The Society of British Aerospace Companies' evidence contained some criticisms about research and technology funding.

  Firstly, there was concern about lack of investment in aeronautic research and technology, which is clearly linked to the request by the Aerospace Innovation & Growth Team for funding of £70 million a year for civil aerospace research and technology to fund National Aerospace Technology Strategy (NATS) programmes. The government has supported all the key projects outlined in the NATS, at least for initial phases. Since April 2004, the aerospace industry has been awarded £153 million (£110 million from the Technology Programme and £43 million from the regions) for these programmes. This represents 20% to 25% of the total funding available from the Technology Programme. It is equivalent to around £45 million per year which is over double the level of government investment under the previous DTI sector specific scheme, "CARAD". Airbus typically received directly around £2 million per year from CARAD, whereas projects involving Airbus are currently achieving around £14 million per year.

  The second point was about the coordination of the administrative processes for business in securing funding from multiple funding sources such as the Regional Development Agencies; and the difficulty the industry faces in delivering national policies and strategies within a regional framework. Malcolm Wicks leads the Aerospace Technology Strategy Group which brings together all the relevant public bodies to address these issues, and to ensure that funding opportunities for the aerospace research and technology programmes are maximised. Our experience has shown that it is possible to achieve regional support to deliver national policies and strategies, such as the National Aerospace Technology Strategy. The Regional Development Agencies and the DTI have simplified the processes involved. We have recently agreed a simplified application process, contract documentation and monitoring procedures, all of which will reduce the burden for companies applying for national and regional funding. We are not complacent, however, and will keep these under continuous review to see what further improvements can be achieved.

  The issue of a lack of balance between early research (ie blue sky projects in universities funded by research councils stands at £3.4 billion per year) and innovation (industry led, technology validation) was raised. The government believes that investment in early research is essential and reflects other political priorities, as much of this money goes on health and education related research. There is however an increasing desire to ensure that early research does lead to greater economic impact. It was announced in the recent Budget that the Director General of Science and Innovation will agree specific targets with each research council to increase the amount of collaborative research and development they conduct in partnership with the Technology Strategy Board over the Comprehensive Spending Review period.

  Another concern was that the Technology Programme is fragmented insofar as it has two calls per year. We believe that it is appropriate for the Technology Programme funding to be offered on a competitive basis. The Technology Strategy Board will shortly take over responsibility for delivering the Technology Programme. It will be for the Board to decide whether competitions held every six months are the best way of meeting business needs. The Society of British Aerospace Companies also asked for the Technology Strategy Board to provide greater certainty of the technology themes over the long term. We do, of course, recognise that industry needs longer term certainty, and ministers have made clear that we expect the Technology Strategy Board to take account of nationally agreed strategies like the National Aerospace Technology Strategy. We will continue to discuss with the aerospace industry how best we can support future programmes building on success so far.

  Finally, there was a request for an increase in Technology Programme themes to be directly relevant to the aerospace industry. It is acknowledged that the themes of the November 2006 call were not particularly relevant to the aerospace industry. However, the April 2007 call includes £40 million for advanced manufacturing; £15 million for lightweight materials (including a contribution from Ministry of Defence); and £8 million for information and communications technology. All of which are relevant to the aerospace industry.