P/98/1036 16 December 1998
MANDELSON ANNOUNCES NEW APPROACH TO INDUSTRIAL POLICY IN THE REGIONS
Future Regional Selective Assistance will focus support on high-quality, knowledge-based projects which provide skilled jobs, Peter Mandelson Secretary of State for Trade and Industry announced today.
This new emphasis will apply equally to inward investment and domestic projects, Mr Mandelson added.
Measures to enhance business support in the regions are set out the White Paper published today, ’Our Competitive Future: Building the Knowledge Driven Economy’.
These include:
- new funds for the Regional Development Agencies to promote collaborative strategies building on companies’ know-how in the English regions;
- the new Regional Development Agencies will benchmark performance in the English regions and set targets for enhancing competitiveness.
- from 1 January 1999, recipient of Regional Selective Assistance for internationally mobile projects will be given the option of grants denominated in the Euro.
- £10 million over three years for RDAs to increase competitiveness, promote innovation and support clusters.
- RDAs will review Government support to businesses in the regions
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P/98/1037 16 December 1998
"SCIENCE AND INNOVATION AT THE HEART OF
THE KNOWLEDGE DRIVEN ECONOMY" - MANDELSON
The ability to turn scientific discoveries into successful commercial products and processes is vital in the knowledge driven economy, Peter Mandelson, Secretary of State for Trade and Industry said today.
The DTI’s Innovation Budget will be increased to some £220 million to refocus DTI’s resources on innovation, technology access and partnership between UK industry and the nation’s excellent science and technology knowledge base.
This is in addition to the £1.4 billion boost for science funded by the Government and Wellcome Trust to reinvigorate the UK’s science base.
The key proposals in the White Paper ’Our Competitive Future: Building the Knowledge Driven Economy’ to promote innovation are:
doubling DTI funding for ’technology champions’ under the TCS scheme which supports the transfer of technology and knowledge between the science and engineering base and businesses;
creating a national network of Faraday Partnerships to bring researchers together with businesses both large and small to share ideas and commercialise research;
a new round of Foresight LINK Awards to support high quality research partnerships in Foresight priority areas between business and universities, alongside the second Foresight programme itself.
measures to promote the commercialisation of university research - including a new "Reach-Out" fund to encourage universities to work more effectively with business; and £25 million Science Enterprise Challenge to create up to eight enterprise centres at UK universities;
a look at the working practices of public sector research establishments to ensure that they make the most of the commercial potential of their research;
Mr Mandelson said:
"The ability to turn scientific discoveries into successful commercial products is vital if businesses are to thrive in the knowledge driven economy. We must encourage universities to engage with business so that new discoveries can be turned in marketable products as quickly as possible."
"A successful modern economy must continuously reinvest in its knowledge-base, to provide a flow of people, ideas and technologies. The measures set out today in the White Paper will encourage the closer links between science and business that we need for the next Millennium."
"The challenge for the UK is to create a business culture in which innovation becomes an everyday activity, through which people in businesses large and small seek new ideas from a wide range of sources and have the expertise, flair and courage to exploit them effectively."
Notes for Editors:
1. ’Our Competitive Future: Building the Knowledge Driven Economy’ published by and available from The Stationery Office Limited. ISBN 0-10-141762-4. Price £8.95. A business summary is available in Welsh, German and French on the Internet at www.dti.gov.uk/comp/competitive.
2. The increased Innovation Budget will fund many of the new and enlarged programmes set out in the White Paper to drive forward a fundamental change in the UK’s climate for innovation. The budget finances a range of activities to promote awareness of innovation, support sectoral competitiveness, IT and knowledge transfer.
3. The TCS scheme (previously known as the Teaching Company Scheme) facilitates technology and knowledge transfer, stimulates innovation in industry and interaction between the science base and companies. 90% of current TCS activity involves SMEs. The new money will enable around 200 extra projects per year to be backed.
4. Faraday Partnerships will bring together scientists and engineers from universities and independent research and technology organisations and innovating businesses, to share ideas and commercialise research. The national network will build on the initial four Faraday partnerships established in 1997 with support from the Engineering and Physical Sciences Research Council.
5. The Foresight LINK Awards provide support for collaborative projects addressing Foresight priorities. An information pack, ’Guidance for Applicants’ is available from: Foresight LINK awards, LINK Directorate, OST/DTI, UG.B.32, 1 Victoria Street, London SW1H 0ET; Tel: 020 7215 0369, Fax: 020 7215 0054.
6. The UK Foresight programme aims to enhance competitiveness and quality of life by bringing together business, science, government and the voluntary sector to look at possible future needs and decide what should be done now to make sure that we can meet these challenges. The next round of Foresight will begin in April 1999. The blueprint for the next round of Foresight was published on 15 December (PN98/1028)
7. DTI is working with DfEE and the Higher Education Funding Council for England (HEFCE) on a new ’reach-out’ fund to enhance Higher Education links with business. Further details will be issued early in the new year.
