Pension funds have a great opportunity to increase investments in the technology sector, according to Science Minister Lord Vallance. He is expected to address this topic today at the British Venture Capital Association’s (BVCA) private capital showcase.
In his speech, Vallance will highlight the UK’s strong reputation for excellence in research, particularly in areas like life sciences, artificial intelligence (AI), and quantum technology. However, he will also point out that many promising UK businesses struggle to grow due to insufficient funding.
He stated, “There are far too many UK companies at the forefront of emerging technologies such as AI and biotechnology that lack the backing from UK investors.”
Vallance emphasized that the government is working on an industrial strategy to create an environment where public funding and industry partnerships can enable growth in science and technology. He believes increasing capital flow into these sectors is crucial for supporting companies and creating jobs.
Last year, UK startups and scaleups received $16 billion in investments, and over $8 billion was raised in the first half of 2025, surpassing the total for France and Germany combined. The government aims to accelerate this growth through its Plan for Change.
Today, Vallance will urge private pension investors to collaborate with venture capitalists and asset managers to support the next wave of high-growth companies. This effort is intended to provide long-term returns for investors while ensuring that the jobs and economic value generated stay in the UK.
### Launch of the New Innovation Clusters Map
In addition, a new and enhanced Innovation Clusters Map will be introduced today to assist investors in discovering sectors and regions in the UK that are ripe for investment.
This tool will help investors, industry players, research bodies, and government agencies understand local innovation networks and pinpoint opportunities for growth and investment.
The map will also showcase specific areas where clusters of businesses and research institutions collaborate closely, enhancing the impact of research and innovation. It will focus on sectors that align with the government’s industrial strategy, such as advanced manufacturing, digital tech, financial services, and life sciences.
Notable regions for investment include the north west of England, where life sciences firms are working on new cancer treatments and vaccines to combat bacterial diseases. Meanwhile, companies in the Glasgow area are developing satellites that play a crucial role in modern communication technology.
