Government unveils innovation plans

A White Paper was published to help firms develop new products and forge closer links with universities and colleges.

An innovation fund will be set up to support businesses and the number of skills academies will be expanded into every major sector of the economy.

An Innovation Research Centre will be set up and the Government said it will create new markets for its £150 billion spending on goods and services every year.

Innovation, Universities and Skills Secretary John Denham said: "We must make the UK the best place in the world to run an innovative business or public service.

"It is the British people who will create a world-beating innovation nation and that is why we must unlock talent at all levels by investing in skills, research and the exploitation of knowledge.

"But we can achieve much more if we harness the power of Government as the UK economy's biggest customer to create new markets and demand to benefit innovative businesses and people in Britain.

"Innovation will be the key to some of the biggest challenges facing our society, like global warming and sustainable development.

"We need to ensure that Britain contributes to the innovative solutions and that British business and the British people benefit from the new opportunities and prosperity they create."

Iain Gray, chief executive of the Technology Strategy Board, said: "This White Paper presents a huge opportunity to address challenges through innovation, and for Government to be an exemplar of innovation across all departments, in turn stimulating innovation and research and development investment throughout business."