Cyber security companies will be given the chance to compete for £4 million of Government funding next year, Vince Cable will announce.
The Business Secretary will open a competition for cyber security firms to vie against each other for the funding in the coalition's latest effort to boost Britain's resistance to cyber attacks.
Ahead of the first ever US-UK Global Cyber Security Innovation Summit in London, Mr Cable said: "The growth of the cyber security sector in the UK is a great success story, worth over £6 billion and employing around 40,000 people.
"Building a strong and resilient cyberspace in the UK is central to ensuring that our companies can make the most of business opportunities online, whilst avoiding potentially costly threats to the information they hold and the services they provide.
"Maintaining innovation and growth requires continued investment.
"Committing a further £4 million will help businesses of all sizes turn their ideas to counter cyber threats into reality.
"Partnering with industry experts will also increase the opportunities for the UK's small cyber companies to work together and grow their businesses."
Mr Cable will also announce industry expert Andy Williams as the Government's cyber security small business champion, responsible for drawing different firms in the sector more closely together.
Alongside Mr Williams, the Business Secretary has appointed Dr Emma Philpott, managing director of cyber and technology catalyst Key IQ, to establish regional networks of small companies working in cyber security.