1. Tees Valley
Innovation Strategy 2015
- An innovation offer to the UK
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3. Pages
Our Vision for Innovation - The Tees Valley’s Offer to the UK 2 - 3
Tees Valley’s journey of innovation 4
The Tees Valley Economy 5
How our focus on innovation boosts Tees Valley economic growth 6 - 7
Developing Our Strategy 8
What we will do 9
Page 1
Contents
Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Above photo courtesy of ©Cal Carey Photographer
©Teesside University (www.tees.ac.uk/theforge)
– All Rights Reserved
Advanced Manufacturing Process
Digital Healthcare
© Centre for Process Innovation Ltd (CPI) (www.uk-cpi.com)
– All Rights Reserved
©Teesside University (www.tees.ac.uk/theforge)
– All Rights Reserved

4. Our Vision for Innovation
- The Tees Valley’s Offer to the UK
Innovation is central to the future development of our economy, sitting at the heart of Tees Valley’s
growth plans. Our vision is of the Tees Valley offering innovative solutions to UK problems, particularly
in advanced manufacturing. We have the assets, sites, skilled workforce and export-led outlook to
pilot and test new ideas and processes. By building on our track record of innovation success and
exploiting the commercial opportunities that flow from invention and research, we will deliver for UK
plc. Our vision is for a Tees Valley, which in 2025:
I Plays a major part in developing, manufacturing and delivering technologies to support a low
carbon UK economy;
I Is home to innovative businesses that easily and frequently access bespoke, flexible support and
an internationally connected and multi-disciplinary innovation knowledge network;
I Allows opportunities provided by technologies to be readily developed into solutions to meet challenges
in the advanced manufacturing, process and healthcare industries to the benefit of the UK.
Focus upon 4 Key Growth Sectors
Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Advanced Manufacturing:
I Advanced materials (steel, thermal
technologies and photonics)
– Existing strength
I Low carbon (offshore wind,
bioindustries)
– Growth potential
I Engineering design (wide expertise
including nuclear and construction)
– Existing strength
I Offshore (vibrant cluster servicing
oil and gas and offshore wind)
– Existing strength
©TWILtd.Allrightsreserved.
Page 2
Process:
I Carbon capture and storage
(innovative industrial scheme)
– Growth potential
I Sustainable chemicals, energy from
waste polymers and hydrogen
– Existing strength
I Biorefining, formulation and
industrial biotechnology
– Growth potential
GasificationfacilitiesatMPI’sthermal
technologyphotocourtesyofMaterials
ProcessingInstitute

5. “Innovation sits at the
heart of economic growth
The Tees Valley boasts nationally significant innovation
assets – particularly in relation to advanced manufacturing,
industrial biotechnology, biologics and subsea engineering
– all of which offer fantastic opportunities to generate
significant economic growth for the area and for UK PLC.
Only by creating new products and processes and exploring
new technology solutions, can we grow our business base,
export our expertise and provide new jobs for our residents.
Investing in innovation will help us live up to our historic
reputation for being at the forefront of invention and innovation.”
Tees Valley Unlimited and key partners has developed this Innovation Strategy based upon
the principles of Smart Specialisation, that investment should be focused on the competitive
advantages of an area, under the EU Research and Innovation Strategies for Smart Specialisation
(RIS3) guidance. The Tees Valley is also a member of the EU Smart Specialisation (S3) Platform.
Page 3Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Healthcare:
I Biologics and biopharmaceuticals
(new national CPI centre)
– Growth potential
I Digital care and assistive
technology
– Growth potential
TheGateway-HealthandWellbeing
Hub,Middlehaven
Digital:
I Animation, computer gaming,
simulation and visualisation
– Existing strength
I Solutions for advanced
manufacturing, healthcare and
process
– Growth potential
©TeessideUniversity(www.tees.ac.uk/
theforge)–AllRightsReserved
Nigel Perry, CEO
Centre for Process
Innovation
Chair of the Innovation
Leadership Group,
Tees Valley Unlimited

