Tag Archives: economic benefits

Scotland’s space sector: a launchpad for economic growth

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Discovery space shuttle on launchpad

By Steven McGinty

In March, the UK Space Agency announced it had awarded £50,000 to the University of Strathclyde’s Scottish Centre for Satellite Applications (SoXSA) for its work with Glasgow City Council to attract entrepreneurs and start-ups to Glasgow’s innovation hub, Tontine.

Six companies will benefit from the support, which includes space industry specific business support, dedicated workshops and expertise, and administration and accommodation costs for two years.

The award is another sign of faith in Scotland’s burgeoning space industry, which has seen it become a global leader in the ‘New Space’ economy.

The development of New Space

The space industry, like many other technology fields, has been traditionally dominated by nation states, often in terms of national security.

But now, a new space industry is emerging, where private companies and entrepreneurs are developing innovative products and services in or for space. Reasons for this include reductions in funding to national space agencies, such as Donald Trump’s recent cuts to NASA, as well as the private sector’s success in innovation. For example, the company Space X has managed to launch rockets that had previously been into space – a practice which has been estimated to reduce the first stage of space flight from $60 million to $500,000.

Scotland’s role

Within a few miles of Glasgow’s city centre, a small number of research groups and private companies have gained international reputations for their work on space technologies.

For instance, Glasgow – a city more known for its heavy industries and shipbuilding – has found a niche in manufacturing low cost nanosatellites. This has led to Glasgow being crowned ‘Europe’s Satellite City’.

Glasgow’s first satellite company, Clydespace, has been tremendously successful over the past decade by developing CubeSats (a satellite the size of a wine bottle). These have been used in a range of missions, including UKube-1, the first mission to be commissioned by the UK Space Agency as a demonstrator for space technologies.

The city has also seen investment from Spire Global – a satellite powered data company headquartered in San Francisco. Spire’s satellites, which are used to gather data on weather, maritime, and aviation, were built by Clydespace. Peter Platzer, CEO of Spire, explains that:

“We have up there about 20 satellites, all exclusively built here in Glasgow.”

Mr Platzer highlights that Scotland’s confidence in Spire was one of the reasons that they opened their European office in Glasgow’s Skypark. The company received a £1.5m Scottish government grant through the agency Scottish Development International (SDI).

Scotland’s low cost base and universities with strong interests in engineering and space technologies were also highlighted as key selling points.

Young innovators have also sought to get involved in Scotland’s space sector. For example, Tom Walkinshaw, founded Alba Orbital from his bedroom when he was unable to secure a job in the space industry. His company provides PocketQube satellites (based on a design of one or more 5cm cubes) and now employs 10 skilled employees. Alba Orbital’s first satellite, Unicorn-1, is backed by the European Space Agency and is due for launch later in the year.

In academia, the University of Glasgow’s LISA Pathfinder team won the 2016 Sir Arthur Clarke Award for “Space Achievement in Academic Research or Study”. The award was given for the team’s work on developing the Optical Bench Interferometer (OBI) for the European Space Agency’s LISA Pathfinder spacecraft – a demonstrator aimed at measuring gravitational waves in space.

The future of Scotland’s space economy

A report by London Economics investigated the potential benefits of a spaceport in Scotland.

Prestwick Airport in South Ayrshire and Machrihanish, near Campbeltown, are currently competing to win a licence from the UK Government.

London Economics have set out three main advantages to having a local spaceport:

  • Spaceport operations – The activities associated with a spaceport will lead to the direct creation of jobs in commercial spaceflight or providing satellite launches, as well as indirect benefits for local suppliers.
  • Space tourism – Tourists visiting space stations or taken part in space travel are also likely to spend money in the surrounding areas and on other attractions.
  • Space-related education – Spending will increase on research and development due to the creation of a spaceport.

Tom Millar, managing director of DiscoverSpace UK, has also stated that sending small satellites into space would be a ‘viable revenue stream’. A local spaceport would reduce the costs for Scottish satellite companies as at the moment they currently have to ‘piggyback’ onto launches with larger satellites.

The report concludes by finding that a spaceport in Scotland would increase growth from 9% to 10% of the UK’s space economy in 2030.

The implications of Brexit

The results of the 2016 EU Referendum has caused uncertainty for the Scottish space sector. For example, many companies will be concerned for the rights of EU national employees, as well as their ability to recruit from this workforce in the future.

