HSBC Innovation Banking CEO: the next phase of UK innovation will be won quietly
The next phase of UK innovation will be driven by deep tech, life sciences and infrastructure-heavy businesses, says Emily Turner
The UK’s innovation economy is now worth $1.3tn. Artificial intelligence sits at the heart of that story, commanding headlines and capital in equal measure. But when we look at where long-term value is being created, the story runs deeper – into the infrastructure and scientific breakthroughs that sit beneath the surface.
The next phase of UK innovation will be driven by deep tech, life sciences and infrastructure-heavy businesses. These companies take longer to build and longer to monetise, requiring scientific depth, specialist talent and patient capital. But they also create durable revenues, defensible intellectual property and global relevance – the foundations of sustained economic impact.
The structure of the UK ecosystem already reflects this reality. Our latest Innovation Update with Dealroom.co found that fintech accounts for 32 per cent of total value, deep tech for 20 per cent and life sciences and healthcare for 13 per cent. This is a system grounded in science and complex platforms embedded in financial services, healthcare, energy networks and advanced computing. Growth in these sectors may draw less day-to-day attention, but it is anchored in technologies that underpin critical industries and shape how the wider economy functions.
Megarounds are back – but not where you might expect
In 2025, 36 megarounds of $100m or more were completed, marking the strongest year since the 2021–22 peak. While consumer AI dominated much of the public narrative, capital allocation told a broader story about where long-term conviction sits.
Standout raises included Quantinuum’s $600m to advance quantum computing, Kraken’s $1bn to scale its energy and utilities operating system, Nscale’s $1.1bn to expand AI infrastructure and Isomorphic Labs’ $600m to accelerate AI-led drug discovery.
The common thread is infrastructure. These companies are building platforms that sit beneath industries, quietly reshaping how energy systems operate, how medicines are discovered and how advanced computing is deployed. In doing so, they are modernising the core architecture of the economy and strengthening productivity and long-term competitiveness across sectors.
Spinouts are the long game – and the UK is winning it
The UK leads Europe in deep tech and life sciences spinout value creation, with half of Europe’s top 10 universities for spinout value based here. In 2025, spinouts raised $2.5bn, including OrganOx, PolyAI and Nu Quantum.
These ventures are slower to form because they are grounded in breakthrough science. They are also harder to displace. Protected by robust IP and built on years of research, they anchor innovation ecosystems for decades rather than cycles.
Most of the value still lies ahead
Private companies still account for roughly half of the UK’s total tech value, with the remainder split between public and acquired firms. That means a significant portion of value creation, through exits, listings or global expansion, is still to come, particularly in deep tech and life sciences where longer scaling cycles precede substantial returns.
With 200 unicorns and 239 “thoroughbreds”, companies generating more than $100m in revenue, the UK has developed real depth. This is no longer a market reliant on a handful of standout successes. It has the scale and institutional maturity required to compound value over the next decade, recycling capital, talent and expertise back into the system.
In a global AI cycle dominated by hype and speed, the UK’s competitive advantage lies in patience, scientific depth and ecosystem maturity
In a global AI cycle dominated by hype and speed, the UK’s competitive advantage lies in patience, scientific depth and ecosystem maturity. The next generation of winners may not dominate headlines, but they will strengthen the foundations of the economy, create skilled jobs and generate long-term returns.
Provided the right support and capital remain firmly in place, this next phase of UK innovation will be won quietly, but its impact will be significant.
Emily Turner is CEO of HSBC Innovation Banking UK