There is to be a major review of government support for innovation, designed to boost British science, skills and entrepreneurship.
The announcement, made in chancellor Gordon Brown's pre-budget report, comes despite the slowdown in the global economy.
The review, led by Richard Lambert, former editor of the Financial Times , will examine how the research and development tax credit and the University Challenge and Higher Education Innovation Funds can further strengthen links between British business and universities.
At school and college level the chancellor said that £75 million would be available for enterprise education, spread over three years.
In a major push to boost skills, he allocated an extra £130 million to extend employer training pilots. Employers have been offered a range of financial incentives to allow employees without basic skills to attend courses. Mr Brown also set out plans for a modern apprenticeship task force. The government wants nearly a third of young people aged 16-22 to be on such schemes by 2004.