The government plans to issue a consultation shortly seeking views on non-compete clauses, which can be written into employment contracts and can prevent individuals from competing against their former employer or working for a competitor for a set period of time.

In its analysis, the Department for Business, Innovation and Skills (BIS) said there have been suggestions that these requirements can hinder start-ups from hiring the best and brightest talent, and the consultation will ask for views from individuals and employers on whether this type of practice is a barrier to innovation and employment.

The consultation will feed into the development of an Innovation Plan, due to be published later this year, which will outline how the government intends to support the process of turning ideas into new products and technologies.

As part of this, BIS has launched an online survey for individuals and businesses to comment on the ways in which the UK can improve its innovation framework.

The survey focuses on seven areas: regulation, procurement, access to finance, data, challenger businesses, national infrastructure, and intellectual property.

Javid said: ‘Home to some of the most innovative companies in Europe, Britain is already ahead of the curve in many ways when it comes to driving forward new ideas.

‘But I am clear that I want to see more enterprising start-ups and greater productivity in a free and fair marketplace, by making sure we take action to break down any barriers that are curbing innovation and entrepreneurship.’

The BIS survey on the National Innovation Plan closes on 22 May 2016.