Advanced Research and Invention Agency Bill

Lord Rees of Ludlow Excerpts

2nd reading
Tuesday 2nd November 2021 Lords Chamber

[Lord Rees of Ludlow (CB)]

My Lords, there is surely general agreement of the worthwhileness of ARIA’s goals. What is less clear is whether the small, stand-alone administrative construct conceived in the Bill is optimal, or indeed necessary, for achieving these goals, especially given the multi-layered and complex structure for science governance that already exists.

Not long ago, we had the major reorganisation of science funding that led to UKRI, introducing a layer of administration above the established research councils, such as the MRC. We have also had Innovate UK, and this year two high-level advisory bodies have been set up to oversee all this, adding yet another layer to the hierarchy. Surely we should be cautious about establishing another entity before these changes are bedded in and prove their worth. As the Minister said, 50 times more funds are spent on existing institutions than are envisaged for ARIA. The priority should surely be to ensure the maximum efficiency and minimal bureaucratic problems in these other organisations.

Confidence and high morale drive creativity, innovation and risk-taking. This is true in blue-skies science and equally true in the often greater challenges of the development of new products or businesses. A motive for ARIA is the perception that existing institutions cannot offer this, but the best institutions still do—I am lucky to work in one. But even in these privileged environments, there are dark problems ahead. My younger colleagues seem even more preoccupied with grant cuts, proposal writing, job security and suchlike. Prospects of breakthroughs will plummet if such concerns prey unduly on the minds of even the best young researchers. Worse still, the profession will not then attract the most ambitious talent from the next generation, nor draw in foreign talents. Many of us worry that the UK’s traditional strengths are consequently in jeopardy.

However, these negative perceptions can be reversed. I will mention two specific gripes that can be addressed. The first is that bodies that allocate public funds focus on ever more detailed performance indicators to quantify the output. This has the best of intentions, but its actual consequences are often the reverse: to constrain long-term thinking and prevent even a minority from having the privilege of fully focusing on long-term problems. The second bugbear is the REF, which is not only burdensome for universities but offering perverse incentives to researchers that discourage risk-taking.

The difference in pay-off between the very best research and the merely good is, by any realistic measure, hundreds of per cent. What is crucial in giving taxpayers enhanced value for money is maximising the chance of the big breakthroughs by backing the judgment of those with the best credentials and supporting them appropriately. Research universities do this and should be cherished. They benefit the nation through direct knowledge transfer from their labs to industry and through the quality of the students they feed into all walks of life. Moreover, high-profile academics can seize on a promising idea from anywhere in the world and run with it. Let us not forget that, despite the UK’s strength, at least 90% of the best ideas come from the rest of the world.

Despite these strengths, our universities are not always the most propitious environments for projects that demand intense and sustained effort. Dedicated laboratories such as the LMB are, in some contexts, preferable. Indeed, our national strength in biomedical sciences stems from the existence of laboratories allowing full-time long-term research, which is getting ever harder in today’s universities. Moreover, UK government funding is massively supplemented by the Wellcome Trust, the cancer charities and a strong pharmaceutical industry. To ensure effective exploitation of new discoveries, research institutions must be complemented by organisations, whether in the public or private sector, that can offer adequate manufacturing capability when needed. This fortunate concatenation certainly proved its worth in the recent pandemic. Government and private laboratories are crucial in health, plant science and energy. We may need more of them, and also more innovative ways perhaps of ensuring that IP generated here is optimally exploited.

However, given this complex ecology, do we need an ARIA organisation to achieve ARIA’s aims? This does not seem clear. ARIA’s proponents think that UKRI’s bureaucratic features are chronic—that we must be fatalistic about this and offer a lucky few the chance to bypass it. Indeed, UKRI has a very broad mission and is working hard to reduce bureaucracy, but much of it is imposed by government regulations. Can the Minister tell us why there could not be within UKRI a separate fund for supporting some projects in the ARIA style via a ring-fenced part of its budget that was less constrained by Cabinet Office and Treasury controls, which slow things up and constrain experimentation in funding allocation mechanisms? Could the Industrial Strategy Challenge Fund, a pan-UKRI programme, also achieve some of ARIA’s goals if bureaucratic constraints on it were loosened?

Finally, retaining our scientific standing is crucial. The UK will decline economically unless it can ensure that some of the key creative ideas of the 21st century germinate here and, even more, are exploited here. Unless we get smarter, we will get poorer.