Innovation must become more of a "contact sport" in the UK

01/08/2006

"There is a gathering evidence base that schemes such as the SBIR can vastly improve innovation capacity, but it is the culture they engender as much as the money provided which is important."

The report draws attention to the manner in which the United States government uses its Small Business Innovation Research (SBIR) programme and procurement budgets to build successful science and technology industries by supporting small, high-technology firms. Founded in 1982, the SBIR programme provides over 4000 research and development contracts and awards, worth over $2 billion every year to small US companies.

Kestenbaum welcomed the report, but stated that access to capital is only one more ingredient in fostering innovative companies:

"There is a gathering evidence base that schemes such as the SBIR can vastly improve innovation capacity, but it is the culture they engender as much as the money provided which is important. Such programmes allow young companies to network with more established businesses and transform the commercialisation of knowledge into more of a contact sport. Developing these patterns of interaction vastly improves the networking opportunities available to early stage businesses, offering the chance of both revenue-generating contracts and, crucially, improved business mentoring."

The National Endowment for Science, Technology and the Arts (NESTA) is working to increase the UK's capacity for innovation, investing in all stages of the innovation process, backing new ideas and funding new ventures that stimulate entrepreneurship. It is the largest single source of early-stage business funding in the UK, as well as a provider of high quality mentoring support for innovative start-ups.