Regions across England and Wales are set to receive up to £20 million each in new government funding to accelerate innovation and strengthen local economies, as ministers seek to expand the UK’s industrial and technological base beyond traditional hubs. The support comes through the Local Innovation Partnerships Fund, part of a broader £500 million programme targeting high-growth sectors and regional potential across the country.
The funding aims to help regions build on their existing strengths while fostering research and commercialisation partnerships. In the South West, investment will focus on autonomous technologies, including drones operating across land, sea, and air, with the goal of establishing the area as a global centre for testing and deployment. The Oxford-Cambridge Growth Corridor will receive support for autonomous vehicles, high-performance engineering, and space technology, bridging research with real-world applications.
In Greater Lincolnshire, funding will combine agri-tech expertise with defence capabilities to create commercially viable products and expand local businesses. South-West Wales will focus on energy security, with projects in offshore wind and hydrogen, alongside materials security initiatives aimed at improving recycling and reducing import dependence.
The East Midlands will use funding to scale clean energy and advanced manufacturing technologies, including the development of testing and validation facilities to help smaller firms collaborate with international manufacturers. Northern regions, including East Yorkshire, Hull, and Tees Valley, will receive up to £30 million to drive industrial decarbonisation and clean energy projects, reflecting their importance in the UK’s net-zero transition.
Local partners will work with UK Research and Innovation to design projects that turn research into commercial outcomes, fast-tracking innovation by supporting collaborative development, attracting specialist talent, and creating clearer pathways to investment and market entry.
Shadow minister Liz Kendall said the funding highlights the government’s commitment to regional expertise. “This investment will take local expertise to the next level, helping to create jobs and growth from Teesside to Cornwall,” she said, pointing to the role of partnerships between businesses, researchers, and local leaders.
The initiative reflects growing recognition that innovation-led growth must be geographically diverse. By building on strengths in advanced manufacturing, clean energy, and digital technologies, the government hopes to establish self-sustaining innovation ecosystems capable of competing globally.
As technological change accelerates and competition for investment intensifies, the ability of regions to develop and commercialise new ideas will be crucial to the UK’s economic future. The latest funding round signals a shift towards place-based innovation policy, aiming to unlock new industries, support high-skilled jobs, and ensure the UK’s leadership in emerging technologies extends beyond London and the South East to the entire country.
