Call for Evidence
The House of Lords Science and Technology
Committee has appointed Sub-Committee II, under the chairmanship
of Baroness Hogg, to conduct an enquiry into the Innovation-Exploitation
Barrier. This will be a follow-up enquiry to our earlier report
on Innovation in Manufacturing Industry, published in 1991. It
is being carried out in the context of the Bank of England report
on The Financing of Technology-Based Small Firms (October 1996)
and the conference on this subject to be organised by the Bank
of England, the CBI and the Royal Society in early 1997. We will
receive evidence in writing and in person, with a view to making
a report to the House of Lords in 1997.
The Sub-Committee invites written
submissions on matters of relevance to this topic, but in particular
on the questions listed below. The enquiry will focus on how innovative
ideas from our science and technology base are turned into exploitable
products or processes for the United Kingdom. We wish to assess
the effectiveness of the innovation initiatives promoted by the
Department of Trade and Industry and their impact on start-up
companies. One of the main areas on which we wish to concentrate
is the early phase of development of technology-based firms, including
their access to funds and management support. We ask the question,
to what extent does the United Kingdom suffer from an inability
to exploit its own developments in science and technology and
what can be done to address this problem?
1. What is the current state of innovation
in the United Kingdom?
2. How successful have the Department
of Trade and Industry (DTI) and other Government Departments been
with their range of initiatives designed to stimulate innovation?
3. How effective in terms of product
or process innovation and other exploitable outcomes are initiatives
which encourage collaboration between industry and academia?
4. Does financing need to be improved
for technology-based small firms during their crucial start-up
and early development phases?
5. What other support systems could
be introduced to ensure that the maximum advantage is taken of
innovative ideas that originate with individuals or, for example,
in academia?
6. Is there institutional inertia
towards the funding of technology-based small companies? If so,
to what extent may this be due to financiers' unfamiliarity with
science and technology concepts and what should be done to address
this?
7. The Committee recommended tax
credits for research and development in our previous enquiry.
Would this still be an effective way of fostering innovation and
how should they be introduced to ensure that they are roughly
cost-neutral?
8. How has the Technology Foresight
Exercise influenced the availability of development funds for
innovative ideas that were not given short-term high priority
status?
9. Has the tax relief introduced
in 1992-93 for individuals' expenditure on vocational training
had any impact on the status of continuing professional development,
in particular for employees in small firms?
