Investing In Innovation

Up to £750 million is being made available to stimulate innovation across the manufacturing, digital and biotechnology sectors.

Chancellor Alistair Darling used his Budget speech to reveal a new Strategic Investment Fund, which will be used to promote R&D and harness the UK’s “world-class science base”.

A third of the new fund will be targeted at low carbon business opportunities and developing “green” technologies, whilst the government-funded Technology Strategy Board has been allocated an extra £50 million to accelerate technological innovation.

A further £10 million will also be made available for the Government's international business development arm - UK Trade and Investment – to ramp up its support for exporters.

Business Secretary Peter Mandelson claimed the new fund would “equip Britain to win as a low carbon, knowledge-based economy”.

He said:

“Britain doesn’t need to be pessimistic about our economic future as long as we prepare for it. Backing green, low carbon businesses and technologies will be a priority for the new fund.

“British businesses should be world leaders in the technologies and services the world will need as we use energy more efficiently and combat climate change.”

The funding fillip has been welcomed by Jonathan Kestenbaum, chief executive of NESTA, the innovation support body.

He said:

“The fund will give a new vibrancy to the UK’s technology market and will bring about deep and lasting change to our economy.

“It’s vitally important that a proportion is allocated to high-potential early-stage technology businesses. Innovative new firms are central to the UK’s future economic prosperity.

“Recessions are times to take bold action. The fund will be critical in sustaining the UK’s global position in these sectors.”

Technology Strategy Board chief executive Iain Gray claimed the extra investment would help improve industry competitiveness and speed up the shift to a low carbon economy.

He said:

“This Budget recognises how essential it is to continue increasing investment in technology and innovation especially in difficult economic times. 

“We have to develop new technologies and solutions, not only for the sake of this country's future competitiveness on the global stage, but also to address the major challenges facing our society.”

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