HC Deb 26 May 1993 vol 225 cc581-2W
Mr. Batiste

To ask the President of the Board of Trade how the science and technology policy of his Department will be affected by the White Paper on science, engineering and technology published today; and if he will make a statement.

Mr. Heseltine

The Government want to see a new partnership with industry, bringing together public sector resources, to increase the nation's competitiveness. Today's White Paper on Science, Engineering and Technology commits the Government to partnership in science and technology to ensure they contribute more fully to the nation's wealth and well-being. The DTI is committed to making this partnership work. DTI's budget for industrial innovation is rising by some 15 per cent. this year to around £125 million, despite pressure on public spending. While the main responsibility for innovation must remain with industry, DTI has an important role.

Support for R and D projects from DTI's innovation budget is less than 2 per cent. of industry's own R and D spend. Thirteen United Kingdom companies individually spend more on R and D each year than DTI does through its innovation budget. Moreover, much of DTI's support goes to the large firms who account for so much of industry's total. In view of this, DTI will change the balance of its financial support so as to concentrate in future on helping smaller firms gain access to technology; building up partnerships between firms, with academia, and overseas; and ensuring firms have the services they need to innovate and to do business better. Smaller firms need effective local delivery of technology that may require sourcing on a local, United Kingdom or global basis. Both the access to that technology and the infrastructure which can provide it will therefore need to be strengthened, taking account of the Faraday principles, as will the promotion of innovation and the spread of best practice.

The Department will significantly improve companies' access to science and technology by making innovation services available locally, for example through one-stop shops. These services will place the national and international expertise on industry's doorstep. One-stop shops will help form sustained partnerships, bringing together public and private sector business services, including DTI technology and innovation services, for the benefit of the local company customer. The DTI will build on the local innovation networks which are already used by firms. These networks draw on expertise in higher education institutions, technical colleges, industrial research organisations and others.

DTI will put more effort into helping firms of all sizes come together to undertake R and D projects, including projects under the LINK and EUREKA initiatives. The Department will also work with other Departments, the research councils and in Europe to help this process to succeed. DTI will therefore:

  • design its innovation services for delivery involving one-stop shops;
  • support the establishment of local partnerships through which firms can obtain the technology and business services they need for innovation;
  • consult industry over a more comprehensive information service about technology overseas;
  • work to harness publicly-funded effort in science and technology;
  • through its sector divisions and otherwise, act as a voice for business in science and technology throughout Government.

In view of the decision to increase support for technology transfer and best practice activities, DTI will be reducing its support for industry/industry collaboration through its innovation budget, and from 1 September will support only projects which will result in exceptional economic benefit.

Recognising the particularly important contribution that smaller companies make to the innovative process, direct single-company support to small SMEs will continue under the successful small firms merit award for research and technology—SMART—scompetition and SPUR—support for products under research—scheme. However, from 1 April 1994 it is proposed to limit SPUR to companies with up to 250 employees in order to concentrate on the smaller firms which have the greatest difficulty in raising R and D capital.