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Proposals to encourage the commercial exploitation of scientific research in Britain were expected to be given high priority in a government white paper (policy document) on economic competitiveness, due to be published this week.

The white paper was expected to propose changes in the way in which the Department of Trade and Industry (DTI) spends its annual budget of £1 billion (US$1.7 billion). It was due to be unveiled by Peter Mandelson, Secretary of State for Trade and Industry, the cabinet minister responsible for science.

The measures are designed to help narrow the gap between the United Kingdom and its industrial competitors in terms of ability to benefit commercially from science and technology. Despite is position among the top few countries in terms of scientific output, the United Kingdom came thirteenth of 17 countries ranked in terms of their effectiveness in exploiting science in a survey by the Harvard Business School that was released last week.

Since taking up his post in a cabinet reshuffle earlier this year, Mandelson has been keen to find ways of encouraging partnerships between industry and the academic community, turning universities “from ivory towers into business partners”.

For example, he is known to be enthusiastic about the Teaching Company Scheme run by the Engineering and Physical Sciences Research Council, which provides financial support to graduates working in companies on projects supervised jointly by the companies and universities. The scheme is expected to receive extra backing in the white paper.

Faraday Partnerships, which aim to improve the interaction between the science, engineering and technology base and industry, may also gain government support for their expansion plans.

Industry was hoping for changes to the tax system to make it easier for high-tech start-up companies to raise venture capital. And Mandelson has said he is keen to promote clusters of science-based businesses near universities.

Some of these proposals are likely to be financed by a reorganization of DTI funding of business initiatives. Rather than providing more broad-based regional aid, the department is keen to target funds on clusters of high-tech, ‘knowledge based’ industries

The white paper follows a statement last month by the Chancellor of the Exchequer, Gordon Brown, that the government is considering offering a tax credit for small and medium sized companies yet to make a profit (see Nature 396, 100; 1998).