Britain could be a sci-tech superpower – if the Treasury stopped holding it back | Will Hutton

The UK has a limited presence in the global tech market, with only a handful of companies making it to the top rankings in various sectors. The country has just one software and one electronics company in the global top 100, and it lacks representation in biotech and medical devices. This situation reflects a broader issue of declining stock market values, which has led to a lack of investment in British tech firms. As a result, many startups struggle to maintain control and are vulnerable to foreign acquisitions. The decline in the tech sector is attributed to a long-term withdrawal of pension funds and insurance companies from the stock market, which has negatively impacted the valuation of publicly quoted shares. This has created a cycle where private companies also struggle to attract investment, leading to a reliance on foreign capital. The government is urged to intervene by enhancing procurement processes and incentivizing local investments. There is a growing recognition among business leaders and government officials that a shift in mindset is necessary to revitalize the tech industry. The Council for Science and Technology has advocated for government procurement to support innovative startups, while discussions around pension reforms are underway. The aim is to create a more supportive environment for British tech companies to thrive. Ultimately, the UK must evolve into a developmental state to compete effectively in the global economy. Without significant changes, the country risks falling further behind in the tech sector, which is crucial for future economic growth and innovation.