A drive to attract the world's top scientists to the Britain has been launched by the government.

The Department of Trade and Industry wants to boost science, innovation and technology as part of its new five year plan.

Proposals including improving workforce training, investing in research and clamping down on animal rights activists.

Prime minister Tony Blair backed the plans, saying Britain was aiming to be the "capital of science".

The government is eager to improve the sector to meet the challenge of rising economies such as China and India.

Ministers believe the only way to compete with such countries is to develop a more highly skilled workforce and high tech industry.

Trade secretary Patricia Hewitt said the global economic map "is being redrawn".

"China is becoming one of the world's largest economies; India is producing three million highly skilled graduates a year; and central and eastern European countries - with wages a fraction of ours - are joining the EU," she said.

"But Britain is extremely well placed to benefit from this transformation.

"Building on our strong economic foundations, we propose a new industrial policy built around the knowledge-based economy, high in skills, embracing innovation, science and technology.

"And today we're sending a strong signal to scientists around the world that the UK is the place to come to carry out research in leading edge areas - such as nanotechnology and stem cell research.

Broad welcome

The Institute of Directors said it "broadly welcomed" the plan.

"The DTI's approach shows that it has been listening to some of the concerns of business. I particularly welcome the boost to science," said director general Miles Templeman.

"The programme rightly recognises that to compete in the modern world, British business needs an educated workforce.

"All the more reason for the government to focus on raising standards of literacy and numeracy in schools, without getting side tracked by the Tomlinson proposals.

"It is a national scandal that over five million adults cannot read, write or add up properly."

He added that the programme lacked "any clear strategy on the issue of nuclear power and rising energy costs".

CBI

The CBI applauded the government initiative, saying it "hits all the right notes" for business.

The employers' organisation said firms would be particularly encouraged by measures to reduce business burdens and boost science and innovation. But it cautioned that companies remained to be convinced that ministers would deliver on their ambitions.

Digby Jones, CBI director general, said: "This is an encouraging plan, which shows that the DTI means business when it comes to championing business.

"Those who want to talk down the department need to understand that companies value the functions it carries out. It's in the area of delivery and value for money savings where the jury is still out.

"The department is up for reforming itself and its plan for the next five years hits all the right notes, with a promise of a £1 billion worth of saving on red tape. This is an example that other departments in government should follow.

"It is particularly encouraging to see what looks like a serious, measurable attempt to reduce the burden of regulation. The sustained commitment to science and innovation is also very important."