A leading champion of the emerging technology firms that could be key to the UK's commercial future said ministers needed to dramatically increase support for the sector to help it emerge stronger from the current downturn.

A leading champion of the emerging technology firms that could be key to the UK's commercial future said ministers needed to dramatically increase support for the sector to help it emerge stronger from the current downturn.

The National Endowment for Science and the Arts, Nesta, said innovation could provide a key weapon in the country's fight against recession.

However, following revelations in The Herald that a key support unit had been scrapped, the body warned that the opportunity could go begging without the right support.

In a report to be presented to Lord Drayson, the UK minister for science and innovation, today, Nesta calls for a three-pronged approach.

Ministers must ensure support is focused on the potential high-growth sectors of the future.

Nesta is calling for a £15bn investment across the UK in a new, ultrafast broadband network that will work at more than ten times faster speeds than are currently available.

The organisation says £1bn should be reserved to provide venture capital investment in early stage high-technology firms.

Ministers in Scotland have promoted action in all three areas in recent years.

However, sector watchers fear early stage firms could be among the biggest losers from the credit crunch.

Last week The Herald revealed that Bank of Scotland had scrapped the Business Growth unit, which made equity investments in pre-revenue firms.