The government has announced a £12m project to develop "intelligent transport systems" to improve safety and road management.
The move came a week after insurer Norwich Union rolled out the UK's first GPS-based pay-as-you-drive insurance scheme.
The Future Intelligent Transport Systems initiative has been set up to stimulate new ideas, products or services that could help improve public transport, reduce road congestion and accidents, boost freight transportation and provide better travel information to the public.
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The government believes new IT, including distributed networks of sensors, data mining, agent-based software, modelling and simulation technology and new communications tools, could be used to develop intelligent transport systems.Read article about agent-based systems: Best-kept secret agent