Dyson sets out Tory innovation plan

A fortnight ahead of the 2010 Budget, inventor and vacuum cleaner magnate Sir James Dyson raised the political profile of R&D tax credits by including them in a package of reform proposals to stimulate manufacturing and innovation.

Tax incentives for entrepreneurs and high tech companies were two policy proposals put forward in Ingenious Britain, a study carried out for the Conservative Party in which Sir James set out ideas to make the UK “Europe's leading generator of new technology”.
 
Dyson suggested the creation of a loan guarantee, together with a refocusing of financial support to companies “where the barriers to a sustained R&D programme are greatest and the potential spill-overs to the rest of the economy are greatest. That means high tech companies, small businesses and start-ups”.
 
The inventor recommended increasing Enterprise Investment Scheme (EIS) relief for angel investors that support high tech companies, and focusing R&D tax credits on these high-potential small firms. He also called for 25% of government procurement and research contracts to be delivered through small and medium sized enterprises.