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SUMMARY REPORT ABM University Health Board

Health Board Date of Meeting: 29th September 2016

Agenda item: 5 (i)

Report Title Swansea Bay City Region: City Deal – The Internet Coast

Prepared, Approved

and Presented by

Report Prepared By: Peter Mannion, ARCH Programme

Manager

Report Sponsored By: Hamish Laing, Medical Director ABMU

Health Board,

Purpose

For the Health Board to consider the Swansea Bay City Region – City Deal. Specifically for the Health Board to endorse the Internet of Health & Wellbeing Programmes, which have been developed by the ARCH partners, and for the Health Board to comment on the proposed Governance Model for the City Deal.

Decision X

Approval

Information

Other

Corporate Objectives

Healthier Communities

Excellent Patient

Outcomes &

Experiences

Sustainable &

Accessible Services

Strong Partnerships

Fully Engaged & Skilled

Workforce

Effective Governance

X X X X X X

Executive Summary

The Health Board are asked to endorse the Swansea Bay City Region (SBCR) City Deal, particularly the Health & Wellbeing strand, and to recommend that their respective Health Boards support its submission to UK & Welsh Governments at the end of October. This paper and appendices (City Deal Executive Summary; Internet of Health and Wellbeing (IoH&W) overarching plan; IoH&W Programme Business Cases, & Proposed Governance Structure) describes the work to date and planned next steps.

Key Recommendations

1. The Health Board to endorse the current City Deal documentation.

2. That the Health Board notes that Swansea Bay City Region has established a task & finish group to work with partner organisations in order to complete the City Deal Bid and submit it to Welsh and UK Governments for approval.

3. That the Health Board note the draft governance proposal of the City Deal, and note that comments on the proposal can be submitted to the City Region Management Team.

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Assurance Framework

Reports on City Deal have been reviewed by:

ABMU Executive Team

ARCH Programme Board

ARCH – Internet of Health & Wellbeing Task & Finish Group

Rural Health Collaborative Team

Health Board Briefing Meetings (28th July 2016)

Next Steps

1. Working with Partners Complete the City Deal Bid

2. Report final submission through subcommittee of the Health Board

3. Report final submission through ARCH Programme Board

4. Swansea Bay City Region to submit City Deal to Westminster (approx. end of October) ahead of Autumn statement

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MAIN REPORT ABM University Health Board

Health Board Date of Meeting:

Agenda item :

Subject Swansea Bay City Region: City Deal – The Internet Coast

Prepared,

Approved

and

Presented by

Report Prepared By: Peter Mannion, ARCH Programme Manager

Report Sponsored By: Hamish Laing, Medical Director ABMU Health

Board,

PURPOSE The Health Boards of Hywel Dda University Health Board and Abertawe Bro Morgannwg

University Health Board are asked to endorse the Swansea Bay City Region (SBCR) City

Deal, particularly the Health & Wellbeing strand, and to recommend that their respective

Health Boards support its submission to UK & Welsh Governments at the end of October.

This paper and appendices (City Deal Executive Summary; Internet of Health & Wellbeing

(IoH&W) overarching plan; IoH&W Programme Business Cases, & Proposed Governance

Structure) describes the work to date and planned next steps.

Development of the City Deal has been collaborative and iterative with UK & Welsh

Governments in order to establish an overall ‘direction of travel’ whilst allowing for feedback

to amend and improve of the City Deal proposition. Strong encouragement has been given

to submit ahead of the Chancellor’s Autumn Statement if possible.

Significant progress has been made in the last month. A near final draft was presented to the

Swansea Bay City Region Board (Chaired by Sir Terry Matthews) at its meeting on the 15th

September and they were asked to delegate authority to a small sub-group to complete and

submit the final proposal.

A draft SBCR City Deal Governance paper has been prepared by Prof Iwan Davies, from

Swansea University on behalf of the City Region. The City Region Board has asked for

comments to be forwarded to the core regional team. The Health Board is asked to provide

comments on the draft governance structure.

The IoH&W strand documentation (along with wider City Deal) has a final submission

timetable of the last week of October 2016.

KEY ISSUES The Swansea Bay City Region submitted ‘The Internet Coast’ prospectus to the UK

Government in February 2016. This prospectus identified three key strands, and subsequent

work has identified key programmes and projects namely:

Internet of Economic Acceleration – designed to improve the overall digital

infrastructure and connectivity of the Swansea Bay City Region (broadband, WIFI,

4G, 5G etc.) whilst maximising the potential benefits of the planned transatlantic

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submarine cable connecting Oxwich Bay to North America with a capacity of 144

terabits per second. Associated projects are linked to data storage, usage creation

and promotion of technology based testbeds.

Internet of Energy – aimed at building a modern smart energy system that

strategically fits with:

- the current transition in the UK energy industry, - the needs for capacity and reliability of supply, and lower costs for users, - targets to reduce CO2 emissions, - the specific energy supply and demand characteristics and needs of the region.

Associated projects include a Smart Grid Testbed, Pembroke Marine Energy, Distributed

Generation Clusters, Delivering Energy Efficient Housing, District Heating, Power to Gas

Hydrogen, Technology Centre.

Internet of Health & Wellbeing (IoH&W) – using the health related regional

resources from within the ARCH partnership to stimulate regional economic benefits.

Key programmes of work within the IoH&W strand include:

- The Health & Wellbeing Campus Network - Personalised Health & Wellbeing Technology - Personal & Community Connectivity

Key projects planned include the regional regeneration of sites which include primary and/ or

secondary and/ or tertiary care coupled with education and research capability to improve

health services, and the economy. Coupled with that is planned laboratory facilities aimed at

genomic/ proteomic sequencing (and associated spin-out company generation). Also

planned is to utilise the fully connected region (via the Internet of Economic Acceleration) to

develop a regional ‘living laboratory’ i.e. medical technology devices testing, clinical trials,

remote diagnosis and treatment, IOT etc.

Key points & issues to consider in relation to the Swansea Bay City Deal and the IoH&W

strand include:

- If successful, the City Deal provides the opportunity to accelerate the development

and implementation of a number of projects identified within the ARCH portfolio

including:

o Regional Pathology Project

o Institute of Life Science in Hywel Dda University Health Board

o Joint Clinical Research Facilities in Hywel Dda University Health Board

o Primary Care & Well Being centres in Neath, Swansea, Llanelli and

Haverfordwest

o Precision Medicine Project

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o Improve broadband connectivity to enable increase in services delivered

closer to people’s homes and improved wellbeing for population

- Working is ongoing to finalise proposals for a Swansea Bay City Deal Governance

model.

- Health Boards will likely be required to provide in-kind match funding which could

include land, staff time and capital funding (already agreed in principle but not yet

committed) to take the City Deal forward

- Ongoing staff resource will be required to develop the project documentation further

(and with any associated roll-out post approval)

- The City Deal funding (if successful) will not provide revenue funding and therefore it

is paramount that all capital developments potentially funded via the City Deal are

revenue neutral or revenue streams are identified

- If the City Deal is awarded, relevant individual business cases will come to the

Executive Team, and appropriate committees of the Health Board is due course for

consideration and approval

RECOMMENDATIONS

1. The Health Board to endorse the current City Deal documentation.

2. That the Health Board notes that Swansea Bay City Region has established a task & finish group to work with partner organisations in order to complete the City Deal Bid and submit it to Welsh and UK Governments for approval.

3. That the Health Board note the draft governance proposal of the City Deal, and note that comments on the proposal can be submitted to the City Region Management Team.

Following documents are included as appendices:

1. Draft Internet of Health & wellbeing Strategic Case

2. Three Draft Supporting Business Bases

3. Draft City Deal Governance Structure

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Appendix 1: Draft Internet of Health & wellbeing Strategic Case

Swansea Bay City Region

A City Deal 2016 – 2035

The Internet Coast

PRODUCTIVITY THEME (Internet of Health & Wellbeing) - Strategic Case

Introduction Health & Wellbeing is a true global grand challenge sector. All regions of the world are confronted by the need to be innovative in order to address needs driven by demography, technology, chronic disease and the consequent financial pressure on economies. The UK is a global leader in this field in terms of science, research, innovation and translation. Welsh Government has defined the sector as one of its key priorities and invested strategically in the development of a coherent Life Sciences strategy. National initiatives growing out of the Life Sciences sector panel include the Life Sciences Hub and the Arthurian Fund reflecting public and private sector investment of the order of a quarter of a billion pounds. Both Swansea and Cardiff universities are recognised as synergistic centres of research excellence and workforce development in Life Sciences and Health. The sector is unique in that it dovetails and interacts with other key sectors of the regional and national economy including ICT, Advanced Manufacturing and Professional Services. In the economy of Wales alone this reflects tens of thousands of jobs in SMEs and MNEs creating a broad spectrum of employment opportunities, many of which are high value and impact positively on GVA. South West Wales, is an important and unique resource in the Life Science and Health sector within the UK and international contexts. With a population of some one million citizens, the region accounts for one third of the population of Wales, making it an impactful testbed for life science and health research and development. Following the creation of the Institute of Life Science in 2004, and the subsequent formation of the Joint Clinical Research Facility, the key stakeholders within the region came together to establish the ARCH programme in 2014 serving one the largest single health economies in the UK. Over the course of a decade more than 1000 jobs and 60 new companies have been created. ARCH seeks to build upon this established infrastructure by creating and accelerating new economic development and skills opportunities for the region. This is being achieved by developing the existing regional economic base and attracting significant inward investment from new and innovative sources. The inclusion of the Internet of the Health and wellbeing is deliberate and strategic reflecting the seamless interaction with the Internet of Economic Acceleration and Internet of Energy and builds upon the proven track record in the sector. Co/investment from the City Deal alongside other public and private sector funds would accelerate and extend the reach of a vision and a strategy established by a regional partnership delivering sustainable economic impact.

