UKRI publishes its new five-year strategy, with big bets on AI, Quantum and Chips
UKRI has published a new strategy that seeks to boost research and innovation in every nation and region across the UK. The strategy details how this new mission will invest £9 billion of public money to deliver outcomes for the UK public through research and innovation that advances knowledge, improves lives and drives growth.
Almost half this budget will back discovery and curiosity driven research, with the other half focusing on high growth sectors that deliver more immediate outcomes, supporting companies to start, scale and ultimately stay in the UK.
To align with the UK government's strategic priorities, including the Industrial Strategy growth sectors (IS-8) and frontier technologies, underpinned by the Plan for Change, UKRI's new Priority Programme will be developed and delivered in partnership with government to ensure strong alignment between policy objectives, investment choices and delivery.
Investment priorities across new programmes include the following:
Digital and technologies - £4bn (largest allocation)
- AI: Six priority areas spanning tech development, research transformation, skills, responsible AI, economic innovation, and compute infrastructure. Total AI spend (including curiosity driven research) exceeds £1.6bn. Focus on explainable, human in the loop systems, agentic AI and edge computing.
- Quantum: Scaling hardware and software from research to commercial deployment; sensing, imaging, timing; quantum secure networks; skills pipeline.
- Engineering biology: Commercialisation and scale up support across health, manufacturing, food systems and environmental resilience.
- ACT, cyber security and semiconductors: Secure and sustainable networks; cyber skills and commercialisation; UK strengths in semiconductor design, compound semiconductors and optical interconnectors.
AI and digital technologies will cut across priority sectors:
- Life sciences (£1.5bn): Major diseases, prevention, diagnostics, next generation medicines and medtech, hospital to community NHS shift; attracting global pharma and medtech investment.
- Advanced manufacturing (£1.3bn): Automotive, batteries, aerospace, space, materials, agritech; plus robotics, automation, additive manufacturing and digital infrastructure.
- Clean energy (£1.2bn): Secures supply chains (turbines to nuclear fuels); autonomous energy solutions; fusion and carbon removal tech for the 2030s.
- Defence and security (£555m): Joint MoD partnership; talent pipeline, dual use R&I access, strategic advantage.
- Creative industries (£369m): Commercialisation support, regional clusters, IP maximisation, skills and international partnerships.
- Professional and financial services (£118m): Regulatory innovation, data access, support for challenger firms and new business models.
- Wider priorities (£2.9bn): Broader environmental and social outcomes beyond core IS-8 sectors.
Outside of these programmes, £8.4 billion will be spent on sustaining the foundations of the Research and Innovation system, including investment in talent, international partnerships, infrastructure, data capability, facilities and centres, institutes, Catapults and units. The strategy also highlights a regional focus, committing to aligning investments with local strengths, ambitions and skills to drive economic growth across the UK.
To help companies start, scale and stay in the UK, UKRI will also provide an "innovation service." This will help identify high potential companies early and support them continuously from discovery through to commercialisation and growth, rather than through one off interventions. Key commitments include building an end-to-end support offer (research to scale up finance, regulatory support, market access), increasing the share of portfolio companies backed by private equity and venture capital, refreshing IP policy to keep economic value in the UK, and deepening ties with investors to help businesses access growth capital while staying rooted in the UK.
The full strategy and more information can be here on the UKRI website.
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