APPENDIX 9
Supplementary memorandum by the Department
of Trade and Industry
INTRODUCTION
1. This paper provides a summary of the
Government spend on implementing the 1998 White Paper, Our Competitive
Future: Building the Knowledge Driven Economy. The total cost
given here does not include administrative expenditure, but covers
the new areas of programme spend to which the Government committed
itself.
2. The Government has spent some £1,635.4
million (including a forecast spend of £501.2 million for
2003-04) in implementing and funding the commitments in the 1998
Knowledge Driven Economy White Paper. The aim is to encourage
increased innovation, through the effective exploitation of technology
and knowledge for the benefit of the UK economy. The DTI's expenditure
is reported annually through the DTI Departmental Reports.
3. The new areas of programme spend identified
in the White Paper and the details of the total amounts spent
on the programmes are as follows and listed in the attached table
in Annex 1.
ENTERPRISE
4. The Government, in partnership with the
private sector, committed to supporting an Enterprise Fund worth
some £150 million over three years (A1)[7].
The aim is to stimulate the pace at which businesses turn new
ideas into high-growth ventures. The Department has spent a total
of £290 million (including a forecast spend of £98.1
million for 2003-04) on this commitment between 1999 and 2004.
ENTREPRENEURIAL SKILLS
5. The Government made funds available to
Business Links to support innovative high growth start-ups (A3).
A total of £7.8 million was spent on High Growth Start-ups
between 1999 and 2002. The Government is also committed to addressing
the deficiencies in entrepreneurial skills through business advice
services. These are provided through business link partnerships.
KNOWLEDGE BASE
6. The Government is committed to increasing
science spending to boost knowledge creation (A10). The total
spend between 1999 and 2004 of £292.6 million (including
a forecast spend of £50.1 million for 2003-04) by the Department
covers both the Joint Infrastructure Fund (£273.2 million
including a forecast spend of £44 million) and University
Challenge (£19.4 million including a forecast spend of £6.1
million).
7. The DTI spent a total of £41.5 million
(including a forecast spend of £5.3 million for 2003-04)
between 1999 and 2004 on the Science Enterprise Challenge (A13)
to help create enterprise centres in universities. The centres
help equip scientists and engineers with entrepreneurship and
business skills to develop the transfer and exploitation of knowledge.
SKILLS STRATEGY
8. The Government Skills Strategy was published
in July 2003. The Department's programme spends on skills sectors
(D5) between 2001 and 2004 amounts to some £4.9 million (including
a forecast spend of £1.3 million for 2003-04). Because skills
are vital to sustaining a competitive, productive economy, the
new Skills Strategy will put business skills needs first, vital
in improving the business skills gap.
KNOWLEDGE TRANSFER
9. To enable the UK to remain at the cutting
edge of innovation, the government recognises that we must continue
to exploit our knowledge base in Science, Engineering, and Technology
(A12). A total of £52 million (including a forecast spend
of £24.4 million for 2003-04) was spent between 2001 and
2004 to promote university interaction with business and to promote
enterprise capability in universities. This spending also funded
the knowledge transfer infrastructurenetworks between universities,
businesses and other user communities for the outputs of research.
10. To build on the initial work of the
Engineering and Physical Sciences Research Council, the Government
established a national network of Faraday Partnership to bring
together innovating businesses with scientists and engineers to
share ideas and commercialise research (A14). A total of £21.8
million (including a forecast spend of £8 million for 2003-04)
was spent on Faraday Partnership between 2001 and 2004.
11. To ensure more businesses get the benefits
of skilled graduates and that graduates get experience from business,
the Department increased the spend on Knowledge Transfer Partnerships
(KTP), formerly the Teaching Company Assistant (TCS) (A15). The
DTI's spend on KTP was £72.4 million between 1999 and 2004
(including a forecast spend of £19 million for 2003-04).
The Department's expenditure on KTP is not the full cost to the
Government; the Department also incur admin costs in promoting
and managing the product and with other sponsors contributes to
the training and expenses of the Associates.
12. To ensure that the UK does not lose
its lead in Europe in the commercial exploitation of biotechnology
and genome research (B20), the department spent some £0.2
million in 2002-03 on Bio-wise, successor to Biotechnology Means
Business. Biowise raised a wide-scale awareness of the potential
of biotechnology and helped to focus on the implementation of
biotechnology in industry.