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Vision for the Productivity Theme An Internet of Health and Wellbeing that will establish the Swansea Bay City Region as a globally significant actor where a culture of open innovation accelerates a vibrant sustainable and diverse economy. Delivering jobs and investment whilst also benefiting the wellbeing of its population and addressing the determinants of health and inequality for current and future generations. Achieving this Vision: The Five Year Aim To place the region at the forefront of health & wellbeing innovation, building upon firm foundations of partnership to embed aspects of the vision, achieved through the following objectives;

Launch the first Health & Wellbeing Campus integrating industry, education and research within a secondary/tertiary care open innovation environment

Launch the first Health & Wellbeing Village integrating industry, education and research within a primary care open innovation environment

Embed a regional clinical research ecosystem within the emerging Campus and Village network

In parallel with the objectives of the Internet of Economic Acceleration, connecting Campus and Village network and their wider communities to create a testbed for health & wellbeing innovation

Established and integrated FE, HE and industry skills infrastructure and development programme for Life Sciences and Healthcare

Consolidate and grow the region’s unique assets in precision and personalised medicine

Embark on rollout of the Campus and Village network across the City Region The Ten Year Aim To attract significant inward investment through growing the Village and Campus network, driving economic growth and local regeneration through direct job creation and employment in vibrant innovation clusters. Specific objectives are;

• Launch two further Health & Wellbeing Campuses

• Launch four further Health & Wellbeing Villages

• Translate a portfolio of innovation through the regional clinical research network into wider economic and health benefit

• Translate a portfolio of innovation through

• leveraging the medical technology and personalised medicine capabilities, using the infrastructure established by the Internet of Economic Acceleration, into wider economic and health benefit

• Employ a flow of regional talent within a Village and Campus network, and the vibrant economic clusters created

The Fifteen Year Aim To realise an economically sustainable region recognised as a destination of choice for global investment and enterprise in life sciences and health & wellbeing where resilience, equality and cohesion underpin a culture of innovation and collaborative working. Specific objectives are;

• Integrated and connected Campus & Village network in place and productive

• Translation has progressed to advanced manufacturing and global distribution

• An opportunity-rich environment where local generations choose to pursue their careers and international talent seek to become involved

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• A global reputation for excellence in science, and technical & service innovation in the field of health & wellbeing

• A significant and measurable impact on the science, innovation, economy and health of the region, Wales and the UK, and a leading model for global regions confronted with similar challenges

• A culture that enables the region to maintain its dynamism and continue at the frontier of innovation in health & wellbeing

Programme & Project Activity ARCH defines a triple helix of Economic Development, Wellbeing, and Skills & Talent in an integrated innovative approach to addressing the challenges and realising the opportunities offered by Health & Wellbeing in a regional, national and global context. It builds on the region’s success to date, aligns completely with the aspirations of the UK Government City Deal within a unique ecosystem embracing the skills and tools existing in the region. The City Deal will allow the Life Sciences Strategy to both accelerate and expand in scope. It would connect the region via a network of Campuses & Villages, and through their local ecosystem reach every citizen. It would create a living laboratory which would allow close to a million people to participate in clinical research and trials offering a unique capability to global companies and indigenous enterprises. Creating new products and services adding significantly and sustainably to GVA, and above all else delivering the original vision of linking health and wealth. Health & Wellbeing Campus & Village Network Programme Health & Wellbeing Campus Network At the heart of the Internet of Health and Wellbeing vision lies the regeneration of sites aligned with, and connected to, the population needs through a Campus and Village Network strategy. A Health and Wellbeing Campus is an environment for combining cutting-edge and advanced clinical practice and translating science to application in partnership with industry and commerce, creating sustainable economic impact. A Campus includes:

Institute of Life Science, including research centres, business support Centre, incubation and business facilities driving the Life Science cluster

Secondary and/or tertiary care with seamless connection to support provided in Health and Wellbeing Villages and the wider community;

An ARCH Academy Hub incorporating; o Education and Skills Development Centre including Higher Education provision and a

Talent Bank for Further Education provision; o Health & Wellbeing Academy; o Primary and Urgent Care Academy

The Health and Wellbeing Village Network A Health and Wellbeing Village is an environment translating advances and technological development applied in partnership with industry, commerce, the third sector and the citizen with community-focused and innovative primary care addressing the key determinants of health and wellbeing. A Village includes:

Institute of Life Science including development activity delivering impact through collaboration with industry and the third sector;

Primary and community care clusters connecting proactively to individuals

An ARCH Academy Satellite incorporating;

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o Education and Skills Development Outreach Centre including Higher Education provision and a Talent Bank for Further Education provision;

o Health & Wellbeing Academy; o Primary and Urgent Care Academy

Health & Wellbeing Campus & Village Network – Key & enabling projects N1: Campus Village Network Strategy Developing a strategy in order to create a coherent network of interconnected health campuses and wellness villages across the region. The Strategy will include local ecosystems in an endeavour to ensure accessibility for each citizen. The network will enable the creation of a testbed enabling innovation and subsequent creation of jobs and sustainable economic growth N2: Village ‘Pilot’ Establishment of the Llanelli Life Science and Wellness village to include Wellness Hub, ILS, NeuroVillage, Rehabilitation Centre, Primary Care Centre N3: Campus ‘Pilot’ The Morriston Healthcare campus to include genetics and pathology centres, ILS, surgical centre of excellence. N4: Village Rollout Building on experience and learning from I2, further Wellness Villages to be developed across the region, reflecting the local context to maximise employment and innovation opportunities. N5: Campus Rollout Following establishment of the Morriston Healthcare campus others will develop across the region including within Hywel Dda and within Singleton. A campus has a hospital, business infrastructure and an education & skills development capability. N6: Local Ecosystem Each campus and village will have a local ecosystem including schools, pharmacies, colleges, community centres etc. A place-based regeneration strategy will involve connecting these into a Regional Digital ARCH ecosystem. Personalised Health & Wellbeing Technology Programme The UK has positioned itself as the most compelling location in the world for the development and delivery of Precision Medicine. Aligned with this national vision, South West Wales, through ARCH, has positioned itself as a region with unique advanced capabilities in development and delivery of Personalised Health and Wellbeing Technologies. This Programme adopts a definition of Personalised Health & Wellbeing Technology that includes the creation of genomic data, the secure and effective management of data, the development of devices for diagnosis and therapy, and the development of systems for assisted wellbeing. This Programme will;

Create a leading infrastructure and expertise for genomics innovation and clinical delivery as part of a global network.

Use world-leading regional Data Science capability to allow secure, effective management and application of personalised data leading to creation of new products, processes and services.

Enhance the region’s position as a leader in the design, development and manufacture of personalised devices ranging from diagnostic and therapeutic to prosthetic, through a step

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change in capability, capacity and integration of public and private sector open innovation.

Provide an open innovation environment and support infrastructure for systems development and integration of personalised health & wellbeing technology, including regulatory compliance and technology acceptance/adoption.

Personalised Health & Wellbeing Technology – Key & enabling projects P1: Personalised Medicine Strategy Map all regional assets and develop an integrated personalised medicine strategy P2: Personalised Medicine Pilots Proof of concept involving for example collection of cancer tissues from ABMU/HD patients for genetic sequencing at Nant Labs (US). Data returned to ABMU/HD to inform treatment and research P3: Genetics Facility Building upon learnings of P1, a Whole-Genome and Proteomic sequencing facility will be built at the Morriston campus. This facility will service the clinical needs of ABMU/HD and expand from cancer to other pathways. The facility could also serve other regions of Wales, UK and beyond. P4: Pathology Lab A regional pathology infrastructure for south west Wales relocating a number of facilities distributed across the region. The facility will provide a state of the art service, research and teaching environment. P5: ILS@ Morriston Replicating the established ILS infrastructure of Singleton specialising in data and genetics aspect of Life Science. Designed to translate science and research into economic benefit through incubation, FDI, spin-in/out, IP generation. P6: HTC @Singleton The Healthcare Technology Centre co-locates the recognised research and development capabilities of Swansea University in an open innovation approach. HTC will focus on earlier technology readiness levels, aligning with the specialisms of the economic sector in the region, and in support of the wider ARCH Research Enterprise & Innovation ambition. P7: J-CRF The Joint Clinical Research Facility is an innovative construct and a single portal for all clinical research within the ARCH region. It is also the vehicle for channelling innovation and IP from ABMU/HD through the University’s innovation system enabling commercialisation, thereby contributing to the regional and wider economies. Enhanced patient facilities, specialist research facilities including imaging, co-located with trials pharmacy. Trials recruitment centres will be developed through south west Wales region. Personal and Community Connectivity Programme The Personal and Community Connectivity programme will be a major application layer that uses the infrastructure established by the Internet of Economic Acceleration theme. It will connect communities in an open innovation-driven Health Campuses and Village Network. The programmes enables the flow and interpretation of information throughout the Network, connecting every citizen, every public, private and third sector organisation, and the Health Service in the region. This creates a unique innovation capability immersed in an open and collaborative culture enabling the

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acceleration of a growing economic cluster. The programme will build upon the already-established and significant digital assets of the region in terms of research, development, government and industrial capability and optimally position these for:

Connected Population Cohorts: a ‘living laboratory’ digitally connecting defined groups of people with shared characteristics for the purpose of user-centric innovation;

Health and Wellbeing Campus and Village Digital Network: a resilient, secure, high-quality digital platform enabling and empowering the vision of the Campus and Village Network;

Mobile Wellbeing: digital connectivity between the citizen and the Campus and Village Network to enable and empower the vision

Clinical Trials and Development Connectivity: Connecting citizens, health and social care professionals and industry for healthcare and wellbeing innovation.

Personal and Community Connectivity – Key & enabling projects C1: Map and cohere digital assets Building upon the existing infrastructure of Big Data and sites e.g. DVLA/Farr Mapping, Modelling and Exploiting innovation opportunities. C2: Connected Population Cohorts Engagement in user-centric innovation around key groups/sites. Leveraging stable regional population to attract private sector investment in development for health technology innovation. C3: Health & Wellbeing Villages and Campuses Network Embedded innovation for service and telehealth services providing local access to distributed health expertise and resources. Utilisation of new technology platforms attracting private sector investment and development. C4: Clinical Trials and Development Establish interconnected J-CRF sites with digital access to connected patient cohorts. Building upon the enhanced connectivity platforms available, will bring opportunity to move to a home-based technology research platform, providing attraction for inward investment. C5: Mobile Wellbeing In partnership with private sector, develop and test advanced connected technologies using C2, 3&4 to establish a living laboratory delivering economic and health benefits. C6: Journey to ubiquity – connectivity/ Standards Reaching every citizen, including sparsely populated, remote areas. Ensuring C1-5 covers the entire region spatially and by group

The business cases that accompany this document do not match the programme headings noted previously. The associated business cases and descriptors include:

Campus Phase 1: Morriston/ Singleton – This business case describes the development of physical infrastructure at Morriston & Singleton Campus sites specifically related to an advanced pathology, genetics and proteomics centre of excellence and Heath Care Technology Centre (HTC). Activity within this business case relates to the ‘Health & Wellbeing Campus & Village Network Programme’ and the ‘Personalised Health & Wellbeing Technology Programme’.

Villages Phase 1: Llanelli, Neath, Swansea and Haverfordwest – The business case describes how the physical infrastructure of the Health & Wellbeing Village Network will be developed and operational during the first five year period. This includes the digital connection and any

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associated pilot/ trial periods. Activity within this business case relates to the ‘Health & Wellbeing Campus & Village Network Programme’ and the ‘Personal and Community Connectivity Programme’.

ILS Accelerator Phase 1: Regional roll-out – The business case describes how the physical and digital infrastructure developed will be supported by an expert skill set whose composition has been designed to initiate, develop, grow, roll out and constantly improve the wider Life Science economy within the region. Activity within this business case relates to the ‘Health & Wellbeing Campus & Village Network Programme’, ‘Personalised Health & Wellbeing Programme’ and ‘Personal and Community Connectivity Programme’. The ILS Accelerator will also act as a conduit to integrated working across all strands/ themes within the City Deal i.e. links between Productivity, Infrastructure & Efficiency.

All Phase 1 business cases relate to the development of initiatives during the timeframe 2017/18-2023/24. Further phasing of projects post 2013/24 is stated in the ten year vision, fifteen year vision and overall IoH&W phasing profile. Programme Phasing The previous section describes the programmes and projects within the Productivity theme. It is also notes that projects from the various programmes have been packaged into initial business cases that encompass elements of more than one programme i.e. planning for work in tranches/ phases. However the overall phasing is consistent with the 5, 10 and 15 year aims set out earlier in the document. It represents a logical phased development effectively using current assets, adding new capability and cementing relationships with the private sector to maximise economic opportunity. The five-year aim will place the region at the forefront of health & wellbeing innovation, building upon firm foundations of partnership to embed aspects of the vision. This phase creates the foundations for the Internet of Health & Wellbeing as a transformational and sustainable initiative. It will see the delivery of impact and benefit through activities already established, but greatly enhanced through the expansion and reach made possible through the City Deal investment. The ten-year aim is to attract significant inward investment through growing the Village and Campus network, driving economic growth and local regeneration through direct job creation and employment in vibrant innovation clusters. This phase builds upon foundations set, and uses the ecosystem created to accelerate the growth of indigenous and inward-investing companies. The fifteen-year aim is to realise an economically sustainable region recognised as a destination of choice for global investment and enterprise in life sciences and health & wellbeing where resilience, equality and cohesion underpin a culture of innovation and collaborative working. The region will have changed, demonstrating that an open innovation system can deliver economic benefits to the health and wealth of the region. The phasing of all projects is noted in Appendix 1.

