Who will build it? The talent challenge behind UK Innovation
This blog has been contributed by Sherrards following techUK's 2025 Tech & Innovation campaign week.
Britain’s tech sector is the largest in Europe, third globally only after US and China, and is worth over $1.2 trillion. The UK’s ambition to lead the world in transformative technologies is bold and achievable, but only if supported by the right people. From quantum computing and semiconductors to robotics, immersive tech, and Web3, the UK’s emerging sectors are rich in innovation, investment, and potential. However, one of a persistent constraint threatens to hold them back: an insufficient supply of skilled talent.
In sectors defined by speed, complexity and rapid global evolution, the challenge is not just filling vacancies, it’s sustaining innovation and growth.
Skills shortages across emerging technologies
CompTIA’s State of the Tech Workforce UK Report 2024 suggests that the majority of employers have faced difficulties in sourcing domestic candidates with the right technical experience. The data is further backed by Tech Nation report 2024, which quotes that that software engineering and development skills are amongst the hardest to recruit for.
The UK semiconductor sector is perhaps the clearest example. According to the UK Government’s 2024 Semiconductor Sector Study, 63% of firms identified R&D scientists as a critical need, 55% cited manufacturing/process engineers, and nearly 50% were seeking integrated circuit (IC) design engineers. Over 90% of firms reported moderate or acute shortages of these roles with up to 60% reporting acute shortages for IC design and process engineers.
International hiring plays a key role in bridging the gap. On average, 23% of new hires in UK semiconductor companies come from abroad; for firms that hire internationally, this rises to 29%. Yet the study also reveals a growing demand for emerging technical skills, particularly in design engineering, AI, machine learning, modelling, and data engineering, where global talent competition is particularly fierce.
The challenge extends across other sectors:
- Quantum and photonics firms lack quantum hardware developers, cryogenic engineers and optics specialists. These professionals are globally scarce and often trained in highly specific academic or industrial environments.
- Robotics and physical AI businesses require multidisciplinary skill sets combining mechanical design, embedded systems and computer vision. These skills are not widely found in the current UK workforce.
- Web3, immersive and creative tech roles like blockchain developers, XR specialists and real-time simulation engineers are in short supply. Shortage is particularly high for startups and studios competing with global platforms on salary and struggling with high UK visa cost.
While the UK is making strong progress in nurturing domestic pipelines, these are still years away from meeting present-day demand. It is most visible in highly specialised or rapidly evolving areas.
Immigration as infrastructure: visa routes supporting innovation
The UK’s visa system currently offers several pathways for international tech professionals and founders:
- Skilled Worker visa – sponsored employment for eligible technical and engineering roles at most of the levels.
- Global Talent visa – designated route for leaders and emerging leaders in digital technology, research and innovation.
- Innovator Founder visa – for experienced founders building innovative, scalable, and viable businesses.
- Graduate visa – for recent graduates from UK universities.
These routes are strategically important, but all come with their unique challenges. Moreover, current government proposed changes published in the White Paper in May 2025 could shrink the pool of accessible talent just as sector demand is increasing.
Proposed visa reforms: narrowing access at the wrong time
The government has announced changes that will raise the minimum skill threshold for the Skilled Worker route, making 171 currently eligible roles ineligible for sponsorship. A Technical Annex that accompanies the White Paper estimates this measure will mean 23% fewer Skilled Worker visa applications, which translates to 17,000 fewer applicants. This includes vital operational and technical jobs:
|
Role |
SOC Code |
|
Laboratory technicians |
3111 |
|
Electrical and electronics technicians |
3112 |
|
Engineering technicians |
3113 |
|
Quality assurance technicians |
3115 |
|
Planning, process and production technicians |
3116 |
|
Science, engineering and production technicians n.e.c. |
3119 |
|
IT operations technicians |
3131 |
|
IT user support technicians |
3132 |
|
Database/web content technicians |
3133 |
These roles support semiconductor production, immersive media development, testing, infrastructure, and data operations. Though not all classified as RQF Level 6, they are nonetheless critical and highly skilled in practical terms. Removing them from sponsorship eligibility would disproportionately affect startups, SMEs, and research-intensive businesses, who already face recruitment hardships.
In parallel, the Graduate visa, which allows international students to stay in the UK for two years post-graduation, is under review, with proposals to reduce this to just 18 months. This risks undermining the UK’s position as a global destination for tech education and sending away talent at the exact moment it is ready to contribute.
MAC report: no overreliance, only unmet demand
The Migration Advisory Committee (MAC) 2025 report published after Labour government request offers critical validation of industry concerns. It finds that:
“There is no evidence of overreliance on international labour in the IT or engineering sectors.”
MAC Review of Professionals in IT and engineering, 29 May 2025
Usage of the immigration system by these sectors is described as “broadly proportionate, compliant with the Immigration Rules and driven by clear demand in the UK labour market.” Where international recruitment is used, it reflects genuine shortages, especially in areas like software development, cloud infrastructure, quantum research, and systems engineering.
The report also underscores that training alone cannot meet short-term or niche demand. Emerging technologies move fast and as a result, the shortage of skills comes from unexpected areas. As the need for talent is immediate, and employers cannot wait 5 years for training the home-grown talent.
Aligning policy with ambition
To build a resilient innovation economy, the UK needs to adopt a balanced strategy:
- Champion vital roles. Industry must work with techUK and other stakeholders to ensure key roles listed below RQF 6 remain eligible, either through Skilled Worker sponsorship or the proposed Temporary Shortage Occupation List.
- Protect the UK-trained graduate pool. Graduate visa must remain at two years to retain globally trained, UK-embedded talent in areas the UK has invested heavily in educating.
- Audit recruitment plans against visa changes. Employers should review their current and future hiring needs in light of upcoming immigration changes.
- Align immigration with industrial strategy. Government must ensure its visa system supports, not stifles, its science and tech ambitions. Immigration policy should be seen as a tool for competitiveness and capability-building.
Innovation needs people. Policy must keep up.
The UK’s vision to be a science and technology superpower cannot be achieved without smart, flexible, and globally competitive talent policy. From semiconductors to quantum and beyond, the skills shortage is real but solvable, if we align immigration, education, and industrial policy.
Let’s nurture the domestic talent we are developing and retain and attract the global talent we urgently need.
For strategic advice on immigration planning, visa sponsorship, and workforce compliance tailored to your tech business, contact Nelli Shevchenko at [email protected].
Related techUK content
Industrial Strategy puts skills in the spotlight
How will the Immigration White Paper affect the UK’s role as a tech talent hub?
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from July to December 2024, this sprint campaign explored how the UK can lead on the development, application and commercialisation of web3 and immersive technologies.
These include blockchain, smart contracts, digital assets, augmented / virtual / mixed / extended reality, spatial computing, haptics and holograms.
Activity took the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and a report (to be launched in 2025).
Get in touch below to find out more about techUK's future plans in this space.
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Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from February to June 2025, this sprint campaign is exploring how the UK can lead on the development, application and commercialisation of robotic & automation technologies.
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Get in touch below to get involved or find out more about techUK's future plans in this space.
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
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Nelli Shevchenko
Nelli Shevchenko is a Senior Associate working in our Employment and Immigration team in Sherrards' London office.
She has experience in both corporate and private UK immigration matters, where she advised a wide range of clients from big corporates to small entrepreneurs.