UK Treasury announces measures to boost research and enterprise
The UK government has published its pre-budget report, in which it outlines a series of reforms aimed at encouraging research, innovation and enterprise. Under the banner 'meeting the productivity challenge' the Treasury policy document pledges to increase access to finance for small and medium sized enterprises (SMEs), work with the EU to cut unnecessary red tape for businesses, and promote entrepreneurship, innovation and research. UK Economic Secretary John Healey said: 'Enterprise and productivity is at the heart of this government's agenda and is vital to a strong and successful economy. The 2003 pre budget report announces measures to stimulate an enterprise culture in all parts of the UK and ensure that British businesses flourish in the modern global economy.' With regard to science and innovation, the report notes: 'The UK has an excellent science base but has been less effective at realising the commercial potential of its research.' As a response, in 2002 the UK government commissioned two reviews: the Lambert review, addressing the links between business and universities, and the department for trade and industry (DTI) innovation report. The recently published Lambert review recommends a greater role for regions in promoting knowledge transfer, the encouragement of informal networks between business and academia, and the creation of a new funding stream for business relevant research. The UK government pledges in the pre-budget report to respond to the recommendations by 2004. The forthcoming DTI innovation report, meanwhile, is expected to call for a more coordinated government approach across a range of policy areas to improve innovation performance. A key issue, according to the report, will be to 'raise the level of R&D [research and development] in business, which will involve a longer term and more strategic approach to focus government support on key technologies and markets.' Other measures designed to improve the UK's innovative capacity announced in the report include putting systems in place to allow universities to recover the full economic cost of the research they conduct, raising the level of the Research Council's PhD stipend and postdoctoral salary, and a broader definition of R&D in the context of R&D tax credits for business. Under a broad pledge to simplify regulations for companies, the UK government promises to work closely with the Commission to ensure that new EU measures aimed at assessing the economic, social and environmental impact of legislation are effectively implemented. The UK's 'better regulation task force', with input from business, will also select an area of European legislation within which to investigate the possibility of a process of simplification. Finally, the report outlines steps to improve awareness of, and access to, finance for small businesses. These include the publication of a 'no nonsense guide to finance' for start ups and small firms; the businesslink.co.uk website for firms seeking advice on how to expand into foreign markets; and a series of further measures to help small businesses overcome barriers to accessing finance.
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