Rationale: Why Now? Why the Swansea Bay City Region? Fifteen years ago a small group representing government, industry, academia and the health service defined a Life Science economic development strategy for the Swansea region joining the ‘Health and Wealth’ agendas. Recognising the unique challenges of the City and its region, a set of core principles were set as the foundation. All activities would be Open, Collaborative, Global, and Multidisciplinary in nature with a focus on the translation of knowledge from ‘bench to bedside’.

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Reflecting the unique attributes of the region, the strategy was developed and implemented leading to the vibrant Life Sciences ecosystem of 2016. An ecosystem which is of UK relevance, globally connected, attracting inward investment, and spawning indigenous enterprise, poised for its next stage of development.

Source: Office for Life Sciences, HM Government, 2014

Swansea Bay City Region has a rich and diverse industrial heritage, a global leader in manufacturing with its products distributed around the world. The decline of heavy industry led to a period of foreign direct investment during the latter decades of the twentieth century, leaving a structural economic and health legacy. The region today has a population a little short of a million, with a diversity of socio-economic and health factors, living in both large urban conurbations and remote rural communities, with high prevalence of chronic disease and disparities both in life expectancy and quality. However, the region also has a legacy of skilled, talented and aspirational workers shown to be loyal and with a strong work ethic reinforced by an intrinsic sense of community. The Life Science strategy developed sought to harness these strengths while also addressing the challenges of the community. It is both

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multidisciplinary and multifaceted focusing primarily on medical technology seeking to establish and expand core infrastructure, and build the science base while also creating advanced manufacturing capacity. During the first decade of implementation the Life Sciences Strategy has established the Institute of Life Science, securing significant funding from the private sector, government and European Structural Funds. In the 2014 Research Excellence Framework, the ILS, the Research and Innovation arm of Swansea University Medical School was rated 2nd of 95 centres in the UK in its unit of assessment, with particular recognition for Impact and Environment, rated 1st in the UK. Over 50 new companies have been created, some coming from academia and others from the community, 800 new jobs have contributed to improving GVA and providing diverse opportunities. The Life Sciences ecosystem attracts major global companies to both participate in the clinical research environment created and collaborate with small innovative companies and entrepreneurs. However, this is just the beginning and the original partners have established ARCH (A Regional Collaboration for Health) to build on the foundations and develop the region into a globally relevant Ecosystem, for integrated Open Innovation in Health and Wellbeing. Driving Economic Growth The partnership underpinning this IoH&W theme of this City Deal bid has been engaged in driving economic impact from indigenous innovation in the field of Life Science and Health for more than a decade. Over fifty new companies have been established, 800 high value jobs created and more than £50million of private sector funds have been attracted. This has been achieved through:

‘Spinning out’ companies based on IP generated locally in the region’s R&D centres

‘Spinning in’ companies based on IP generated within and outside the region giving access to facilities and skills to fuel their growth

Attracting open innovation partnerships with global enterprises enabling both research collaboration and strategic commercial relationships with the region’s SME community.

Case Study: Swansea Innovations Swansea Innovations currently spins out 8 companies per annum, two-thirds of which are in Life Sciences, Health & Wellbeing. It has a dedicated fund to ‘seed invest’ into indigenous spin out companies and co-invest alongside a range of other local finance providers. “This City Deal proposal allows Swansea Innovations to apply its expertise at scale across the region co-investing with a greater cohort of international funders, driving both company creation and growth creating sustainable clusters” Gerry Ronan, Chief Executive

The region has a proven track record spanning the entire technology readiness level spectrum from fundamental research through to commercialisation, international distribution and sales. It has also established a Joint-Clinical Research Facility (J-CRF), a single clinical research portal allowing the private sector access to a ‘one-stop shop’ for their clinical trial requirements. The J-CRF is an innovative structure which not only facilitates clinical research but also serves to harmonise IP policy across partners employing a skilled workforce of more than 30,000 individuals and embracing a population of 1 million citizens. This creates an integrated living laboratory of great interest to both Med-Tech and pharmaceutical companies wishing to invest in the region. Novo Nordisk one of, if

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not, the leading company in diabetes management recognises J-CRF as their number one recruiter and retainer of patients for clinical trials in Europe.

Case Study: PWC Relocated their regional office together with Life Science specialists to the Institute of Life Science in order to be close to incubating companies. “We work with clients across a range of sectors and industries, including Life Sciences, which we see as one of the key growth areas not only for Wales but for the UK and globally” Mark Ellis, Senior Partner

During the decade the partnership has raised in excess of £100million to construct the Institute of Life Science, which houses UK Research Council (including MRC and ESRC) funded research centres housed alongside incubation business facilities, accommodating private sectors large and small. This City Deal bid would allow the scale, scope and reach of both ILS and J-CRF to extend at pace across the whole region. Each campus and village would have an ILS activity to drive commercial activity and house enterprises in a supportive environment. Campus and villages would also have a J-CRF presence to allow the translation of innovation in the field of Life Science and Health & Wellbeing to practice and commercialisation. As these enterprises grow within the regional ecosystem their success can be accommodated within an emergent ILS Medi-Park and working with the local authority partners, government and the private sector their growth will deliver sustainable economic growth to the region.

Case Study: SONY Sony Pencoed is the sole remaining Sony manufacturing plant in Europe. In 2007 local management decided to implement a new strategy adding third party manufacturing and reshoring to their core business of internal corporate manufacturing. In 2016 the Sony facility is home to more than 30 incubating companies, the majority of which are active in Life Science, Health & Wellbeing, employing more than 700 people. “This open innovation approach is an exemplar of global best practice” Sir Howard Stringer, Former Global Chief Executive.

The ARCH partnership forms an integral part of the Swansea Bay City Region and as such has devised the IoH&W strand to fully fit with constituent aims of partners of ARCH. A Regional Collaboration for Health (ARCH) The ARCH partners of ABM University Health Board, Hywel Dda University Health Board and Swansea University are working together to drive investment and create jobs to boost the economy, improve the health and wellbeing of Swansea Bay City Region, and enhance the skills of the next generation of healthcare professionals, researchers, academics and innovators to create a healthcare system fit for the 21st Century. ARCH is already establishing a positive dynamic between the economy and healthcare and aims to harness research capability, connectivity and skills development. It will maximise the vital role life sciences and the health sectors play in business growth, job creation and the global platform it can provide.

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“ARCH serves a population of around 1 million with 30,000 employees and an annual turnover of over £2billion”, Andrew Davies, Chair - ARCH Partnership & Abertawe Bro Morganwwg University Health Board This mix of the ‘magic million’ stable population is a major attractor for R&D companies who want to develop state-of-the-art medical science products, aligned with life science enterprises, investment funds and advanced manufacturing to provide strong multiplier effects from innovation undertaken in the region. ARCH will deliver new jobs and investment by commercialisation of research through a Healthcare Technology Centre (HTC) and Joint Clinical Research Facility (J-CRF), together with product/service, manufacture, and delivery across a health and life science campus network of Medi-Parks. “A connected region will provide the infrastructure needed to transform how healthcare is delivered”, Phil Kloer, Medical Director, Hywel Dda University Health Board The Swansea Bay City Region City Deal: The Internet of Health & Wellbeing The City Deal proposes to act a catalyst for an existing regional partnership (ARCH: A Regional Collaboration for Health) which brings together two University Health Boards; Abertawe Bro Morgannwg (ABMU) and Hywel Dda with Swansea University and other partners in an area of South West and central Wales (geographically larger again than the Swansea Bay City Region). This is also underpinned by a wider partnership between Hywel Dda Local Health Board and the Universities of Trinity St David and Aberystwyth. ARCH targets the creation of over 1,200 jobs by 2030 and it aims to attract more than £650m of investment, harnessing research capability, connectivity and skills development. The synergy with other strands of this City Deal proposal is significant. In particular, ARCH will maximise the beneficial impact that life science and health sectors play in business growth, opportunity for R&D investment and GVA gain across one of the largest single UK health organisational areas; with a population of around 1 million citizens served by 30,000 employees and an annual turnover of over £2bn. This would be aligned with life science enterprises and wider initiatives, such as Swansea University’s Computational Foundry, a £40m research and innovation facility. ARCH is seeking to establish a long-term collaboration and strategic partnership to develop a networked, comprehensive, whole-genome and proteomic molecular diagnostic testing and analysis system. The results of this collaboration will allow Health Boards to work in partnership with citizens to create genome-informed personalised treatment plans and research environments. This complements and could contribute significantly to making the UK a world leader in Genomic Medicine: an ambition set out by the Prime Minister in December 2012 by allowing the people of Wales to play their part in the 100,000 Genomes Project. On a population basis, the transfer, storage and analysis of these data requires an enhanced digital infrastructure to maximise opportunities and benefits. Put simply, being able to move big data volumes is fundamental to the health outcomes we aim to achieve. ARCH and The City Deal – A Strategic Fit Health & Wellbeing is a true global grand challenge sector. All regions of the world are confronted by the need to be innovative in order to address needs driven by demography, technology, chronic disease and the consequent financial pressure on economies. The UK is a global leader in this field in

17

terms of science, research, innovation and translation. Welsh Government has defined the sector as one of its key priorities and invested strategically in the development of a coherent Life Sciences strategy. National initiatives growing out of the Life Sciences sector panel include the Life Sciences Hub and the Arthurian Fund reflecting public and private sector investment of the order of a quarter of a billion pounds. Both Swansea and Cardiff universities are recognised as synergistic centres of research excellence and workforce development in Life Sciences and Health. The sector is unique in that it dovetails and interacts with other key sectors of the regional and national economy including ICT, Advanced Manufacturing and Professional Services. In the economy of Wales alone this reflects tens of thousands of jobs in SMEs and MNEs creating a broad spectrum of employment opportunities, many of which are high value and impact positively on GVA. South West Wales, is an important and unique resource in the Life Science and Health sector within the UK and international contexts. With a population of some one million citizens, the region accounts for one third of the population of Wales, making it an impactful testbed for life science and health research and development. Following the creation of the Institute of Life Science in 2004, and the subsequent formation of the Joint Clinical Research Facility, the key stakeholders within the region came together to establish the ARCH programme in 2014 serving one the largest single health economies in the UK. Over the course of a decade more than 1000 jobs and 60 new companies have been created. ARCH seeks to build upon this established infrastructure by creating and accelerating new economic development and skills opportunities for the region. This is being achieved by developing the existing regional economic base and attracting significant inward investment from new and innovative sources. The inclusion of the Internet of the Health and wellbeing is deliberate and strategic reflecting the seamless interaction with the Internet of Economic Acceleration and Internet of Energy and builds upon the proven track record in the sector. Co/investment from the City Deal alongside other public and private sector funds would accelerate and extend the reach of a vision and a strategy established by a regional partnership delivering sustainable economic impact. Impact Retrospective Impact Analysis The precursor to the IoH&W, the Institute of Life Science commenced its work in 2004 and has been subject of numerous impact analyses and external review. These analyses have been based primarily upon job creation and the development of new enterprise. The following curves illustrate the jobs created and the trend in employment established by the initiative. The three categories of employment created and analysed are:

Construction: Impact of the initiative during its construction phases derived from employment and the creation of new facilities. At the peak of construction, 57 FTE workers were involved in delivery of the facilities, across prime and subcontractors.

