Blair lays out vision of UK's 'knowledge economy'

UK Prime Minister, Tony Blair, used this week's CBI (Confederation of British Industry) conference to outline his vision of how the UK will build a dynamic knowledge economy.

"The role of government today is to equip people and business for the new economy in which we are going to live and work to encourage innovation and entrepreneurship to improve education stimulate competition and broaden access to the new technology," Blair said.

Speaking at the CBI's annual conference in Birmingham, Blair said education is a key component in the country's evolution. He outlined deals with BT, Energis, Kingston, NTL and Telewest, to provide libraries, colleges and Citizens Advice Bureaux with permanent Internet access at half the standard price.

Jim Norton, head of the Institute of Director (IoD)'s ecommerce team and former government advisor, welcomed the move, but warned that funding needs to be maintained in the long-term for the initiative to be a success.

"And it does beg the question of why there shouldn't be similar concessions more widely in the community," he added. "Why BT can't deliver much more flexible tariffs than is currently the case?"

Blair also told delegates that the government will subsidise courses at IT learning centres.

The Prime Minister's speech focused on the importance of business-to-business commerce. "In the 21st century, financial capital will become the commodity and intellectual capital will be in short supply. Already in the IT industry, the value of software now exceeds that of the hardware. Most of the worth of the pharmaceutical industry is locked up in its patents. Knowledge is the key," he said.

Tim Conway, director of the Information Age Unit at the CSSA, warned that the rhetoric needs to be matched by action. "The really important thing is the pace of change. They need to open up speed and ease of access to the Internet - but it's all happening a bit too slowly."