Regions in England and Wales are set to receive up to £20 million each in new 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, is part of a wider £500 million program aimed at supporting high-growth sectors and unlocking regional potential across the country.
The latest round builds on previous allocations, including support for Scotland’s Tay City Region, and reflects a wider strategy to decentralize innovation and ensure economic benefits beyond traditional hubs.
The funding will support a variety of sectors, with each region focusing on its existing strengths.
In the South West, investment will go towards developing autonomous technologies, including drones used on land, sea and air, with the aim of establishing the region as a global leader in testing and operations.
The Oxford-Cambridge Growth Corridor will be supported to accelerate advances in autonomous vehicles, high-performance engineering and space technology, helping to close the gap between research and real-world application.
In Greater Lincolnshire, the focus will be on combining agricultural technology expertise with defense capabilities to develop commercially viable products and grow local businesses.
Meanwhile, in south west Wales, investment is being made in two linked clusters: energy security, with a focus on offshore wind and hydrogen, and materials security, which aims to improve the recycling and processing of critical resources to reduce reliance on imports.
The East Midlands is expected to benefit from funding to expand clean energy and advanced manufacturing technologies, including the development of testing and validation facilities that will help smaller companies work with global manufacturers.
In the north of England, regions such as East Yorkshire, Hull and Tees Valley will receive increased support with funding packages of up to £30 million to advance industrial decarbonisation and clean energy projects, reflecting their strategic importance to 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 program aims to accelerate innovation by supporting collaborative research and development, attracting skilled workers and creating clearer pathways for investment and market entry.
Liz Kendall said the funding demonstrated the Government’s commitment to harnessing innovation across all regions.
“This investment will take local expertise to the next level and contribute to job creation and growth from Teesside to Cornwall,” she said, highlighting the role of regional partnerships between businesses, researchers and local leaders.
The initiative reflects the growing recognition that innovation-led growth must be geographically diverse to maximize economic impact.
By building on existing regional strengths, whether in advanced manufacturing, clean energy or digital technologies, the government aims to create self-sufficient innovation ecosystems that can compete globally.
As competition for investment intensifies and technological change accelerates, regions’ ability to develop and commercialize new ideas will be vital to the UK’s economic future.
The latest round of funding signals a shift towards a more place-based innovation policy, with a focus on transforming local expertise into national growth.
If successful, the scheme could help unlock new industries, support high-skilled jobs and strengthen the UK’s position as a leader in emerging technologies, not just in London and the South East, but across the country.
