In his Budget speech yesterday the Chancellor said that the Secretary of State, Peter Hain, and he were due to meet the Northern Ireland political parties today.

Gordon Brown disclosed that at today's meeting he would unveil plans for an innovation fund which would be available for a restored Assembly and Executive.

He said the fund would boost industry and jobs but did not give any more information to the House of Commons.

Institute of Directors Northern Ireland chairman, Frank Bryan, said local business leaders were waiting with some trepidation for details of Mr Brown's announcement about an economic package that would accompany devolution.

Speaking before the meeting got under way, he said: "A Northern Ireland innovation fund does not appear to promise the radical range of measures we believe are needed to promote the regeneration of Northern Ireland's private sector, including a fiscal regime that would spur investment and create the 140,000 jobs we need over the next decade."

Nigel Smyth, director of CBI Northern Ireland, said an innovation fund would be welcome, but warned that it would not on its own be sufficient to kick-start the local economy.

The Business Alliance, which represents the main business organisations in the province, included a call for an innovation fund in its pre-talks wish list statement last week.

The alliance, which represents the CBI, the Institute of Directors, the Chamber of Commerce and the Centre for Competitiveness, has called for a £5.3bn economic package.

It suggested that around £20m a year would need to be set aside for five years for an innovation fund, amounting to a total commitment of £100m.

The Business Alliance suggested that an innovation fund could be used to enhance the "technological and innovative capabilities" of companies and universities in Northern Ireland.