The Financial Times has also reported that changes in terms could keep UK companies out of lucrative European space contracts, such as the €10bn Galileo satellite navigation system. The European Commission are looking to change the terms of the Galileo project so that contracts can be cancelled if a company is not based in a member state. They also require companies to pay the costs of finding a replacement. If these terms are approved, it would effectively rule out UK-based companies bidding for EU projects, which would have a negative impact on the sector’s growth.

Final thoughts

Scotland’s space sector is estimated to be worth £134 million and accounts for 18% of all UK space industry jobs. Its success has been built on a combination of government support, talented entrepreneurs, and a supply of skilled engineers.

As the industry continues to grow, there will still be an important role for government, particularly in supporting innovation centres and granting licences for UK spaceports. The promotion of STEM (science, technology, engineering and maths) subjects will also be crucial, as we look to develop a new generation of space entrepreneurs to keep us ahead of this new industrial space race.

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The 5G arms race: the UK’s strategy to become a global leader in 5G technology

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By Steven McGinty

On 8 March, the UK Government published their strategy for developing 5G – the next generation of wireless communication technologies.

Released on the same day as the Spring Budget, the strategy builds on the government’s Digital Strategy and Industrial Strategy, and sets out the government’s ambition to become a global leader in 5G.

Accelerating the deployment of 5G networks, maximising the productivity and efficiency benefits to the UK from 5G, creating new opportunities for UK businesses, and encouraging inward investment, are the strategy’s main objectives.

If the UK makes progress in these areas, the strategy argues, 5G infrastructure has the potential to become an enabler of smart city technologies, such as autonomous vehicles and advanced manufacturing, and to support the expansion of the Internet of Things – the interconnection of people, places, and everyday objects.

5G Innovation Network

Although the strategy highlights the enormous potential of 5G, it makes clear that 5G technologies are still in development, and that the majority of funding will need to come from the private sector.

To support the growth of a commercial market, the strategy explains, a new 5G trials and testbed programme will be introduced – through a national 5G Innovation Network – to coordinate the development of 5G services and applications. This programme will help government and private sector partners understand the economics of deploying 5G networks, ensuring that technologies can he delivered in a cost-effective way, and enabling best practice to be captured and knowledge disseminated.

The government is investing an initial £16m into the programme (involving partners such as UK Research and Innovation and the Government Digital Service), and has targeted a trial of end-to-end 5G (high speed connectivity without the need for intermediary services) by 2018. In February, Ericsson announced that they had a successful end-to-end 5G trial in Sweden, alongside partners SK Telecom Korea.

Improving regulations

To support the development of 5G, the strategy suggests that there may need to be regulatory changes, particularly in the planning system. As such, the government has committed to reviewing current regulations before the end of 2017, and then to conduct regular reviews, as partners learn more from their 5G trials.

Local connectivity plans

The strategy highlights the important role local regions play in the deployment of mobile technologies, and explains that the government will be consulting with councils on how planning policies can be used to provide high quality digital infrastructure.

However, it also suggests that there may be a case for introducing ‘local connectivity plans’, which would outline how local areas intend to meet their digital connectivity needs. Interestingly, the strategy highlights that evidence, such as local plans, may be taken into account when the government is making funding decisions for local infrastructure projects.

Coverage and capacity, infrastructure sharing, and spectrum

The strategy accepts that the move towards 5G won’t be as straightforward as the move from 3G to 4G. Instead, 5G technology will be developed alongside the expansion of the 4G network.

In addition, the government has accepted the recommendations of the National Infrastructure Commission (NIC)’s ‘Connected Future’ report, which states that unnecessary barriers to infrastructure sharing between telecommunications companies must be tackled. The strategy states that it will explore options for providing a clearer and more robust framework for sharing.

Increasing the available radio spectrum was also highlighted as key to developing 5G technology. The strategy notes that the government will work with Ofcom to review the spectrum licensing regime to help facilitate the development of 4G and 5G networks.

5G strategy’s reception

Natalie Trainor, technology projects expert at law firm Pinsent Masons, has welcomed the new 5G strategy, explaining that:

“…technology and major infrastructure projects will become much more interlinked in future and that the plans outlined can help the UK take forward the opportunities this will present.”

In particular, Ms Trainor sees the establishment of the Digital Infrastructure Officials Group – which will bring together senior staff from across departments – as a way of providing greater awareness and co-ordination of major public projects that involve digital infrastructure. Ms Trainor also hopes that the new group will encourage the Department for Transport and the Department for Culture, Media & Sport (DCMS) to work with industry to develop digital connectivity on the UK’s road and rail networks.

