Advanced Research and Invention Agency Bill (First sitting)

Dawn Butler Excerpts

Wednesday 14th April 2021 Public Bill Committees

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Q It is a pleasure to serve under your leadership, Ms McVey. Good morning to both of you, and thank you for your presentations. I truly believe that ARIA will significantly add to the research and innovation landscape, in an area where we perhaps have not done that before. That does beg the question of where those visionary ideas would have gone up until this point.

The question that I would like to ask is, what role do you believe that ARIA and UKRI have in ensuring that ARIA-funded research becomes a tangible service or product and actually supports the UK economy? If we are investing £800 million, we need to make sure that there is a benefit. I fully accept the high-risk, high-reward model—I think that is an important part of it—but we need to make sure that we support that innovation and that research along the technology-readiness scale to make sure that it turns into something tangible that adds to our overall wealth. How do you see that role playing out?

Professor Leyser: To me, a key question in our R&D system altogether is connectivity. We have a spectacular international reputation for the quality of our R&D base right across the disciplines and in both the public and the private sectors, and we have some fantastic innovative companies creating extraordinary products and services for the UK. However, there is an acknowledged weakness in our system in the middle, so to speak, which is sometimes referred to as the valley of death. There is a lot of analysis as to what is going on there. It is partly to do with getting the right pathway of funding that supports activity across that gap.

I personally think that a bigger problem is our relatively balkanised R&D system. I think that we need to focus very hard on building much higher-quality connectivity and networking, right across the system and across that gap. We tend to think of this as a very linear, translational process, and it does not work that way. It is about joining up all the parts in a way that information, ideas, skills, know-how and, crucially, people—all those things are carried best by people—flow to and fro across that system.

One of the major priorities for UKRI is to consider the dynamic career pathways that people need to follow to connect that system up better and to support researchers in different parts of the system moving to other parts of the system—so from academia into industry and, crucially, from industry back into academia, which our current incentive structures in academia do not adequately support.

I think that that “bridging the valley of death” part is a key role for UKRI. That is exactly what we can do, because we bridge all the sectors and we have some levers on a lot of those incentives that are currently driving balkanisation. If we add ARIA into that properly connected system, then the ideas and innovation that emerge from ARIA will feed into that system in an entirely productive and creative way.

It is not ARIA’s job to think about the system and to build bridges across the valley of death; its job is to push those transformative ideas to try to drive step changes in particular areas and technologies where the experts in ARIA think the best opportunities lie. If those seeds are sown on fertile ground, they will transform into that knowledge economy that I keep talking about. My job is to make sure that the ground is fertile.

[Dawn Butler (Brent Central) (Lab)]

Q Dame Ottoline, you said earlier that you expect a close working relationship with ARIA. What does that actually look like? Legislatively, what should that look like?

Professor Leyser: It is an interesting question as to the extent to which that needs to be written into legislation. In my experience, the kinds of relationship that one wants to have with key players across the system are not things for which you necessarily legislate. They are about maintaining open lines of communication and building high-quality personal relationships with different actors in the system. There are a lot of players in the R&D system. I spend a lot of my time talking to people who run other agencies—for example, in the charity sector and those who run R&D activities in businesses— connecting them up, understanding what people’s needs are, what the opportunities are and building the joined-up system I have talked of about before.

So I think the personal relationships are going to be almost as important as anything that one can write into legislation. None the less, possible tools for connection, such as seats on each other’s boards, are certainly worth considering, as is observer-type status, rather than formal status, given that high-quality boards tend to be small. Our board worked really well where people were not representative but bringing their skills and expertise round the table. One does not want to bog down the governance structures for a light, agile and out-there organisation with representative requirements. As I have said before, active and engaged communication is going to be essential for ARIA, because it needs to understand the breadth of opportunity in the system to work well. It will be in everybody’s interest for those activities to work well. Because of that, they will happen naturally, in the same way that I spend a lot of time talking with other funders of research and innovation already in the public and private sectors.

[Dawn Butler]

I agree with you that there needs to be a close working relationship. I do not think we can count on it happening naturally. I have two quick questions, if I may, Ms McVey?

[The Chair]

Dawn, I am mindful of time. We have seven or eight minutes. I have another three questions and Chi Onwurah to come back. Is it a quick one?

[Dawn Butler]

Q It was a quick one on why UKRI cannot access the innovators of tomorrow—the people coding at home. I did not understand what was stopping UKRI doing that?

Professor Leyser: At the moment, most of our funding opportunities require people to apply for a research grant. People coding at home have a hard time applying for research grants, because it is a system with financial checks and so on. Applying for a research grant is a non-trivial activity, whereas winning a research prize, where there is no application process and you just get on with it, is doable. We are very interested in that wider range of funding mechanisms and in how we can learn from the work of Nesta, and, in the future, the work of ARIA to reach a wider range of people. But at the moment, we work on a largely open-call process; it is really effective because it is completely open, but it none the less creates barriers for people who do not have the infrastructure and administrative support to help them submit those kinds of grant applications.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

Q It is a pleasure to serve under your chairmanship, Ms McVey. I thank both witnesses for their time, and Dame Ottoline for her evidence to the Science and Technology Committee, on which Ms Butler and I also serve.

Following on from Dame Ottoline’s answer to Ms Butler, obviously, the purpose is to expand ARIA to cover areas that are not already well covered, but it also seems to be to try to pick up the pace of research and innovation. We have seen that that is possible through crises such as coronavirus. Can you explain how the pace can be picked up by some of the things that you do at Nesta and whether that would carry across to what ARIA is going to do?

Tris Dyson: I think it helps to pick things, to say, “We want to achieve x within the next two or three years” and to give people a degree of certainty about what outcomes you are going to fund and why. It happens naturally, anyway. Coronavirus is a crisis that has created a rush for R&D. It has also shown, on the drug development or vaccine side, what a combination of funding and relatively agile thinking, including from regulators in conjunction, can do in order to improve outcomes and achieve things. A challenge prize creates that in a positive sense; it essentially says, “We are going to solve for x and award funding on that basis.” That helps speed things up.

Related to the previous question, with a grant model approach, you are funding inputs and costs primarily. People put in a proposal for half a million pounds and say, “We are going to do x and this is what the associated costs are going to be.” Inherently, your risk threshold is going to be different, because you are anticipating whether this an investment that means they are going to be able to spend that money well and achieve x. You are going to look at track records, their financial history and their institutional strengths. You are going to make a judgment on whether to fund A versus B. That lends itself more towards funding the usual suspects than an outcome-based model, where you say, “It is not important to us who solves for x as long as somebody does.” In reality, you tend to blend these models. It is not like there is a pure challenge prize model that does not involve other types of funding mechanisms as well.