Businesses participating in the low carbon vehicles innovation platform programme were asked to assess the benefits which could flow from the R&D projects supported. Over 90% said they had or expected to develop new products or technologies as a result of their projects.
Business benefits
The businesses cited a wide range of benefits which they expected to flow from the projects:
• improved turnover, profits and employment
•increases in the readiness of specific technologies to be implemented in their products and services
•better flow of knowledge between partners and along supply chains
•increased skills among their employees
Over 80% of the businesses believed the provision of funding had definitely been necessary for the projects to go ahead.
Economic benefits forecast
The report, carried out by PACEC, also included estimates of the economic benefits which might flow from the programme. The projects were assessed as having the potential to increase UK gross value added (GVA) by a massive £8.2bn over 10-15 years across all the partners. The median GVA projected within the projects was £14m compared with a median grant of £400k.
The projects were also assessed to have the potential to make a big reduction in the environmental impact of new vehicles over the next 10-15 years – with CO2 emissions reduced by around 20%.
These very encouraging results show the potential impact of the coordinated programme the Technology Strategy Board has been leading to strengthen the UK’s capability to build low carbon vehicles and the supply chain in the future. We have also been encouraged by recent decisions of global car manufacturers to build their low carbon vehicles in the UK and base associated R&D activity here.
Footnote: This report builds on an earlier study which looked at a wider group of collaborative R&D projects completed by the end of 2009, and found a typical return of £6.71 per pound of public money invested. This new study indicates even greater potential benefits from more recent projects in the context of the low carbon vehicles innovation platform.
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Great benefits forecast from low carbon vehicles projects
22 February 2013
A report by an independent economic consultancy has shown the potential of 60 collaborative R&D projects, supported by the Technology Strategy Board, to create future economic growth in the UK and to help reduce the amount of CO2 which UK vehicles will emit over the next 10-15 years.