Time to cultivate a culture of investment in UK

ENGLAND, UK: Having grown by 0.4 percent in July, the UK's economy is certainly starting to move in the right direction, but spending on investment has fallen to its lowest level since the 1950s. With technology and innovation at the spearhead of this nascent recovery, investment in technology and innovation is desperately needed to drive the sort of growth that will benefit the UK economy as a whole.

Innovation and new technology are the two factors that will really get the UK's economy forging ahead, according to technology entrepreneur and founder of the Enterprising Britain campaign, Dan Wagner. The Government is not investing enough and more needs to be done to cultivate a culture of investment, he says.

"It is shocking that at a time like this, investment is at its lowest level since the 1950s. While the Government should be doing more in terms of actual investment and encouraging financial institutions to invest, there needs to be a better understanding within the British investment community of the significant opportunities available and the value and positive contributions that tech companies are making to the economy and job market. Of course businesses need to be responsible for their own success but they need adequate funding and support to help enable them to get off the ground," says Wagner.

A more holistic and proactive support mechanism is required to help fledgling tech sector companies to flourish. It is their innovative products that will build on and help bolster the early stages of economic growth.

He continues: "For every bright new digital hub that is being created and filled with deserving companies, there are still many others that are yet to be uncovered, or at least fully recognised by investors. It's high time that they received the backing they need to succeed. Companies in the tech sector can create massive value but that value isn't yet recognised across all financial institutions. That's why campaigns like Enterprising Britain are calling for the Government to incentivise the banks so that they plough more investment into the kind of innovative tech companies that are leading the way out of recession."

The recent UK economic growth as reported by the Office of National Statistics (ONS), has been concentrated in household expenditure rather than in investment. The proportion spent on investment has fallen from an average of 13.5 percent in 2007, to an average of 10.9 percent during 2012 and to 10.4 percent in the second half of 2013, its lowest level since the 1950s.

"Fresh faces in the technology world are ready to add to the many British success stories already being told across the country, they just need some encouragement and investment to help them achieve lift off," concludes Wagner.