THE UK government has set aside a £1 billion fund to seed research and development over the next three years.

Innovation was the word favoured by ministers who presented the plan yesterday. They would give the money to firms that could match the funding, pound for pound. But a portion of the money would also be alloted to high-risk projects.

The Technology Strategy Board, which is divvying out the money, said it was going to direct its investments in pre-defined areas deemed to be of importance to the UK's society or economy. Most of these still had to be settled, but it had decided on two, and they were manufacturing and energy.

The mechanisms by which the money would be alloted were Regional Development Agencies, Devolved Assemblies, Research Councils, Innovation Platforms, Knowledge Transfer Partnerships and Networks and the Small Business Research Initiative, which was to be reformed.

The details were given in the TSB's strategic plan, Connect and Catalyse, published yesterday. µ