The funding is an expansion of UK Research Partnership Investment Fund launched in May which committed £100 million of funding for projects with £200 million from industry.
Sir Paul Nurse, President of the Royal Society welcomed the announcement saying:
"Our world leading research universities are crucial as engines of economic recovery. Partnership between researchers, government and business is key to innovation, so this injection of funding is very welcome. It will be made even more effective if it forms part of a long term, joined up approach linking science and innovation to industrial strategy.
At present both government and industrial R&D spending as a percentage of GDP are lower than our competitors and while today’s announcement will not change that, it is a step in the right direction. "