1. Creating Value from Technology Professor Damien McDonnell OBE Chief Executive DDA Linking Defence and Security R&D to Innovation: the Challenge Ahead Brussels, Belgium. 19 November 2004

2. Summary What is the problem? We are enterprising, we have excellent scientists Weakness in Knowledge Engineering Processes Ensures we inhibit getting what we know to where we need to know it!

3. Why Innovate? If we always DO What we have always DONE We will always GET What we have GOT …… and others arent standing still ie.continue to lag behind in Productivity and Competitiveness

4. Defence invention, not UK innovation

5. Lambert Review The main challenge for the UK is not about how to increase the supply of commercial ideas from Universities into business. Instead, the question is about how to raise the overall level of demand by business for research from all sources.

6. Knowledge Integration (Conundrum!) To get what we know (often dont know what we know-Tacit Knowledge) To where we need to know it (often not aware of need) DDA FACILITATES PROCESS

7. Many Types Of Innovation Science Driven – Largely public funded/Linear Problem Driven – Existing knowledge solutions to existing markets Incremental Innovation – Year on year feature enhancement. Disruptive Innovation – Solid state displacing vacuum tubes Business Model Driven – Innovative retail via IT eg.eBay,

8. Intellectual Asset Management THE DDA KNOWLEDGE DRIVEN ENTERPRISE MODEL

9. Invention/Innovation Lifecycle

10. Market Pull not Technology Push

11. Encouraging Innovation University/PSRE Spin-outs University/ Industry Partnerships BICs and Science Parks-Business Clusters Open Innovation via Technology/Knowledge Brokers-Managed Serendipity –The DDA Approach

12. What is the DDA? Unique role within UK MOD-Wealth Creation New Government agency created in 1999 Network to promote, foster and facilitate cross fertilisation of technology between defence and civil sectors Three roles: Spin out defence technology to civil sector Spin in civil technology to defence Assist defence industrys diversification planning

13. National Coverage - Regional Focus

14. DDAs Capabilities

15. TDM Deal Making Network TDM Opportunity Network DDA Capabilities Physical Organisation DDA Director Technology Transfer N England 9 TDMs Synnova® 11 Consultants Scotland, N Ireland & Wales 10 TDMs Midlands & East England 9 TDMs S England 9 TDMs Financing & Venturing IP Knowledge Store Gap Closure Synnova® Deal Assistance Matched Need & Capability Needs & Market Trends Science Capabilities RDAs SMEs Corporations Synnova® Opportunity Development Functional Organisation

16. DDA has made over 7000 technology transfer contacts since establishment DDA has directly assisted some 3000 companies with advice, information or technology transfers Since establishment DDA has been responsible for brokering in excess of 200 spin-out contracts, with an income value of around £15m to Defence base DDA sales funnel currently records live work with 700 companies, with a total value of up to £50m, of which £11m of technology transfer bids have been made and await decisions Over 200 spin-in technology offerings made to MOD DDA Outputs (1) Technology Transfer

17. DDA Outputs(2) Diversification The DDA has instigated:- –Aberporth UAV project - to assist the Welsh Development Agency with the commercial development of Aberporth and Llanbedr Military Ranges. –Farnborough Enterprise Hub - With SE England Development Agency to harness large and small companies in the region to position the UK at the forefront of the aerospace industry building on the rich heritage and infrastructure of the area –West Freugh - exploring novel energy solutions as way to exploit military range –Barrow MTC - assisting BAE with case to maintain skills base as Astute class submarine work changes emphasis –Enabled Regional and SME input to National Defence Industry Technology Strategy (NDITS) –NDASP/NDITS follow- up through DDA work with ATSG

18. DDA Achievements Created a national network of Technology Brokers Best in class methodology - copied in the UK and demanded overseas Established a good reputation in this market Provides the only MOD linkage to the new UK Regional Development Agency/Devolved Administration economic structure and is strongly represented in all 12 of the UKs economic regional areas Strong links to public sector networks, EU, UK Government, regional/ national agencies & business support organisations Provides MODs only, established and networked organisation linking to UK Small and Medium Enterprises (SMEs) Attracted income from RDAs and others as gearing to MOD funds - RDAs contribute about 50% of DDA costs

19. Case study - High-tech pencils Improved optics design Reduced IR with cold mirror Solved paint blistering problem State-of-the art knowledge leading to innovation in a traditional sector

20. Case Study - Airport screening Passive millimetre wave technology Sees through clothing Emits no radiation Operates over wide area

21. Case Study - Flat Panel Speakers Licensing Agreement between MOD S&T and NXT to exploit the technology commercially

22. www.dda.gov.uk

23. Thank you