National Technology Strategy wins in Spending Review 2004

Innovation and research and development (R&D) are a vital element of the two-year departmental Spending Review announced by Chancellor Gordon Brown this week.

The Chancellor re-stated his ambition for UK R&D to grow from 1.9 per cent of the economy to 2.5 per cent over the next decade.

For the IT sector, the big winner is the Department of Trade and Industry's (DTI's) Technology Strategy, with funding to increase from £150m over three years to £178m annually by 2008.

The strategy was the result of the Innovation Review run by the DTI, the Treasury and the Department for Education and Skills at the end of last year.

The Review recommended the development of a national strategy to identify key priorities for emerging technologies likely to benefit UK global competitiveness and the wider economy.

The first wave of priority technologies, announced in April, include grid computing and sensors and control systems.

The Chancellor's announcement of additional seed funding for the scheme is part of the Treasury's overall commitment to enhance UK science and innovation.

'The UK needs a 21st century science base to compete in the 21st century global economy. Today's framework represents a long-term commitment to investing in science and innovation to create a platform for future wealth creation, productivity growth and better public services,' said Brown.

A key role for the Technology Strategy is to create a 'pull-through' of scientific advances into useful technologies that impact directly on business productivity.

The Technology Strategy Board, chaired by an industry representative, is due to be announced shortly and will set out the priorities for both the collaborative R&D programmes sponsored by the initiative, and the knowledge transfer networks to ensure communication between academia and industry.

'The aim is to ensure that all elements of the UK innovation system are active in helping the development and widespread dissemination of technologies which are critical to the competitiveness of British business,' says the Science and Innovation Investment Framework, published alongside the Spending Review.

A key role for the Board will be ensuring it has a co-ordinating role as well as direct funding, says Confederation of British Industry director of international competitiveness Andy Scott.

'The seed money announced this week is welcome but the Technology Strategy Board should have broader remit and provide a co-ordinating role for other funding channels such as research councils,' he said.