Citizens' Innovation Funds (CIFs) - a tax advantaged investment scheme - could release £300m of investment and create over 1,500 new jobs in the knowledge economy, a report by the BioIndustry Association (BIA) believes.

The report, Citizens' Innovation Funds - Engaging the public with UK innovation, claims the novel scheme would unleash the 'patriotic potential of the general public by offering an opportunity to invest in innovative UK companies'.

Based on the Fonds Communs de Placements dans l'Innovation (FCPI), a successful French scheme which has raised over €6bn since 1997 and invested in more than 1,000 innovative companies, the BIA says the CIF scheme promise a number of advantages for all involved. Steve Bates, BIA CEO, said: 'CIFs provide a practical way of unlocking the patriotic potential of a large number of Britons to crowdfund the innovative businesses which are essential for our nation's economic future.

'In simple terms CIFs would allow members of the public to put up to £15, 000 a year into a fund for dragons' den-style experts to invest in innovative companies - with a tax break if they keep their money invested for five years and tax free potential dividends.

'For companies, access to such cash could prevent them from being sold at the earliest opportunity and allow them to maximise the potential for development and become a "British Google", a "British Apple" or a "British Amgen".

'At a time when new ideas are needed to boost the UK economy Citizens Innovation Funds are cost effective, practical and timely.'

His sentiments were echoed by Melanie Lee, CEO at Oxfordshire-based biotec firm, Syntaxin, which received FCPI funding, said: 'The investment we have received has provided another source of cash to fund the research required to discover and develop new treatments for patients. For companies like Syntaxin, having a similar scheme in the UK would be a boost for innovation, and has the opportunity to bring the understanding of science closer to the general public.'