Small businesses are being targeted in a £400 million investment programme to boost innovation across the UK.

The money is a central pillar the Technology Strategy Board’s (TSB) blueprint for encouraging growth and innovation in key areas of the economy, including energy, healthcare and digital technologies.

TSB is the UK’s ‘innovation agency’, with responsibility for fostering entrepreneurial ideas and helping businesses develop. Small businesses and start-ups are its key focus.

Its Delivery Plan sets out £400 million in spending and 88 competitions designed to draw out the best innovative ideas. Investment areas include:

• £82 million to energy

• £80 million will go to programmes in the healthcare sector

• £72 million to support initiatives in high value manufacturing

• £70 million to transport

• £42 million for digital technologies

Also announced today was the creation of two new ‘Catapult Centres’ in precision medicine and energy systems, as well as the creation of a “permanent presence” in Brussels to promote British innovation in Europe.

Universities and science minister David Willetts said: “We are global leaders in innovation and the Technology Strategy Board plays a crucial role in maintaining this, ensuring that great British ideas can be transformed into great British products.

He added: “Innovation is booming in this country, and it is part of our long term economic plan to invest in ambitious entrepreneurs and businesses, to help them grow and succeed in the global race.”