£50m deal backs new generation of tech firms in the West Midlands

The West Midlands Combined Authority has announced a £50 million government investment to support technology development, business growth and economic activity across the region. The funding, delivered through the Local Innovation Partnerships Fund, is intended to support companies working in advanced manufacturing, health and life sciences, and creative immersive technologies.

The programme will support businesses, researchers and entrepreneurs to scale products and processes, access specialist facilities and skills, accelerate commercialisation and attract private investment. It builds on the West Midlands’ engineering and research base by connecting academic, civic and commercial partners.

The fund is backed by the Department for Science, Innovation and Technology through UK Research and Innovation. It follows a “triple-helix” model that brings together universities, local authorities and industry to support economic activity and innovation.

Three initial projects are expected to receive support, focusing on cluster-based activity to strengthen innovation hubs, support emerging technologies and improve pathways from research to market. The projects are also expected to support skills development and productivity across the region.

The investment is expected to contribute £190 million in private investment, support or create 2,000 jobs and add £700 million to the regional economy.

The announcement follows approval by the Combined Authority Board of a further £282 million investment package aimed at supporting economic growth, infrastructure and skills across the West Midlands.

West Midlands Mayor Richard Parker said:

“This record amount of funding shows government recognises what we’ve always known – that this is the home of innovation.

“You can see it everywhere. Two centuries on from Watt and Boulton’s steam engine, a new generation of trailblazers here is at the forefront of a tech revolution that’s unlocking smarter healthcare, better diagnostics and the transition to cleaner energy.

“My job is to keep that spirit alive by backing their talent and investing in cutting-edge research to turn bold ideas into real-world solutions. All while creating the jobs, opportunities and growth that will improve people’s lives across the West Midlands and beyond. That’s exactly what my Growth Plan is about and with government backing we’re making it happen.”

Together, the investment forms part of the West Midlands Growth Plan and the Government’s Industrial Strategy, with a focus on supporting businesses, communities and young people.

The Local Innovation Partnerships Fund is also intended to address the gap between research and commercial application, sometimes described as the UK’s “valley of death” in innovation.