1. Will the Minister provide an update on the Welsh Government's innovation strategy? OQ58177

Yes. We're currently working with Plaid Cymru's designated Members, in line with the co-operation agreement, to jointly develop the new innovation strategy. We plan to issue a draft strategy for consultation in the summer, with final publication planned for the autumn.

Diolch, Weinidog. The Reid review contained five central recommendations for the Welsh Government on how to support research and innovation in the aftermath of Brexit. With higher costs now eroding small businesses' margins at a rate that many have not experienced before, many small firms are now facing multiple headwinds that threaten the stability of our economy. Giving small businesses the tools to innovate could help unlock their potential and improve the resilience of our economy. Given the need to drive up levels of innovation and the Reid review's emphasis on the importance of involving small businesses in R&I policy, how will the Welsh Government's new strategy ensure that innovation partnerships are focused more on smaller businesses? A Welsh innovation strategy could play a key role in unlocking the innovation potential of small businesses. As the Innovation Advisory Council for Wales recommended, we urgently need greater private and public sector investment and partnering in innovation programmes, skills and talent throughout Wales. Can the Minister therefore confirm he would see the strategy supporting the forging of such partnerships, and how will the Government ensure that its innovation strategy increases the scale of collaboration between businesses and universities, as called for by the Federation of Small Businesses? Diolch.

Thank you for the question. Obviously, I won't prejudge everything that will be in the final strategy, but I am confident that we will have both a draft and a final strategy that will see a place for small business innovation, as indeed SMARTCymru has a range of areas of success that we can highlight, and probably in every single region or constituency there will be a business that has had support from that that has made a real difference to productivity and jobs. In fact, yesterday, I signed off another statement that looks at something in the Vale of Glamorgan, where they've trebled their head count because of the engagement with SMARTCymru and the links to academia as well. So, you’re quite right to draw the links between further and higher education and how that research and innovation that takes place there leads to innovation and improved business practices within the world of work, for both smaller businesses and indeed for the large compound semiconductor clusters that exist around Newport as well.

It’s key to have Government, businesses, and academic research actually to be applied, to make a difference. So, I think that when you see the draft of the consultation, it’ll be positive and then it should allow us to build on what we’ve already done but with a refocused mission because we haven’t had all of the funding commitments that were made to Wales being honoured. So, it makes it even more important that we generate greater value from the moneys that we have got, as well, of course, as generating greater returns for Wales from UK competitor funding pots as well. There’s plenty for us to do, but I hope the Member will be positive and content when she sees the place and the role for small businesses in the new strategy. 

Good afternoon, Minister. Minister, the Scottish Government has set out an ambitious vision to transform their economy, saying they want to be recognised as a nation of entrepreneurs and innovators who have embraced the opportunities of new technologies, boosted productivity considerably, and focusing their resources on opportunities that’ll transform their economy. Specifically, what innovations do you see for Wales and do you have the ambition to match or exceed what we see elsewhere?

Yes. It’s unusual to hear a Welsh Conservative Member quote with praise the SNP-led Government in Scotland, but I welcome the plurality and the inclusiveness of the Member’s comments. And, actually, when you look at the ambitions in a range of areas from Governments across the UK, of course we all want to foster a greater culture of entrepreneurship. We all want to take advantage of particular strengths we have in our research base, but also in areas where we’ve actually got business strengths as well. So, if you think about the statement I previously made just a couple of weeks ago on the renewables sector, we've got lots to offer there, with not just our natural resources but real business innovation, and that's linked to the steel industry of course as well, investment in ports. So you can see a whole range of different areas where the ambitions not just for what happened on large investment, but the small and medium supply chain, and innovation, all have a key role to play. And there's certainly no lack of ambition from this Government on our economic future.

I've been reflecting on what innovation means and the word 'innovation', and, as I've been doing that, I came across a quote from Steve Jobs, and he once said that:

'Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.'

And that resonates really and truly with me, because, when I was serving my time as an engineering apprentice, my mentor told me that a person who has never made a mistake has never made anything. Now, the Welsh Labour Government has encouraged innovation in manufacturing in particular, with the advanced manufacturing research centre in Broughton, which has unlocked the potential in business in north Wales. I wondered if the Minister agrees with me that it's time to go further, and that we do need to support an advanced technology research centre in Alyn and Deeside.

'Yes', I think is the straight answer, and, of course, the vision for doing something like that was set out by my predecessor Ken Skates. And we are not just supportive of establishing an advanced technology research centre in Wales, but I can give the Member some rather more up-to-date news. Subject to developing a sustainable funding package, last week, the Welsh Government signed heads of terms for a preferred site in Sealand for an advanced technology research centre. Our partners in signing that are the Ministry of Defence. Work is now under way on the design of that facility to ensure that we meet the requirements of our partners and future users. So, good news about the centre. But I think, more importantly, just to highlight the point the Member made at the start, it is important to have a risk appetite to get things wrong and to learn from not being able to make progress. And that's one of the challenges we have about expectations of how public money is used, but recognising that, without some risk appetite, we won't see successful innovation and economic return as well. And I look forward to coming back with what I hope will be even better news about the heads of terms, and about the actual programmes to deliver the advanced technology research centre at our preferred site.