West England tech warns weak links are stalling growth

Tech West England Advocates has warned that weak collaboration between regional tech ecosystems is limiting growth in the West of England, despite the region's combined economic strength being comparable to London.

It said high-performing clusters across the South West of England, the West Midlands and the West of England risk hitting a ceiling if links to domestic and international markets develop too slowly. The group pointed to strong investment and industrial activity, particularly in green technology, aerospace and deep tech, but argued these advantages will not be fully realised while regions continue to operate separately.

At the centre of its argument is a long-running imbalance in British technology finance. Most capital still flows to London and the South East, leaving regional companies with a smaller pool of venture funding and a more fragmented path to scale. That problem is compounded by slow connections between regional investors, founders and policymakers.

Richard Lowe, Founder of Tech West England Advocates, said: "Our West England regions have proven they can build world-class tech and attract serious global capital. We're an advanced manufacturing powerhouse, but we can't afford to let the pace of our connectivity lag.

"There are positive signs that UK regions are finally talking to each other after years of being quite guarded, but slow collaboration will ultimately stall our momentum. When you look at the numbers, the collective output of the South West of England, the West Midlands and the West of England is comparable to London. But we can only project that unstoppable national proposition on the world stage if we link up faster. Accelerating these domestic networks is what allows us to plug seamlessly into critical European and international tech hubs and reach our true global potential."

The intervention adds to a wider debate over whether the UK can build nationally connected innovation centres outside the capital, rather than a set of isolated regional successes. In the West of England, that question carries particular weight because the area already has established strengths in advanced manufacturing and engineering, supported by universities and specialist firms that feed local research and recruitment pipelines.

Funding gaps

Tech West England Advocates set out three priorities it believes would ease pressure on regional scale-ups. The first is to address the venture capital imbalance by directing more global VC investment and institutional funding towards companies outside London and the South East.

The second is to widen investor access by creating more frequent pitching networks across UK cities, with fewer barriers for founders seeking backing. The third is to close the early-stage equity gap by changing funding criteria that can leave pre-seed and seed-stage companies without support at a critical point in their development, while also backing funds aimed at underrepresented and diverse founders.

Those recommendations reflect a concern shared by investors and technology founders: regional businesses often face a double hurdle. They must compete for a smaller share of domestic capital while also proving they can connect into national and overseas markets quickly enough to attract larger rounds.

Jon Gill, Partner and Head of Venture Capital at Eversheds Sutherland, said: "Global markets are clearly paying close attention to the West England region, but international venture capital looks for massive, frictionless scalability, not regional borders. To take a founder from an early-stage seed round to a major international exit, we need seamless, nationwide pipelines. If our funding ecosystems remain fragmented or integrate too slowly, we limit the liquidity and corporate matchmaking needed for global mega-rounds."

The argument is not only about finance. Manufacturers in the region say the pace of supply chains and skills development also depends on stronger links between companies, colleges, universities and adjacent industrial centres. In sectors such as metal 3D printing and aerospace, firms are under pressure to move quickly from design to delivery while maintaining access to skilled labour.

Peter Richards, Chief Executive Officer of DEEP Manufacturing, said: "West England is at the forefront of a manufacturing renaissance, pioneering advanced technologies like large-scale metal 3D printing and setting the benchmark for industrial innovation. Through close partnerships with universities and colleges across the region, we are creating direct pathways for graduates and emerging talent to build careers in advanced manufacturing - growing a skilled, homegrown workforce that strengthens our industrial base. However, modern engineering supply chains thrive on speed, and by accelerating our regional connectivity corridors, we can unlock the full potential of this talent - delivering mission-critical components at the pace global markets demand. Investing in this domestic infrastructure is a tremendous opportunity to cement West England's position as a world-class industrial hub and drive lasting growth in global market share."