Putting the no in innovation

8 05 2009

A dispiriting article in today’s Financial Times sums up much of what is wrong with the government’s approach to investment in innovation. In the last budget it was announced that £750 million would be set aside for a Strategic Investment Fund. This was presented as financial support for a new kind of positive ‘industrial activist’ strategy.

Leaving aside for the moment that one third of this money is set aside for low carbon business opportunities (see my previous blog  on this), there is obvious merit in funnelling funds into technology start-ups, even if the amount available, which is to cover a two-year period, is very small. The problem is that this fund was announced without any proper planning or discussion.  The Ministry which is supposed to adminster this fund was only told about it a few days before the announcement.

So we have an investment fund with no clear goals or any mechanism for distributing the money. As the report says, people are queuing up for access to this cash, and it is encouraging that there appears to be a strong demand for new investment. But the lack of clarity about what it is for or how it is to be administered throws doubt on how quickly it will be put to good use.

We are in a deep recession and any new technology investment would be a good thing, but the slapdash way this has been done betrays a lack of urgency in addressing the situation. This was summed up by the unnamed official who said there was no rush as they had 2 years to phase in the spending.

Advertisements

Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: