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INNOVATION MINISTER BACKS PRIVATE EQUITY

Private equity can boost the UK's ability to turn scientific and technological advances into successful new products and services. That is the message that science and innovation Minister Ian Pearson will deliver in a keynote speech to the private equity and venture capital industry in London today.

Mr Pearson will tell delegates:

Private equity is a key part of the life-blood of the UK's innovation ecosystem. It has been unfairly maligned, often by those with vested interests. While there are issues the industry needs to address, private equity is an aggressively creative force in our economy. It is a source of our competitive advantage as a nation and we lead in Europe with the breadth and depth of the venture capital resources we offer.

The Government has always supported the venture capital industry and we must continue to stand up for it as a positive change agent in our economy and as an important source of finance for new businesses, the tech-stars and biotech-stars of the future.

By doubling the scientific research budget and providing incentives for universities to increase the economic impact of their research we are driving a change to a more entrepreneurial culture.

The UK economy needs a vibrant science base and an innovative investment community. Private equity and venture capital investment can help companies turn ideas into reality.

As a minister at the Department for Innovation, Universities and Skills (DIUS) Pearson believes universities have a key role in working with businesses by providing them with practical research which can help improve efficiency and productivity. Across the UK the results are now impressive. During 2006-07 universities generated £595 million of income from collaborative research and £236 million from consultancy work. One hundred and eighty seven new spin outs were generated - with UK universities now having a 'portfolio' of nearly 700 spins outs over 3 years old. They also generated £58 million from intellectual property. In the last two years, seven UK university spin-out companies have been acquired for £2 billion.

Underlining the importance of the academic sector Mr Pearson commented:

To succeed in the global economy Britain needs to compete through its universities as well as through its businesses. At the same time we need to co-operate, to develop strong international links between our Universities and those in the US, China and India; strengthen business to business interaction internationally; and build closer ties between our Universities and British companies of all sizes.

Universities have a key role in maintaining the competitive position of the UK. Universities and the intellectual capital within them are an important asset on the country's balance sheet.

Notes to Editors

  1. Ian Pearson is a Minister of State at the Department for Innovation, Universities and Skills (DIUS) with particular responsibility for science and innovation.
  2. He is speaking at the British Private Equity and Venture Capital Association (BVCA) Technology Spin Out conference at 14:45 on Monday 29 October. For more information on the conference contact Eleanor Dormer at the BVCA on 020 7025 2967
  3. Spin out companies are those with links to Higher Education Institutions. Select here for the latest figures
  4. Science and innovation is now part of the new Department for Innovation, Universities and Skills. The Department's primary role is to drive forward delivery of the Government's long-term vision to make Britain one of the best places in the world for science, research and innovation and to raise the level of education and skills at every level in our economy to give the UK the competitive edge. For more information visit www.dius.gov.uk
  5. The Higher Education Innovation Fund is the Government's key mechanism for supporting Higher Education Institutions (HEIs) in their efforts to transfer knowledge out into business and the wider community and exploit the benefits of their research. Originally established in 2001, it built on the previous Higher Education Reach Out to Business and the Community (HEROBC).
  6. For media queries only contact Matt Barker in the DIUS press office on 0203 300 8126.