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What is an Innovation and Growth Team (IGT)?

Innovation and Growth Teams are a BERR mechanism to facilitate the creation of a strategic view collectively from industry on what the innovation & growth challenges are for its future competitiveness. In this case the primary emphasis will be on how the UK automotive sector can improve its competitiveness particularly in the context of the twin challenges of low cost competition and the transition to lower-carbon transport.

Why have a new IGT for the Automotive Sector?

There is a need to agree with industry a strategy going forward that industry and government can share. The previous AIGT review that reported in May 2002, has reached a natural end to its shelf life with a number of the programmes and initiatives having been subsequently implemented, or reaching maturity. There is a need for a new impetus, so that the Department is best placed to act effectively as the voice for automotive business across Whitehall; and to create a building block for further ongoing dialogue.

The original Automotive Innovation and Growth Team review, conducted in 2002, gave rise to initiatives such as the National Supply Chain Groups Programme; the Low Carbon Vehicle Partnership; the Automotive Academy (now part of the National Skills Academy for Manufacturing); and two technology centres of excellence – Cenex for Low carbon and Fuel Cells Technologies and innovITS for Intelligent Transport Systems and Services. Reports of this previous review can be found on the Publications page of this website.

The automotive industry is of massive importance to the national economy. The industry accounts for 6.2 % of UK manufacturing employment; 11% of UK manufactured exports; 13% of manufactured imports; about 200,000 people are directly employed in 3,300 businesses generating £9.5bn value added. Though successful and healthy overall, there are a number of tough challenges such as global overcapacity, high energy and steel prices, CO2 regulation risks and associated technological challenges, as well as fundamental business environment issues around skills, infrastructure and research and development.

Industry itself articulating the challenges going forward to sustain a competitive industry, is an essential element of the Government policy making process.

The review will consider the strengths and weaknesses of the industry and the opportunities in the United Kingdom in developing the forward looking strategy; investigate the barriers and challenges posed by existing EU and national legislation; and take account of the implications of the King Review on low carbon cars, as well as the recent departmental report on the Business Environment for Japanese Automotive Supply Companies in the United Kingdom.

What will the NAIGT deliver?

An integrated strategic action plan capable of lasting 15 years with milestones aligned with other related policy initiatives that is supported by key stake-holders. Also an improved understanding of the policy levers available to government that can be deployed in support of the automotive sector.

How will the IGT work?

The work of the NAIGT will be delivered through an industry-led Steering Group (chaired by Richard Parry- Jones CBE), that will have overall ownership of the NAIGT. Five expert sub-groups have been set up to address a series of linked issues. These are:

Supply Chain Development Expert Group

Technology & Low Carbon Product Development Expert Group

Technology & Low Carbon Infrastructure Expert Group

Business Environment Expert Group

Key Performance Indicators Expert Group

The initial plans including scope and remit of these groups can be seen at the links above. The membership of these groups is being developed.

These expert groups will report to the NAIGT and the final report of the NAIGT is due around March/April 2009.

Richard Parry- Jones CBE – Chair of the NAIGT

Richard Parry- Jones CBE was, until December 2007, the Group Vice President and Chief Technical Officer, Ford Motor Company. Richard is an elected member of the Royal Academy of Engineers and the Institution of Mechanical Engineers. Richard was awarded a CBE in The Queens New Year Honours List 2005 for services to the automobile industry.