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Clustering innovation to create thriving and prosperous low-carbon cities and regions

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University of Birmingham | Climate-KIC 43<br />

the service they provide. Here, there is an<br />

opportunity for smaller firms and intermediaries.<br />

The logic is that the innovative firms sell<br />

solutions not chemicals.<br />

Here, value is added by an in-depth<br />

understanding of customer requirements,<br />

and the applications for the products that are<br />

being produced by the industry. The logic here<br />

is simple. If you are selling the user a chemical,<br />

and have no understanding of the application<br />

they are using that chemical in, then it is a<br />

simple commodity that can easily be replaced<br />

by another supplier. However, in developing<br />

different relationships based on tacit knowledge<br />

of the customer’s application, it may be possible<br />

to encourage more efficient use of chemicals<br />

and better customer solutions.<br />

Here there is a role for new business models<br />

– this could be people that are not traditional<br />

chemical producers, but start-ups with a new<br />

role, eg, application expertise, or potentially<br />

being a solution provider, or a broker, etc.<br />

It is hoped that by focusing on so-called<br />

‘application engineering’, additional value<br />

can be created in a greener and in a more<br />

sustainable way.<br />

With the new methods of working, enabled by<br />

new technologies, the cluster seeks to answer<br />

questions about how the chemical industry and<br />

their partners in a value creation network<br />

might evolve, by creating space for new ideas<br />

and creating value in new ways. Who will<br />

have the largest share with digitalisation and<br />

3D printing? Is it the one who has the printer,<br />

the one who has the powder that is produced,<br />

or the one who has the software, who will be<br />

the ones to gain in the future?<br />

Whilst there have been a number of<br />

environmental improvements to the way that<br />

services are provided on site, some still see<br />

these as incremental and not radical.<br />

The park is already having to consider how<br />

to adapt to climate change. Over 32,000<br />

containers a year pass through the park,<br />

many on the River Main which runs through the<br />

park and divides it in two. The park’s strategic<br />

location on the water has been important to the<br />

movement of goods. However, changes to<br />

the climate have seen the water level in the<br />

Main fall. This in turn presents significant<br />

challenges for the shipping of goods into<br />

and out of the park, given that the Main is a<br />

significant transport corridor.

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