The government accepts the recommendation, committing to review its current approach to intellectual property (IP) with UKRI, consider the committee's concerns, and report back by July 2021, to ensure the taxpayer benefits from commercially successful IP.

The government explicitly rejects the implied recommendation to aim above the 2.4% GDP target for R&D investment. They reaffirm their commitment to achieving the 2.4% target by 2027 through increased public investment and a forthcoming innovation strategy to leverage private sector funds.

The government disagrees with the recommendation to detail how and when funding will increase to meet the 2.4% R&D target, stating it has already committed to raising public investment and is developing an innovation strategy, with further plans to be set out in Spending Review 2021.

The government disagrees with the Committee's implied concern regarding the feasibility of the R&D spending target, stating its commitment to increasing R&D investment to 2.4% of GDP and outlining ongoing efforts, including a forthcoming innovation strategy, to achieve this goal.

The government accepts the need for a faster challenge approval process, committing to consider a more streamlined approach and simpler governance for future challenges. It will write to the Committee by October 2021 outlining plans to improve approval speed.

The government agrees to consider a more streamlined approach for selecting and approving challenges, with a simpler governance structure, for future challenge delivery. They also note established UKRI programmes improving project application and approval processes, and will update the Committee by October 2021 on plans to speed up approvals.

The government acknowledges the impact of long approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.

The government acknowledges the impact of lengthy approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.

The government agrees with the recommendation to address staffing capacity issues impacting bid approvals, aiming for an October 2021 implementation date. They will consider a streamlined approach for future challenges and existing UKRI improvement programmes are underway, with a commitment to update the Committee on progress by October 2021.

The government acknowledges the concern regarding SME engagement, stating UKRI is committed to increasing it. Lessons learned will inform the design of future Challenge-led funding, considering a more flexible approach to co-investment for SMEs, and the department will write to the Committee by October 2021 outlining how these learnings will be embedded.

The government agrees with the recommendation to increase SME engagement and will implement a more flexible approach to co-investment requirements for SMEs and emerging industries, outlining learnings by October 2021.

The government agrees to increase engagement with SMEs, noting that lessons from current challenges are informing future designs. This will include considering a more flexible approach to co-investment requirements for SMEs and they will write to the Committee by October 2021 to outline these learnings and their embedding into future funding.

The government agrees, committing to investigate the drivers of regional disparity in ISCF funding and to improve participation across all parts of the UK for future Challenge-led funding. They will publish a UK R&D Places Strategy and write to the Committee by October 2021 with details on regional participation and embedded learning.

The government acknowledges the importance of R&D funding for the levelling-up agenda and commits to investigating the drivers of regional disparity in funding distribution. It will work to improve participation for future Challenge-led funding, publish a UK R&D Places Strategy in 2021, and write to the Committee by October 2021 on how learnings will be embedded into future delivery.