The Department for Transport said 3 million pounds ($3.9 million) would be made available to support innovation in the detection of hidden explosives, as well as new methods to recognise when electrical items had been tampered with.
"We need to embrace and encourage the talent from industry that will allow us to stay several steps ahead of those who wish us harm," security minister Ben Wallace said in a statement.
Britain joined the United States in imposing a so-called "laptop ban" on certain flights from the Middle East earlier this year, restricting passengers from carrying electronic items in their hand luggage.
The restrictions have been lifted on some flights from Turkey and Tunisia following the introduction of new security measures, but remain in place elsewhere.
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