Plan to boost economic investment

Ministers said they wanted to set out areas where government action could have most impact, aimed at speeding recovery and building manufacturing and services.

Business Secretary Lord Mandelson said key areas identified for immediate action were centred on innovation, skills, finance, infrastructure and trade.

They included making sure high growth, high innovation firms received the financing they needed, more support for exporters and extra help for turning bright ideas into products.

He is due to say at Loughborough University Innovation Centre: "The world's economy, emerging from the downturn, is set to double in size creating major new opportunities for British business.

"But global competition is getting tougher and technological change is happening faster. We can't afford to stand back as other countries invest and skill-up to win in high-value markets and sectors.

"To succeed in this hi-tech, low carbon economy of the future, to drive growth and to secure more high-value jobs in the UK, we need to act. It's not about picking winners or ignoring market signals but removing barriers which hold business back."

Skills Secretary John Denham will add: "To emerge from the recession quickly and strongly we need to maximise the opportunities for the UK economy in areas where we know Government action will have a big effect like low carbon technology, manufacturing, construction and healthcare.

"By making key decisions, buying goods and services, government shapes and creates future markets, new business opportunities and the demand for skilled jobs.

"That is why our new activism will focus our skills system, the knowledge in our universities and the way we support research through our record investment in science to meet the demands and opportunities government creates when it acts in other areas of the economy."