Core Research Roles: Employment benefits stemming from the project portfolios being led from academic centres. The Phase 1 project created 115 R&D jobs, rising to 385 by the completion of Phase 2 project in June 2015.

18

Wider Private Sector: Employment, enterprise and innovation benefits derived from wider industry-based activities established through ILS. 261 full-time roles were created which relate to this category in the period through to June 2015

When analysed for economic impact, the jobs created in these three categories, coupled with a multiplier (1.4) to recognise wider benefit and a conservative estimate of residual infrastructure value has led to the following benefit/cost position.

IoH&W Prospective Impact Analysis The impact presented in the retrospective analysis will continue and evolve setting a foundation for the growing cluster. The prospective analysis for IoH&W will quantify additional impact provided through the three Programme, over and above this baseline. The projections are based on the following assumptions:

The numbers and growth profile of jobs created are based upon the ten-year experience of ILS and informed by job market research together with direct insight into sector dynamics.

Consistent with the retrospective analysis, the jobs are categorised as Construction; Core Research/Health & Wellbeing; and Wider Private Sector.

The projections have been adjusted using established parameters for additionality including for deadweight, displacement and substitution.

Further data required for this analysis are provided by ONS, BIS and StatsWales including GVA by sector and region. In order to present the data consistent with the retrospective analysis and in a form requested by City Deal, it has been analysed both in terms of jobs/wage impact and secondly in terms of GVA contribution.

The following graph presents the planned total job creation over the 15-year period and the following table presents the projected benefit/cost over the by wage impact and GVA contribution.

19

How Does This Theme Link to the Other Themes in the City Deal Request? The Productivity theme of the Swansea Bay City Region Deal generates economic benefit in its own right, as well as compounding benefits of the other two components of the programme. Additionally added value projects will be delivered which would improve the health & wellbeing / social inclusion & cohesion of the region through ‘social prescribing’, specifically introducing Broadband on prescription. There are indirect connections between the themes namely a healthier workforce realising wider economic benefits and NHS efficiencies, whilst there is potential to utilise the Campus and Village network and Life Science and Health ecosystem to roll out other Government-related initiatives Specific links to the wider City Deal themes include:

Links to the Efficiency Theme - Potential for new capital build infrastructure (and retrofitted existing buildings) to include renewable technologies, high levels of energy efficiency, buildings as power stations, LED lighting, smart metering, etc.

Links to the Infrastructure Theme - Overlaying the core digital infrastructure with applications/projects that will stimulate the regional, national & UK economy

Wider Economic Benefits The regional population will benefit from the regeneration of sites via the Campus & Village initiative whilst improved connectivity will allow for improved employment opportunities, whether within the IoH&W strand or wider technology and/ or application layer development roles. These same factors, coupled with labour availability and an excellent lifestyle that can be pursued at a very moderate cost, will encourage clustering around the projects. It is this ‘Virtuous Circle’ that will be the primary source of wider economic benefits. Wider economic benefits are those impacts of an investment or project that goes beyond generalised user benefits of an intervention. Wider economic benefits (WEBs) incorporate all positive economic impacts that arise as a result of an intervention.

20

An important example of WEBs is the various, second-order impacts of a policy that are often generated indirectly or are induced as a result of the direct economic impacts of the intervention. Examples include supply chain impacts, resulting increase in demand values or the benefits of agglomeration. These WEBs can have a significant impact on the local economy and so can drastically affect the total economic impact of the intervention. Their rationale is illustrated in the diagram below.

Stakeholder Engagement - Strategic & Co-investing partners This theme of the City Deal proposal, IoH&W, has been developed by a small group empowered under the Swansea Bay City Region board. The group has engaged a much broader network of regional stakeholders, many of whom would co-invest in the initiative. In addition, meaningful and advanced dialogue is underway with a range of private sector partners who have indicated their commitment to co-invest in both a financial and knowledge-based sense. This knowledge inward investment includes research, development and potentially advanced manufacturing collaboration, giving not only access to expertise but also global brands and networks. IoH&W benefits from building upon collaboration that has been underway for some time, including the Institute of Life Science, the Joint-Clinical Research Facility and more recently the ARCH programme. The IoH&W theme therefore builds upon that momentum bringing proven working collaboration. The co-investing partners actively involved in developing this theme include:

Local Authorities - All four relevant local authorities: Swansea City Council, Neath Port Talbot County Borough, Carmarthenshire County Council and Pembrokeshire County Council. This grouping includes their responsibility for local regional development and delivery of social care.

Education providers - Swansea University is a lead partner in ARCH and the other regional University of Wales Trinity St David together with all FE College across the region (Gower College, Neath Port Talbot College, Pembrokeshire College and Coleg Sir Gar).

Welsh Government - The Departments of: Economy and Infrastructure; Health, Wellbeing and Sport; and Finance and Local Government, together with the First Minister’s Cabinet Office.

NHS - Both Abertawe Bro Morgannwg and Hywel Dda University Health Boards covering the entire region from an NHS perspective

Private Sector - The activities of ILS, J-CRF and ARCH already actively embrace more than 350 companies in the region, each in their own way investing in the Life Science, Health & Wellbeing ecosystem on an ongoing basis. A number of international enterprises have indicated a serious intent to co-invest in the City Deal proposal.

21

The IoH&W theme is actively engaging with the community described above but is also conscious of its responsibility and duty to inform other key actors, such as the third sector and every individual citizen of the vision, plans and developments at the appropriate points in time. As the governance and management structure of the City Deal becomes defined and active, it will then prioritise the effective and efficient engagement with all stakeholders in order to maintain coherence and momentum, consistent with the vision. The Logic Model for the Productivity Strand There are some enlightened parts of the world that recognise that the combination of various technology revolutions particularly those around health, digital, energy and manufacturing are moving towards what the Japanese call a Super Smart Society. Such a society is underpinned by a user-centric Open Innovation approach which draws upon multi-sector and interdisciplinary collaborative working. Clearly this approach presents considerable innovation challenges but in return offers enormous economic and citizen well-being benefits. This proposal has been developed to build upon momentum established in defined sectors but recognising that combining disparate threads into one coherent strategy addresses the challenges of an age that often requires collaborative and multidisciplinary solutions. It reflects the objectives of An Internet Coast which will establish the Swansea Bay City Region as a globally significant actor, and where a culture of Open Innovation accelerates a vibrant sustainable and diverse economy. Delivering jobs and investment whilst also benefitting its population and addressing the determinants inequality for current and future generations. Our logic model shows how the project aligns to the 3 key strands of the Internet Coast i.e. Internet of Economic Acceleration, Energy and Health and Well-being.

22

Logic Model: Productivity Theme

23

Activities and Outputs When profiled, the Productivity theme will produce activity across a wide range of fields. The projects set out in this theme will encompass volumes of outputs as follows:

Creation of infrastructure (Campus & Villages) Spin out and spin in company creation Direct (& indirect) job generation GVA benefits Businesses supported/start-ups – with associated jobs targets Apprenticeships + skills uplift Clinical research Research into product development activity (across all technology readiness levels) Improved regional productivity due to improved health outputs Medical devices testbed Improved social inclusion & cohesion due connected communities The logic model above shows how outputs generated within this theme feed into outcomes, and, in turn, impact upon the key City Deal objectives of GVA and employment growth. Investment Levels/ Funding Summary Work on aspects of a regional Life Science strategy has been underway for more than a decade. This endeavour led to the creation of ARCH in Q1 2015 which made the strategy, initially focused on Swansea itself, a regional endeavour across the Swansea Bay City Region. Some initiatives were in advanced stages of development and delivery, for example the Institute of Life Science, the Centre for NanoHealth, the Farr Institute, together with some 50 new life science companies and 340 further enterprises active in the cluster. The ARCH partnership established the Institute of Life Science in 2004. Capital funding was initially provided by European Structural Funds for infrastructure, enabling the building of ILS1 and ILS2 which became an integrated facility funded primarily for economic development purposes. ILS1 was completed in 2007 and ILS2 in 2011. Further EU Structural Funds were made available to establish the Centre for NanoHealth which was located within ILS2. The EU funds also allowed the pump-priming of the revenue operations which led to a self-funding and sustainable outcome after four years. There is therefore a track record of establishing new and innovative projects, and managing them to become financially sustainable whilst also delivering economic benefits and impact consistent with the original purpose. During the twelve years since the establishment of ILS, not only has the project become a self-sustaining initiative but it has also generated 800 jobs and spun-out more than 50 new enterprises. These enterprises have attracted in excess of £60m of private sector investment. As the project has matured other initiatives have emerged such as the ILS Data Science Centre which houses the MRC Farr Institute and ESRC Administrative Data Research Centre. ILS has also enabled the creation of J-CRF (Joint-Clinical Research Facility), an innovative construct, unique to the UK, enabling a single portal facilitating private sector clinical trials and channelling innovation and intellectual property generated within the NHS into the regional economy. This ecosystem has become a ‘living laboratory’ of a million people, 30,000 highly-skilled employees many of whom are innovators and researchers. This Open Innovation environment is delivering evidence of its ability to generate innovation and attract global investment.

24

The economic impact is reported elsewhere, but one example of benefit across the ecosystem is the retention of the only remaining Sony manufacturing plant in Europe which now houses more than 40 companies, and manufactures product for innovators from across the region. Productivity Theme (Internet of Health & Wellbeing) Summary Table:

ARCH

partners

£ (m)

Local

Authorities

£ (m)

Private Sector

£ (m)

City Deal

(UK & Welsh

Governments)

£ (m)

Total

£ (m)

Capital

31 53 135 234 453

Revenue

78 1 24 16 118

Capital &

Revenue

109 54 159 250 571*

Phase 1 request

City Deal

(UK & Welsh Governments)

£ (m)

Match funding

£ (m)

Total

£ (m)

95

144 (£66m private / £78m

other public)

239*

Phase 2 & 3 request (combined)

25

City Deal

(UK & Welsh Governments)

£ (m)

Match funding

£ (m)

Total

£ (m)

155

178 (£93m private / £85m

other public)

333*

*Note: totals do not match due to rounding

Appendix 2: 1st Business Case Campus Network

26

Project title: Campus Phase 1: Morriston / Singleton

Project Sponsors (Lead partner)

ARCH (A Regional Collaboration for Health)

- Swansea University - Abertawe Bro Morgannwg University (ABMU) Health Board

Summary: The ARCH programme has defined a campus and village Health & Wellbeing network. A campus contains secondary and/or tertiary care, an ILS and a education hub. In the first phase investment will be made into creating an advanced pathology, genetics and proteomics centre of excellence at Morriston Health Campus together with further developing the Health Care Technology (HTC) at Singleton Health Campus. Investment requested from City Deal - £25 million Match funding from other sources - £35 million

Total Project Value: £60m

The Project will have a significant impact on GVA by creating significant

high added value employment. Details of which are included in the main

document.

