May I extend a warm welcome to everyone here today,
—to the 100 from industry
—60 from the universities
—40 from the city
—and the 50 from government and civil service.
May I also thank those who have agreed to present papers to this our first seminar on science technology and industry. [end p1] Everyone who was asked to speak agreed, and many more than we could accommodate asked to come. This demonstrates the importance of the subject, and the enthusiasm to get together to discuss it.
The purpose?—To use our several abilities to increase the wealth and well-being of the society of which we are all a part. [end p2]
We shall only overcome our difficulties in positive ways. If we are able to create new and successful business on a sufficient scale, we shall be well on the way to solving many of the material problems which assail our country, and some, but not all, of the other problems too. [end p3]
We are concerned not only with the great new science-based industries, but with most traditional business and commerce as well. The application of new techniques to their processes, designs and administration is vital to survival and expansion. If they don't embrace the latest technology their competitors will. [end p4]
We take great pride in the brilliance of our research. But we have a feeling that other countries sometimes make more profits out of the discoveries of our scientists than we do.
We applaud the efforts of many of our companies, large and small.
Upon their success depends our future. [end p5]
I believe that there is more co-operation than ever before between those in university and industry. But it is not enough. And today we want to see how we can do better.
Of course you will ask me, “What is government doing?” [end p6]
Role of government
Over the past four years, the government has spent £12.7 billion of taxpayers' money on research and development—an increase in real terms of nearly 8 per cent over the previous four years.
This money goes first on the kind of research which ensures that government buys the best products and services— [end p7] for example, the best roads, the best medical, defence and office equipment. And the greater part is spent in industry: two-thirds of our defence research and development budget is placed with industry.
Second, we spend money to stimulate the development of new science-based products, and to help bring them to the market-place. [end p8] Spending on this has increased by nearly 20 per cent in real terms over the past four years.
And, third, of course we spend a huge amount to support fundamental research. This year, about £500 million through research councils and about the same amount for university research through the U.G.C. [end p9]
Now you all know that governments can make mistakes. One mistake was to give the British technology group a monopoly power over the application of government-funded research. This monopoly was very restrictive and widely criticised, not least by scientists wanting to exploit their work. We have decided to abolish that monopoly. I am sure that many of you will welcome this step and the new opportunities which can now be pursued. [end p10]
These are some of the specific things that government is doing, against the background of its general policy to create the conditions in which enterprise and innovation can flourish. But government can never substitute for the inspiration of the scientist, the genius of the inventor, the acumen of the industrialist, or the judgement of the financier. For these, we look to you. [end p11]
Science in the universities
This country has a long and brilliant record in science and engineering. Newton, Faraday, Darwin and Fleming: Stephenson, Brunel, Royce and Barnes Wallis. Many of their modern counterparts are sitting in this hall today. We must be as successful as our forefathers in sustaining your genius and turning it to the benefit of the nation as a whole. [end p12]
Many of you carry out your research in universities and research councils. Fundamental research is vital, although we don't know what its commercial results will be or if or when they will come. [end p13] In my day as a science undergraduate, new worlds were opening up in plastics, penicillins and isotopes because of earlier research in chemistry, bacteriology and nuclear physics; today, astonishing developments in biotechnology and micro-electronics have come unexpectedly from fundamental research in molecular biology and solid-state physics. [end p14]
But I hope that those doing fundamental research will themselves be alert to its possible applications. If not, whole industries may be still-born.
To make full use of our discoveries, we must strengthen the links between those who work in universities and those who work in industry. [end p15] Attitudes are much healthier now than even five years ago. Witness the growth in science parks.
But I am not only talking about attitudes within universities. I am also talking about industry's attitude towards universities. [end p16] Many foreign firms make the effort to “nose around” our centres of science and engineering. I know that some of our own companies are right on the ball. I hope that many others will follow their example. [end p17]
Private sector industry
We are often asked whether we have got the balance right between research funded through the government, and research funded by private sector industry.
To put it another way, —is our industry, as a whole, spending enough on research and development? [end p18] Comparisons with our major industrial competitors suggest not: private industry's own spending on research and development forms a smaller proportion of national income in Britain than in Japan or Germany: and of course, in absolute terms, we are spending considerably less than either country.
We in government need constantly to remind ourselves that the private sector funds its all-important research out of profits. The more inroads made by the government into those profits the smaller the funds [end p19] available for private sector research and development. That is why it is vitally important that this government should make every effort to reduce the burden of taxation and consequently to limit our expenditure commitments.
Intellectual property
Further, few companies could afford to embark on expensive programmes of research and development without the assurance that ownership of the [end p20] fruits of this research and development will be safeguarded. That means taking very seriously indeed the protection of these ideas—of intellectual property, as it is called—through patents, copyright and registered design.
Financial sector
Nor can private industry make the optimum use of science and engineering without a supportive and intelligent financial sector. Our banks and institutions need [end p21] —to spot the opportunities for profitable investment in new technology; —and to place their financial skills, developed over centuries of successful financing of manufacturing and trade, at the disposal of the young scientists and engineers who have a new product and service to develop.
Achievements
But let us look at what has been accomplished by science and industry together. [end p22]
It is not the Bionic man nor even Wonder Woman on the television that are the marvels of our age. It is the power that we have added to ordinary human faculties.
Think of the miracle of the scanner and of the development of nuclear magnetic resonance; the doctor who used to listen to his patient trying to describe his symptoms can now see through skin and bone to diagnose and treat. [end p23] The old vision of x-ray eyes is now a reality.
Remember what Swift said:
“Whoever could make two ears of corn or two blades of grass to grow upon a spot of ground where only one grew before would deserve better of mankind than the whole race of politicians put together.”
Today modern technology enables the farmer to grow not two ears of corn, but ten or twenty ears. [end p24]
One of the most exciting things about our times is the speed with which science can turn into technology, and technology can turn into valuable and fascinating products. Electron beam technology makes more powerful silicon chips and a further startling advance in automation is upon us. The computer floods in everywhere—from the control of the stock in the warehouse to pattern recognition for early diagnosis of cancer. The technological mind is ever more restless and fertile in applying the great gifts of pure science. [end p25]
Ours is not only an age of discovery. It is an age of application—devastating in its swiftness; enthralling in its surprises; remorseless in its competitiveness.
Our business is to be the leaders of that age—to apply our science and apply ourselves to building the industries of the future.
Over to you, ladies and gentlemen.