Our Sector Focus
ONS estimates from 2017 predict that the UK low-carbon economy will grow by an estimated 11% per year between 2020 and 2030 – four times faster than the rest of the economy.
To get to carbon neutrality a combination of approaches is needed covering all aspects of consumer life, business, agriculture, building, transport, as well as strong focus on renewable energy, cleaner fossil fuels and innovative energy management
New technological advancements in these areas are ever-changing, but often lack investment. Many of these low carbon solutions, while technically proven, will need to be scaled up to make them more economically viable.
Consequently, we have a broad view of businesses who have the capability of contributing to net zero carbon emissions. This could include investments in both upstream and downstream production and distribution of electrons, as well as businesses that have an innovative approach to a significant overall reduction in carbon emissions.
The UK’s legally binding target is to achieve net zero carbon by 2050 and the intent of many of the South West regions is to achieve net zero by 2030. To achieve this, much of how we live today will have to fundamentally change. This is driving a level of innovation and significant public and institutional support for that innovation.
Examples of Net Zero Carbon Regional Activity
- The South West Floating Offshore Wind Accelerator is being led by Wave Hub, the Cornwall Council-owned marine renewables research and technology organisation, in collaboration with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP), University of Plymouth, University of Exeter, the Offshore Renewable Energy (ORE) Catapult, A&P Group, Cornwall Council and Plymouth City Council
- University of Plymouth Marine Renewable Energy programme & Supergen Initiative (Sustainable PowER GENeration) is providing focused academic research and joint industry / academia research into key sector challenges such as bioenergy; energy networks; energy storage; fuel cells; hydrogen and other vectors
- Net Zero Exeter 2030 Plan: A Roadmap to Carbon Neutrality. A roadmap adopted by the council that will enable the City to get to net zero within 10 years. This is likely to ensure significant contracts to innovative small companies who are able to assist the city with the many changes & efficiency improvements required to make this transition.
“Breakthrough innovation is necessary – this is the single biggest business opportunity in human history.”
Dr. Jonathan Foley, Executive Director of Project Drawdown.
The rising cost of healthcare has been driving significant innovation and investment in the field of optimising healthcare, this is particularly evident in digitisation initiatives as well as innovation in biotech. There are strong initiatives in both these areas within the region but as yet a limited record of monetising those ventures.
In particular, there is an emerging group of opportunities coming out of the Exeter healthcare hub which combines, a strong and growing academic grouping within University of Exeter (biosciences, mathematics, computing, engineering and physics), a leading medical school at the University; a high level teaching hospital in the Royal Devon and Exeter NHS FT.
We are observing several patented technologies emerging from this hub. Primarily, emerging from original research offering licensing opportunities and / or spin-out potential. These range from novel pharmaceutical platforms for improving the efficiency and effectiveness of the drug discovery pipeline, to initiatives stemming from experimental medicine using novel plant extracts for uses in nutrition, human health and agritech. Equally important, digital healthcare continues to expand regionally and nationally, and with good access in the region to a capable data analysis workforce, we are observing a number of early-stage companies projecting high growth in the sector in the next few years through building recurring revenues.
Examples of Optimising Healthcare Regional Activity
Cornwall and Isles of Scilly has prioritised e-health & in March 2020 a further £4m in grants was provided to continue University of Plymouth’s support to businesses developing technology in this area. The aim is to create a sustainable ‘eHealth’ sector in the region that will continue to flourish long after the project is complete.
“As we look toward the future of healthcare, there are four industry-level changes that could disrupt healthcare value pools as they exist today: modernized transaction and data infrastructure; radically more efficient medical supply chain; faster, more effective therapy development; and new, personalized, and intuitive healthcare ecosystems.”
McKinsey &Co 2019
Data is the most important raw material of the twenty-first century. It is the new oil. It is easy to find staggering figures showing the growth in the amount of data being created and consumed. A favourite example is that the amount of data created over the course of the whole year 2017 was created in just a single day in 2020. The data universe this year is expected to be 44 zettabytes (1,000^7 bytes) & 175 zettabytes by 2025.
But data, like oil, cannot be used in its raw form. Most companies still do not use the data they collect to improve their ability to conduct their business. Data is a resource that is growing, flowing and changing shape every day and at pace. It cannot be easily tamed. Doing so requires the combination of science, technology, and creativity. Those that can use those three ingredients can create something truly transformational.
Entrepreneurs in the region are enthusiastically embracing the opportunities offered – in this area we are looking for Software as a Service (SaaS) companies with solid recurring revenue.
Examples of Regional Activity
The Best Tech in the West Growth Programme brings together a cohort of emerging high potential tech companies, giving them free business support and connecting them with business and funding specialists and investors. The programme helps showcase and support up to 30 high potential companies in the tech sector each year across the South West.
“The South West is a global leader in areas critical to the future well-being not just of the economy but the planet itself. We are at the forefront of research and development in climate science, marine technology, environmental science, healthtech, agri-tech and aeronautical engineering. Technology is fundamental to each of these, and their ability to innovate, find solutions and bring prosperity. Tech in the west is driving forwards at a relentless pace.”
Toby Parkins, Chairman Tech SouthWest