- Pension schemes and enterprise capital are ‘underexposed’ and may make investments extra in world class UK science and tech firms
- The UK has deep swimming pools of institutional capital, but solely a small fraction reaches our most promising progress firms, says Science Minister Lord Vallance at BVCA occasion
- To help pension firms to make investments with readability, authorities unveils innovation cluster map, outlining pockets of excellent analysis and commerce throughout totally different components of the UK – serving to to boost progress and jobs by our Plan for Change
Pensions firms ought to capitalise on the monumental alternative to boost personal investment into UK science and know-how, Science Minister Lord Vallance will inform an viewers of high traders later at present (Thursday 2 October), as half of a speech at the British Venture Capital Association’s (BVCA) private capital showcase.
The Minister will acknowledge that the UK has lengthy been famend for excellence in analysis and incubating firms at the very cutting-edge of the most essential fields of our technology, together with life sciences, AI and quantum know-how – however many promising UK firms have been held again from scaling to their full potential due to an absence of out there capital.
While $16 billion has been invested into UK start-ups and scale-ups final 12 months, and greater than $8 billion raised in the first half of 2025, exceeding France and Germany mixed, the authorities needs to go additional and quicker to boost progress by its Plan for Change.
Taking Cambridge-founded Arm as a flagship instance of British innovation that scales globally, he’ll name on personal pensions traders to work with VCs and different property managers to again our subsequent technology of excessive progress firms. This would ship long-term returns for traders, whereas protecting extra of the worth and jobs created by these firms in the UK.
Science Minister Lord Vallance mentioned:
There are far too many UK firms working at the cutting-edge of rising applied sciences, like AI, biotechnology and quantum to which UK traders are underexposed.
Through our Industrial Strategy, we’re constructing an surroundings the place public funding, streamlined regulation and partnerships with business are channelling investment into science and know-how.
Encouraging higher flows of capital into the sector is one other piece of the puzzle, supporting firms to develop and jobs to be created.
To assist help traders to higher determine the firms, sectors and areas of the UK to goal for investment, the Minister has at present additionally unveiled a new and improved Innovation Clusters Map.
This map identifies areas and areas the place networks of companies and analysis establishments are benefitting from shut proximity to each other, boosting the results of analysis, improvement, and innovation. This means traders know the place to hunt down experience and crucially how to make the most of the expertise that exist round the nation – supporting regional progress and creating high quality jobs in locations the place they’re most wanted.
It will embody detailed info on a variety of sectors, aligned with the authorities’s Industrial Strategy, together with:
- superior manufacturing
- inventive
- digital and tech
- monetary companies
- skilled and enterprise companies
- life sciences
Clusters ripe for investment that includes as half of the map embody the north west of England, the place life sciences firms are growing new medication to battle most cancers and irritation and vaccines to defend towards bacterium behind ailments like pneumonia and sepsis. Meanwhile the Glasgow metropolis area, often known as ‘satellite city’, is constructing the satellites that assist to underpin trendy know-how, protecting Britons linked.
The instrument permits potential traders, business, analysis establishments and authorities to perceive native innovation ecosystems and determine progress and investment alternatives.