From deep tech to clean energy: why the South West is the UK's innovation heartland

In advanced manufacturing, major global manufacturers operate alongside innovative SMEs and research institutions. The West of England Growth Strategy, produced in 2025 by the West of England Mayoral Combined Authority (WECA), working in partnership with Bath & North East Somerset Council, Bristol City Council, and South Gloucestershire Council, valued the West of England’s advanced manufacturing sector at £2.9bn GVA (ie the value of goods and services produced). It was growing faster than other parts of the UK. 

The Great South West Partnership report on high-value manufacturing, produced with the High Value Manufacturing Catapult, described the South West as a “growing powerhouse”, generating £7.9bn a year in GVA from high-value manufacturing. 

Exeter-based Tattva is accelerating the shift to sustainable construction with a carbon-negative building material that grows in just 10 days. With tailored support from Innovate UK Business Growth, the company has secured a £650,000 Innovate UK grant, raised £215,000 in private investment, grown its team from two to six, filed key patents, and established a prototype demonstration with Catnic, part of the Tata Steel Group. Read the full case study here. 

Our clean-energy sector is also flourishing, with the South West on course to become a leading provider of low-carbon energy in the UK by 2035, when it could generate 11% of the nation’s electricity capacity.  

Some 535 clean-energy projects are operational or in development, including Hinkley Point C – the UK’s largest low-carbon power station. Oldbury and Berkeley are both former nuclear power stations on the River Severn undergoing long‑term decommissioning. Both sites are perfectly suited to new modular nuclear sites.  

Nuclear South West is a public-private partnership of industry, academic and public sector, created to champion the South West nuclear industry as the premier destination for investment, innovation and growth. It was set up in 2013 and incorporated in 2015 (with Business West as a major shareholder). 

The South West is home to a sizeable cluster of SMEs in nuclear, offshore wind, geothermal, hydrogen, biofuels, solar, and storage technologies. In Wells, Somerset, Gridimp is using pioneering software to help its clients become smart, flexible, low-carbon energy consumers. With support from Innovate UK Business Growth, it has secured funding to establish new facilities, found partners in Europe and South Africa, grown its team and doubled its revenue. Watch the full case study here.  

Almost 16,000 South West creative industries businesses generate £2.7bn in GVA a year, sustaining some 35,000 employees and 40,000-plus freelancers, with an additional 50,000 creative roles in non-creative sectors (source: Great South West). Our region has 22 significant creative clusters and in recent years the growth of the South West creative industries sector was matched only by London. 

WECA has been a strong supporter of the creative sector in our region, so far channelling £2.2m in grant funding to 381 creative businesses and freelancers, as well as a wealth of other support. They have also secured £25m of Creative Places Growth Funding to further support this sector over the coming years.  

Bristol is a hotbed for the creative industries, with many pioneering technologies emerging. Air Giants, for instance, has created the world’s first giant inflatable publicly interactive robots. With support from Innovate UK via Business West, grant funding enabled Air Giants to develop smaller robots that could be shipped overseas, boosting the company’s turnover and creating new jobs. Read the full case study here.  

The South West contributes some £2.8bn in defence-related GVA and supports more than 61,000 highly skilled jobs. Major defence and aerospace companies such as Airbus, Babcock, BAE Systems, Boeing, Collins Aerospace, Leonardo, Lockheed Martin, MBDA, Rolls-Royce, Safran, Thales and QinetiQ operate in the South West, which is home to Europe’s second-largest aerospace cluster. The West of England’s aerospace and advanced engineering sector is reportedly worth £2.7bn and includes more than 150 local SMEs. 

Our region is also home to the Western RDSC (Regional Defence & Security Cluster), which connects defence‑sector companies, academia, research organisations and government to accelerate innovation, skills and market access in the West of England. It facilitates collaboration and routes to market in defence and security. The South West Regional Defence and Security Cluster is the UK’s first pan-defence and security cluster. Founded in 2020, it is led by industry and academia, with support from government bodies including the MOD and the Defence and Security Accelerator. 

One of the UK’s fast‑growing life sciences ecosystems can be found in the South West, with vibrant clusters in Bristol, Bath, Gloucestershire, Somerset and Wiltshire. Our region is home to more than 370 life sciences companies that provide more than 20,000 jobs (source: South West Life Sciences). The South West is a nationally significant hub for research, innovation and commercialisation in biotechnology, medical technology, advanced therapies and digital health. Our region’s life sciences and related tech ecosystem is worth more than £8bn a year and the West of England is the UK’s third fastest-growing life sciences location for employment. 

Bristol-based biotech company, Extracellular, is at the forefront of sustainable food innovation, developing cultivated meat products that promise to revolutionise health, environmental and food security. With bespoke business growth support from Innovate UK, Extracellular is rapidly scaling its operations, securing vital funding and making significant strides in the cultivated meat industry. The company has since raised £1.8m in investments and secured more than £2m in contracts from global customers. Watch the case study here.  

The South West’s rapidly expanding digital and technologies sector is worth £46.7bn, generated by some 18,500 businesses, directly sustaining about 170,000 jobs (source: Tech South West). It’s the fifth‑largest tech sector of any UK region and a major national hub for deep tech, environmental tech, marine tech, fintech, robotics, and climate‑focused digital solutions. The South West also offers deep expertise in AI, quantum, advanced materials, and a broad suite of biotech‑related technologies.  

Cornwall-based KuasaSemi is accelerating the global development of specialised semiconductors, which are key components in electric vehicles, laptops, clean energy systems and many other things. With tailored innovation and growth support from Innovate UK Business Growth via Business West, KuasaSemi secured funding, expanded into multiple international markets, grew its revenue and went from having two to seven employees. Read the full case study here.  

We have delivered the Innovate UK Business Growth in this region since 2015 and proudly sit at the heart of the South West’s business-support ecosystem. We help connect businesses to the support and contacts that drive innovation and growth. We've seen lots of changes and we’re looking forward to continuing to support the best and brightest businesses in the South West.  

With the ongoing support of Innovate UK, who knows what the future could bring for the UK economy and its reputation on the world stage, as well as the South West and the world-class innovation-led businesses that thrive right here in our wonderful region.