I have had an interest in the development of bioscience in London since
I lead the DTI’s biotechnology cluster study in 1999. At that point we
were surprised that there did not seem to be a lot happening in London.
However it turned out there were already 40 life sciences companies in
London and we realised there was much here already to build on. In
particular how the world class resources London has in terms of its
universities, teaching hospitals and its position as a world centre for
finance could be built on to also make it a world class centre for
bioscience enterprise and business.
I was therefore very pleased to accept the invitation, from the London
Development Agency (LDA), to attend this launch of the LDA’s Life
Sciences Strategy, which has the objective of developing a commercial
life sciences cluster around London’s world-class knowledge base.
I think the strategy and action plan that LDA is publishing today is
an excellent and timely document and very important for London and the
UK as a whole.
The other speakers this morning will be telling you about the
resources of London and the future potential for the development of
bioscience in the Capital. I would like to focus on importance of the
life sciences in a national context, the vital role that London has to
play, and the importance of the LDA Strategy in developing this role.
Bioscience is a high priority for the Government. I don’t think
there’s any doubt that it will be one the prime economic drivers of
the 21st Century and the importance of the biosciences has been endorsed
by the Prime Minister on several occasions.
The prime aim of the Government is to maintain and strengthen the UK’s
international position as a world-class centre for bioscience, research
and exploitation. Achieving this will require integrated action on many
fronts, both at the national and regional level.
We see the national role for the Government as primarily being to
create for the scientists, the entrepreneurs and the investors, who
create the new knowledge and the wealth, the best possible environment
in which to grow and prosper.
The right environment, we believe, depends on two crucial factors,
first of all, a world-class science base in the biosciences, and
incentives to bring R&D to the market as innovative products and
processes. And, secondly, a fiscal and regulatory environment that
achieves the balance between necessary regulation and the promotion of
innovation and entrepreneurial endeavour.
This is why building the strength of the UK science base has been a
priority for the Government. This has been recognised in the last three
Government Spending Reviews by the allocation of extra funds for
education, research and infrastructure.
In the last Spending Review, the Science Budget was increased by an
additional £1.4 billion. This means the Science Budget will increase by
10% pa in real terms over the next 3 Years. This is on top of major
increases in the 1998 and 2000 Spending Reviews.
The Government is also committed to creating a regulatory environment
that ensures the necessary balance between prohibiting dangerous and
damaging actions and avoiding bureaucracy that stifles business
formation and growth.
The extension of the Human Fertilization and Embryology Act to allow
research in the therapeutic use of embryonic stem cells I think is a
good example where we have been successful in adapting legislation and
regulations to changing circumstances to provide the required public
safeguards, but also to provide as favourable an environment as possible
for the development of the beneficial use of stem cells.
We have in Government taken action specifically designed to help
biotechnology companies take advantage of the UK’s expertise. For
example, we’ve had in the DTI the £25 million Harnessing Genomics
programme, which provides support for a range of projects to help
promote the development of the UK biotechnology sector. We have also set
up a Bioscience Innovation and Growth Team, chaired by Sir David Cooksey,
one of the UK’s leading venture capitalists, to advise us on what
action to take on a whole range of issues facing the biotech industry.
Such as how we help biomanufacturing in the UK, relationships between
the bioscience industry and the NHS, and finance, whether there is any
action the Government could take in these times of difficult finance.
At the regional and local level the prime aim is cluster development.
This encompasses a range of activities, which will depend on the
regional and local environment. I think the LDA Strategy is a very good
example of the work that an RDA can do to stimulate growth of
bioscience. In particular, providing the specialised space that
bioscience businesses need in their early stages such as incubator
facilities and of increasing importance as the sector matures, grow-on
space.
Also to ensure that bioscience companies have the mentoring, access
to finance and the skills that they need in their early stage of growth.
I was particularly pleased that the Strategy recognises that access to
high quality management is crucial for business success.
As I mentioned earlier London is rich in the necessary resources.
London is one of the largest centres in the world for life sciences and
medical research. It has 25 higher education and research institutes and
famous medical schools involved in life sciences research that receive
over £400 million of public finding a year. London hospitals also
receive, 70% of the NHS annual spend (£430 million) on R&D and
London is the largest centre for clinical trials in Europe.
This concentration of resource means that London’s success is
pivotal to the overall success of the UK as an internationally
competitive nation in the biosciences. And we are indeed in a very
strong position, being the leading Biotech industry in Europe and we are
doing well even during this difficult period globally for the life
science industry.
This is why the LDA Life Sciences Strategy and its successful
implementation is so important.
The growth of the London bioscience cluster has been a great success
story. London has all the necessary resources, and I am sure that the
LDA Life Sciences Strategy will enable the industry to build on that
success, so that it grows and prospers in the future.
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