Study details the impact of low carbon vehicle investment

by Search Gate staff. Published Wed 09 Sep 2016 11:16
Investment in low-carbon vehicles provide big returns
Investment in low-carbon vehicles provide big returns

Innovate UK, the UK’s innovation agency, has unveiled the results of research into the impact of its investment into companies developing innovative low carbon vehicle technologies since 2007, through the Low Carbon Vehicles Innovation Platform (LCV IP) and other, targeted investments in manufacturer’s innovations.

The Low Carbon Vehicles Innovation Platform (LCV IP) supports UK companies to develop their innovations for the rapidly-developing low carbon vehicles market, helping to accelerate the adoption of low carbon vehicles and technology in the UK and establish the UK as the leading global hub for low carbon vehicle innovation.

Alongside Innovate UK, the Office for Low Emission Vehicles (OLEV), the Department for Business, Innovation and Skills (BIS) and the Engineering and Physical Sciences Research Council (EPSRC) have all co-invested in, and continue to provide support to, the LCV IP. On its own, Innovate UK has invested £45 million in the UK’s transport sector in 2014-15.

Importantly, the research has revealed that since 2007, LCV IP investments have had the following impact:

• Medium term return on investment (10 years) is between £8 to £14 for every £1 of grant in R&D; for LCV

• Longer term return on investment (15 years) is between £20 to £34 for every £1 of grant in R&D; for LCV

• Medium term (10 years), over 5,000 jobs will be created and safeguarded

• Longer term (15 years) nearly 12,000 jobs. Including a multiplier of 1.7 to adjust for supply chain job creation increases this estimate to around 20,000 jobs being created

• £340 million forecasted to be added to UK economy over next 10 years

• £820 million forecasted to be added to UK economy over next 15 years.

Roland Meister, Head of Transport at Innovate UK said: “Innovate UK provides consistent support to the sector, working with an industry-led advisory panel to help shape the technological direction and priorities for the Low Carbon Vehicles Innovation Platform. We are helping to nurture the future of UK engineering capability in transport technologies, ensuring job creation and sustained growth.

“UK businesses are well placed to take advantage of the growing global demand and necessity for low emission, energy efficient vehicles. I’m extremely pleased to see the robust analysis economists have carried out in the Impact Review 2016.

“Its confidence inspiring to know we are generating in the order of 10:1 return on investment from this funding over a 10 year period. We’re helping to drive forward economic growth in this highly productive sector already rich in export success. This is what our work is all about and the sector is a prime opportunity for patient investors. My team and I are here to help investors make connections to these high growth potential companies.”

Anna Soubry, Minister for Small Business said: “Innovation is central to growth and productivity, and this support is helping businesses turn their ideas into reality - winning new contracts, securing thousands of highly-skilled jobs and keeping the UK at the forefront of low carbon vehicle research and development.”



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