6. The Tees Valley is on a journey of innovation, with a history which places it at the forefront of
research and development in the UK. In this pioneering area – which covers Darlington, Hartlepool,
Middlesbrough, Redcar and Cleveland and Stockton-on-Tees – the safety match was invented, the
first major public steam railway in the world created and products from perspex and ammonia to
polyethylene and nylon developed. Today this track record of innovation continues as we are home to
the UK’s largest hydrogen plant, the UK’s first biomass power station, a world leading graphene
plant, a subsea training facility unique in the UK and Tees Valley will shortly be home to one of the
largest advanced gasification facilities, the national centre for biologics and the UK’s first offshore
wind validation centre.
The Tees Valley was named as the most innovative area in the North in an innovation map
publicised by Government in 2015. Tees Valley was seventh overall, higher than London,
Birmingham, Leeds and Manchester.
The Tees Valley Innovation Strategy, developed by public and private sector partners, builds upon
these ground-breaking assets and our innovative company base to help increase rates of start-up,
spin-out, commercialisation and research and development, fostering a culture of
entrepreneurialism and innovation to the benefit of employees, businesses and supply chains
across Tees Valley and the UK. We believe the Tees Valley, due to this unrivalled history of
advanced manufacturing research and invention, can continue to provide innovation solutions for
the UK boosting UK competitiveness.
Tees Valley’s Journey of Innovation
Page 4 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
Thecurrentbuildofthe:CPINational
BiologicsCentre,Darlington
©CentreforProcessInnovationLtd(CPI)
(www.uk-cpi.com)–AllRightsReserved
Researcherscanningelectronmicroscope
atMPI-PhotocourtesyofMaterials
ProcessingInstitute

7. The Tees Valley has a population of 660,000 people and contributes £11billion a year to the national
economy through its major hub status for the process and chemical industries and its growing reputation
for advanced manufacturing excellence (particular specialisms include oil and gas, subsea, biologics and
automotive), low carbon (offshore wind and energy from waste) and the digital/creative economy.
The Tees Valley boasts many competitive advantages; we are home to major industries that export
products and services across the globe; a skilled workforce supported by leading colleges, universities
and national knowledge centres; and a major port, airport and direct rail routes to key locations.
Key Innovation Assets
The Tees Valley Economy
Page 5Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
I Centre for Process Innovation (part of High
Value Manufacturing Catapult)
I National Industrial Biotechnology
Facilities: biotechnology expertise
I National Biologics Manufacturing
Centre: £38m biologics research
centre
I Teesside University: Highly-regarded
research centres, particularly manufacturing,
construction and advanced project planning
I Durham University: Leading healthcare
research university with a base in Tees Valley
I Digital City: Support for innovation and
enterprise among digital industries, with a
cluster of over 200 firms supported by Digital
City and Teesside University
I Materials Processing Institute: Steel, metals
and materials research centre
I TWI: Welding and inspection expertise,
particularly low carbon
I C-State: First subsea training centre of its
type with £5m ROV capability
I Wilton Centre: Incubation space and
accelerator programme for process sector
I Applied Graphene Materials: Start up with
graphene production expertise
I Enabling organisations: North East Process
Industry Cluster, Digital City, Academic
Health Science Network, NOF Energy
C-StateROVmachine:
attheSubseaTrainingFacility
PhotocourtesyofMaterialsProcessing
Institute
InnovationAcceleratorCentre-
TheWiltonCentre

8. How our focus on innovation
boosts UK economic growth
Tees Valley is uniquely placed to find solutions to global challenges and contribute to UK economic
growth. Our innovation assets and key investments in future technologies, such as biopharmaceuticals,
photonics, carbon capture and storage and offshore wind, means that we can help to pioneer the
innovation required to tackle a growing global population and the pressures placed upon health and
nutrition, construction and housing, energy and resources and mobility and communications.
Yet Tees Valley faces obstacles in continuing to build an innovative, enterprising and entrepreneurial
economy to provide these solutions. Barriers include available and appropriate finance (we believe
there is a gap in equity, angel and grant provision for businesses at Technology Stage Readiness
levels 4 to 7, who need funds to develop, demonstrate and scale up), incubation space to pilot and
test new products, visible and accessible support to help SMEs to innovate and export, and certain
skills shortages in innovation-led industries.
As a result, Tees Valley has placed significant emphasis upon innovation in its £90m Growth Deal with
government (2014) and has allocated £25m of ERDF towards innovation for the next European
programme (2014-2020), which, when matched, will bring total investment to over £40m. There are
opportunities to maximise the EU Horizon 2020 scheme, worth £65bn over seven years, and to increase the
engagement of Tees Valley businesses with the Innovation Toolkit of the Innovate UK. We will help
businesses access these opportunities under the banner of the Tees Valley Business Compass, the location
for business support in Tees Valley. By placing such a focus on innovation we can capitalise commercially
upon the world-leading research and global networks of the Tees Valley’s innovation assets, encourage
production to return to the UK and ensure that SMEs in Tees Valley have access to new market opportunities.
Page 6 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
I Biotheraputics Factory of the Future: Part of £50m
CPI project to develop process technologies and deliver
personalised medicines via both conventional and
synthetic biology. Builds on the creation of the NBMC.
I Carbon capture and storage: Part of Tees Valley’s City
Deal to become a global pioneer in industrial carbon
capture and storage and lead the way on innovative
district heating schemes.
©TeessideUniversity(www.tees.ac.uk/
theforge)–AllRightsReserved
Key Future Investments
Where we are now
Indicator Baseline2012/3 Position Source
Percentage of firms introducing new
products/services
24%
4th highest in England (out of 39
Local Enterprise Partnerships)
HEFCE
Percentage of graduates staying in the
local area
77.8%
Tees Valley 7th highest LEP in
England (national average 68%).
HESA
Percentage of firms introducing new to
the market innovation
53%
15th highest in England (out of 39
LEPs)
HEFCE
Percentage of firms undertaking
Research & Development
18%
16th highest in England (out of 39
LEPs)
HEFCE
Level of R&D Tax Credits take-up £29 per FTE (NE)
2nd lowest region in the UK, below
the national average
HMRC

