New factors in the location decision

The DETR has spotted the fact that when complementary businesses are clustered together, this can be good for all of them.

Consequently, regional and local planners are to be given new guidance intended to help them encourage the formation of such groupings. Regional Development Agencies will be urged to identify 'Innovative Cluster Areas'.

A new good practice guide is to be written for both planning officers and business managers. The intention is to create a framework that both can use to foster economic development.

On a similar theme, Secretary of State for Trade and Industry Stephen Byers has announced the formation of 'The UK High Technology Fund'. This is to help early-stage high-tech businesses, who have historically found it difficult to raise money for development.

The fund, with support from private sector UK institutions, is expected to reach at least £125M by the spring, building on the £20M to come from the public sector.

Byers said: "I no longer want to hear that innovative UK firms have to look overseas for finance to grow."

Elliott Chase