Professor Will Stewart, Vice President of the Institution of Engineering and Technology, similarly welcomes the new strategy but highlights that the funding announced will ‘not come anywhere close’ to the investment required to deliver 5G across the UK. In addition, he also makes it clear that coverage and regulatory change will be vital, stating that:

“The biggest challenge for government will be improving coverage for all, as 5G cannot transform what it doesn’t cover. And achieving universal coverage for the UK, outside high-capacity urban areas, will not be affordable or achievable without regulatory change.”

Former Ofcom director and author of The 5G Myth, Professor William Webb, has also applauded the government’s plans, even though he is an outspoken critic of the 5G industry. For Professor Webb, the strategy recognises that we are in the early stages of 5G technology, and that there is still a need to develop 4G networks.

Final thoughts

5G technology provides the UK with the opportunity to become a genuinely smart society. Yet, as the strategy acknowledges, 5G is still in its infancy and the idea of a 5G network across the UK is a long way down the road.

The new 5G strategy includes a number of positive steps, such as listening to the recommendations of the NIC report, and exploring the realities of deploying 5G networks. This cautious approach is unlikely to show any significant progress in the short term, but does provide a focal point for academia, government, and industry to rally around.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other smart city articles.

Gigabit cities: laying the foundations for the information society

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Man sitting at a desk, with stars and nebula's behind him

By Steven McGinty

According to the Foundation for Information Society Policy (FISP), an independent think tank, London’s poor broadband infrastructure will threaten the capital’s ability to compete with other global cities in the future.

David Brunnen, FISP member and an independent telecoms infrastructure expert, explains that although demand for broadband is growing rapidly, the capital still relies mostly on networks of copper wires, which Tech City have described as ‘not fit for purpose’.

The solution, the foundation advocates, is to create a new infrastructure agency, Digital for Londoners (DfL), to ensure that London becomes a ‘Gigabit City’ by 2020.

What are gigabit cities?

In simple terms, gigabit cites provide citizens, business and governments with access to gigabit internet services (1,000 megabits per second or higher). By replacing old copper cables for pure fibre infrastructure, cities can enable public services to take advantage of technology, support businesses to innovate, and improve the lives of citizens. As US President Barack Obama explains, ‘it’s like unleashing a tornado of innovation’.

In the UK, CityFibre, is the main provider of Gigabit Cities. Their network covers 40 cities, including Glasgow and Bristol, across major data centres and busy internet traffic points, and provides 260,000 businesses and 3.7 million homes with gigabit broadband.

On 22nd September 2016, Northampton became the latest UK gigabit city. In an agreement between CityFibre and dbfb, a Northampton-based business internet service provider, businesses will now receive internet speeds of up to 100 times faster than the UK’s average. Paul Griffiths, from Northamptonshire Chamber of Commerce, highlights that this investment will play an important role for start-up businesses competing globally.

The initiative will also help Northampton County Council achieve their target of making gigabit broadband available, countywide, by the end of 2017.

Chattanooga

In 2010, Chattanooga, Tennessee, became one of the first cities to make gigabit connectivity widely available. Its mayor, Andy Berke, has described its introduction as a significant source of the city’s economic renewal.

Gigabit broadband has allowed a tech industry to emerge from a city more commonly associated with heavy manufacturing. Tech companies and investment have been drawn by the ‘The Gig’ – the local name for the network – resulting in the conversion of former factory buildings into flats, open-space offices, restaurants and shops. In the past three years, the city’s unemployment rate has dropped from 7.8% to 4.1%. The mayor has also linked the city’s wage growth to jobs in the technology sector.

‘The Gig’ was funded by a combination of public and private investment. EPB, the city-owned utility company, borrowed $219 million and received a $111 million grant from the US Government. This government-led approach has given Chattanooga broadband speeds greater than Google Fibre, a major gigabit broadband provider. Wired magazine suggests that government involvement raises expectations, and encourages commercial providers to improve their infrastructure.

Stokab, Stockholm

The Stockholm city government have one of the oldest gigabit strategies, founding the private company, Stokab, to deploy and manage their city-wide fibre network in 1994. Stokab was created to help the city benefit from the new digital era by limiting multiple network deployments, and by stimulating the technology sector.  The end-to-end fibre broadband network serves 700 service provider businesses and connects 90% of residential premises.

