Britain could be great at technology

The UK could become a world leader in technology - if it makes a few changes, new research from consultancy firm Deloitte has found.

For instance, although the government supports technology companies with tax breaks, it is failing to fund research and development. And the education system must teach young people more practical skills.

Another thing holding back the UK is the fact that financial firms, which are heavy users of technology, are wary of investing in IT firms because of the dot-com crash, the survey revealed.

William Touche, a technology partner at Deloitte, said all interested parties need to work more closely for the country to succeed: "The question for the UK is how it can exploit what is currently a relatively advantageous position. We have a strong science base, good innovations in a number of important areas, a strong economy and a leading financial market.

"All stakeholders involved in the sector need to work together to ensure that we capitalise on the next wave of technological advances now that the IT sector is maturing and consolidating fast."

International competition from rapidly growing economies, such as China and India, are also posing a threat to the UK. Based on a survey of 50 "technology influencers", the research showed too few UK-headquartered technology companies have a global status.

Touche said: "The UK has the potential to capture significant share in the international market. A clear message coming out of the research was the lack of communication between different groups in the UK's technology sector. Many pieces of the puzzle are in place for the UK to become a leading international player in the technology sector - in terms of its primary research, economic environment and specialisations."

Touche added the UK has a competitive advantage in stem cell research and a strong body of expertise in biotechnology, microelectronics, semiconductor design, software development and opto-electronics.

Lord Sainsbury, Under Secretary of State for Science and Innovation, said: "The government must create the conditions in which innovation can flourish, and this report contains a number of ideas which will help us take the innovation agenda forward."