"Highly skilled people are needed at all levels of a business to develop innovative procedures that will increase its competitiveness."

That's one of the key findings of a report, published yesterday (Thursday), on how the government can support and stimulate innovation in the service sector.

And the Department for Business Enterprise and Regulatory Reform says its Business Support Simplification Programme will streamline its support for business, including "enhancing management expertise", while Train to Gain has been expanded and given the specific remit of developing management and workforce skills in SMEs. The Learning and Skills Council is developing the concept of national skills academies, which will cover innovative sectors.

Business minister Shriti Vadera said: "The UK service economy is now worth £1 trillion. We are world leaders in many service sectors including design engineering, architecture and environmental consultancy.

"It is important to support innovation by British business and that’s why government is working with the Technology Strategy Board and the British Standards Institute to take forward the report’s recommendations."

The Supporting Innovation in Services report is based on a series of industry-led reviews of the retail, construction, logistics, internet services and environmental service industries. It identifies service sector themes, barriers to growth and steps the government can take to support a thriving, competitive sector.

It is the result of a joint initiative announced last summer by Alistair Darling, then Secretary of State for Trade and Industry, and Jonathan Kestenbaum, chief executive of the National Endowment for Science, Technology and the Arts, an organisation that aims to make the UK more innovative which carried out the research for the report.

Innovation minister Ian Pearson said yesterday: "The Innovation White Paper we published in March set out a number of practical measures to make the UK the best place in the world to run an innovative business, public service or third-sector organisation.

"We are helping to create the conditions for innovation to flourish throughout the economy, including the services sector. Innovation is critical to the UK's future prosperity, our quality of life and future job prospects."

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