The government must double its £1bn commitment to technology innovation if the UK is to remain globally competitive, according to business leaders.

The proposed investment follows the publication of former innovation minister Lord Sainsbury’s review of UK competitiveness last week, which recommended improvements to science and IT education and support for early stage technology companies.

The extra funding is welcome, but it is nowhere near enough, said Confederation of British Industry (CBI) head of innovation Tim Bradshaw.

“The £1bn only amounts to an extra £100m over the plan’s three-year lifespan,” said Bradshaw.

“A budget of £600m a year is needed, which is double what has effectively been announced.”

The UK urgently needs to promote IT education, according to British Computer Society director Mike Rodd.

“We need additional funding for schools and a major campaign to ensure the public is aware of the importance of the UK’s science and technology base,” said Rodd.

The study of “Stem” subjects – science, technology, engineering and maths – are key to productivity, according to the IT sector skills council, e-Skills UK.

“We cannot underestimate the importance and energy we need to put behind Stem education if we are going to maintain our position in a global economy, much less accelerate ourselves ahead of other countries,” said chief executive Karen Price.

But the creation of a properly structured programme is as important as the headline investment figure, said Philip Virgo, strategic advisor to skills group the Institute for the Management of Information Systems.

“It is not government funding alone that makes the difference,” said Virgo. “It is the industry funding leveraged on top.

The key factor is investment for pulling research through development and into production.”

Hear podcast on this story
computing.co.uk/podcasts