The new initiative, which aims to help manufacturers take advantage of the low-carbon economy, will see the opening of a new technology centre and two new Government departments as part of an increased focus on public sector procurement.

“We want to support innovation in UK manufacturing by maintaining a world-class research and development infrastructure, through intelligent use of government procurement and regulation to stimulate markets and the growth of innovative business, and to build world-class skills,” said skills secretary John Denham.

The Confederation of British Industry (CBI) welcomed the strategy but warned that procurement had a huge role to play if it was to be a success.

“Determining how UK manufacturing can best take advantage of the challenges and opportunities of the 21st century was a much-needed exercise,” said CBI chief economic adviser, Ian McCafferty.

“But to achieve success the government will also need to put in place a coherent procurement strategy that enables industry to invest with confidence for the long term.”