Medical technology
international recognition of medical devices with comparable regulator countries such as the US. Early-Stage and series B+ funding: There
are significant funding gaps for early-stage companies, particularly around go to market and manufacturing scale up, as well as for Class III medical devices and for those seeking Series B+ funding. Grant funding: Grant funding is crucial
but increasingly competitive. The application process is seen as complex and often requires professional grant writers, which is cost- prohibitive for many SMEs. Fragmented ecosystem: The MedTech
ecosystem is seen as fragmented, with a need for better collaboration and a more joined-up approach among ecosystem players. Focus on US market: Many SMEs reported
that they have been advised by investors to focus on the US market due to its larger size and more favourable investment climate. However, there is a desire to anchor these companies in the UK, while still benefitting from international expansion.
Global market access: More support is needed to help MedTech SMEs access global markets from an early stage through international accelerator style programmes, which connect SMEs with large corporates as potential customers and acquirers. Some of the feedback from UK MedTech companies included: “The NHS is hard work and its cash strapped. We don’t make great margins in the NHS, but it is an important market to be in, and it has given us an evidence base and credibility. But despite having a product that we’ve proven saves money and improves patient outcomes (it costs a pound per patient per year to implement), the NHS say we don’t have any ring-fenced budget for this sort of innovation.” Another commented: “Investors want
evidence which can’t be generated until the technology is commercialised and we need money for commercialisation… we are in this chicken and egg situation.” The report highlights the need to:
l Bolster the financial mechanisms which support UK MedTech SMEs.
l Increase grant funding or re-orient public funding around existing gaps to allow SMEs to reach crucial milestones.
l Support MedTech SMEs with relevant products to access the NHS.
Removing barriers for spinouts The report, Turning Innovation into Impact: Removing Barriers for MedTech Spinouts in the UK, explores the key barriers through the lens of ten University Technology Transfer Offices (TTOs) from across the UK, offering a first-hand view
24
www.clinicalservicesjournal.com I January 2026
of the challenges that slow or prevent spinouts from scaling and achieving real-world impact. Drawing on interviews with TTO leaders from 10 universities – Swansea University, Imperial College London, University of Strathclyde, University College London (UCL), University of Bristol, Northumbria University, University of Liverpool, University of Ulster, Newcastle University, and the University of Cambridge – this report identifies five critical areas of concern: l Regulatory and adoption bottlenecks: Complex, costly, and fragmented regulatory processes, alongside slow and opaque NHS procurement systems, make it difficult for new technologies to gain approval and reach patients.
l Funding gaps and investment challenges: A lack of translational funding, regional inequality in access to capital, and limited investor appetite for MedTech and diagnostics restrict the growth of early-stage ventures.
l Talent shortages and leadership gaps: Many spinouts struggle to attract experienced commercial talent and rely too heavily on academic founders, leading to capability gaps in business development and strategy.
l Misalignment between academic and commercial priorities: Pressure on spin- outs to file patents prematurely, combined with the drive to spin out from universities before achieving market readiness, often undermines the long-term success of these ventures.
l Infrastructure and ecosystem constraints: Limited access to affordable lab space and fragmented regional support ecosystems drive promising companies to relocate (sometimes outside of the UK) or to stagnate.
Despite these challenges, there is cause for optimism. Interviewees highlighted several promising initiatives and called for a more joined-up national approach, one that combines early regulatory support, flexible funding mechanisms, place-based infrastructure investment, and more strategic alignment between academic research and commercialisation pathways. To address the barriers, the report makes the
following key recommendations: l Build commercial and regulatory skills: Universities should invest in training, mentoring, and secondment schemes that bring regulatory, market access and industrial expertise into spin-out teams.
l Align IP strategy with real-world impact: Universities should prioritise commercial impact over publication timelines, with stronger
incentives embedded in frameworks such as the Research Excellence Framework (REF).
Commenting on the reports, 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.” Dr. Cole urges a joined-up response: “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.” CSJ
The full reports are available to view and download on the CPI website: l Challenges and opportunities for the UK MedTech SME ecosystem 2025. Scope: Findings of the survey of MARRS grant recipients: Scan the QR code below:
l Understanding investment barriers in the UK MedTech ecosystem. Scope: Understanding the challenges and possible solutions with funding and investments in the UK. Scan the QR code below:
l Turning innovation into impact: Removing barriers for MedTech spinouts in the UK. Scope: Understanding the challenges faced by university spinouts and some potential solutions. Scan the QR code below:
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
