Small Businesses

Part of Oral Answers to Questions — Defence – in the House of Commons at 2:30 pm on 14 March 2005.

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Photo of Adam Ingram Adam Ingram Minister of State (Armed Forces), Ministry of Defence 2:30, 14 March 2005

My hon. Friend asks an important and interesting question. The issue does not just affect her constituency, although I would guess that her constituency has quite a concentration of such companies, because those companies are spread throughout the United Kingdom. Under the small business research initiative, Departments were committed to a target of purchasing at least 2.5 per cent. of their R and D from SMEs by 2004–05. The Ministry of Defence's estimate is that, currently, some 5 per cent. by value of the MOD's research budget is taken by SMEs. That is a good start, but there is more to be done.