London is to launch itself as the leading centre for bioscience companies in a bid to overtake Oxford and Cambridge.
Honor Chapman, acting chair of the London Development Agency, said: "There is a large pool of economic potential and competitive advantage if we can create the conditions for growth. We want to make London the heart of life sciences in Europe."
The LDA said innovation was held back by the cost of incubator space, lack of early-stage funding and a shortage of experienced managers. Between 2003 and 2007, the LDA plans to build two bioincubators and revive the Enfield science park. It pledged to help bridge the funding gap and improve access to business angels.
But its funding proposals came under fire as the LDA intends to offer minimal support, hoping to lever funds out of industry.