A former advertising adviser to the Labour Party has been confirmed as the new chairman of the National Endowment for Science, Technology and the Arts.

Established in 1998, Nesta distributes the interest on a National Lottery endowment to innovative projects in the areas of science and the arts.

Chris Powell, chairman of the BMP DDB advertising agency, will take over from Lord Puttnam on October 31 and will hold the post for four years.

His clients included the Labour Party until 1998, as well as Cadbury and Unilever.

In the public sector, he has served as chairman of the Ealing, Hammersmith and Hounslow Health Authority.

"It will be a challenge to follow the chairmanship of Lord Puttnam, who has been the inspiration for Nesta and led it through its formative years," Powell said of his appointment.

"Nurturing innovative talent to good purpose enriches us all.

"I'm excited to be asked to be part of such an important and interesting mission."

So far Nesta has made more than 300 awards and in February this year received an extra £50 million to its initial endowment and £45 million from revenue funding for future projects.

Culture secretary Tessa Jowell welcomed the appointment.

"I am delighted that Chris Powell has agreed to take on this key role at Nesta," she said.

"His advertising background will be invaluable in helping promote Nesta's ideas and strategies and I know he will provide the vision and leadership necessary to drive forward these important agendas."