MPs urge UK government to play venture capitalist with taxpayer-funded tech

Britain is funding the next generation of tech companies without making sure taxpayers get a slice of the action, MPs have warned.

In a new report shared with The Register ahead of publication, the Public Accounts Committee (PAC) has accused UK Research and Innovation (UKRI) of being overly cautious about protecting taxpayers' interests. Rather than simply handing out grants, MPs want UKRI to consider taking equity stakes in more of the businesses it backs, giving the public a chance to cash in when those companies succeed.

According to the Department for Science, Innovation and Technology (DSIT), UK universities produce more spinouts and patents per pound of research funding than their US counterparts. But Britain is less adept at cashing in on its inventions.

British startups still struggle to attract the investment needed to grow without moving overseas, while universities have a patchy record when it comes to exploiting their intellectual property. …