The UK Must Bridge Funding Gaps To Position Itself As Hub For R&D

Forbes

5 hours ago

Innovation needs a new safe haven and while the UK has all the building blocks to be that place, to make it happen we need to ensure that our ambition translates into delivery.
The UK's latest research and development funding settlement has reignited a familiar tension of long-term ambition versus short-term constraint. CaSE has cautioned that the government's £8.8 billion funding allocation to UK Research and Innovation (UKRI) essentially amounts to a flat-cash settlement. Along with inflation and rising operating costs this means less room for new investment – forcing harder choices at a time when our ambitions to become a global hotspot for science depend on sustained momentum.
The recent announcement of 10-year budgets for R&D funding is a welcome signal of long-term intent and offers a degree of clarity that industry and academia alike have long called for. However, visibility alone is not the same as increased investment. Unless these budgets translate into real-terms growth, the UK risks falling behind its global competitors.
However, disruption in the global R&D landscape and notably the US, presents an opportunity. If we act swiftly and work strategically, the UK can position itself as a stable, globally attractive home for international talent and industry investment. But this must be matched by real-world readiness.
Preparing for change
In the US, proposals to significantly reduce budgets for key agencies like the National Institute of Health and National Science Foundation have raised alarm. Coupled with a rise in anti-vaccine rhetoric and scientists facing budget-cuts overnight, we're seeing an environment emerge that may stifle talent rather than nurture it. I – and many others – will also be keeping an ear to the ground as we continue to await a decision around pharma tariffs.
While we're not expecting a mass exodus out of the US, it would be naïve to think that in this climate, talent couldn't be tempted elsewhere. To attract these internationally mobile innovators, tech entrepreneurs, engineers and scientists, we need to prove that the welcome mat is out, and the funding tap is on.
That's where innovation clusters can play a vital role. Back in 2021, QIAGEN, a global diagnostics company from Germany, established its Global Centre of Excellence for Precision Medicine at Bruntwood SciTech's Citylabs 2.0, where it now actively partners with the NHS to accelerate healthcare breakthroughs. More recently, US pharmaceutical giant Eli Lilly began a five-year trial into the effectiveness of weight loss drug Tirzepatide on the job prospects of people living with obesity in Greater Manchester. The trial is being run by Health Innovation Manchester in partnership with Eli Lilly, along with the University of Manchester and local digital trials company NorthWest EHealth.
And at a time when commercial clinical trial recruitment is in decline, Greater Manchester is bucking the trend, driven by a good relationship with the patient population, strong research infrastructure, a talented workforce and collaboration between providers, businesses, academia and industry.
That is to say, while the national funding picture remains tight, we're seeing regional hubs across the UK stepping up.
Regional strength equals international advantage
A well-known challenge for new start-ups, especially within technology and innovation, is attracting early-stage investment. We need to see improved funding in areas away from the more traditional locations of London and South East England, that can attract young companies and new talent – both nationally and internationally. As such, we welcome the Government's latest commitment to provide £500 million for regions across the UK to make decisions around how to boost R&D in a way that is most appropriate for them.
Innovation hubs in cities like Manchester, Birmingham and Leeds are helping to maintain momentum despite national funding pressures. These places are building internationally connected clusters underpinned by strong partnerships between academia, industry and the public sector. In Manchester, for example, the recently opened Citylabs 4.0 provides new specialist lab and office space on Europe's largest clinical-academic campus, supporting life sciences research and strengthening collaboration with the NHS.
Meanwhile, in Leeds, a wave of activity is strengthening the city's profile as a destination for innovative, high-growth businesses. Iconic British broadcaster Channel 4, Yorkshire Bank and international energy and services company Centrica all have significant operations in the city, attracted by its growing financial services cluster, collaborative tech ecosystem and access to skilled talent.
However, we're seeing competition across the EU to attract internationally mobile talent and businesses in the sector. The European Commission recently unveiled its 'Choose Europe' scheme to promote the region as a world-leading centre of research, innovation and scientific freedom – including a €500 million pledge for 2025-27, to make Europe a 'magnet' for researchers.
To draw top-tier talent and investment then, we need to double-down on what makes the UK standout. That is, openness to collaboration, strength in diversity of research and a unique blend of regionally driven infrastructure and ecosystem support.
The government's commitment to UKRI is a signal of ambition but flat cash won't be enough to stay ahead. If we're serious about being a superpower of tech, innovation and science, now is the time to act. That means ensuring real-term investment to support our regional powerhouses and showing the world that we are the most attractive, stable home for the next generation of global innovation.