David Cameron has announced the UK government will spend an extra £45m on developing the so-called 'internet of things' technology.
The pledge more than doubles the funds available to UK technology firms working on everyday devices that can communicate over the internet.
David Cameron said: "I see the internet of things as a huge transformative development - a way of boosting productivity, of keeping us healthier, making transport more efficient, reducing energy needs, tackling climate change.
"Take British ingenuity in software, services and design, add German excellence in engineering and industrial manufacturing, and together we can lead in this new revolution."
Analysts say the 'internet of things' could transform daily life and allows devices from heart monitors to kitchen appliances to communicate through wireless internet connections.
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