Innovating for the future : investing in R&D : a consultation document / HM Treasury, Department of Trade and Industry.

  • Great Britain. Treasury.
Date:
[1998]
Catalogue details

Licence: Open Government Licence

Credit: Innovating for the future : investing in R&D : a consultation document / HM Treasury, Department of Trade and Industry. Source: Wellcome Collection.

    7/48 (page 5)
    INTRODUCTION [1.01 The Government is committed to increasing the trend rate of growth of the British economy. This is essential if we are to increase our prosperity and create more job opportunities for the benefit of us all. 1.02 A key driver of growth in the modern world is the degree to which companies embrace innovation of all types. More innovation, allied to increased investment in skills and in equipment, is a necessary condition for British companies to succeed in the global economy. 1.03 The Government is determined to examine all the factors relevant to the successful take-up of innovation by firms, to see what can be done to improve the UK’s business performance in this area. 1.04 The development and diffusion of new technology, for which R&D is becoming increasingly important, is a key component of innovation. By itself new technology is no guarantee of success, but in general the Government believes that an increase in R&D activity would be of benefit to the economy. It is therefore concerned to examine what steps might be taken to encourage more R&D, including whether possible adjustments to the taxation system would be cost-effective. 1.05 The Pre-Budget Report announced that the Chancellor and the President of the Board of Trade would be taking a wide-ranging look at ways of improving the UK’s record on investment in R&D. As part of this wider review the DTI and the Treasury have been sponsoring a number of working groups (see Box) designed to examine, with business, what can be done to improve the UK’s record. 1.06 At the heart of much of this work are the associated issues of technological innovation and R&D. This document discusses the main barriers to successful R&D, many of which are being considered within the current working groups. But to ensure the widest possible consultation, the Government is now seeking the views of all key players, including those in: innovative businesses; universities and research organisations; the financial community; and the legal profession, on how best they can work together in partnership with government to overcome the barriers to R&D and technological innovation.