UK Government Release UK Innovation Fund Plan

1 July 2009

Lord Mandelson, the Business Secretary, has unveiled the UK Innovation Plan.  The plan is focused on creating a £150m fund that, according to its supporters, could, over ten years become a £1bn fund - if the private sector gets on board.

The plan has been released in response to calls from the British Venture Capital Association, NESTA, and leading investors such as Herman Hauser of Amadeus,for prompt and meaningful action.

Within the government, Lord Drayson, the Science and Innovation minister, had championed the need for such a fund to put an end to the equity gap in the UK.  Drayson made the assumption that such a fund will attract more investors, entrepreneurs and companies to the UK.

While the fund has yet to be launched indications are that the £150m funding will comprise £100m from the Department for Business, with £25m each from the Department for Health and the Department for Energy and Climate Change.