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NEWS


Action not words I


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t was entirely appropriate that UK business secretary Greg Clarke unveiled the UK government’s long-awaited White Paper on Industrial Strategy at the Francis Crick


Institute in London at the end of November. After all, life sciences came up as one of the four industrial sectors that the government will be focusing on through sector deals; the others being artificial intelligence, construction and automotive. Throughout the white paper there is a focus on clean growth and raising the UK’s productivity through investment in R&D. Clarke said: ’Traditionally, Westminster has


taken a “we know best” approach when it comes to policy-making; now, as part of our industrial strategy, the government will switch from “boss” to “business partner”….Our industrial strategy is not something that is done to business but something done with, and indeed by, industry.’ The white paper follows chancellor, Philip Hammond’s budget announcement to raise UK spending on R&D from 1.7% to 2.4% of national income by 2027. The government believes extra spending on R&D could result in around £80bn of additional investment in advanced technology in the next decade. From the life science perspective, the Association of the British Pharmaceutical Industry (ABPI welcomed the government’s roadmap for business. CEO Mike Thompson said: ‘The government’s industrial strategy is significantly important in providing a long- term strategic roadmap for UK business. As we navigate the challenges of leaving the European Union, it is important we continue to make the domestic landscape as attractive as possible. ‘Today’s announcement of major investment in


new R&D facilities by global pharmaceutical com- pany MSD is a vote of confidence in the strength of UK science and a signal of the Government’s ambition to compete on a global scale. ‘We now look forward to further detail on


the sector deals between the pharmaceutical industry and government on the back of Sir John Bell’s impressive Life Sciences Industrial Strategy. These deals are just the first steps but will be instrumental in securing the future strength of the UK life sciences industry, helping the UK economy prosper and allowing NHS patients to get better and faster access to world-class medicines discovered and developed here in Britain.’ While the announcement of investment in a London-based research centre by MSD, the name that Merck & Co operates under outside the US, is good news, it was rather tempered by the earlier announcement from Johnson &


Neil Eisberg | Editor


Johnson that it was pulling its plan for its first JLabs research centre outside North America, in the UK. The company’s next JLab will now be located in the Zhangjiang Hi-Tech Park, Shanghai, China; the first such facility in Asia. It will open in Q2 2019.


MSD’s announcement was also followed by


Germany’s Qiagen revealing that it is involved in establishing a genomic research centre in Manchester. Some observers believe that these announcement are not the last and that further inward investment in the life sciences sector will be forthcoming in the near future. The life sciences sector has taken another hit, this time not unexpected, as it was revealed that the European Medicines Agency will be moving to Amsterdam as a result of Brexit. For the chemical industry as a whole, this


strategy should be good news as without chemistry then most of these challenges are likely to die on their feet. The construction and automotive industries are key customers for chemicals. As Steve Elliott, CEO of the UK Chemical Industries Association, commented: ‘While it would have been nice to see more mention of the work of the chemical industry, I am encouraged that the five foundations of ideas, people, infrastructure, business environment and place plus the four grand challenges of artificial intelligence and data economy, future of mobility, clean growth and ageing society all demand chemical industry solutions.’ But good words need actions. Mark


Tighe, CEO of the R&D tax specialist Catax, commented that the UK government should stop tinkering around and make ‘more meaningful adjustments’ to R&D tax relief (see p5). He also criticised the focus on cutting-edge firms when there are plenty of other more traditional companies that could benefit. The Institute of Directors welcomed the


white paper as ‘big step’ but noted that there are ‘many miles left’ to go to turn it into a sustainable strategy. Director general Stephen Martin said this ‘could be the beginning of a bold, new approach to the economy, but only if what has been announced today is followed through. Not just in this parliament, but over many parliaments to come‘. As Carolyn Fairbairn, director general of the CBI, said: ‘the hard work starts now’, adding that this must be the start of ‘a strategic race, not a tactical sprint’.


© Society of Chemical Industry 2017 ISSN [print] 0009-3068. ISSN [online] 2047-6329 Views expressed in this issue do not necessarily reflect those of SCI or C&I


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