Cardiff Capital Region is set to receive at least £30 million to unlock new, locally led innovation.
It is one of three UK cities and regions to receive the UK Government funding, which will see partnerships between the city region authority, businesses and research organisations working with UK Research and Innovation (UKRI) to invest the funding into a range of regional and national priorities in science and technology.
The funding forms part of the Local Innovation Partnerships Fund (LIPF) of up to £500 million, announced ahead of last month’s Spending Review.
The UK Government said the decision to earmark at least £30 million to three high-potential areas – Cardiff Capital Region, Glasgow, and Belfast-Derry/Londonderry – was reached following collaboration between the UK Government and the governments of Wales, Scotland, and Northern Ireland. Seven regions of England were also announced as recipients last month, spanning the North-East to Greater Manchester, Liverpool to London.
The funding was announced as part of a £86 billion R&D settlement until 2030.
Mary Ann Brocklesby, Chair of Cardiff Capital Region, said:
“This local innovation funding is a significant step in our ongoing commitment to creating a region that is focused on innovation, connectivity and prosperity for all. Through science and technology, we are able to continue expanding our horizons, our ambitions and play our part in creating a new chapter of South East Wales' story.”
Kellie Beirne, Chief Executive for Cardiff Capital Region, added:
“Innovation is the lifeblood of our region, and with it comes the ability to stand on the world-stage as a competitive, connected region. This announcement is another investment stepping stone to driving innovation-led growth that will bring jobs and prosperity for the residents of Cardiff Capital Region and beyond.
“The Local Innovation Partnerships Fund will mean that we can continue to break new ground, explore new technologies and see our region's economic wellbeing prosper. I'm looking forward to seeing what can be made possible because of this funding.”
Managing Director of CSconnected, Howard Rupprecht said:
“CSconnected welcomes the announcement that Cardiff Capital Region is one of three UK regions selected to receive support through the £500 million Local Innovation Partnerships Fund (LIPF). We’re proud that the strength, visibility, and growing profile of the compound semiconductor cluster contributed to securing this opportunity, building on the transformative impact demonstrated through a foundational investment from UKRI’s ‘Strength in Places’ Programme.
“Stretching from Caldicot to Swansea, the cluster brings together a globally unique concentration of expertise, infrastructure, and collaboration in semiconductor technologies across South Wales. Its rapid growth is a testament to how regional research, innovation and manufacturing strengths can align with, and support UK critical priorities.”
Dr. Wyn Meredith, Chair of CSconnected, said:
“The CSconnected vision for 2030 is ambitious: we aim to support over 6,000 high-value jobs, generate more than £500 million in GVA, and deliver £1 billion per annum in annual exports. These goals are achievable with sustained, strategic investment in the core of the cluster enabling globally significant technologies enabled by semiconductors, from life sciences to green energy solutions, AI to advanced engineering, to be made in Wales.
“We look forward to working with CCR to ensure alignment with the industrial strategy through continued engagement with the Secretary of State’s office, UKRI and Welsh Government. The next five years present a significant opportunity for South Wales to strengthen its position as an internationally recognised place for collaborative innovation.”
UK Science Minister Lord Vallance said:
“From driving the development of electric vehicle components that will help deliver a greener planet to cutting-edge data science work, the Cardiff Capital Region is playing a leading role in the technologies of the future that can benefit people throughout the UK.
“By targeting this funding with local leaders to a range of science and technology sectors we can make the most of the expertise across Cardiff and wider Wales to grow the economy as part of our Plan for Change.”
Secretary of State for Wales Jo Stevens said:
“This funding from the UK Government is vital to support Wales’s leading science and technology sectors. We are already punching above our weight in areas where there is huge potential for even more growth.
“Wales has the talent and expertise to develop high tech solutions to a range of challenges, and this investment will help kickstart innovation, create new well-paid jobs and grow the Welsh economy.”
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
“This investment represents another vote of confidence in the Cardiff capital region and builds on our work supporting its growth, strong university research ecosystem, industry base and innovation clusters over a number of years.
“We will continue working closely with the South East Wales Corporate Joint Committee and the UK Government to build on the region’s strengths, attract significant private investment, strengthen regional partnerships and deliver real benefits for people across South East Wales and beyond.”
High potential innovation clusters in places that have not been earmarked for funding will also be able to bid into a competition, with UKRI publishing guidance on this competition soon.
The UK Government said that the Local Innovation Partnerships Fund represented a “significant shift in place-based innovation policy, giving regions greater control over how research and development investment is directed to maximise their innovation potential and drive economic growth”.
It builds on the lessons learned from programmes already underway to support high potential innovation clusters in regions across the UK, including the Strength in Places Fund and the Innovation Accelerator pilot scheme and Innovate UK Launchpads.
The Innovation Accelerator pilot scheme alone has leveraged more than £140 million in new private investment, created hundreds of jobs across the West Midlands, Greater Manchester and Glasgow City Region, and supported a range of new technologies.
It includes those developed by the Greater Manchester advanced diagnostic accelerator, delivering quicker and cheaper detection for liver, heart and lung diseases, whilst Moonbility from the West Midlands is using AI software helping train companies to simulate, in real time, potential disruption to the network so they can alert passengers on delay length, giving advice on replanning journeys.
