A report from The House of Commons Science and Technology Committee has concluded that the government’s support for the commercialisation of scientific innovations is inadequate, placing many UK tech start-ups in a ‘valley of death’.
The result is that many start-ups are bought by foreign companies that then repatriate the wealth and jobs created. One recommendation made by the committee is that the government ought to use the Business Bank proposed by Vince Cable to generate a bond market for medium-sized businesses. It is hoped that the measure would supply tech firms with the cash needed to develop and grow independently before being sold prematurely.
However, The Department for Business, Skills and Innovations responded to the criticisms by highlighting the fact that the government has protected the £4.6b annual budget for science and intends to set up a Business Bank to support the development of diverse finance markets for businesses.