Photonics Industry

Lord Johnson of Marylebone Excerpts

Wednesday 25th January 2017 Westminster Hall

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I start by thanking fellow Members, including the hon. and learned Member for Edinburgh South West (Joanna Cherry), and the hon. Members for Glasgow North (Patrick Grady) and for Strangford (Jim Shannon), for their passion for this under-appreciated sector. In particular, I thank the hon. Member for Glasgow North West (Carol Monaghan) for calling the debate. As she mentioned, it is particularly timely, given the launch of the Government’s industrial strategy Green Paper by the Prime Minister earlier this week. I congratulate her on her initiative in setting up the first all-party group on this exciting sector.

Too often, the photonics sector is unfairly and unwisely overlooked. We have heard this morning that it is a fascinating field and a great example of the types of sector that we are focusing on in our industrial strategy. It also makes a great and tangible contribution to all parts of the United Kingdom, including Scotland and Northern Ireland. As an enabling technology, it underpins a wide range of sectors and applications, including aerospace, eye surgery, LED lighting, counterfeit detecting and all the other important examples that the hon. Lady gave. There are more than 1,500 photonics manufacturing companies in the UK, together employing more than 70,000 people. They generate an economic output of £10.5 billion. Our industrial strategy looks to build on that kind of success, further strengthening our science and research base while helping to bring new goods and services to the market more simply and more rapidly.

The photonics industry has been built on the UK’s outstanding expertise. The hon. and learned Member for Edinburgh South West mentioned that it was particularly evident in industry-facing institutions such as Heriot-Watt. The Engineering and Physical Sciences Research Council maintains a significant portfolio of photonics research spanning across multiple themes such as ICT, physical sciences and manufacturing. The total portfolio exceeds £170 million in value, and its significant investments include £10.2 million in the national hub in high value photonic manufacturing at the University of Southampton; £7.2 million awarded to University College London for the photonics systems development project; £5.6 million to the University of Sheffield to research semiconductor quantum photonics; and £4.9 million to Heriot-Watt University in the hon. Lady’s constituency for its industrial doctorate centre on optics and photonics technologies.

[Joanna Cherry]

I thank the Minister for making an interesting and detailed speech and talking about the success of the university sector, particularly Heriot-Watt in my constituency. However, he will be aware that academics in centres such as the institute in my constituency are worried as a result of the Brexit vote about two things: funding and the international pool of academic and postgraduate talent on which they draw. They are looking for assurance beyond 2020 that the sources of funding and international brain power will not be lost to them.

[Joseph Johnson]

We are sensitive to such concerns, which is why the Prime Minister in her speech a week last Monday made clear statements as to her objectives for our Brexit negotiations. She detailed the importance that she puts on continued collaboration with our European research partners, and on continued access to the brightest and the best—the people who make such a difference to the success of our scientific endeavour in this country. As she underscored in her powerful speech, we are leaving the European Union, but we are not leaving Europe and we remain an outward-looking and globally focused country committed to being the global go-to centre for science and research.

The Government recognise the importance of research to the UK, which is why, at the spending review in 2015—the spending review before last—we protected the science resource budget in real terms at its 2015-16 level of £4.7 billion for the rest of this Parliament, and pledged to increase the science capital budget to £1.1 billion in 2015-16, which will rise with inflation to a total of £6.9 billion over the period 2015-21. At this year’s autumn statement we made the significant announcement that we would make an additional investment in research and development of £2 billion a year by 2020-21. As I have been at pains to say on many occasions, that is the biggest single increase in investment in R and D in this country since 1979.

[Carol Monaghan]

The funding is very welcome and much needed, but we also need certainty over what people can do now and how able they will be to travel in future.

[Joseph Johnson]

We certainly recognise that concern. That is why, to refer back to the Prime Minister’s speech a week last Monday, she again repeated her desire to be able to guarantee as quickly as possible the rights of EU nationals residing in the UK. If other countries across the European Union are able to offer the same assurances to our nationals living in their countries, we will be able to put those uncertainties to rest.

As I have mentioned, it is important to ensure that the excellent research carried out in the UK can be successfully commercialised where appropriate. This is why we provide support to that effect through Innovate UK. Photonics is one of Innovate UK’s enabling technology areas. Companies can apply for funding for photonics projects in all the so-called emerging and enabling technology calls, as well as calls related to the application of photonics in healthcare, manufacturing and elsewhere. Over the past six years, typical spend has been in the range of £5 million to £10 million per annum, with most funding going to SMEs working in collaboration with research organisations and larger companies. More than £3 million has already been invested in projects in the Glasgow-based firm, M Squared Lasers, since 2008, helping the company to reach an annual turnover that now exceeds £10 million.

Up to £500,000 has been invested in innovative research and development projects through the north Wales photonics launchpad. At the Fraunhofer Centre for Applied Photonics in Glasgow, Innovate UK has funded 20 projects for the centre to collaborate with UK companies.

We have an edge in photonics, but we are not taking that for granted. Our economy has great strengths, but while many people, places and businesses are thriving, opportunities and growth are still spread too unevenly around the country. That is why it is so important that a modern industrial strategy delivers a high-skilled, competitive economy that spreads benefits and opportunities to people throughout the UK.

The Green Paper that we published on Monday marks the beginning of a dialogue to develop a strategy that will also ensure the UK remains one of the best places in the world to innovate, do business and create jobs. We acknowledge the challenges we face. Growth has not been even. Prospects and opportunities for businesses and people vary too much. We have world class businesses and sectors, but some are not yet achieving their potential. Now is the time to face up to the challenges with an industrial strategy that ensures we have a resilient economy for the future.

Question put and agreed to.