Regional development agencies (RDAs) are vital to economic growth but they need to adopt a more innovative approach, it has been claimed.
A report by the British Chambers of Commerce (BCC) found that while RDAs carry out vital work they are too focussed on science and academia and need to pay more attention to small firms.
It also found that RDA activity can be duplicated by the private sector, leading to waste and inefficiency.
David Frost, director-general of the BCC, said: "Maintaining a culture of innovation amongst UK businesses is essential to the future prosperity of our national and regional economies.
"RDAs have significant budgets and it is important that in facilitating innovation, they join-up support with what is really happening in the private sector in their regions."
He added that there is a great deal of work to be done to ensure that a nationwide culture of innovation is created.
In related news, a survey by the Forum of Private Business recently found that small businesses feel that politicians are out of touch with their needs.
