MedTech industry innovators and investors call for urgent action to unblock UK MedTech bottlenecks

CPI published three interconnected reports offering the most comprehensive analysis to date of the challenges facing UK MedTech innovators. Drawing on insights from 240 small and medium-sized enterprises (SMEs), 100 investors and 10 university technology transfer offices, the reports spell out the solutions needed to unlock the full potential of UK MedTech and deliver on the promises of the healthcare and life science sectors.

Central to the NHS 10-Year Plan and the Life Sciences Sector Plan, is adoption of cutting-edge medical technologies. However, UK-based MedTech innovators say they face too many barriers with funding and regulatory hurdles, especially compared to the funding and regulatory ecosystems for MedTech innovation in the United States.

Rahul Kapoor, Director of HealthTech at CPI, said:

“The life sciences sector, including medical devices, diagnostics and pharmaceuticals, is a priority sector for the UK and a significant economic driver. Achieving the 10-year plan requires access to funding for rapid development and reducing barriers to adoption of life saving technologies.”

Key findings and recommendations

The reports include a series of specific recommendations aimed at enabling SMEs to navigate the regulatory process, find the funding they need and bring innovations to market. 

MedTech innovators see the UK regulatory body MHRA as under-resourced and difficult to navigate. The reports recommend the creation a ​‘freemium’ advice and support service where basic advice is free and more in-depth support is chargeable. 

UK SMEs also face declining domestic investment, especially at Series B+ stage, forcing many to seek funding abroad. In response, the reports recommend increasing funding for SMEs through the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS), increasing R&D tax relief for SMEs conducting and scaling up clinical trials in the UK, and increasing government co-investment for MedTech companies.

Innovators also express a need for better alignment with the NHS. Fragmented procurement and lack of clear mechanism for understanding demand are deterring investors and delaying patient access to innovation. The reports recommend launching an NHS Priority & Clinical Register, which would publish NHS unmet needs and procurement intentions. 

Dr. Alex Cole, Director of Market Strategy at CPI, said:

“The NHS is a real shining star of the UK, but for innovators to benefit from it, they really need to know what the unmet needs are and who within the organisation is willing to engage. Success or failure is often dependent on the correct NHS and clinical engagements. Our proposed clinical register should be the paradigm shift we need.”

“These reports show that the UK has the talent and ideas, but without joined-up support, we risk losing the economic and clinical benefits to other countries. We call on policymakers, NHS leaders, investors and universities to act on the recommendations and collaborate to unlock the full potential of UK MedTech innovation.”

These reports were developed as part of the MedTech Accelerator: Rapid Regulatory Support (MARRS) Fund, a programme funded by the UK’s Office for Life Sciences to provide grants for regulatory guidance and to enable growth in the UK MedTech industry. The SMEs who took part in the surveys, interviews and roundtables that informed the reports had received funding from the MARRS programme.

The reports are available for download:

• Challenges and opportunities for the UK MedTech SME ecosystem 2025.
• Understanding investment barriers in the UK MedTech ecosystem. 
• Turning innovation into impact: Removing barriers for MedTech spinouts in the UK.