The economic downturn is threatening many of the UK's
small high-tech companies, warns a business investment
group.
The
National Endowment for Science, Technology and the Arts (Nesta)
has called on the government to provide emergency funding,
according to the
BBC.
The report said the UK could lose its leading international
position in green technology, digital media and health care if the
government does not intervene.
Nesta's warning came as the government announced plans for
targeted ways of helping the high-tech industry, including funding
for academic research.
There are no indications, however, that the government intends
going as far as providing the kind of emergency funding Nesta has
called for.
The group said in a report that there was a 70% fall in new
venture capital funding last year and the government should join
the private sector in providing £1bn for high-tech investment.
Nesta has also called on chancellor Alistair Darling to use the
government's multi-billion fiscal stimulus package to support
lending to companies working on new technologies.
Failure to rise to the digital challenges to capture a share of
the global market for clean technologies and renewable energy will
cost the UK billions of pounds in lost revenue, the Nesta report
said.
In February, Nesta
called for the government to deliver super-fast broadband
access across the whole of the UK in the next five years and
provide free basic broadband to the poor.
The convergence of infrastructure, networks, telecommunications
and content will be critical in driving forward the UK economy,
said Nesta.