Programme strand:

Infrastructure

Financial summary* (Please write in full e.g. 135,000)

201

7/1

8

201

8/1

9

201

9/2

0

202

0/2

1

202

1/2

2

2022/2

3

202

3/2

4 TOTAL

Total costs (£) £10,000,000

£30,000,000

£20,000,000

£60,000,000

City Deal input (£)

£5,000,000 £5,000,000 £15,000,000

£25,000,000

Private Sector (£)

Other public (£) £5,000,000 £25,000,000

£5,000,000 £35,000,000

Prepared by: Name: Prof. Marc Clement

Tel: 01792 295685

Email: r.m.clement@swansea.ac.uk

27

Business Plan Outline for SBCR City Deal Project

1) Project title: Campus Phase 1: Morriston / Singleton

2) Summary of project including aims and objectives

Aims

- Initiation of first campus at Morriston - Continued development of Campus at Singleton - Creation of a Centre of Excellence in Genomics and Proteomics - Expansion of Health Technology Centre (HTC) - Create foundations for Phase 2 development

Objectives

- Creation of high-added value jobs - Attraction of inward investment - Establishment of new enterprise - Growth of established enterprise - Enhanced global reputation

3) Applying organisation including contact details and details of partners involved.

Applicant - Swansea University through the City Deal vehicle (applicant) Partners

- Abertawe Bro Morgannwg University Health Board - Hywel Dda University Health Board - Industry; Nant Health, Fujitsu, Swansea Innovations - Others

4) Executive summary The ARCH programme has defined a campus and village Health & Wellbeing network. A campus contains secondary and/or tertiary care, an ILS and a education hub. In the first phase investment will be made into creating an advanced pathology, genetics and proteomics centre of excellence at Morriston Health Campus together with further developing the Health Care Technology (HTC) at Singleton Health Campus. The proposed project has been developed in a high-growth sector built upon the unique strengths and assets of the region with focus on the medical technology segment. This project will contribute ~600 high added-value jobs, with strong multiplier effects across the region and UK. It will contribute to the delivery of an increase of ~£1.3bn GVA during the Swansea Bay City Region planning period to 2031.

28

5) Strategic Fit

During the first decade of implementation the Life Sciences Strategy has established the Institute of Life Science, securing significant funding from the private sector, government and European Structural Funds. In the 2014 Research Excellence Framework, the ILS, the Research and Innovation arm of Swansea University Medical School was rated 2nd of 95 centres in the UK in its unit of assessment, with particular recognition for Impact and Environment, rated 1st in the UK. Over 50 new companies have been created, some coming from academia and others from the community, 800 new jobs have contributed to improving GVA and providing diverse opportunities. The Life Sciences ecosystem attracts major global companies to both participate in the clinical research environment created and collaborate with small innovative companies and entrepreneurs.

However, this is just the beginning and the original partners have established ARCH (A Regional Collaboration for Health) to build on the foundations and develop the region into a globally relevant ecosystem for integrated Open Innovation in Health and Wellbeing. ARCH defines a triple helix of Economic Development, Wellbeing, and Skills & Talent in an integrated innovative approach to addressing the challenges and realising the opportunities offered by Health & Wellbeing in a regional, national and global context. It builds on the region’s success to date, aligns completely with the aspirations of the UK Government City Deal within a unique ecosystem embracing the skills and tools existing in the region. The City Deal will allow the Life Sciences Strategy to both accelerate and expand in scope. It would connect the region via a network of Campuses & Villages, and through their local ecosystem reach every citizen. It would create a living laboratory which would allow close to a million people to participate in clinical research and trials offering a unique capability to global companies and indigenous enterprises. Creating new products and services adding significantly and sustainably to GVA, and above all else delivering the original vision of linking health and wealth.

Project description

The Genetics and Proteomics Centre of Excellence will be located on an identified and immediately available plot of land at Morriston Hospital. That will in turn release and committed infrastructure at Singleton contiguous with the current ILS footprint. The City Deal funding will allow support the construction of the Centre of Excellence and the refurbishment of buildings for the creation of HTC. The entire initiative will commence in Q2 2017 and be complete for Q2 2019.

Rationale for the project Health & Wellbeing is a true global grand challenge sector. All regions of the world are confronted by the need to be innovative in order to address needs driven by demography, technology, chronic disease and the consequent financial pressure on economies. The UK is a global leader in this field in terms of science, research, innovation and translation. Welsh Government has defined the sector as one of its key priorities and invested strategically in the development of a coherent Life Sciences strategy. National initiatives growing out of the Life Sciences sector panel include the Life Sciences Hub and the Arthurian Fund reflecting public and private sector investment of the order of a quarter of a billion pounds. Both

29

Swansea and Cardiff universities are recognised as synergistic centres of research excellence and workforce development in Life Sciences and Health. The sector is unique in that it dovetails and interacts with other key sectors of the regional and national economy including ICT, Advanced Manufacturing and Professional Services. In the economy of Wales alone this reflects tens of thousands of jobs in SMEs and MNEs creating a broad spectrum of employment opportunities, many of which are high value and impact positively on GVA. South West Wales, is an important and unique resource in the Life Science and Health sector within the UK and international contexts. With a population of some one million citizens, the region accounts for one third of the population of Wales, making it an impactful testbed for life science and health research and development. Following the creation of the Institute of Life Science in 2004, and the subsequent formation of the Joint Clinical Research Facility, the key stakeholders within the region came together to establish the ARCH programme in 2014 serving one the largest single health economies in the UK. Over the course of a decade more than 1000 jobs and 60 new companies have been created. ARCH seeks to build upon this established infrastructure by creating and accelerating new economic development and skills opportunities for the region. This is being achieved by developing the existing regional economic base and attracting significant inward investment from new and innovative sources. The inclusion of the Efficiency strand (formerly the Internet of the Health and Wellbeing) is deliberate and strategic reflecting the seamless interaction with the other two strands of the programme and builds upon the proven track record in the sector. Co/investment from the City Deal alongside other public and private sector funds would accelerate and extend the reach of a vision and a strategy established by a regional partnership delivering sustainable economic impact.

Rationale for immediate intervention The ARCH partners have identified this project as a key priority to realise the concept of a ‘Living Laboratory’ designed to further enable the growth of the sector. The development of ILS has been a success. Its capacity is saturated and there is a danger of losing innovative opportunities overseas.

Evidence of market failure Wales has an identified and documented absence of serviced laboratory and technical infrastructure. The fact that ILS is fully subscribed with a waiting list is only one part of the evidence. Market studies have evidenced this further and are appended.

How the project will contribute towards the aim and objectives of the Internet Coast An outline of how the project contributes to the cross cutting themes of skills and connectivity

There are some enlightened parts of the world that recognise that the combination of various technology revolutions particularly those around health, digital, energy and manufacturing are moving towards what the Japanese call a Super Smart Society. Such a society is underpinned by a user-centric Open Innovation approach which draws upon multi-sector and

30

interdisciplinary collaborative working. Clearly this approach presents considerable innovation challenges but in return offers enormous economic and citizen well-being benefits.

This proposal has been developed to build upon momentum established in defined sectors but recognising that combining disparate threads into one coherent strategy addresses the challenges of an age that often requires collaborative and multidisciplinary solutions.

It reflects the objectives of An Internet Coast which will establish the Swansea Bay City Region as a globally significant actor, and where a culture of Open Innovation accelerates a vibrant sustainable and diverse economy. Delivering jobs and investment whilst also benefitting its population and addressing the determinants inequality for current and future generations.

Our logic model shows how the project aligns to the 3 key strands of the Internet Coast i.e. Internet of Economic Acceleration, Energy and Health and Well-being.

How the project will deliver transformational change in the region, Wales, and the UK, and why should the investment take place in the Swansea Bay City Region?

Benefit/Impact

Wales –

Lo/med/hi Description UK –

Lo/med/hi Description

New High-

Added Value

Jobs

High Direct jobs in new

and growing

companies

Med Direct jobs in new

and growing

companies

Safeguarded

High-Added

Value Jobs

High Protected jobs in

new and established

companies

Med Protected jobs in new

and established

companies

Multiplier

Effects

High Strong multiplier

effects for targeted

Low Strong multiplier

effects for targeted

31

sector sector

Inward

Investment

High Dealflow for current

and attractor for new

investor community.

Med Dealflow for current

and attractor for new

investor community.

Intellectual

Property

Created

High IP derived from

increased BERD and

HERD

Med IP derived from

increased BERD and

HERD

Enterprises

Created

High New ventures with

high-growth potential

Med New ventures with

high-growth potential

Environmental

Impact

Med New infrastructure

developed to

current/future

standards

N/A New infrastructure

developed to

current/future

standards

How the project will be additional? See Section 7 Alignment with relevant Welsh Government and UK Government policies The project described has been developed through the ARCH partnership and discussed at length with Welsh Government. It aligns with, and on occasion informs WG Policy. It is also in complete harmony with UK Government Policy.

6) Stakeholder Engagement This theme of the City Deal proposal, Productivity (IoH&W), has been developed by a small group empowered under the Swansea Bay City Region board. The group has engaged a much broader network of regional stakeholders, many of whom would co-invest in the initiative. In addition, meaningful and advanced dialogue is underway with a range of private sector partners who have indicated their commitment to co-invest in both a financial and knowledge-based sense. This knowledge inward investment includes research, development and potentially advanced manufacturing collaboration, giving not only access to expertise but also global brands and networks. This theme benefits from building upon collaboration that has been underway for some time, including the Institute of Life Science, the Joint-Clinical Research Facility and more recently the ARCH programme. The theme therefore builds upon that momentum bringing proven working collaboration.

The co-investing partners actively involved in developing this theme include:

- Local Authorities - All four relevant local authorities: Swansea City Council, Neath Port Talbot County Borough, Carmarthenshire County Council and Pembrokeshire County Council. This grouping includes their responsiblity for local regional development and delivery of social care.

- Education providers - Swansea University is a lead partner in ARCH and the other regional University of Wales Trinity St Davids together with all FE College across the region (Gower College, Neath Port Talbot College, Pembrokeshire College and Coleg Sir Gar).

32

- Welsh Government - The Departments of: Economy and Infrastructure; Health, Wellbeing and Sport; and Finance and Local Government, together with the First Minister’s Cabinet Office.

- NHS - Both Abertawe Bro Morgannwg and Hywel Dda University Health Boards covering the entire region from an NHS perspective

- Private Sector - The activities of ILS, J-CRF and ARCH already actively embrace more than 350 companies in the region, each in their own way investing in the Life Science, Health & Wellbeing ecosystem on an ongoing basis. A number of international enterprises have indicated a serious intent to co-invest in the City Deal proposal.

The IoH&W theme is actively engaging with the community described above but is also conscious of its responsiblity and duty to inform other key actors, such as the third sector and every individual citizen of the vision, plans and developments at the appropriate points in time. As the governance and management structure of the City Deal becomes defined and active, it will then prioritise the effective and efficient engagement with all stakeholders in order to maintain coherence and momentum, consistent with the vision.

