A new £86 million funding packaging will allow UK SMEs to develop and test new technologies in the NHS.
This could include innovations such as digital technologies to help patients manage their conditions from home instead of a hospital, or to develop new medicines.
Access to this funding will also speed up the time it takes to get new technologies from the lab to patients in the NHS.
The announcement is the first step in taking forward the Accelerated Access Review (AAR) – an independently chaired review, which made recommendations to government on speeding up patient access to new technologies.
Technologies that have previously received support are already bringing benefits to patients. For example, MyCOPD is an online system that helps people with Chronic Obstructive Pulmonary Disease (COPD) better manage their condition.
It has helped over 32,000 patients by helping them improve their breathing, manage flare-ups and track medicine use. This reduces reliance on GP and hospital appointments.
Health Minister Lord O’Shaughnessy said: “The government’s ambition is that NHS patients get world-leading, life-changing treatments as fast as possible.
“That can’t happen unless we support medical innovation and tear down the barriers – like speed to market and access to funding – that can get in the way, especially for SMEs.
“Our investment in innovation shows how much we value the UK life sciences sector.”
Business Minister Lord Prior added: “The government has an important role to play in driving innovation that will increase economic growth and support businesses across the country.
“Through this funding we will quicken the pace of scientific discovery and innovation in the UK. Our Industrial Strategy will boost our status a global hub for life sciences.”