The bill is now likely to be introduced after the election and addresses the "gaping hole" in the UK between laboratory research and commercialization where the US has long had a better system for dealing with this.

It's a problem for high-tech start-ups because of the high workload associated with establishing the initial proof of concept, developing a prototype while reducing costs to realistic levels while perfecting the technology.

Assisted funding is required for customers interested in the technology being developed to create a test bed relationship to further development and to give credibility.

The US experience has shown that assisted funding or soft funding to customers is necessary to create interest on their part. Moreover, the customer with the strongest motivation and ability to influence is often the Government itself.

An example where this system has worked is the development of the fuel cell industry in the US (also in Japan and Germany).

This system could benefit high tech start-ups, as there's a massive lack of funding in this area.

UK Government and Department of Trade Industry and Regions have had a blind spot in this regard. Funding has concentrated on basic research and development while further development is left to a market for which ground breaking technologies does not yet exist.

David
Small Business Resource