1.  We have restricted our comments to the provision of finance aspects of the inquiry. It is important to distinguish between the financing requirements of a business undertaking research & development and one which is at the stage of taking a new product to a well researched market.

  2.  Where the latter is concerned, we would look to provide working capital finance, alongside any specific asset finance in accordance with standard criteria.

  3.  Where funding is required to research and develop a new product this is most appropriately served by the re-investment of surpluses from existing activities or from additional equity capital.

  4.  The banks' role in facilitating access to available equity through either their own venture capital providers or external "business angels" and venture capital trusts is critical.

  5.  Our research indicates that our customers have a strong preference for locally-based, experienced managers who can provide expert advice. Therefore, within Barclays, we are shortly to launch innovation Centres of Excellence in key locations where we have strong connections with not only equity providers, but also with University research facilities, Science Parks, Business Incubators and Business Links.

  6.  The establishment of a national business angel network to provide easy access to the wealth of potential investors will provide an important addition to this service.

  7.  We are also currently reviewing our range of product and service offerings to Innovation customers.

9 March 1998