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Government procurement could help SMEs

03/01/2008  10:44:15

 


 

Small businesses in Britains technology sector would benefit if the government changed its procurement policy.

That is the view of the Institute of Physics, which has called on ministers to do more to back innovation among tech firms.

Alex Conner, the institutes technology and innovation policy officer, said a longer-term approach to procurement would encourage the development of new cutting edge techniques.

"Government funding though R&D tax credits is a great success but the government can and should make more of a difference through its procurement process," he said.

"Supporting innovative solutions produced by high-technology, high value-added industries can result in more cost-effective and efficient solutions and promote industrial R&D."

Mr Conner added: "Selecting solutions to procurement requirements on the basis of short-term costs can disadvantage novel and innovative solutions to problems, and may not result in the most cost-effective long-term policy."

Technology can be a difficult sector, especially for a business start-up, with high research and development costs often proving too big a hurdle.

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