The Government must double its funding for the Technology Strategy Board to £1 billion to address the UK’s long-term under-investment in innovation, according to Vince Cable.

Speaking at the Finance for Innovation event in Westminster last week, the Business Secretary said: “Critical as it is to have a healthy, profitable private sector, it will not, on its own, generate large-scale innovation in areas where there are higher risks and wider benefits — that requires a commitment to public investment in science and innovation.”

Commenting on Mr Cable’s speech, Lee Hopley — chief economist at the EEF — said: “The UK is playing ‘catch up’ when it comes to Government support for innovation. We would like to see additional support for innovation, especially in areas where funding has already proved successful such as the R&D tax credits and Catapult centres.

“Doubling funding for innovation would go a long way to helping more companies bring more products and services to market. However, any increases must not be a one-off. We need to see a longer-term, more strategic approach to funding science and innovation to ensure good ideas can make it through from basic research to market and create the certainty companies need to invest.”