The government will set aside a further £45 million to help organisations create solutions in the ‘internet of things’ – a term describing the way digital technologies can create everyday solutions in the real world.

It adds to the £28 million already allocated by ministers to this area of IT.

Speaking at the CeBIT 2014 trade fair in Hanover, prime minister David Cameron said the UK needed a “relentless drive for new ideas and innovation”.

He set out three areas in which the UK can work with Germany on digital technologies:

5G – faster internet quick enough to download a full length feature film in less than a second.

Internet of Things – getting everyday objects talking to one another to simplify daily life.

Strengthening the EU’s digital single market.

The prime minister unveiled a package of measures, to achieve these goals, including:

- £45 million funding for research in areas linked to the ‘Internet of Things’, taking total pot available to £73 million

- a new spectrum strategy that aims to double the economic benefits of spectrum to £100 billion by 2025

- a new ‘innovation one stop shop’ within UKTI for securing science and innovation investment from large international funds and corporate companies

- review by government’s Chief Scientific Advisor to identify how we can exploit potential in this area

- £1 million ‘European Internet of Things’ grant fund to support companies who want to exploit these new opportunities

- new collaboration to develop 5G between the University of Dresden, King’s College University in London and the University of Surrey