Bridging the Capital Gap for UK Research Commercialisation

British science is globally significant, with the UK boasting seventeen universities in the world top 100. However, this world-leading research represents huge economic potential that is currently not being realised due to severe capital constraints. In this new report, commissioned by Pioneer Group and The Crown Estate, we explore the "capital gap" stifling UK innovation and model the transformative economic impact of closing it.

Our research finds that British universities collectively offer the opportunity to invest £15.2 billion in early-stage technology commercialisation over the next decade. Unlocking this capital would leverage a further £27.4 billion of co-investment, creating 1,771 new spinouts beyond business-as-usual and generating approximately 56,000 new jobs. The report highlights a stark regional disparity: while 69% of the UK’s research power exists outside the "Golden Triangle" of London, Oxford, and Cambridge, these regions have received just 15% of spinout venture capital since 2010.

Drawing on the success of Oxford Science Enterprises (OSE), we demonstrate that deep pockets of patient capital drive faster growth and higher returns. To replicate this success nationwide, the report identifies the Government’s pension reforms - specifically the Mansion House Accord and Local Government Pension Scheme (LGPS) consolidation - as the primary vehicle to unlock the necessary funds. By channelling these assets into high-innovation British equities, the UK can double its spinout production and secure its status as a global science superpower.

Read the full report to understand how bridging the capital gap can secure the UK’s status as a science and technology superpower.