As part of the fund the Technology Strategy board will see its budget rise by £50 million to boost its work in fostering innovation and new technologies, and there will be £10 million extra for UK Trade and Investment to help exporters.
The UK BioIndustry Association (BIA) welcomed the announcement, saying the fund, “Could make a significant contribution to supporting and building a successful and sustainable bioscience sector in the UK.” The BIA added that it was seeking further information on the mechanism for the fund and the amount accessible to bioscience companies.
The government also announced the launch of a review to consider measures that could increase the supply of long-term growth capital to small and medium sized businesses, and the BIA said it will be participating in this.
Also announced in the annual budget were plans to explore the tax treatment of Intellectual Property, which will consider evidence for changes to the way the tax system encourages innovative activity and the relative attractiveness of the UK to global firms as they make decisions on where to locate their R&D.
Clive Dix, BIA Chairman, noted that the government has long proclaimed the importance of the UK’s bioscience sector and the BIA is encouraged to see indications of support for companies in these challenging times.
“The BIA has been working [...] to develop a number of initiatives including an innovation fund, and changes to the taxation of intellectual property. The small and medium sized companies that make up the bioscience sector in the UK have been hit hard by the current financial crisis. We have highlighted the need for a high-tech investment fund,” said Dix, adding, “It is essential that the fund is now implemented rapidly.”
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