7) Objectives, Wider Economic Benefits and Additionality

The proposed project has been developed in a high-growth sector built upon the unique strengths and assets of the region. A focus on new enterprise and inward-investment contributes to high additionality, with low deadweight and avoiding displacement. Sensitivity analysis has been undertaken to test this, with baseline projections for project job creation and GVA contribution across the first phase presented below;

33

8) Delivery The Governance and Financial vehicle for the Internet Coast is to be agreed

Financials

Financial summary* (Please write in full e.g. 135,000)

20

17

/18

20

18

/19

20

19

/20

20

20

/21

20

21

/22

20

22

/23

20

23

/24

TOTAL

Total costs (£) £10,000,000 £30,000,000 £20,000,000 £60,000,000

City Deal input (£) £5,000,000 £5,000,000 £15,000,000 £25,000,000

Private Sector (£)

Other public (£) £5,000,000 £25,000,000 £5,000,000 £35,000,000

Appendix: 2nd Business Case Village Network

34

Project title: Villages Phase 1: Llanelli, Neath, Swansea and Haverfordwest

Project Sponsors (Lead partner)

ARCH (A Regional Collaboration for Health)

- Swansea University - Abertawe Bro Morgannwg University (ABMU) Health Board - Hywel Dda University Health Board - Carmarthenshire County Council - Swansea City Council - Neath Port Talbot County Borough Council - Pembrokeshire County Council - Private sector investment consortium

Summary: The ARCH programme has defined a campus and village Health & Wellbeing network. A village contains a primary/community care facility, an ILS satellite and an education and skills development capability. A Health & Wellbeing village network will be constructed and operational during the first five year period of the programme, located at Llanelli, Neath, Swansea and Haverfordwest. The villages will be digitally connected to the campuses through the Infrastructure being created in the City Deal and the network will drive local and regional economic activity. Investment requested from City Deal - £45 million Match funding from other sources - £86 million

Total Project Value: £131m

The Project will have a significant impact on GVA by creating significant

high added value employment. Details of which are included in the main

document.

Programme strand:

Infrastructure

Financial summary* (Please write in full e.g. 135,000)

201

7/1

8

201

8/1

9

201

9/2

0

202

0/2

1

202

1/2

2

202

2/2

3

202

3/2

4

TOTAL

Total costs (£) £15,000,000 £75,000,000 £41,000,000 £131,000,000

City Deal input (£)

£5,000,000 £30,000,000 £10,000,000 £45,000,000

Private Sector (£)

£9,000,000 £33,000,000 £24,000,000 £66,000,000

35

Other public (£) £1,000,000 £12,000,000 £7,000,000 £18,000,000

Prepared by: Name: Prof. Marc Clement

Tel: 01792 295685

Email: r.m.clement@swansea.ac.uk

36

Business Plan Outline for SBCR City Deal Project 9) Project title: Villages Phase 1: Llanelli, Neath, Swansea and Haverfordwest

10) Summary of project including aims and objectives

Aims

- Initiation of first village at Llanelli - Initiate second, third and fourth villages at Neath, Swansea &

Haverfordwest - Embed the ILS initiative in the Village Network - Embed J-CRF initiative in the Village Network - Expand the ‘Living Laboratory’, enabling proof of concept leading to proof

of business for new innovations.

Objectives

- Creation of high-added value jobs - Attraction of inward investment - Establishment of new enterprise - Growth of established enterprise - Enhanced global reputation - Proof of business of new products, processes and services - Measurable improvement in the Health and Wellbeing of communities - Proof of concept for application in other parts of the UK

11) Applying organisation including contact details and details of partners involved.

Applicant - Swansea University through the City Deal vehicle (applicant) Partners - Swansea University - Abertawe Bro Morgannwg University (ABMU) Health Board - Hywel Dda University Health Board - Carmarthenshire County Council - Swansea City Council - Neath Port Talbot County Borough Council - Pembrokeshire County Council - Private sector investment consortium

12) Executive summary The ARCH programme has defined a campus and village Health & Wellbeing network. A village contains a primary/community care facility, an ILS satellite and an education and skills development capability. A Health & Wellbeing village network will be constructed and operational during the first five year period of the programme, located at Llanelli, Neath, Swansea and Haverfordwest. The villages will be digitally connected to the campuses

37

through the Internet of Economic Acceleration capability and the network will drive local and regional economic activity.

The proposed project has been developed in a high-growth sector built upon the unique strengths and assets of the region with focus on the medical technology segment. This project will contribute ~2,500 high added-value jobs, with strong multiplier effects across the region and UK. It will contribute to the delivery of an increase of ~£1.3bn GVA during the Swansea Bay City Region planning period to 2031.

13) Strategic Fit

During the first decade of implementation the Life Sciences Strategy has established the Institute of Life Science, securing significant funding from the private sector, government and European Structural Funds. In the 2014 Research Excellence Framework, the ILS, the Research and Innovation arm of Swansea University Medical School was rated 2nd of 95 centres in the UK in its unit of assessment, with particular recognition for Impact and Environment, rated 1st in the UK. Over 50 new companies have been created, some coming from academia and others from the community, 800 new jobs have contributed to improving GVA and providing diverse opportunities. The Life Sciences ecosystem attracts major global companies to both participate in the clinical research environment created and collaborate with small innovative companies and entrepreneurs. However, this is just the beginning and the original partners have established ARCH (A Regional Collaboration for Health) to build on the foundations and develop the region into a globally relevant ecosystem for integrated Open Innovation in Health and Wellbeing. ARCH defines a triple helix of Economic Development, Wellbeing, and Skills & Talent in an integrated innovative approach to addressing the challenges and realising the opportunities offered by Health & Wellbeing in a regional, national and global context. It builds on the region’s success to date, aligns completely with the aspirations of the UK Government City Deal within a unique ecosystem embracing the skills and tools existing in the region. The City Deal will allow the Life Sciences Strategy to both accelerate and expand in scope. It would connect the region via a network of Campuses & Villages, and through their local ecosystem reach every citizen. It would create a living laboratory which would allow close to a million people to participate in clinical research and trials offering a unique capability to global companies and indigenous enterprises. Creating new products and services adding significantly and sustainably to GVA, and above all else delivering the original vision of linking health and wealth.

Project description A Health & Wellbeing village network will be constructed and operational during the first five year period of the programme, located at Llanelli, Neath, Swansea and Haverfordwest. The villages will be digitally connected to the campuses through the Internet of Economic Acceleration capability and the network will drive local and regional economic activity. A village contains a primary/community care facility, an ILS satellite and an education and skills development capability. Construction of the Llanelli Health and Wellbeing Village is planned to commence in Q3 2017 with completion planned for Q2 2019. In their first phase, the other three villages are less extensive but of equal strategic importance. It is anticipated that all four villages and the resultant network will be in place during 2020.

38

Rationale for the project Health & Wellbeing is a true global grand challenge sector. All regions of the world are confronted by the need to be innovative in order to address needs driven by demography, technology, chronic disease and the consequent financial pressure on economies. The UK is a global leader in this field in terms of science, research, innovation and translation. Welsh Government has defined the sector as one of its key priorities and invested strategically in the development of a coherent Life Sciences strategy. National initiatives growing out of the Life Sciences sector panel include the Life Sciences Hub and the Arthurian Fund reflecting public and private sector investment of the order of a quarter of a billion pounds. Both Swansea and Cardiff universities are recognised as synergistic centres of research excellence and workforce development in Life Sciences and Health. The sector is unique in that it dovetails and interacts with other key sectors of the regional and national economy including ICT, Advanced Manufacturing and Professional Services. In the economy of Wales alone this reflects tens of thousands of jobs in SMEs and MNEs creating a broad spectrum of employment opportunities, many of which are high value and impact positively on GVA. South West Wales, is an important and unique resource in the Life Science and Health sector within the UK and international contexts. With a population of some one million citizens, the region accounts for one third of the population of Wales, making it an impactful testbed for life science and health research and development. Following the creation of the Institute of Life Science in 2004, and the subsequent formation of the Joint Clinical Research Facility, the key stakeholders within the region came together to establish the ARCH programme in 2014 serving one the largest single health economies in the UK. Over the course of a decade more than 1000 jobs and 60 new companies have been created. ARCH seeks to build upon this established infrastructure by creating and accelerating new economic development and skills opportunities for the region. This is being achieved by developing the existing regional economic base and attracting significant inward investment from new and innovative sources. The inclusion of the Internet of the Health and wellbeing is deliberate and strategic reflecting the seamless interaction with the Internet of Economic Acceleration and Internet of Energy and builds upon the proven track record in the sector. Co/investment from the City Deal alongside other public and private sector funds would accelerate and extend the reach of a vision and a strategy established by a regional partnership delivering sustainable economic impact.

Rationale for immediate intervention The ARCH partners have identified this project as a key priority to realise the concept of a ‘Living Laboratory’ designed to further enable the growth of the sector. The development of ILS has been a success. Its capacity is saturated and there is a danger of losing innovative opportunities overseas. In addition, the region has many challenges including the recruitment and retention of healthcare workers, the channelling of innovation from the NHS into practice and economy. Time is of the essence and the moment is opportune.

39

Evidence of market failure Wales has an identified and documented absence of serviced laboratory and technical infrastructure. The fact that ILS is fully subscribed with a waiting list is only one part of the evidence. Market studies have evidenced this further and are appended. The expansion of ILS and J-CRF into the Village Network enables the continued growth of the ILS Medi-Park concept which is currently being stymied by the inability to accommodate indigenous growing business and foreign direct investment wishing to relocate to the region.

How the project will contribute towards the aim and objectives of the Internet Coast An outline of how the project contributes to the cross cutting themes of skills and connectivity

There are some enlightened parts of the world that recognise that the combination of various technology revolutions particularly those around health, digital, energy and manufacturing are moving towards what the Japanese call a Super Smart Society. Such a society is underpinned by a user-centric Open Innovation approach which draws upon multi-sector and interdisciplinary collaborative working. Clearly this approach presents considerable innovation challenges but in return offers enormous economic and citizen well-being benefits.

This proposal has been developed to build upon momentum established in defined sectors but recognising that combining disparate threads into one coherent strategy addresses the challenges of an age that often requires collaborative and multidisciplinary solutions. The basis of the Internet Coast that will establish the Swansea Bay City Region as a globally significant in a culture of Open Innovation accelerates a vibrant sustainable and diverse economy, and delivering jobs and investment for the benefit of current and future generations.

How the project aligns to the 3 key strands of the Internet Coast is highlighted in the diagram below, they work together and embrace the whole region in an interconnected knowledge network designed to create a sustainable Super Smart Innovation Region.

40

How the project will deliver transformational change in the region, Wales, and the UK, and why should the investment take place in the Swansea Bay City Region?

Benefit/Impact

Wales – Lo/med/hi

Description UK – Lo/med/hi

Description

New High-

Added Value

Jobs

High Direct jobs in new

and growing

companies

Med Direct jobs in new

and growing

companies

Safeguarded

High-Added

Value Jobs

High Protected jobs in

new and established

companies

Med Protected jobs in

new and established

companies

Multiplier

Effects

High

Strong multiplier

effects for targeted

sector

Low Strong multiplier

effects for targeted

sector

Inward

Investment

High Dealflow for current

and attractor for new

investor community.

Med Dealflow for current

and attractor for new

investor community.

Intellectual

Property

Created

High IP derived from

increased BERD

and HERD

Med IP derived from

increased BERD and

HERD

Enterprises

Created

High New ventures with

high-growth potential

Med New ventures with

high-growth potential

Environmental

Impact

Med New infrastructure

developed to

current/future

N/A New infrastructure

developed to

current/future

41

standards standards

How the project will be additional? See Section 7 Alignment with relevant Welsh Government and UK Government policies The project described has been developed through the ARCH partnership and discussed at length with Welsh Government. It aligns with, and on occasion informs WG Policy. It is also in complete harmony with UK Government Policy.

14) Stakeholder Engagement This Productivity (IoH&W) strand of the City Deal proposal has been developed by a small group empowered under the Swansea Bay City Region board. The group has engaged a much broader network of regional stakeholders, many of whom would co-invest in the initiative. In addition, meaningful and advanced dialogue is underway with a range of private sector partners who have indicated their commitment to co-invest in both a financial and knowledge-based sense. This knowledge inward investment includes research, development and potentially advanced manufacturing collaboration, giving not only access to expertise but also global brands and networks. Our strand benefits from building upon collaboration that has been underway for some time, including the Institute of Life Science, the Joint-Clinical Research Facility and more recently the ARCH programme. The IoH&W theme therefore builds upon that momentum bringing proven working collaboration.

The co-investing partners actively involved in developing this theme include:

- Local Authorities - All four relevant local authorities: Swansea City Council, Neath Port Talbot County Borough, Carmarthenshire County Council and Pembrokeshire County Council. This grouping includes their responsiblity for local regional development and delivery of social care.

- Education providers - Swansea University is a lead partner in ARCH and the other regional University of Wales Trinity St Davids together with all FE College across the region (Gower College, Neath Port Talbot College, Pembrokeshire College and Coleg Sir Gar).

- Welsh Government - The Departments of: Economy and Infrastructure; Health, Wellbeing and Sport; and Finance and Local Government, together with the First Minister’s Cabinet Office.

- NHS - Both Abertawe Bro Morgannwg and Hywel Dda University Health Boards covering the entire region from an NHS perspective

- Private Sector - The activities of ILS, J-CRF and ARCH already actively embrace more than 350 companies in the region, each in their own way investing in the Life Science, Health & Wellbeing ecosystem on an ongoing basis. A number of international enterprises have indicated a serious intent to co-invest in the City Deal proposal.

The IoH&W theme is actively engaging with the community described above but is also conscious of its responsiblity and duty to inform other key actors, such as the third sector and every individual citizen of the vision, plans and developments at the appropriate points in time.

42

As the governance and management structure of the City Deal becomes defined and active, it will then prioritise the effective and efficient engagement with all stakeholders in order to maintain coherence and momentum, consistent with the vision.

15) Objectives, Wider Economic Benefits and Additionality

The proposed project has been developed in a high-growth sector built upon the unique strengths and assets of the region. A focus on new enterprise and inward-investment contributes to high additionality, with low deadweight and avoiding displacement. Sensitivity analysis has been undertaken to test this, with baseline projections for project job creation and GVA contribution across the first phase presented below:

16) Delivery The Governance and Financial vehicle for the Internet Coast is to be agreed

17) Financials

43

Financial summary* (Please write in full e.g. 135,000)

20

17

/18

20

18

/19

20

19

/20

20

20

/21

20

21

/22

20

22

/23

20

23

/24

TOTAL

Total costs (£) £15,000,000 £75,000,000 £41,000,000 £131,000,000

City Deal input (£) £5,000,000 £30,000,000 £10,000,000 £45,000,000

Private Sector (£) £9,000,000 £33,000,000 £24,000,000 £66,000,000

Other public (£) £1,000,000 £12,000,000 £7,000,000 £18,000,000

Appendix 4: 3rd Business Case ILS Accelerator

44

Project title: ILS Regional Accelerator Network

(Personalised Healthcare – Connected Communities)

Project Sponsors (Lead partner)

- Swansea University (Lead) - Industry

Summary: The foundations of a regional Life Sciences and Health Open Innovation Ecosystem have already been laid through regional collaborative working, Welsh Government policy and significant EU Structural Funds investment. The Institute of Life Science and its associated cluster has created a critical mass of research, development & innovation activities attracting investment and creating jobs across the region. The Personalised Healthcare – Connected Communities Initiative will realise the full regional potential of this, working through the Campus and Village networks to accelerate the growth of the existing life science structure into a regional ILS and J-CRF (Joint Clinical Research Facility platform. The development of these two interconnected components is as follows;

- ILS Network: using the region as a testbed for each of the Internet themes, aiming to embed wider value/supply chain activities. This will harness major opportunities such as relevant Catapult Centre activities and engage a broader cluster of companies throughout the Life Sciences and Health value/supply chains.

- Joint Clinical Research Facility: expanding the clinical research agenda across the region from Hubs in Singleton and Morriston to support indigenous commercialisation and attract further inward investing opportunities.

The intervention will embrace an Open Access Open Innovation approach which will ensuring a multiplicity of actors and opportunities, both indigenous and inward-investing. The ILS Regional Accelerator Network will support activities across the region. It is projected that activities delivered through the network will collectively represent a scale broadly equal to the core MediPark and create a further ~230 direct jobs and ~£30-70m additional GVA contribution. City Deal Request - £25m (BASE) Match Funding - £25m (BASE)

Programme strand:

Productivity

45

Financial summary* (Please write in full e.g. 135,000)

201

7/1

8

201

8/1

9

201

9/2

0

202

0/2

1

202

1/2

2

202

2/2

3

202

3/2

4

TOTAL

Total costs (£) £10,000,000 £15,000,000 £15,000,000 £10,000,000 £50,000,000

City Deal input (£)

£5,000,000 £5,000,000 £10,000,000 £5,000,000 £25,000,000

Private Sector (£)

Other public (£) £5,000,000 £10,000,000 £5,000,000 £5,000,000 £25,000,000

Prepared by: Name: Prof. Marc Clement

Tel: 01792 295685

Email: r.m.clement@swansea.ac.uk

46

Business Plan Outline for SBCR City Deal Project

18) Project title: ILS Accelerator Phase 1

19) Summary of project including aims and objectives

Aims

- Creation of a unique Open Access Open Innovation Network - Establish ILS activities across a regional ecosystem of research,

development and innovation - Develop a sustainable pipeline with blend of indigenous and inward-

investing opportunities

Objectives

- Establish a regional portfolio of ILS activities across partner organisations - Develop J-CRF as a regional, though globally significant sector specific

platform for clinical research and innovation activities - Ensure optimal alignment with concurrent Internet of Health & Wellbeing

initiatives and further Internet Coast themes

20) Applying organisation including contact details and details of partners involved.

- Swansea University (Lead) - University Health Boards (Hywel Dda and Abertawe Bro Morgannwg - Industry

21) Executive summary The foundations of a regional Life Sciences and Health Open Innovation Ecosystem have already been laid through regional collaborative working, Welsh Government policy and significant EU Structural Funds investment. The Institute of Life Science and its associated cluster has created a critical mass of research, development & innovation activities attracting investment and creating jobs across the region. The Personalised Healthcare – Connected Communities Initiative will realise the full regional potential of this, working through the Campus and Village networks to establish a regional ILS and J-CRF (Joint Clinical Research Facility) platform. The development of these two interconnected components is as follows;

- ILS Network: using the region as a testbed for each of the Internet themes, aiming to embed wider value/supply chain activities. This will harness major opportunities such as relevant Catapult Centre activities and engage the broader cluster of companies throughout the Life Sciences and Health value/supply chains.

47

- Joint Clinical Research Facility: expanding the clinical research agenda across the region from Hubs in Singleton and Morriston to support indigenous commercialisation and attract further inward investing opportunities.

The intervention will embrace an Open Access Open Innovation approach which will ensuring a multiplicity of actors and opportunities, both indigenous and inward-investing. The intervention will look at providing support to proof of concept, proof of business and to an ‘open water’ stage of development. The ILS Regional Accelerator Network will support activities across the region. It is projected that activities delivered through the network will collectively represent a scale broadly equal to the core MediPark and create a further ~230 direct jobs and ~£30-70m additional GVA contribution. City Deal Request - £25m (BASE) Match Funding - £25m (BASE)

22) Strategic Fit

During the first decade of implementation the Life Sciences Strategy has established the Institute of Life Science, securing significant funding from the private sector, government and European Structural Funds. In the 2014 Research Excellence Framework, the ILS, the Research and Innovation arm of Swansea University Medical School was rated 2nd of 95 centres in the UK in its unit of assessment, with particular recognition for Impact and Environment, rated 1st in the UK. Over 50 new companies have been created, some coming from academia and others from the community, 800 new jobs have contributed to improving GVA and providing diverse opportunities. The Life Sciences ecosystem attracts major global companies to both participate in the clinical research environment created and collaborate with small innovative companies and entrepreneurs. However, this is just the beginning and the original partners have established ARCH (A Regional Collaboration for Health) to build on the foundations and develop the region into a globally relevant ecosystem for integrated Open Innovation in Health and Wellbeing. ARCH defines a triple helix of Economic Development, Wellbeing, and Skills & Talent in an integrated innovative approach to addressing the challenges and realising the opportunities offered by Health & Wellbeing in a regional, national and global context. It builds on the region’s success to date, aligns completely with the aspirations of the UK Government City Deal within a unique ecosystem embracing the skills and tools existing in the region. The City Deal will allow the Life Sciences Strategy to both accelerate and expand in scope. It would connect the region via a network of Campuses & Villages, and through their local ecosystem reach every citizen. It would create a living laboratory which would allow close to a million people to participate in clinical research and trials offering a unique capability to global companies and indigenous enterprises. Creating new products and services adding significantly and sustainably to GVA, and above all else delivering the original vision of linking health and wealth. Project description

48

The Personalised Healthcare – Connected Communities Initiative will realise the full regional potential of the Internet of Health and Wellbeing to develop innovation in personalise medicine, drawing upon our unique Connected Communities. Working through the Campus and Village networks, the initiative will establish a regional ILS and J-CRF (Joint Clinical Research Facility) platform. The development of these two interconnected components is as follows;

- ILS Network: using the region as a testbed for each of the Internet themes, aiming to embed wider value/supply chain activities. This will harness major opportunities such as relevant Catapult Centre activities and engage the broader cluster of companies throughout the Life Sciences and Health value/supply chains.

The unique integration of the ‘magic million’ patient base through the SAIL database makes the entire region into a living laboratory for research and innovation. The ILS Network will create an innovation ‘application layer’ attracting inward investment and commercialisation opportunities to make use of this for both ‘proof of concept’ and ‘proof of business’ projects. The diversity embraced across the network landscape is reflected in the breadth of opportunities it enables. This ranges from telehealth innovation in pharmacies and emergency services through to assisted living applications.

The network will work closely with research and innovation platforms including the Catapult centres, sector fora such as Life Sciences Hub and MediWales to ensure both regional and global engagement.

- Joint Clinical Research Facility: expanding the clinical research agenda across the region from Hubs in Singleton and Morriston to support indigenous commercialisation and attract further inward investing opportunities. Building on the firm foundations of J-CRF at Morriston and Singleton, the Network will expand clinical research and development across the region. This will enhance the role not only of the region in attracting major pharmaceutical trials activity, but also provide far greater support to regional/UK medical devices companies working through major innovation barriers.

Rationale for the project The supply of enterprise and innovation dealflow is critical for the success of Internet of Health & Wellbeing. Creating a sustainable portfolio to realise the potential of the wider Theme initiatives is vital in achieving the growth, job creation and sustainability ambitions. This requires co-ordinated intervention throughout the innovation ecosystem, from ‘technology push’ commercialisation, through to in-market testing and ‘proof of business’. The impact of efforts to date is constrained by the gross mismatch between limited

resources and the comparatively immense scale and complexity of managing opportunities

through from initial discoveries/concepts through to private sector exploitation. The

experience to date of ILS and J-CRF have demonstrated the potential and effectiveness of

49

the approach, though the ‘magic million’ patient population, industrial strengths in medical

devices and an integrated sector approach provides a unique UK-Plc opportunity.