9. Innovation is central to our vision for Tees Valley to create 25,000 net new jobs over the next decade
and move to a high-value, low-carbon, diverse and inclusive economy. Through our businesses,
particularly our Small and Medium Sized Enterprises (SMEs), adapting and innovating, we will be
able to increase our global competitiveness, maximise the success of new industries, grow
developing sectors and create the jobs that our economy needs.
There are many opportunities to exploit, particularly in the low-carbon, advanced manufacturing, digital
and healthcare sectors, building upon Tees Valley’s industrial expertise and nationally significant
knowledge assets. However, we recognise that innovation spans geographical boundaries and that
partnership working is vital to deliver for businesses in the Tees Valley and across the country.
Encouragingly, Tees Valley’s business birth rate, at 15.6% in 2013, was significantly higher than the UK
rate, above any UK region outside London and the highest since 2007. This rise, alongside the widening
gap between births and deaths, demonstrates continued economic recovery and a rise in enterprise
activity. By boosting the ability of our businesses to start-up, commercialise, grow and expand, we
will catalyse economic growth and employment opportunities for the benefit of Tees Valley residents.
Page 7Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
I Materials Processing Institute: £10m
initiative from Tata Steel, along with core
partners, to provide open access to
laboratory, pilot and demonstration space
for companies to test new products.
I National Horizons Centre for Innovation
and Skills: Part of £50m joint Teesside
University - CPI project to deliver provision
in biologics, industrial biotechnology,
subsea engineering and digital
manufacture and design.
I Teesside Advanced Manufacturing Park:
£6m development includes TWI research
and validation centre for offshore wind
tower manufacturing.
I Biorefinery: The term ‘Bioeconomy’ describes
the use of biological feedstocks, or processes
involving biotechnology, to generate economic
outputs in the form of energy, materials and
chemicals. A Bioeconomy utilises new
technologies such as synthetic biology and
bio catalysis, together with chemical and
engineering disciplines to make both
existing and novel products.
These technologies can reduce the dependence on non-renewable feedstocks, including
fossil fuels and can utilise carbon-containing by-products and wastes. Such wastes include
municipal solid waste (MSW), agricultural and forestry residues, and waste gases such as
flue gas from coal based energy stations. The term used to describe the development of
multi-input and multi-output bio-based-processes is a ‘Biorefinery’.
IndustrialBiotechnologyandBiorefining
atCPI-©CentreforProcessInnovation
Ltd(CPI)(www.uk-cpi.com)–AllRights
Reserved
ArtistsImpressionofthenewTWI
TechnologyCentreinMiddlesbrough

10. Our offer to SMEs sits at the centre of achieving this:
How Tees Valley Supports SMEs
In the last five years, Tees Valley has attracted over £1.36bn of private sector investment, supporting
the creation of over 3,000 jobs and safeguarding a further 2,000. Tees Valley is quickly growing a
reputation as an area that is attracting significant investment, particularly in innovative technologies
and processes.
Our ERDF activity has been designed to boost innovative activity across Tees Valley:
Page 8 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
1. A single routeway (via the Tees Valley Business Compass) to find the best support for your
business to help innovate and to raise awareness of available products, schemes and funding
2. Advice on access to finance (such as InnovateUK products and EU funding) and investment
readiness
3. Knowledge Transfer Partnerships that allow you to derive practical benefit from University
and academic expertise
4. A focus on innovation at our two universities to provide the skilled graduates that your
business needs
5. Innovation centres that offer practical support, pilot facilities and space to trial and
commercialise new products and processes
6. Sector specific innovation support and market knowledge for our key growing industries
and future growth sectors
7. Financial support (through the Tees Valley Business Compass and other routes) to encourage
R&D activity

