INNOVATION is likely to be the key to Britain playing a leading role in the global market place, Lord Sainsbury told business leaders yesterday.

Addressing a conference organised by regional development agency Yorkshire Forward, the Science Minister told delegates at Harrogate's International Centre that the Government was planning to set up Science and Industry Councils in every region to act as catalysts for new thinking.

But he said every business also had a part to play in developing a role for the UK on the world stage by ensuring research, development and innovation were a key part of their strategies for the future.

He said: "Regional advisory bodies will bring together business, education and public sectors and will strengthen strategic thinking on science and technology at regional level and enable more effective working across regional boundaries.

"We should be a country to which talented entrepreneurs and world-class companies come from around the world to do research and set up high-tech companies."

"We see these companies being attracted by the quality of our research, the strong links between universities, research institutes and industry, by geographic clusters of high-tech companies, the ability to raise finances - particularly venture capital - and by our quality of life.

"I believe that, in the UK, we have a major opportunity today to use our scientific and technological skills to create wealth and improve the quality of our lives. We must not waste it."