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Innovation in the UK Retail Sector - Nesta

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<strong>Innovation</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>Retail</strong> <strong>Sector</strong><br />

8.12 It is important to recognise that KTNs are essentially technology-focused networks<br />

grounded <strong>in</strong> <strong>the</strong> <strong>UK</strong> science & R&D base and may be less appropriate vehicles for<br />

stimulat<strong>in</strong>g <strong>the</strong> k<strong>in</strong>d of wider <strong>in</strong>novation sought by retail firms. However, of <strong>the</strong> 14<br />

KTNs to have po<strong>in</strong>ted to <strong>the</strong> relevance of <strong>the</strong>ir activities to retail<strong>in</strong>g, few have been able<br />

to generate direct contacts with<strong>in</strong> <strong>the</strong> sector. For example, companies and academics<br />

with<strong>in</strong> <strong>the</strong> Displays and Light<strong>in</strong>g KTN are develop<strong>in</strong>g <strong>the</strong> new technology platform of<br />

Plastic Electronics which has widespread implications for retail processes. But <strong>the</strong>y have<br />

yet to engage with significant end-users from <strong>the</strong> sector. Some KTNs have reported<br />

difficulty reach<strong>in</strong>g <strong>the</strong> most appropriate <strong>in</strong>dividuals with<strong>in</strong> retail firms; retailer attendance<br />

at relevant events has been relatively poor and only a small number of <strong>in</strong>dividual retailers<br />

have fielded speakers at KTN conferences. However, retailers have worked on a limited<br />

number of specific issues with certa<strong>in</strong> KTNs <strong>in</strong> <strong>the</strong> past, some, but not all, of which have<br />

been technology-focused. For example:<br />

• Project E-Flex (Electronics-Enabled Products KTN) explored <strong>the</strong> efficiency of home<br />

delivery, <strong>in</strong>clud<strong>in</strong>g vehicle, software and refrigeration design, <strong>in</strong> which <strong>the</strong> John Lewis<br />

Partnership participated.<br />

• Project NAPSTER (Industrial Ma<strong>the</strong>matics KTN) exam<strong>in</strong>ed <strong>the</strong> effect of wea<strong>the</strong>r<br />

upon operations, us<strong>in</strong>g data from Marks & Spencer.<br />

• Smart Textiles (Materials KTN) work<strong>in</strong>g with an unspecified ‘range of lead<strong>in</strong>g<br />

retailers’ to support <strong>the</strong>ir <strong>in</strong>troduction of smart textiles and nanotechnology.<br />

• Electronic shelf edge labels (Displays & Light<strong>in</strong>g KTN) <strong>the</strong> former ‘<strong>in</strong> volume trial at<br />

a number of major store locations’.<br />

KTN activities <strong>in</strong> respect of <strong>in</strong>novation <strong>in</strong> susta<strong>in</strong>ability are dealt with separately below.<br />

8.13 Identify<strong>in</strong>g specific application areas (often technological) where <strong>the</strong>re are common<br />

concerns has led to effective action which generates real bus<strong>in</strong>ess benefits to retailers. For<br />

example, an event run by BERR with BRC - by retailers for retailers, followed by <strong>the</strong><br />

sett<strong>in</strong>g up of <strong>the</strong> RFID Bus<strong>in</strong>ess Benefits Action Group is an example of where<br />

government can work effectively with <strong>the</strong> retail sector on a technology issue.<br />

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