3
The approach to investment
The Strategic Investment Fund is administered on the basis of a number of core principles :
l The government is not substituting itself for the market . Investments do not support projects that are ultimately unsustainable in the long term in an open competitive market . They are targeted at specific market failures that are preventing otherwise viable developments . Where possible , the Strategic Investment Fund will reinforce business or expert-led bodies such as the Technology Strategy Board in determining what is commercially viable .
l The basic criteria for investments are the opportunity that exists in a particular area and the impact that government intervention would have . Investments are not a reflection of a sector ’ s relative importance to the UK economy , but a reflection of where government investment can have the greatest benefit .
l The Strategic Investment Fund targets a diverse portfolio of investments across a range of sectors ( Figure 2 ) but also geographically , to ensure widespread benefits across the economy .
8