Small Firms Research Initiative (Hansard, 16 February 1993)

§ Mr. Aitken

My Department has for many years used the services of small firms, particularly to aid its applied research programme. One vehicle developed to foster such connections was the small firms research initiative—SFRI —launched in 1987 as part of the Government's small firms initiative and with an annual budget of some £1 million. Since then, however, a number of developments have occurred, in particular the formation of the Defence Research Agency—DRA. This organisation is already being run under commercial disciplines, introducing primary competition and more significantly secondary —sub-contract—competition.

The DRA has recently launched a new scheme, Pathfinder, through which it invites industry to put 192W forward research proposals that meet both MOD customer needs and firms' own research priorities for up to 100 per cent. funding. The aim is to achieve a better return on the total research expenditure made by MOD and industry, to mutual benefit. Pathfinder embodies the concept of strategic alignment with industry and aims to improve the capability of industry as a supplier of defence equipment while simultaneously providing a degree of competition at research team level to stimulate cost efficiency.

The Government's policy on the support of small firms remains unchanged. But in the particular circumstances no useful purpose would be served by continuing with the SFRI given the launching of the new Pathfinder scheme, and no further funds will be allocated to it.