RESEARCH AND
DEVELOPMENT
13. Building on the success of Foresight
programme, aimed at building bridges and promoting high quality
research partnerships between universities (the science and engineering
base), businesses, (particularly small businesses) and Government
(A17). The Department spent some £0.1 million between 2002
and 2003 on Foresight LINK Awards, the funds were allocated on
the advice of a high level panel chaired by the then Chief Scientific
Adviser, Sir Robert May to high quality LINK Projects such as
the Mobile Phones & Health project.
14. To help small businesses finance the
development of their own technology and benefit from scientific
knowledge bases, the SMART Scheme was extended (A18). The Government
has spent some £149.6 million between 1999 and 2004 (including
a forecast spend of £40 million for 2003-04) on the extended
SMART scheme to help businesses commission research, secure intellectual
property rights and develop prototypes.
15. To make the most of the commercial potential
of outputs from Public Sector Research Establishments (PSRE),
the Government investigated existing practice and made recommendations
in 1999 (A20). The total spend by the Department since the Investigation
team reported to HMT and the Office of Science and Technology
is £8.1 million from 2001 to 2004 (including a forecast spend
of £0.3 million for 2003-04).
BEST PRACTICE
IN BUSINESSES
16. To spread the culture of benchmarking
and encourage adoption of best practices by UK businesses throughout
the UK, the Department supported the CBI's Fit for the Future
Campaign (B1). The total DTI spend on Fit for the Future Campaign
amounted to some £3.2 million between 2001 and 2004 (including
a forecast spend of £0.7 million for 2003-04).
17. To encourage sectors to learn from the
best examples, the Government has supported sectoral partnerships,
including supply chain initiatives, networking and clusters that
play a critical role in sharing knowledge and upgrading skills
among complimentary businesses (B3). The DTI spent some £3
million between 2001 and 2003 in support of sectors, adapting
the SMMT Industry forum model, which, helped businesses in the
automotive supply chains.
18. To accelerate the spread of best practice
and innovation throughout industry, work was done to review the
speed of Technical Standards setting. Standards would help to
open global opportunities for UK businesses (C10). There was no
significant DTI spend associated with this commitment because
the lion's share of implementation costs fall to the British Standard
Institution. The work of the National Standardisation Strategic
Framework (NSSF) goes wider than the commitment as expressed in
the White Paper and there has been very modest programme spend
by DTI in some specific related areas of NSSF work.
UK SMALL BUSINESSDIGITAL
MARKET
19. The Department has spent £13 million
to help triple the number of UK Small Businesses wired up to the
digital market place (D3). The Department encouraged businesses
to wire up to the digital market by developing and launching ecommerce
resource centres and sponsoring the Digital Business Awards.
REGIONAL DEVELOPMENT
AGENCIES
20. The Department provided additional funds
for the Regional Development Agencies (RDAs) to spend on priorities
they identified for increasing competitiveness and regional growth
performance (B5). The Department provided extra funding of £447
million (£191 million of which is the forecast spend for
2003-04) for the RDAs as part of the Single Programme Budget (SPB).
Other Departments such as ODPM, DFES, DEFRA, DCMS and UKTI also
contribute to the SPB. An example of the priorities identified
was Regional Broadband readiness, for which DTI provided resources.
REGULATION
21. The DTI did not incur any programme
spend on enforcement of the 1998 Competition Act, as the Office
of Fair Trading (OFT) receives funding for this directly from
the Treasury. However, the Government has committed £15 million
to ensure that the sector regulators have stronger powers to enforce
the Act, including imposing penalties on businesses turnovers
(C1).
CONSUMER STRATEGY
22. The White Paper "Modern Markets:
Confident Consumers" (Cm 4410) published in July 1999 met
the Government's commitment to publish a Consumer Strategy (C9).
The Government made £30 million available over four years
to support the White Paper objectives of confident, demanding
consumers who promote innovation and stimulating the productivity
of the economy.
THE OFFICE
OF THE
E -ENVOY
23. The Government has spent £69.17
million (including a forecast spend for 2003-04 of £17.8
million) between 2000 and 2004 in setting up the Office of the
e-Envoy and running it to help promote the UK as a global hub
and to drive forward the Government agenda for e-Commerce (D2).
In addition the e-Envoy, Special Representative for the Digital
Economy, has also spent some £15.3 million (including a forecast
spend for 2003-04 of £3.2 million) as programme costs of
projects in several Government Departments.
E-GOVERNMENT
24. The Government has spent some £143.7
million (including a forecast spend of £42 million) between
2000 and 2004 to ensure that Government services are accessible
electronically on Government Gateways, Citizen Portals and Knowledge
Networks (E4).
Department of Trade and Industry
16 September 2004
7 Highlighted reference numbers are as in (Ref) in
the Table and White Paper Implementation Plan. Back
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