Picking winners

The Department of Trade and Industry (DTI)  today announced that the Technology Strategy Board will become independent and it will take over the funding of the £178m Technology Programme next year. The new board will fund industry R&D projects, advise Government and help UK businesses to take up new innovative technologies. The DTI also announce a further £50 million funding for technology and innovation.

DTI sets out its priority areas for the Technology Programme and then funds them accordingly. The initiative is a clear example of "picking winners" - government decides which areas it wants to promote over others that might actually be more competitive in a free market place. The government should not interfere and let market forces decide which spheres will flourish and which will perish.