Investment in innovation may curb recession

05.12.08

The government needs to deliver a ‘new economic deal’ for UK business, according to leading investment groups.

The National Endowment for Science, Technology and the Arts (NESTA) is calling on the government to commit set long-term goals to rebuild the economy beyond the ‘short-term’ fiscal stimulus of the Pre-Budget Report.

In a new report, ‘Attacking the Recession’, the body urges the government to commit to investment in innovation to regenerate the UK’s economy. The paper calls for the roll out of a £15bn ultra-fast broadband network, a £1bn early stage fund for innovative technology ventures and a national economic strategy to establish and grow low-carbon technologies.

Jonathan Kestenbaum said: “The UK should invest in those areas which will have the largest multiplier effect in terms of economic and social benefits. The recession may prove a critical point for the country. If we fail we will be paying the social and economic costs for many years to come.”

The report was presented to Lord Drayson, Minister for Science and Innovation, last night and is due to be followed by a series of policy recommendations and practical measures which will be presented to government in advance of the budget next March.

© Crimson Business Ltd, 2008