"The UK has a healthy number of start-ups, that's not the problem. It's the next phase of companies that's the problem - it's about taking businesses to that mid-size. The number of UK-based FTSE technology companies has gone down significantly in the past ten years."

He added: "You need large companies engaged with government too. You often hear from government that large companies aren't good, it's only small companies that are innovators, and that's simply not true."

Another important recommendation Heseltine made was that trade associations, such as Intellect, should be used to ensure that a deeper understanding of the issues and opportunities involved.

Heseltine recommends that government should nominate a trade association for each sector to engage with - a move that Intellect welcomes.

"Government shouldn't be talking to individual associations about tiny things, but should be talking to them across a whole sector, coordinating with a lead trade association. That absolutely makes sense," said Intellect's David.