Apocalypse? What apocalypse?

Business Insight
16/09/2016

The biggest EU Research and Innovation programme ever, promised, breakthroughs, discoveries and world-firsts. But what now for the UK ‘post Brexit’? Dr Huw Edwards, consultant to Sheffield-based MSC R&D, examines the facts.

There has been a whirlwind of comment, confusion and media hyperbole about industrial research and development in post-Brexit Britain.

If we listen to the media we’re entering an apocalyptic era where all research and development will finish with the end of European funding via the Horizon 2020 programme.

On the other hand, the Government position is that things continue as normal, at least for the time being.

Until the Government triggers article 50 we remain Members of the European Union and, as such, we continue to contribute to the Union budget, entitled to draw on various programme budgets; including industrial R&D.

It’s true that in the formation of consortia other European countries may be more cautious about including UK partners if a project extends beyond the projected Brexit date of 2019.

There are already press reports of some consortia (in formation) responding in this way. But until the point of Brexit it would be unlikely that the Government accepts a position where we contribute to the H2020 budget but do not benefit.

One of the major changes under Horizon 2020 was the introduction of the SME Mechanism, a line of funding supporting R&D undertaken by individual companies, typically projects of one to two years’ duration.

While the UK remains a Member of the Union and this funding stream falls inside the Brexit window, it’s reliant on the views of consortium members from other Member States and UK participation is unlikely to be affected negatively.

UK participation in industrial R&D funded by the European Union is high. The UK is a net beneficiary from the past Framework and current Horizon R&D grants - we have consistently drawn out more than we contribute.

Part of the reason for British success in these programmes has been the strength of UK science, technology and industrial research. Given that strength, and the benefits to our European partners, it’s highly unlikely that all funded R&D collaboration will come to an end with Brexit.

A number of countries outside the Union - Switzerland, Norway and Israel - are Associate States participating in the Horizon 2020 programme, largely as if they were Members of the Union. In each case a formula has been negotiated so they contribute to H2020 and can participate fully in the programme. Within the Government and among those who drove the Brexit debate, there has always been the argument that the UK should become an Associate State.

Delaying the enacting of Brexit until January 2017 may fuel uncertainty, but does give Government time to investigate what Brexit means and to make plans for industrial development now, during the Brexit process and after the deed is completed.

In the weeks since Mrs May’s appointment there has been feverish activity setting up advisory Committees on a wide range of activities including industrial development and research, indicating an awareness of the need to address this issue.

The coming weeks will be interesting as these groups report and Government formulates policy and develops negotiating positions.

For the moment the Horizon 2020 super-tanker moves forward, the new crew are preparing for a change of direction, but even when the new direction has been decided it will be some time before the change is obvious or will have a major impact.