Nesta's "Attacking the Recession" report said the Government must invest in growth sectors such as green technology and digital media or lose its global dominance in these sectors.
"Failing to capture a share of the global market for clean technologies and environmental services similar to that which we enjoy in other important export markets, and falling behind with plans for renewable energy production, could lead to a loss of over £28 billion in revenues.
"Failing to step up to the digital challenge in our creative economy could cost the UK economy over £6 billion in value added per year by 2013."
In a policy statement released today, "Building Britain's Future - New Industry, New Jobs", business secretary Lord Mandelson hinted at investment in UK's technology sector to create opportunities for Britain after the recession.
"Global competition is getting tougher and technological change is happening faster. We can't afford to stand back as other countries invest and skill-up to win in high-value markets and sectors," he said.