Innovation in the UK

Here's an interesting report on the role of innovation in combatting the global recession. It was published by NESTA, the organisation reponsible for promoting innovation in the UK, so the report can be considered a useful indication of future policy.

There's been rumours of a new fund, overseen by NESTA, to help cash starved university spin offs, and other key start ups, weather the storm of the global recession. Undoubtedly, these businesses will have an important role in the future prosperity of the UK, but the size of the proposed fund is mind boggling: £1 billion.

This might not seem much compared to the bank bail outs, but we're talking about pre-revenue companies here, whose cost base it likely to be incredibly small. Even if 1000 start ups were deemed to be on the brink, that's £1,000,000 each! Companies with greater funding requirements are likely to have already found it, not least because long term companies must plan at least 2 years ahead.

It remains to be seen whether such a fund will be created. But for small business owners who won't be inline for such a hand out, it will be hard to palate.