Edinburgh Research and Innovation Limited
Planning Round Submission to CSG
January 2007
1. Major achievements to be delivered in 2006/07
• Provision of continued support to the academic community for a
record number of research applications and awards
• Numbers of disclosures taken, patents filed and licence deals
concluded on target or above
• 10 spin-out and start up companies created
• Consultancy income 5% higher than previous year
• 75% success rate for SMART applications
• Funding for a follow on scheme for EPIS secured from SEEL
• Non-exclusive agreement with Braveheart Ventures [under
negotiation]
• Additional commercialisation support for CMVM put in place
• Restructuring of support structure for company creation activities,
now providing support for student company creation
• Successful launch of FP7 within the University
• Finalists in the EPSRC KT challenge competition, receiving £100k
prize money for new projects within Engineering and Electronics
• Discussions commenced with Scottish Enterprise regarding their
possible funding to renew collaborative link arrangements with
Stanford.
• Successful recruitment of new tenants at Technopole has
encouraged Grosvenor to consider further developments.
2. Major milestones/activities
2.1 2007/08
• Manage potential dip in research applications post RAE
• Drive forward the first stages of implementation of a University-
wide integrated research and commercialisation support system
• Grow third party consultancy income in line with UOE Strategic Plan
targets
• Grow third party licencing income by 10%
• Roll-out of “ETTC Campus” to CMVM and CHSS
• Implementation of new costing regimes for FP7 applications
• Pooling initiative starting to bear commercialisation results
• Informatics incubator established in Appleton Tower redevelopment
• Re-visit issue of assignation of postgraduate student IP
2.2 2008/09
• Grow third party consultancy income in line with UOE Strategic Plan
targets
• Grow third party licencing income by 10%
• All major Schools to have BDE support on-site
• Possible relocation of ERI main office to dedicated facility at Kings
Buildings
• Commencement of 4th building on Technopole site
• Bio-medical incubator established on Little France site
2.3 2009/10
• Establish collaborative links with another international partner
• Further two buildings under construction at CBR Science Park
• Commencement of Technopole Phase 5
• Relocation of ETTC BioSpace to bio-medical incubator
• Grow third party consultancy income in line with UOE Strategic Plan
targets
• Grow third party licencing income by 10%
3. Major issues and risks to be faced over the next 3 years
• Support for Easter Bush Research Centre
o Additional research administration, business development
and legal support will be required
o Acquisition of existing staff under TUPE?
o Genecom arrangements?
o How funded?
• Support at Western General
o Potential transfer of support to MRCT will impact on KPI’s
• Risk of potential post RAE dip in research applications?
• Research pooling arrangements
• Ongoing support for incubation activities dependent financially upon
CSE KTG allocation. If ETTC Campus deal implemented across the
University, additional/replacement funding may have to be found.
• Need for the University to implement a new research management
system - needs to be addressed and prioritised.
4. Financial/KPI projections – 3 years
See attached.
ERI Financial Projections –
Draft Budget 2007/08 and forecasts for 2008/09 and 2009/10
General planning assumptions
1. Core funding and KTG allocation from UOE to increase by 3% for
07/08 then 2.75% for 08/09 and 09/10 per NP instructions.
2. Consultancy income forecast to rise by 5% per annum for next 3
years.
3. Licencing income forecast to rise by 10% per annum for next 3
years.
4. Staff costs calculated for 07/08 (circa 6.2% increase), and then
assumed to rise by 5% thereafter.
5. Non staff costs (excluding patent costs) forecast to rise by 1% for
core costs.
6. No additional support ex UOE for pay modernisation assumed.
7. Technopole project, EPIS, INTERFACE and staff employed on
College KTG budgets assumed to be profit neutral to ERI, as in
previous years.
8. Core headcount to reduce by 1 in 08/09. No other new staff
assumed to be recruited.
9. No provision for extension of additional short term research support
staff beyond 31 July 2007. Assumed that InfoEd upgrade
completed by then. These costs have been factored into the “latest
view” for 2006/07, which will mean that ERI is likely to return £70k
less than originally budgeted.
10. IP protection costs increased to allow for increased costs from
student company formation activity.
11. Forecast return to UOE assumed at £250k per annum over the
next 3 years.
DW/IL
20/1/06
2006/2007 Final
2006/2007
2007/2008 Draft
2008/2009
2009/2010
ERI - Budget and Forecasts
Budget
Latest View
Budget
Forecast
Forecast
KPI's
Grant Applications - number
1,758
Grant Applications - value £m
516
Not in direct
Not in direct control of ERI
Grant Awards - number
control of ERI
822
Grant Awards - value £m
174
Disclosures filed
100
100
110
120
130
Patent filings
30
30
35
40
50
Licence Deals completed
30
30
35
40
50
Start up companies formed
5
5
5
5
5
Spin-out companies formed
5
2/3 ?
5
5
5
2006/2007 Final
2006/2007
2007/2008 Draft
2008/2009
2009/2010
Budget
Latest View
Budget
Forecast
Forecast
FINANCIALS
£'000
£'000
£'000
£'000
£'000
INCOME
Management Fee ex UOE
2,114
2,114
2,177
2,237
2,299
Pay modernisation adjustment?
-
Core KTG Allocation Recurrent
482
482
496
510
524
KTG Allocation re CBR
100
100
103
106
109
KTG Allocation re Student Coy Formation
100
100
103
106
109
2,796
2,796
2,879
2,959
3,041
Gross Consultancy Income
3,000
3,000
3,150
3,308
3,473
Gross Royalties & Licence fees
400
400
440
484
532
Technopole Project Income
170
170
180
190
200
Technopole Support ex UOE
167
167
168
167
166
Sundry Income, interest, cost recoveries etc
75
75
75
75
75
Other fully funded project cost recoveries
823
743
705
733
761
TOTAL TURNOVER
7,431
7,351
7,597
7,915
8,249
DIRECT COSTS
Consultancy
2,682
2,682
2,804
2,944
3,091
Royalties & Licence fees
317
317
348
382
421
2,999
2,999
3,152
3,326
3,512
CONTRIBUTION
4,432
4,352
4,445
4,589
4,737
OPERATING COSTS
Staff costs
-core
2,110
2,110
2,241
2,307
2,422
- additional research support (3 temps 6 months)
-
40
-Technopole
125
125
134
141
148
-CBR
80
80
86
90
95
-Student Coy formation
50
50
69
72
76
-Other recoverable
635
555
515
541
568
Sub total staff costs
3,000
2,960
3,045
3,151
3,309
Non staff costs
-core
511
511
516
521
526
-InfoEd upgrade costs
-
30
?
-Technopole
212
212
214
216
218
-CBR
20
20
10
10
10
-Student Coy formation
50
50
20
20
20
-Other recoverable
188
188
190
192
194
Sub total non-staff costs
981
1,011
950
960
969
IP Protection
160
160
200
200
200
TOTAL OPERATING COSTS
4,141
4,131
4,195
4,311
4,478
PROFIT/(LOSS)
291
221
250
278
259
RETURN TO UOE
(291)
(221)
(250)
(250)
(250)
Surplus/(Deficit)
-
-
(0)
28
9
HEADCOUNT
70
67
67
66
66
