A new report, supported by leading business and investor organisations, has set out 11 recommendations to address a paradox which threatens the future of the UK economy: why are there so few science, engineering and technology (SET) businesses generating wealth in the UK when London is a powerful capital market, and our science base is among the best in the world?.
At present, there are 16 SET-related businesses in the FTSE 100 and 45 in the FTSE 250, but there are almost a 1,000 listed in the NASDAQ index in the US. The SET companies in the UK generated 27.3% (£252.3 billion) of the total UK value added in 2002, but the level of wealth creation falls short of what would be expected if we were to gain maximum leverage from our science base.
Without increased growth in this sector, the UK will find it increasingly difficult to maintain its standard of living in the face of strong international competition.
Sir Peter Williams said: “Our report aims to encourage financial institutions and SET-related businesses to work together to produce an economy that contains technologies vital to the UK’s prosperity and well being in the 21st Century and draws on our strengths in science. We hope the Government will continue to help by putting the right tax and regulatory policies into place.”
The full report can be read online at www.etechb.co.uk/setandthecity.
