UK in ecommerce crisis, claims Mandelson

Former Secretary of State for Trade and Industry, Peter Mandelson, has accused the government of complacency over the future of the UK's high-tech economy.

In a speech to IT professionals in London, Mandelson said the UK is falling behind in the race to become a dominant force in ecommerce. "I think we got off to a good start in the take-up of information and communications technology, but we've allowed Germany and France to catch up," he told Silicon.com.

Mandelson, a self-styled 'knowledge revolutionary', warned that the UK's position in the global electronic marketplace is currently unclear. "The UK's productivity rate remains poor compared to the rest of Europe. Britain cannot afford to continue this economic performance into the next century," he said.

He added that unless the creation of a dynamic knowledge-driven economy is at the heart of the government's long term strategy, UK business will not survive. "We face the choice of two futures," he said. "We can hide from change and bury our heads in the sand - but if we do we'll lose out. Or we can meet the challenges with courage and conviction."

Mandelson claims the government needs to do more to stimulate the entrepreneur spirit and build foundations for innovative companies to succeed. "We're a bit complacent, we're a bit resistant to change, and if you place Britain and the other European countries alongside the technological revolution in the United States you'll see that we have a long way to go.

"We need to seize knowledge to invigorate everything the government does with an efficiency and responsiveness that matches the private sector," he added.

Friedrich Bock, head of global strategy and organisation practise for conference sponsor, Arthur D Little, agreed that Europe needs to do more. "We have to be careful that even in the most advanced [countries] there's not a culture of conservatism," he added.