Infrastructure fails put science investments at risk, report authors warn

Pioneer Group and The Crown Estate delivered the message as they unveiled the second stage of their study Beyond the Capital Gap: How do we develop an operational blueprint to capitalise on UK science?

Commissioned from consultants Henham Strategy, it predicts that that, without strengthening the infrastructure surrounding investment, the country faced the prospect of “unlocking capital into a system ill equipped to absorb it”.

Three areas in particular were cited: inconsistent support for venture building; acute shortage of flexible, specialist laboratory and technical space, especially outside the London, Oxford and Cambridge ‘golden triangle’; and increasing gaps in leadership roles essential for scaling science-based companies.

Executive director at Pioneer Toby Reid stated: “Phase Two makes clear that unless we strengthen the infrastructure around talent, lab space and venture support, we will continue to lose ground to faster?moving global competitors.

“This is the moment for the UK to shift from analysis to co-ordinated action.”

Phase two of the report was delivered to an audience from industry, academia, investment and government at a House of Lords roundtable hosted by Lord Ranger of Northwood. 

Phase one of the research, published last year, cited the economic potential of reforming early-stage capital constraints. It estimated that the increased investment generated might unlock in excess of 1,700 additional spin-outs, create 56,000 high quality jobs and generate up to £27 billion in co-investment.

Meanwhile, warnings of long-standing structural weaknesses in commercialisation referenced in Phase two of the report echo previous comments from the Lords’ own Science and Technology Committee, together with the House of Commons Science, Innovation and Technology Committee and UKRI.

Pioneer Group’s Reid added: “Phase Two makes clear that, unless we strengthen the infrastructure around talent, lab space and venture support, we will continue to lose ground to faster?moving global competitors.

“This is the moment for the UK to shift from analysis to co-ordinated action.”

Science company chiefs present at the meeting also raised their own concerns about the need to reform infrastructure support.

Tiffany Thorn, CEO of biotech BiVictriX Therapeutics, said her firm had raised sufficient initial seed investment, which allowed them to achieve early proof of concept, positioning them to raise the larger capital required to scale the business and maintain a global competitive edge. 

However, limitations of seed-stage fund sizes meant their initial investors were unable to support the next phase of growth.

“For companies like ours, this creates a fundamental challenge. Without access to the right quantum of capital at the right time, it becomes difficult to build the team required for scale, ultimately delaying progress and weakening competitive positioning,” said Thorn.

Interested parties are invited to share their perspective by submitting responses here. beyondthecapitalgap@henhamstrategy.co.uk

To download the report, click here.