New analysis: Investment in innovative offshore renewable energy technology powers economic benefit

A new piece of independent economic analysis released today shows how early investment in innovation within the offshore wind sector drives major benefits for UK companies and helps turbo charge the growth of new technologies.

The research, carried out by leading independent analysts Frontier Economics, covers a ten-year period from the creation of the Offshore Renewable Energy (ORE) Catapult by Innovate UK in 2013 to accelerate the development of offshore renewable energy technologies in the UK.

The research closely examines the impact of ORE Catapult’s innovation support activities between 2013 and 2023 on driving economic benefit. In that time, it was shown that this support led to just under £470m invested in collaborative projects across the offshore renewable energy sector.

Frontier Economics carried out extensive in depth interviews with supported companies as well as analysing a wide range of data showing the impact that ORE Catapult had on the growth and development of different types of businesses in that timeframe. Highlights included:

• R&D collaborations that deliver: ORE Catapult’s work to foster connections with innovative companies led to collaborative projects worth almost £470m.
• Growing employment in offshore wind: A sample cohort of 267 UK companies supported by ORE Catapult (roughly 40% of the total) reported 55% increased employment, equating to 5,400 jobs, and 111% increase in turnover.
• Powering greater productivity: Businesses supported by ORE Catapult experienced 36% higher labour productivity compared to other similar businesses.
• Supply chain support that powers UK companies: Almost all (96%) of supported companies said they were able to progress their technology further or faster than would have been possible without ORE Catapult support.

Steve Foxley, ORE Catapult Chief Executive, said: “What this independent economic analysis clearly shows is that investment in innovation pays off, and that when UK supply chain companies are given the right support, they can reach new heights. It also shows that, as we look ahead to how we can help grow and expand the UK’s ability to tap into the full economic potential of offshore renewable energy, we are building on strong foundations. I’m excited about how we can use the learning contained in this analysis to drive forward our activities in the coming years and deliver maximum benefit to UK plc.”

Dave Wilkes, Innovate UK Director for Innovation Ecosystem, added: “Over the last 12 years, with Innovate UK core investment, ORE Catapult has played a vital role in supporting the UK’s net zero aims, growing innovative businesses and creating high-skilled jobs. This conclusive independent analysis shows that the Catapult has made a crucial contribution to ensuring that the UK remains a leader in this important sector.”

Andrew Leicester, Director, Frontier Economics said: "Over the last decade, ORE Catapult has been a great example of a long-term commitment by the UK government to fund clean energy innovation. Our evaluation uses comprehensive data and rigorous analysis to demonstrate the benefits of ORE Catapult’s investments, expertise, and activities. By looking at impacts over an extended period, we have been able to provide robust evidence of the long-term economic benefits such as employment creation and productivity which are often hard to evidence in impact evaluations. We have also been able to follow examples of ORE Catapult support over many years to illustrate how and why benefits are realised."