Regions across England and Wales are set to receive up to £20 million each in fresh government funding to accelerate innovation and drive local economic growth, as ministers push to strengthen the UK’s regional technology and industrial base.
The investment, delivered through the Local Innovation Partnerships Fund, forms part of a wider £500 million programme aimed at supporting high-growth sectors and unlocking regional potential across the country.
The latest round builds on earlier allocations, including backing for Scotland’s Tay City Region, and reflects a broader strategy to decentralise innovation and ensure economic benefits are spread beyond traditional hubs.
The funding will support a diverse range of sectors, with each region focusing on its existing strengths.
In the South West, investment will be directed towards developing autonomous technologies, including drones operating across land, sea and air, with the aim of establishing the region as a global leader in testing and deployment.
The Oxford-Cambridge Growth Corridor will receive support to accelerate advancements in autonomous vehicles, high-performance engineering and space technology, helping to bridge the gap between research and real-world application.
In Greater Lincolnshire, the focus will be on combining agri-tech expertise with defence capabilities to create commercially viable products and expand local businesses.
Meanwhile, South-West Wales will see investment in two connected clusters: energy security, centred on offshore wind and hydrogen, and materials security, aimed at improving the recycling and processing of critical resources to reduce reliance on imports.
The East Midlands is set to benefit from funding to scale clean energy and advanced manufacturing technologies, including the development of testing and validation facilities that will help smaller firms collaborate with global manufacturers.
In northern England, regions including East Yorkshire, Hull and Tees Valley will receive enhanced support, with funding packages of up to £30 million, to drive industrial decarbonisation and clean energy projects, reflecting their strategic importance in the UK’s transition to net zero.
Local partners will work with UK Research and Innovation to design and deliver projects that translate research into commercial outcomes.
The programme aims to fast-track innovation by supporting collaborative research and development, attracting specialist talent and creating clearer pathways to investment and market entry.
Liz Kendall said the funding demonstrates the government’s commitment to harnessing innovation across all regions.
“This investment will take local expertise to the next level, helping to create jobs and growth from Teesside to Cornwall,” she said, highlighting the role of regional partnerships between businesses, researchers and local leaders.
The initiative reflects a growing recognition that innovation-led growth must be geographically diverse to maximise economic impact.
By building on existing regional strengths, whether in advanced manufacturing, clean energy or digital technologies, the government aims to create self-sustaining innovation ecosystems capable of competing globally.
As competition for investment intensifies and technological change accelerates, the ability of regions to develop and commercialise new ideas will be critical to the UK’s economic future.
The latest funding round signals a shift towards more place-based innovation policy, with a focus on turning local expertise into national growth.
If successful, the programme could help unlock new industries, support high-skilled jobs and reinforce the UK’s position as a leader in emerging technologies, not just in London and the South East, but across the entire country.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
