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The British government believes it is near the end of its checklist of measures to turn the country into a knowledge-driven economy. The central idea behind the initiatives is that richer countries with a good science base should seek to profit from knowledge, as their high labour costs make them uncompetitive in low-skilled areas of work.

This idea is backed up by a belief that knowledge-driven activities can make a substantial contribution to economic growth. Much of the government's vision is inspired by the success of the US information technology and biotechnology industries, which ministers and university vice-chancellors have been studying closely.

Science minister Lord Sainsbury, for example, is considering setting up regional clusters of technology businesses similar to those in the United States. And the Committee of Vice-Chancellors and Principals organized a study visit to the United States, which resulted in a conference last month at which the former head of the technology transfer office at the Massachusetts Institute of Technology was flown over to advise UK academics.

But concerns are being expressed privately by companies involved in helping to get research to the marketplace. Many feel that the government is overemphasizing the role of university ‘spin-out’ companies; that its initiatives are too ‘technology push’ rather than ‘demand pull’; and that it needs to understand better the differences between the experiences of Britain and the United States.

For example, much US high-technology industry is driven by scientists who return to universities after a period in industry, not necessarily by scientists who set up spin-out companies, points out the head of a technology transfer office at a university in the north of England.

Second, the bulk of US high-technology investment comes from wealthy individuals, not large corporations.

And third, a shortage of effective managers is more of an obstacle to technology transfer in Britain than a shortage of funds.

This is the view of Ian Harvey, chairman of BTG plc, which specializes in the commercialization of publicly funded research. Harvey says that funds can always be found for a good concept with an effective management team.

“There is a danger that start-ups are becoming flavour of the month,” he says. “But if you can't find people to manage them, you could be worse off.”