The present intense phase of development in UK's information technology and electronic communications sector follows on from the Government's 1998 White Paper entitled 'Building the Knowledge Driven Economy'. It proposed a strong programme for support of UK's information technology and electronic communications (ITEC) sector. The White Paper is available from Related DTI Sites under 'Our Competitive Future: Building the Knowledge Driven Economy'.

Among the proposals put forward were the Government's plans to:

• invest an additional £1.4 billion over the next three years 1998 - 2001 in partnership with the Wellcome Trust to modernise the British science and engineering base
  
• vigorously promote the commercialisation of university research - including new incentives for researchers to work with business
  
• drive a new programme to help one million small businesses harness information and communication technologies (ICTs) to compete more effectively
  
• launch a new round of the Foresight programme, linking Government, science and business to identify new market opportunities and address important themes like education, skills and training, and sustainable development
  
• create a new Enterprise Fund to support the financing of small businesses with growth potential
  
• improve the help given to start-ups - providing a new high-quality advice service targeting 10,000 growth start-ups a year in England

Creating the climate for growth
In the global economy, capital is mobile, technology spreads quickly and goods can be made in low cost countries and shipped to developed markets. British business must compete by exploiting skills which competitors find hard to imitate. The UK's distinctive capabilities cannot any longer be raw materials, land or cheap labour; they must be knowledge, skills and creativity. The first legislative step to support business in this new environment was the Electronic Communications Act of 2000 - available from Related External Sites.

To compete more effectively we have to collaborate more intelligently. Few companies have all the skills to make and market technologically complex products. Successful businesses depend upon strong teamwork - with suppliers, customers, joint-venture partners, universities, and between managers and employees. The Government will act as a catalyst to promote this creative collaboration between businesses and within regions.