The gigabit network has provided a wide variety of economic benefits, including:

  • becoming a catalyst for the technology sector (The Kista Science Park has over 1000 technology businesses, with 24,000 employees)
  • creating growth and jobs valued at €900 million
  • providing low cost broadband services to business – through increased competition – has resulted in an estimated €8.5 million worth of savings
  • increasing housing values by €200 million and rental values by €3.5 million per year

Digital inclusion

Although gigabit broadband could create limitless opportunities, it also has the potential to exacerbate existing inequalities. Citizens, and even small businesses, could lose out if they don’t have the skills or technologies to access the internet.

Salford Council realises the important role technology plays in creating vibrant communities. As part of their rollout of gigabit broadband services across social housing, the council are introducing a digital skills campaign to encourage more residents online. Volunteers are being recruited to assist neighbours who are less digitally savvy. As encouragement, they are being offered a free IPad and a free broadband service, if they train more than 20 people a year.

Final thoughts

To compete globally, cities will be looking to introduce gigabit broadband infrastructure. London, as a global technology hub and a key driver for growth across the UK, will need to invest in order to support businesses and meet the expectations of citizens. Government may have to provide greater leadership in order to incentivise private sector involvement. Equally, digital exclusion will need to be tackled, to ensure that everyone can participate in the information society.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other smart cities articles. 

What technology brings to health and social care: a case study of Calderdale and Idox

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By Steven McGinty

In the second of our articles on health and social care and technology, we‘re going to look at the advantages of using technology, as well as a case study of an innovative partnership between Calderdale Council and Idox.

The ‘Digital working, learning and information sharing’ strategy, developed in partnership with the adult social care sector, identifies three areas where technology would bring a number of benefits:

  • working directly with those who need care and their carers;
  • supporting the learning and professional development of staff;
  • organisational business support and information management systems.

The use of electronic notes, for instance, would be a simple step that would have a significant impact on homecare workers (highlighted in section 5 of the Burstow Commission report on the future of the home care workforce).  At the moment, care workers usually make handwritten notes and leave them in a book in someone’s home.  However, if care workers moved from handwritten notes to electronic notes, information could be shared more easily. This would mean that care managers and families would be able to monitor an individual’s care and conditions remotely.

Organisations have also seen the advantage of incorporating e-learning into staff development.  The Skills for Care ‘Digital capabilities in social care’ report found that 95% of organisations used e-learning courses to support staff development, particularly in administration-related areas, such as health and safety and fire training. For instance, instead of sending staff on full day training sessions, e-learning courses can be completed by staff in an hour, offering greater efficiency and flexibility.

However, the report also highlighted that social care related e-learning courses, which looked at issues such as dignity and respect, were of ‘variable quality’ and not able to compete with the experience of face-to-face and group learning. Therefore, it’s possible that an opportunity is being missed by education and training providers, as technology should be able to provide better solutions than the simple tick box exercises described in the report.

Interestingly, the report also suggests this might not be too far off, as one of the organisations revealed that they were looking at more interactive options and were currently working on a research project with a university in Greece, which focused on the idea of ‘gamification’.

One local authority that’s certainly tried to capitalise on the benefits of technology is Calderdale Council. The council has developed an innovative case management tool to support their day-to-day work, in areas such as child protection, looked after children, and fostering and adopting. Parveen Akhtar, Early Intervention Service Manager, at Calderdale Council explains that:

“The Child Social Care solution was created in partnership with schools, health and police. Providing an intuitive system to meet the requirements of front line social care practitioners, it enhances our ability to provide better services to families within our community.”

The Child Social Care solution creates a single view of a child through combining information from several sources into one record. This means that practitioners are able to create, access and share information easily and securely, supporting informed decisions and putting in place appropriate support for children and their families.

The system has a number of benefits and features, including:

  • improving multi-agency communication and response;
  • reducing the amount of time taken by practitioners to locate another agency involved in a child’s case;
  • enabling practitioners to access information remotely;
  • offering comprehensive performance and reporting tools for providing vital statistics;
  • providing the ability to monitor and track the progress that children and families are making.

Calderdale have teamed up with Idox, a specialist in providing technology, content and funding solutions to government, and are now offering their system to other local authorities. The partnership has already proven to be successful, with Calderdale and Idox providing their solution to councils in the Isles of Scilly and Leeds.

Over the coming years, health and social care will be facing ever greater demands with tighter budgets. For this reason, technology is going to be essential to support better outcomes and more efficient services.  It is therefore important that a strategic approach is taken concerning information technology, and that organisations look at its long term benefits, rather than the short term savings from cuts to investment.

The first article on health and social care and technology, “What’s preventing health and social care from going digital?”, can be found here.

Further reading:

 

Female entrepreneurship – making it happen!

