Pension Schemes Urged to Invest More in World Class UK firms

Pension funds should seize the chance to drive more private investment into UK science and technology, Science Minister Lord Vallance told leading investors at the British Venture Capital Association’s (BVCA) Private Capital Showcase.

In his speech, the Minister highlighted the UK’s long-standing reputation for world-class research and innovation in fields such as life sciences, artificial intelligence, and quantum technology. While UK start-ups attracted $16 billion in investment last year and raised over $8 billion in the first half of 2025, outperforming France and Germany combined, many promising companies still face barriers to scaling due to limited access to capital.

Using Cambridge-born tech giant Arm as a prime example of British innovation with global reach, Lord Vallance called on pension funds to collaborate with venture capital firms and asset managers to support the next wave of high-growth businesses. Such investment, he argued, not only offers strong long-term returns for savers but also ensures that jobs and value generated by UK innovation stay in the country.

“There are too many cutting-edge UK companies in AI, biotech, and quantum where domestic investors remain underexposed,” Lord Vallance said. “By aligning public funding, streamlined regulation, and industry partnerships, our Industrial Strategy is directing capital into science and technology. Unlocking more private investment will be crucial to helping these companies scale and create jobs.”

To guide investors, the Minister is also launching an updated Innovation Clusters Map—a tool designed to pinpoint regions across the UK where businesses and research institutions thrive through close collaboration. Covering key sectors such as advanced manufacturing, creative industries, digital tech, financial services, life sciences, and more, the map provides data to help investors identify where opportunities are strongest.

Among the highlighted regions are the North West of England, where life sciences companies are pioneering cancer and vaccine research, and the Glasgow City Region, dubbed ‘Satellite City’, where firms are building the next generation of space technology.

By making it easier to understand and tap into the UK’s innovation ecosystems, the government hopes to accelerate investment flows, foster regional growth, and create highly skilled jobs across the country.