8. The £25 million Science Enterprise Challenge, announced in the Pre-Budget Report, will invite universities to compete for funds to endow up to eight new enterprise centres to bring the teaching of entrepreneurship and business skills into the science curriculum, and be centres of excellence for the technology transfer process.
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P/98/1038 16 December 1998
MANDELSON PUTS PEOPLE AT THE HEART OF THE
KNOWLEDGE DRIVEN ECONOMY
New measures to create a culture of learning in the workplace were announced today by Peter Mandelson, Secretary of State for Trade and Industry.
A new joint approach by the Department of Trade and Industry and Department for Education and Employment will provide a greater focus in meeting the skill needs of business.
Mr Mandelson was speaking today at the launch of the Competitiveness White Paper ’Our Competitive Future: Building the Knowledge Driven Economy’.
The key White Paper proposals to support skills and training are:
a national strategy to meet the skills needs of the information and communication technologies sector through the Information Age Partnership and the National Skills Taskforce
a major cross-departmental review of Government-sponsored skills development schemes
development of a best practice model for large businesses working with their suppliers and customers to improve the skills of their workforces
publication of Creating a Great Place to Work to promote the business benefits of skills development and good management and to help business find its way through the maze of initiatives in this area.
Mr Mandelson said:
"People are at the heart of the knowledge driven economy. Their knowledge, skills and creativity are essential in order to produce the high-value products and services this country needs for the next Millennium."
"In a fast moving world economy, our knowledge and skills must be continuously upgraded or our competitiveness will decline. In businesses of all sizes, the importance of skills is all too often underestimated, including management skills."
"The White Paper sets out a new joint approach to skills spearheaded by my Department and the Department for Education and Employment. This is aimed at creating a culture in the workplace where learning is valued and the skills needs of businesses are met."
Notes for Editors
1. ’Our Competitive Future: Building the Knowledge Driven Economy’ published by and available from The Stationery Office Limited. ISBN 0-10-141762-4. Price £8.95. A business summary is available in Welsh, German and French on the Internet at www.dti.gov.uk/comp/competitive.
2. The Government has already set in train a number of measures to create a culture of lifelong learning and to tackle the skills deficit. The White Paper highlights the role of several initiatives already launched by DfEE including:
the creation of the University for Industry, which will have the initial priorities of basic skills, information technology skills, the management of small and medium-sized businesses, and skills needs in specific industries and services
Individual Learning Accounts, to encourage people to invest in their development through learning
expansion of further education.
3. The new joint approach to skills development by DTI and DfEE has been illustrated by the People Skills Scoreboard. The first scoreboard was published this year by the engineering industry to provide a benchmark of the industry’s investment in training. DTI and DfEE are now working with other sectoral organisations to spread this approach.
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PN/98/1039 16 December 1998
MANDELSON ANNOUNCES £150M FUND TO SUPPORT
ENTERPRISE IN SMALL FIRMS
A new Enterprise Fund, worth a total of £150 million over three years, to support the financing of small businesses with growth potential was announced today by Peter Mandelson, Secretary of State for Trade and Industry.
This is one of a range of measures to encourage enterprise set out in the White Paper ’Our Competitive Future: Building the Knowledge Driven Economy’ published today.
Measures to promote entrepreneurship proposed in the White Paper include:
- a new Enterprise Fund to support the financing of small businesses with growth potential - including support for growing businesses through access to debt and equity finance;
- more help for start-ups by providing a new high-quality advice service provided by Business Links that will target 10,000 growth start-ups a year in England; and
- a change in insolvency laws to give businesses in difficulties a better chance of turning around.
Speaking at the launch, Mr Mandelson said:
"Entrepreneurship is the lifeblood of the British economy, in large and small companies. It is even more important as the pace of change quickens in the new knowledge driven economy."
"Developing an entrepreneurial culture in the UK is at the heart of this White Paper. Our country’s future prosperity will depend on entrepreneurs who can develop and market innovative goods and services, turning the UK's fund of good ideas into profits and jobs."
"Britain needs to foster a pro-entrepreneurial, risk-taking culture like that in the US, starting in the schoolroom."
"And when entrepreneurs at whatever age are ready to make a start, Government will be there to offer them help and advice. Government cannot become a venture capitalist, but there is much it can do to encourage innovative start-ups in their early years."
"Alongside these main actions, the Government will support a review of the Queen’s Awards for Industry, which will be looked at in the context of the drive to promote entrepreneurship and innovation."
The Government will also support a National Campaign for Enterprise, to be led by the British Chambers of Commerce, aimed at everyone who could be a successful entrepreneur.
Note to Editor
1. The Enterprise Fund builds on support already available under the Government’s Small Firms Loan Guarantee Scheme and includes at least £20 million of new money over three years to stimulate venture capital for businesses with growth potential.
2. It was announced in HM Treasury’s Pre-Budget Report 1998 that reviews will take place to encourage serial investments in smaller growing businesses, and to find ways to encourage employees to take a long-term stake in their businesses.
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