11. The Tees Valley Innovation Strategy results from over 18 months of research, consultation and
development by Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley. The process
engaged stakeholders from Tees Valley companies, business and industry representative bodies,
universities and specialist innovation centres to produce a strategy which aligns to both national and
European innovation priorities, whilst reflecting the specific opportunities and challenges of the Tees
Valley. This builds upon our history of innovation and our innovation assets which are already
significantly contributing to innovative activity across the UK with Tees Valley leading the way.
It is based upon the principle of Smart Specialisation; that investment should be focused on the
competitive advantages of an area, where there is critical mass, the potential for sustainable growth
and the ability to develop trade flow, value chain and investment connections with other areas. Our
Strategy is founded upon a robust evidence base which analyses our sector strengths, competitive
advantages and historic growth rates, meaning that the key sectors identified by the Tees Valley
Innovation Strategy meet all of the smart specialisation criteria.
Development of our Innovation Strategy has been driven by a private sector led Innovation Leadership
Group chaired by the Innovation Champion for the Tees Valley, Nigel Perry, Chief Executive of CPI. The
Group’s work – particularly on driving practical actions to fund key innovation projects and deliver
direct support for businesses – continues to progress to ensure that we create the most effective
partnership to drive forward innovation in the Tees Valley and ensure stimulation, cooperation and
cross-sectoral collaboration. The Tees Valley Innovation Strategy, therefore, will be updated annually
to review and showcase the progress being made.
How our strategy fits with government policy
I Global challenges: identified by world organisations, of health and nutrition, energy and
resources, mobility and communications.
I BIS Science & Innovation Strategy: 2014 strategy set the aim of the UK as being the best
place in the world for science and business
I UK Industrial Strategy: The UK Industrial Strategy recognises the advanced manufacturing
and digital expertise of Tees Valley.
I Government sector policy: Our Strategy fits with the Chemical Growth Partnership
‘Strategy for Delivering Chemistry-Fuelled Growth of the UK Economy’ and NHS England’s
Innovation, Health and Wealth Strategy.
I Innovate UK 2014-15 Delivery Plan: Our Strategy fits with the focus upon high-growth
companies and developing Catapult Centres.
I Smart Specialisation in England: We have followed the smart specialisation principles as
set out by the EU and BIS.
I Horizon 2020: Our focus aligns to the Key Enabling Technologies and challenges identified
by the EU and Horizon 2020.
I Eight Great Technologies: The government’s eight great technologies match our key sector
focus, particularly on synthetic biology, regenerative medicine, satellites, energy, advanced
materials and big data.
Developing Our Strategy
Page 9Tees Valley Innovation Strategy 2015 - An innovation offer to the UK

12. In developing this Tees Valley Innovation Strategy partners have collaborated to enable the Tees
Valley to take the next steps on its innovation journey. We have prioritised the following actions
which will help to enable the Tees Valley to overcome barriers to growth, maximise opportunities
and deliver our vision for innovation in Tees Valley to offer solutions to the UK:
In support of our Innovation
Strategy, we will:
For more information on the Tees Valley Innovation Strategy and its next steps, funding through ERDF
for innovation or the support Tees Valley can provide for businesses looking to innovate, please contact
Tees Valley Unlimited, details found on the back page of this report.
What we will do
Page 10 Tees Valley Innovation Strategy 2015 - An innovation offer to the UK
1. Provide direct support for research and
innovation, particularly in the chemical/
process, advanced manufacturing, healthcare
and digital sectors.
2. Provide direct support to businesses for
innovation and the commercialisation of new
products, processes and services, where these
meet the strategic vision of Tees Valley.
3. Support collaboration in innovation led projects,
particularly those working across sectors, to
improveinnovationandcompetitiveness,working
with other research based organisations.
4. Create, develop and enhance open access
technology centres, to promote specialist
technical and business support to
commercialise research.
Funding and Targets
I European Regional Development
Fund 2014-2020: £25m allocated to
Innovation (total investment of over
£40m).
I Local Growth Fund 2015-17: over
£15m allocated to innovation projects
(total investment of over £60m).
I Other sources : Other Sources:
Such as Horizon2020, InnovateUK,
Research Councils UK.
Our aim is to increase the
number of businesses in
Tees Valley and create
25,000 net new jobs by 2022
©Teesside University (www.tees.ac.uk/theforge)
– All Rights Reserved

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14. Tees Valley Unlimited
Cavendish House
Stockton-on-Tees
Tees Valley
TS17 6QY
Tel: 01642 524400
Fax: 01642 632001
Email: info@teesvalleyunlimited.gov.uk
Web: www.teesvalleyunlimited.gov.uk
Photographs used are copyright © 2015 Tees Valley
Unlimited, and its licensors. Images used in this
document are by kind permission from, Teesside
University, Nepic, DigitalCity, Materials Processing
Institute (MPI), Teesside Welding Institute (TWI), Dave
Charnley photographer, Cal Carey photographer and
CPI © Centre for Process Innovation Ltd (www.uk-cpi.com)
– All Rights Reserved.
©TWILtd.Allrightsreserved.
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