The Welsh Assembly Government is pledging �260m to encourage innovators with bright ideas.

Funding has been provided as part of a new action plan, called Wales for Innovation, which is unveiled to assembly members on Tuesday.

Politicians see innovation as the key to a modern dynamic economy, and have been keen to see the three-year investment.

The action plan sees �25m being directed towards an innovation grant scheme, �60m set aside for trawling the best ideas from the universities, and up to �150m for creating 20 centres of excellence for research and innovation.

"This is about new technology and new ideas, and we are putting our money where our mouth is to say this is the future," said Economic Development Minister Andrew Davies.

Despite the optimism of politicians, critics have said the plan has nothing particularly new to offer.

It is essential we listen to the voice of our innovators

First Minister Rhodri Morgan

They claim it fails to give enough cash directly to the innovators who need it, and allege that it will waste �4m on a promotion campaign.

"There is no point in commercialising technology if you do not have technology to commercialise," said Dylan Jones Evans, Professor of Enterprise at the University College of North Wales, Bangor.

"At the moment, private sector businesses in Wales are not carrying out enough research and development."

The document will now go out to public consultation for the next three months, to gather the views of the local business community.

'Great leaps'

First Minister Rhodri Morgan has often stressed the importance of listening to companies and business people with innovative ideas.

"It is essential we listen to the voice of our innovators, those special people who create these great leaps forward, who make things happen in the business world," he said recently.

"Although the assembly has its own ideas, I want to hear from those present how Wales can be more successful in encouraging start-up companies with high growth potential.

"In an innovative culture, like Silicon Valley of California, you can take the person who has got a technological breakthrough, wrap an experienced management package around him or her and thereby make it easier for them to go out on their own."