Introduction

1 This paper is in four sections. The first tries to place technology policy in the context of economic policy generally. The second discusses a number of questions about the scope of technology policy and the sort of issues with which, in principle at least, it should concern itself. The third puts forward an economic rationale for technology policy when economic policy is based on the presumption that the allocation of resources is best left to market forces. The final section provides a summary of current Department of Trade and Industry (DTI) policies towards science and technology.

The role of technology policy in economic policy

2 Technology policy should be seen as part of economic policy. Economic policy can be regarded as that set of policies whose principal objective can be variously expressed as fostering wealth creation, increasing the long-run growth of productive potential or national disposable income, or maximising the sustainable long-term level of consumption, according to taste. Technology policy can be regarded as consisting of those economic policies specifically concerned with ensuring that firms, consumers, and government have access to appropriate and up-to-date technology at the lowest possible cost; with fostering invention and innovation; with encouraging the diffusion of innovations, new technologies, and technological best practice; and with ensuring that industry takes advantage of the economic opportunities offered by worldwide developments in science and technology.