The Creative Pioneers Challenge is being launched by the IPA in conjunction with the Metro newspaper to find the next Steve Jobs or Mark Zuckerberg.
The competition was announced last night at the IPA president's reception by Vaizey but entries to the challenge will not be accepted until March.
Nicola Mendelsohn, IPA president, said: "I'm pleased to announce that we are planning a nationwide hunt to find the next generation of creative pioneers.
"By joining forces with Metro, and with the support of the UK government, we may well find the next Mark Zuckerberg, Charles Saatchi or Sir Alan Sugar."
The challenge will be judged by leaders in the fields of gaming, digital technology, advertising and the creative industries.
The jury, judges and criteria are still being finalised and will be announced when the competition opens in March.
Entries to the competition will be accepted until mid-April, with the winners being announced in July.
Vaizey said: "I am delighted to lend my support to this imaginative initiative. It is essential talented people and new innovative businesses have the necessary help and support to be a success in today’s rapidly evolving digital and technological environment.
"The Creative Pioneers competition can make a real contribution to that."
Mendelsohn said: "This country thrives on creativity and making technology work for business, and bringing on budding entrepreneurs or anyone with a can do attitude through a competition like this will help us fast track the next generation and help get the economy back on its feet."
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