Creating Value from TechnologyProfessor Damien McDonnell OBEChief Executive DDA

Linking Defence and Security R&D to Innovation: the Challenge AheadBrussels, Belgium. 19 November 2004

Summary

What is the problem?We are enterprising, we have

excellent scientists

Weakness in KnowledgeEngineering ProcessesEnsures we inhibit getting what we know to where we need to know it!

Why Innovate?

“If we always DO What we have always DONE

We will always GET What we have GOT”

……and others aren’t standing still ie.continue to lag behind in

Productivity and Competitiveness

Defence invention, not UK innovation

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.

Knowledge Integration(Conundrum!)

To get what we know (often don’t know what we know-Tacit Knowledge)To where we need to know it (often not aware of need)

DDA FACILITATES PROCESS

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,

Intellectual Asset ManagementTHE DDA KNOWLEDGE DRIVEN ENTERPRISE MODEL

Invention/Innovation Lifecycle

Market Pull not Technology Push

Encouraging Innovation

• University/PSRE Spin-outs• University/ Industry Partnerships• BIC’s and Science Parks-Business

Clusters• Open Innovation via

Technology/Knowledge Brokers-Managed Serendipity

– The DDA Approach

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 industry’s diversification planning

National Coverage - Regional Focus

DDA’s Capabilities

TDM Deal Making Network

TDM Opportunity Network

DDA CapabilitiesPhysical Organisation

DDA DirectorTechnology Transfer

N England

9 TDM’s

Synnova®

11 Consultants

Scotland, N Ireland & Wales

10 TDM’s

Midlands & East England9 TDM’s

S England

9 TDM’s

Financing & Venturing

IPKnowledge

Store

Gap Closure

Synnova®Deal

Assistance

Matched Need & Capability

Needs & Market Trends

Science Capabilities

RDA’s

SME’s

Corporations

Synnova®Opportunity

Development

Functional Organisation

• 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

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

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 UK’s

economic regional areas

• Strong links to public sector networks, EU, UK Government,

regional/ national agencies & business support organisations

• Provides MOD’s only, established and networked

organisation linking to UK Small and Medium Enterprises

(SME’s)

• Attracted income from RDA’s and others as gearing to MOD

funds - RDA’s contribute about 50% of DDA costs

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

Case Study - Airport screening

• Passive millimetre wave technology

• “Sees through” clothing• Emits no radiation• Operates over wide area

Case Study - Flat Panel Speakers

Licensing Agreement between MOD S&T and NXT to exploit the

technology commercially

www.dda.gov.uk

Thank you