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Evaluation of DTI support for collaborative R&D in the metal processing industry: evaluation report 19

URN No: 92/504

SUMMARY

Introduction

  1. The evaluation covered DTI support for R&D at the three principal Research and Technology Organisations (RTOs) serving the metal processing industry, ie *BCIRA, *SCRATA and *BNF-Fulmer. Some General Industrial Collaborative Projects (GICP) in the metals area were also included. The study focused on projects supported between January 1987 and December 1989 with grant totalling £5.7m.

Methodology

  1. The findings are based on face-to-face interview with RTO officials, research contractors, experts in HEIs and 41 companies directly involved in 18 of the projects (which represent 75% by value of the support given) as sponsors or steering committee members. Telephone interviews with 10 RTO members, not involved in the projects, to assess the extent of wider dissemination of the results and with 31 non-RTO members in the same industry sectors for comparison, added to the data.
  2. The 18 projects comprised four from each RTO and six from GICP. Of the latter five were run by three Trade Associations, the other by ERA Technology.

The Rationale For Intervention

  1. With the exception of the projects funded at BNF-Fulmer, all the projects were approved prior to 1988 and therefore not in the ROAME (Rationale, Objectives, Appraisal, Monitoring, Evaluation) format. There was no stated rationale for support; the objectives were imprecise and not testable. An implied rationale for support was generated from points made in the ROAME for the BNF-Fulmer projects and other relevant documents.
  2. The rationale for support for R&D projects at RTOs is based on their potential for effective technology transfer particularly to SMEs in their industry sectors. The two casting RTOs, BCIRA and SCRATA, represent approximately 90% of the total tonnage of iron and steel cast annually in the UK. The industry relies very much on these RTOs for technical advice. In addition, financial constraints force companies to seek quick results rather than investing in longer-term R&D. Without DTI support the RTOs would be unable to undertake the research necessary to ensure they can continue to supply state of the art technical advice for their members.

Main Findings

  1. There is a strong rationale for continuing support for R&D projects in the metal processing sectors and at BCIRA and SCRATA in particular. However, BNF-Fulmer was criticised for several aspects of its performance. It was also noted that there were alternative sources of expertise which could have carried out some of the projects funded there. This RTO needs to concentrate its resources on fewer areas in which it can make significant and timely progress.
  2. Many of the projects were significantly innovative by UK standards and strongly additional. Although most of the interviewees found it difficult to quantify the benefits of the results, the few that could expected some good returns in the future.
  3. More quantification of the benefits companies receive from using project results is needed to help convince others of the advantage of innovation and longer term R&D. Future ROAME proposals should address this as well as demonstrating the wider benefits of the technology transfer role of the RTOs.
  4. The GICP projects provided useful research results for specific sectors within the metal processing industry. The most notable were those carried out by BICTA, the British Investment Casting Trade Association for the UK investment casting industry. The Trade Associations provided a useful mechanism for encouraging collaborative R&D where there was not an equivalent group of companies within an RTO.
  5. Appraisal of new proposals needs to be more rigorous to ensure that the most appropriate UK organisation(s) in terms of expertise and cost will do, or be involved in, the work irrespective of the RTO or industry sector from which the proposal comes. Attention also needs to be given to insisting that as much co-operation as possible takes place between the RTOs, particularly SCRATA and BCIRA, and that the technology developed will be transferred across all foundry sectors.
  6. The level of DTI monitoring had not changed since it was criticised in the 1988/89 general evaluation of support for RTOs. More monitoring is needed to ensure the projects are being managed correctly and that UK interest and involvement is maintained. More time spent on technical monitoring would help officials to carry out their appraisal duties. The overall support given to an RTO from all sources within DTI needs to be watched to avoid the organisation becoming too dependent on DTI support.
  7. DTI administration needs to be improved. Project appraisal and issue of offer letters is taking too long. More care needs to be taken over project files.

Recommendations

  1. On the basis of our findings, we make the following recommendations. The Department should:
    • continue its efforts to shift the emphasis of RTO research further from the market. Its ultimate objective should be to see RTOs funding all near market research themselves, confining Departmental support to far market activities and wider dissemination (Paras 4.9 and 12.3);
    • ensure that ROAME proposals show clearly how each project will contribute to the overall programme objectives, particularly in relation to technology transfer (para 5.4);
    • apply the same standards of appraisal, regardless of the RTO source of the proposal. Officials should also take alternative sources of expertise into account when considering proposals. If, in particular cases, it appears that work could be done more effectively elsewhere, either in whole or in part, proposals which will fully utilise this expertise, should be encouraged - even if it means rejecting the original proposal (para 10.7);
    • institute satisfactory monitoring arrangements. Above all, this means ensuring that sufficient resources are available for the purpose. The Division needs to attend especially to the points which we detailed in paras 7.5, 9.3 and 11.4-11.7;
    • require RTOs to cover the ground specified in para 9.6 in their project reports in a format acceptable to the Department;
    • insist that where Departmental objectives are best served by SCRATA and BCIRA co-operating on programmes, this is a condition of support (paras 10.4 and 12.8);
    • insist that comprehensive arrangements for technology transfer are a condition of support, including transfer across the casting sectors (para 10.4);
    • complete RTO programme appraisal from receipt of proposal to issue of offer letter within a maximum of six months. We would expect some to be processed much more quickly than this (para 11.2);
    • insist that all ROAME statements for future RTO programmes state the overall support in place for the RTO as a percentage of turnover plus the effect of the support proposed; and ensure that no RTO becomes excessively dependent on DTI (para 11.3).
    1. We note that some of these recommendations are likely to be relevant to programmes at RTOs outside the metals sector.

    *BCIRA = British Cast Iron Research Association
    *SCRATA = Steel Casting Research and Trade Association
    *BNF-Fulmer = British Non-Ferrous Metals Technology Centre and the former Fulmer Research Institute seek quick results rather than investing in longer-term R&D.

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