Bristol-based specialist semiconductor maker Stan Boland has proposed a 10-year tax credit system to achieve government aims to boost the UK's high-value manufacturing sector.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
Manufacturing accounted for about 13% of UK output in 2008, down from around 30% in 1970.
In terms of Boland's plan, manufacturers that install new plants would receive a tax credit equivalent to 20% of their investment.
UK business secretary Peter Mandelson has responded positively to the plan, describing it as the kind of thing he would like to take a look at, according to the Financial Times.
In recent months, Mandelson has been setting out a strategy of "industrial activism" to boost high-value manufacturing and stimulate economic growth.
If the government is serious about re-industrialisation, it should commit some resources to making it happen, said Boland.
He believes the UK economy could benefit from having more jobs in the higher-value areas of manufacturing.
Boland's firm, Icera, concentrates on chip design and contracts-out its production to specialist semiconductor foundries, mainly in Taiwan.
Expertise in engineering design work would be helped if the UK did more manufacturing, he said.