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Local government has been urged by Whitehall to use its spending power to increase demand for new, innovative products and services. Solar panels, low-energy lighting and even nanotechnology could all become much cheaper if local authorities adapt their procurement policies, according to innovation secretary, John Denham. The call came in Innovation Nation, a White Paper which sets out the Government's aim to make the UK the best place in the world to run an innovative business or public service. It coincided with a new government target for small and medium enterprises (SMEs) to win 30% of all public sector business in the next five years. Communities secretary, Hazel Blears, has been ordered by the Treasury to publish an ‘Innovation procurement plan' as part of its commercial strategy. CLG is also looking at ways to support innovative towns and regions, including boosting relationships with local universities. Mr Denham said: ‘It is the British people who will create a world-beating innovation nation, and that is why we must unlock talent at all levels by investing in skills, research and the exploitation of knowledge. But, we can achieve much more if we harness the power of government as the UK economy's biggest customer to create new markets and demand to benefit innovative businesses and people in Britain. ‘Innovation will be the key to some of the biggest challenges facing our society, such as global warming and sustainable development.' The East of England Development Agency (EEDA) urged the Government to adopt its ‘Proof of concept' model to promote innovation and growth. Richard Ellis, chair of EEDA, said: ‘Innovation is not just about science and technology. It also extends to the creative and service sectors.'

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WHITEHALL

Use spending power to boost innovative moves, councils told

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