Rationale for immediate intervention Enterprise and commercialisation, even at its most effective takes time, particularly in the Health and Life Sciences sector where regulatory requirements and associated trials can take years to complete. Therefore, in order to realise the potential of investments across the SBCR it is important that this capability is established as early as possible. By establishing greater regional dealflow as early as possible, this will attract investment and partners into the region, with potential for wider collaboration. The Open Access Open Innovation approach is also built upon strong engagement with private sector and other stakeholders. This also takes time to develop and positioning Innovation Framework support alongside the other developments of the City Deal will make a compelling case for knowledge-based inward investment opportunities. Evidence of market failure The market failures addressed by the ILS Accelerator Network are the same as noted in Innovation Framework, though with a sector-specific factors. Numerous studies (e.g. Innovas, Knowledge Economy Nexus) have over many years identified the market failure in supporting commercialisation as well as identifying the latent opportunities amongst groups such as graduates and organisations including the NHS. Concepts such as ‘Valley of Death’ have been used to describe inherent challenges, though south west Wales also faces the challenge of achieving critical mass of activity to create a sustainable activity. The Innovation Framework provides a unique approach to addressing this, working alongside existing indigenous R&DI activities, and helping attract further opportunities to the region. How the project will contribute towards the aim and objectives of the Internet Coast An outline of how the project contributes to the cross cutting themes of skills and connectivity

There are some enlightened parts of the world that recognise that the combination of various technology revolutions particularly those around health, digital, energy and manufacturing are moving towards what the Japanese call a Super Smart Society. Such a society is underpinned by a user-centric Open Innovation approach which draws upon multi-sector and interdisciplinary collaborative working. Clearly this approach presents considerable innovation challenges but in return offers enormous economic and citizen well-being benefits.

This proposal has been developed to build upon momentum established in defined sectors but recognising that combining disparate threads into one coherent strategy addresses the challenges of an age that often requires collaborative and multidisciplinary solutions. To realise this vision this City Deal proposal has interconnected strands.

50

An Internet Coast that will establish the Swansea Bay City Region as a globally significant actor where a culture of Open Innovation accelerates a vibrant sustainable and diverse economy. Delivering jobs and investment whilst also benefitting its population and addressing the determinants of health and inequality for current and future generations. The Internets are coherent in their own right, however together they fuse to provide added value. Together they will embrace the whole region in an interconnected knowledge network designed to create a sustainable Super Smart Innovation Region.

How the project will deliver transformational change in the region, Wales, and the UK, and why should the investment take place in the Swansea Bay City Region?

The ILS Accelerator Network intervention has been developed to underpin the portfolio of projects across the Internet of Health and Wellbeing and broader ARCH programme. It therefore reflects the employment and productivity benefits across each of these.

Benefit/Impact

Wales – Lo/med/hi

Description UK – Lo/med/hi

Description

New High-Added

Value Jobs

High Direct jobs in new and

growing companies

Med Direct jobs in new and

growing companies

Safeguarded

High-Added

Value Jobs

Med Protected jobs in new

and established

companies

Low Relative regional focus

to network activities

Multiplier Effects High Strong multiplier

effects for targeted

High Strong multiplier effects

for targeted sector

51

sector

Inward

Investment

High Dealflow for current

and attractor for new

investor community.

Med Dealflow for current

and attractor for new

investor community.

Intellectual

Property Created

High IP derived from

increased BERD and

HERD

Med IP derived from

increased BERD and

HERD

Enterprises

Created

High New ventures with

high-growth potential

Med New ventures with

high-growth potential

Environmental

Impact

Med N/A Low N/A

How the project will be additional?

See Section 7 Alignment with relevant Welsh Government and UK Government policies The IS Accelerator Network responds to long-standing priorities of UK and Welsh Government to improve commercialisation (Innovation Report 2014, BIS, UK Gov and Innovation Wales, Welsh Gov). This also reflects across the individual themes, with for example both Governments having emphasised the potential of NHS-based commercialisation opportunities and the need for stronger private sector engagement. The activity strands identified also respond to calls from UK and Welsh Governments to embrace a more private sector-led approach to this development, and is built on foundations of initiatives with firm government support.

23) Stakeholder Engagement The ILS Accelerator Network, together with the component proposed activities have emerged from development of the ARCH programme. This has drawn upon extensive engagement, targeted research exercises and review of leading practice. The group has engaged a much broader network of regional stakeholders, many of whom would co-invest in the initiative. In addition, meaningful and advanced dialogue is underway with a range of private sector partners who have indicated their commitment to co-invest in both a financial and knowledge-based sense. This knowledge inward investment includes research, development and wider collaboration, giving not only access to expertise but also global brands and networks. The intervention therefore builds upon that momentum bringing proven working collaboration. Development of each Theme has involved extensive engagement and collaboration. A summary of example partners actively involved includes:

52

- NHS - Both Abertawe Bro Morgannwg and Hywel Dda University Health Boards covering the entire region from an NHS perspective

- Further Education providers, with particular involvement of Gower College to align Talent Bank engagement activities

- Local Authorities - All four relevant local authorities: Swansea City Council, Neath Port Talbot County Borough, Carmarthenshire County Council and Pembrokeshire County Council. This grouping includes their responsibility for local regional development

- Welsh Government - The Departments of: Economy and Infrastructure; Health, Wellbeing and Sport; and Finance and Local Government, together with the First Minister’s Cabinet Office.

- Private Sector - The activities are embedded within private sector-led agenda to create new opportunities for an emergent industry embracing a range of sectors.

As the governance and management structure of the City Deal becomes defined and active, it will then prioritise the effective and efficient engagement with all stakeholders in order to maintain coherence and momentum, consistent with the vision.

24) Objectives, Wider Economic Benefits and Additionality

The proposed ILS Accelerator Network has been developed to underpin the unique strengths and assets of the region across the four Internet Themes. A focus on new enterprise and inward-investment contributes to high additionality, with low deadweight and avoiding displacement. The following graphs present the additional direct impact of the Network itself (though solely with data for the ILS component). Sensitivity analysis has been undertaken to test this, with baseline projections for project job creation and GVA contribution across the first phase presented below;

New Jobs (Network)

53

25) Delivery The Governance and Financial vehicle for the Internet Coast is to be agreed

54

26) Financials

Financial summary* (Please write in full e.g. 135,000)

20

17

/18

20

18

/19

20

19

/20

20

20

/21

20

21

/22

20

22

/23

20

23

/24

TOTAL

Total costs (£) 10,000,000 15,000,000 15,000,000 10,000,000 50,000,000

City Deal input (£) 5,000,000 5,000,000 10,000,000 5,000,000 25,000,000

Private Sector (£)

Other public (£) 5,000,000 10,000,000 5,000,000 5,000,000 25,000,000

Appendix 5. Draft City Deal Governance Structure

Swansea Bay City Region Governance Paper (Swansea Bay City Region) 1) Background 1.1 The proposed governance model for the Swansea Bay City Region City Deal ("the City Deal")

is a cross-sectoral, co-operative mutual model, involving all participating organisations and other key stakeholders.

1.2 Putting the Deal proposal together has meant inclusive, collaborative working between local government and higher education institutions for public benefit, setting aside institutional self interest in the greater interest of the common good.

1.3 The governance arrangements for the City Deal should continue this collaborative working and also enable the inclusion of other important stakeholders.

1.4 The International Co-operative Alliance defines a co-operative as: an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise.

1.5 The UK Government's department for Business, Innovation and Skills in its publication "A Guide to Mutual Ownership Models"

55

The distinguishing characteristic of a mutual is that the organisation is owned by, and run for, the benefit of its members, who are actively and directly involved in the business – whether its employees, suppliers, or the community or consumers it serves, rather than being owned and controlled by outside investors.

1.6 Adopting these principles and definitions for the governance of the City Deal would build on the conclusions of the Welsh Co-operative and Mutuals Commission that: conventional approaches to economic growth and development are not sufficient alone to achieve the improvement in the social and economic wellbeing of people in Wales. Co-operatives and mutuals offer significant economic, social and environmental benefits compared with ordinary businesses. Their development must be central to transforming Wales’ economic fortunes.

1.7 It would also build on the lead shown by Welsh Government in setting up service boards under the Well-being of Future Generations (Wales) Act 2015 as vehicles for regional collaboration across sectors.

2) Proposal 2.1 The proposal is that there should be a single entity whose governance involves all six

existing participants, or founder institutions (Swansea, Neath Port Talbot, Carmarthenshire and Pembrokeshire Councils, Swansea University and UWTSD), as well as other stakeholders (ABMU and Hywel Dda LHBs). It would be a not for profit entity, with any surpluses reinvested in further public benefit activity

2.2 It would be run on business lines as a legally independent corporation, so: o giving it focus,

o not allowing partisan interests to overshadow the common good; and

o Managing vires issues for participating organisations. Universities and Health Boards are charities, and while they can have wide public benefit and well-being focused objects, would be unlikely to be able to undertake or fund, or participate in a joint venture to undertake or fund, certain types of project which were not within those objects. Participating in the governance of a not for profit entity in the way envisaged would not break this rule.

2.3 The governance model would have four main components:

1. Inclusive/advisory - a forum for involving other stakeholders in the City Deal through sharing information, as well as providing guidance, advice and feedback

2. Ownership/accountability – this would comprise the founder institutions and the two Health Boards, and may also include others. The Strategic Board would be answerable to this level.

3. Strategic Board – this would be made up of both Non-Executive and Executive Directors.

The Non-Executive Directors would be:

o An independent Chair, appointed by the owner institutions;

o One director appointed by each of the owner institutions, but whose duty is to act in the best interests of the collaborative entity;

o Others appointed for specific skills and business acumen following public competition. The process would be handled via a nominations committee. The constitution should be sufficiently flexible to allow these to be remunerated if necessary. The executive directors would include the Chief Executive and Finance Director.

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o Executive/delivery team – this would be made up of the CEO and other senior executive officers. They would be answerable to the Strategic Board. All appointments to be made following open competition.

2.4 The chosen legal entity is a company limited by guarantee, which gives greatest flexibility.

That was the model used for many years by one of Wales' largest not-for-profit public benefit businesses, namely Glas Cymru. The model is flexible, and is easily adapted to accommodate all four components described above, for instance as follows: 1. Inclusive/advisory – e.g. non-voting associate membership or

2. Ownership/accountability – full voting members with one vote each

3. Strategic Board – Board of Directors as above

4. Executive/delivery team – Executive Directors and other executive officers with delegated powers.

2.5 The entity would be responsible for planning and delivering the programme of work involved in the City Deal and for holding and distributing funds, all within the terms of the funding documents from the UK and Welsh Governments and arrangements with any other funders. Responsibility for major projects would, where it is appropriate, be entrusted to one or more of the owner organisations, who would then stand behind the entity's commitment to deliver those projects. 2.6 Among the entity's key objectives would be to seek to maximise local supply chain development through taking an innovative approach while working within the legal constraints of procurement and state aid law. 2.7 It is likely that some components of the City Deal would attract private finance in different ways. This would be accommodated within specific arrangements for the component in question, including where appropriate through off-balance-sheet non-profit-distributing ("NPD") arrangements, based on the Scottish model now favoured by Welsh Government.