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By Donna Gardiner

On Sunday 8th March, people around the globe will come together to celebrate the economic, social and political achievements of women as part of International Women’s Day. The day also presents an opportunity to call for greater gender equality.

One of the great success stories for women’s equality has been the increase in women’s employment rates over the past forty years. Indeed, women’s employment levels are now higher than at any other time since records began.

However, despite this great progress, rates of female entrepreneurship have not matched this pace. A recent report by the Ambassador for Women in Enterprise, Lorely Burt MP, notes that only one in five businesses in the UK are majority-owned by women, and that women are significantly less likely than men to start their own business.

The report looked at the ways in which the government could help to address the barriers faced by female entrepreneurs and increase the opportunities available to them. It makes a number of recommendations, in particular:

  • Making available support, including networking and finance, more accessible to women;
  • Being more inclusive in communications with potential female entrepreneurs;
  • Tackling unconscious basis in the presentation of services to women;
  • Making greater, and better, use of the Great Business website, particularly the section targeted at women.

As well as promoting greater equality and choice for women, the report argues that improving support for female entrepreneurs could have significant economic benefits. For example, it cites research by the Women’s Business Council, which estimates that, if women were setting up new businesses at the same rate as men, there would be one million more female entrepreneurs. Indeed, raising the level of women’s employment to the same as men’s could lift GDP by as much as 10% by 2030.

Signs of progress

There are some promising signs of progress. Since 2008, the proportion of Small Medium Enterprises (SMEs) run mainly by women has increased from 14% to 19%.

Recently there has also been an increased focus on broadening young women’s aspirations and understanding of career options while they are still in education, partially as a result of recommendations put forward by the Women’s Business Council in 2013.

In 2014, a follow-up report assessed the progress that had been made against these recommendations. Successful initiatives included a pilot project to help female students develop entrepreneurial skills, and use of the Speakers for Schools scheme to enable successful female entrepreneurs to discuss their experiences with pupils and act as positive role models. We also wrote last year about the importance for girls of having female role models within science and technology, when considering career choices.

The government has also stepped up its support for existing and new female entrepreneurs, recently announcing a £1million challenge fund to help women grow their business online, the introduction of Start Up Loans, the Enterprise Allowance and local growth hubs, and the provision of £1.6 million to support women entrepreneurs in rural areas.

Mentoring can help

Karren Brady, a top female entrepreneur, known for her role on the BBC’s The Apprentice, and as vice-chair of West Ham Football Club, is passionate about female entrepreneurs and SMEs. She suggests that “fear and a lack of confidence can stand in the way of women” and recommends that budding entrepreneurs should find a mentor to help guide them.

She is not the only one to recognise the benefits of mentors for women entrepreneurs.  The government recently announced additional funding for a series of ‘Meet a mentor’ events which are aimed solely at women.

The issue of female entrepreneurship has even found its way into popular women’s magazines such as Elle and Red, both of which have recently been promoting female entrepreneurship, through dedicated sections and discussions on business start ups and highlighting advice and guidance from strong female role models.

There are clearly many facets to tackling the low rates of female entrepreneurship. As well as ensuring that potential women entrepreneurs can access practical support and services, there is a need to tackle the underlying notion held by many that business is a ‘male activity’.

By doing so, women who want to run their own business will be better placed to obtain both the resources and the confidence required to “make it happen”.

Further reading

Whether you are interested in entrepreneurship or equalities, the Idox Information Service can help.

The Burt report: inclusive support for women in enterprise Department for Business, Innovation and Skills, 2015

Maximising women’s contribution to future economic growth: one year on Women’s Business Council, 2014

Realising the potential (under-representation of women in Scottish entrepreneurship), IN Holyrood, No 314 17 Mar 2014, pp73-74 (A49229)

Women and the economy: government action plan Government Equalities Office, 2013

Entrepreneurs: what can we learn from them? Inspiring female entrepreneurs Chartered Institute of Personnel and Development, 2013

Women in business: female entrepreneurship – creating growth and dispelling the myths Federation of Small Businesses, 2011

The (local) business of major sporting events

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Commonwealth Games building

© Copyright daniel0685 and licensed for reuse under a Creative Commons Licence

by Stacey Dingwall

With the closing ceremony complete, the Glasgow 2014 Commonwealth Games would appear to have been a resounding success, with multiple records being set on the track and tourists and locals alike praising the atmosphere that hosting the Games has brought to the city.

But what impact are the Games having away from the arenas? Alongside those relying on the public transport network to go about their daily routine, as well as travel to the events, the local business community has felt the direct impact of the Games arriving in the city.

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