A review by Lord Sainsbury of the state of the UK's science and innovation system has prompted the government to pledge financial support for more technological development amongst businesses, the Department for Innovation, Universities and Skills (DIUS) said this week.

The government will invest £1bn over a three year period as it seeks to foster business innovation and technology development. To support this, the DIUS will create a new science and innovation strategy, which should help boost the UK's standing as a knowledge economy.

Overall the UK push will be overseen by the Technology Strategy Board with support from Research Councils and Regional Development Agencies. Included in the government's plans so far are an increased investment in the training of specialised teachers, with particular focus on science and engineering, and better knowledge transfer between research institutions and businesses.

Startups will also get increased assistance, with the DIUS saying that a reformed Small Business Research Initiative would offer incubator resources, including guidance and business readiness services. In order to boost UK skillsets international collaboration will be encouraged, linking, "British researchers with the best and brightest researchers globally", according to a statement.

Announcing the government plans Alistair Darling, chancellor of the exchequer said, "The UK can only maintain its competitiveness in today's more globalised world by placing itself at the forefront of the new scientific and technological breakthroughs that determine the future face of our economy."

An annual report will follow UK development, paying particular focus to research and development, knowledge exchange, and the supply of both trained workers and financial backing.

Responding to the announcement, John Cridland, deputy general at the Confederation of British Industry, said, "The increase [in] funding over three years is a start." But he cautioned the government to put more emphasis on boosting the teaching of sciences to young people. "We urgently need more specialist science teachers, better careers advice and more young people studying. The CBI is calling for a £1,000 annual bursary for graduates to reflect the importance of these skills to the UK economy."