Stuart Patrick: Time to help Glasgow grow innovation ecosystem
Glasgow may not yet be well known as a technology hub but there are welcome signs the city’s time is coming. A little further help from both the UK and the Scottish governments would increase the odds of this happening sooner rather than later.
Last week the German family-owned science and technology company, Merck, announced a further expansion of its Scottish facilities, bringing 500 new jobs to Glasgow and Stirling. The majority of those new jobs will be added to the 650 posts Merck already has at Glasgow’s West of Scotland[1] Science Park, which has a 40-year history housing fast-growing businesses in science-rich sectors such as biotechnology and photonics.
Merck is investing nearly £30m as a response to very strong demand for biosafety testing; an essential part of drug development which ratifies the safety, regulatory conformity and effectiveness of its customers’ drug products. My own conversations with the senior management team confirm the increasing pressure to find laboratory space, which I had already heard last month in a series of workshops with over 100 players in Glasgow’s innovation eco-system.
As another sign of Glasgow’s emerging tech hub status – in the space of just six weeks earlier this year – four Glasgow technology businesses were successful in venture capital funding rounds. Digital pharmacy company Healthech Phlo, diagnostics firm Dxcover, Glasgow University spin-out Causeway Therapeutics and remote monitoring device start-up Pneumowave raised £10m, £10m, £8.75m and £7.5m respectively.
This was featured in a new report published jointly by Glasgow City Council and data provider Dealroom.co capturing the strengths and growth potential of Glasgow’s startup ecosystem. Glasgow tech companies[2] have seen a marked increase in early to mid-stage funding over the past three years, with 2021 reaching a new high of £115m and the early performance of this year looking very promising. Health and fintech are both prominent sectors.
The richness of Glasgow’s innovation eco-system was also on display at the Glasgow Science Centre. Glasgow Children’s Hospital Charity held its very first Legacy Partner dinner explaining how much work the charity does to support innovations in maternity, neonatal and paediatric healthcare in the city’s children’s hospital. Good innovation is not always about start-ups and complex technology but often clever use of existing tech and that was a prominent message from the hospital’s senior clinicians.
I am mentioning each of these simply because they featured in just one week of my work in the city. As Scottish Government’s Chief Entrepreneur[3], Mark Logan, says in the City Council’s report: “The Glasgow Tech Ecosystem has entered a virtuous cycle. Catalysts such as the Innovation Districts, Tech Scaler and an increased focus from our universities on entrepreneurship are combining to create more and stronger startups.” He added: “It’s the most exciting entrepreneurial environment we’ve seen in Glasgow in living memory.”
Now is the time, therefore, for both the Scottish and UK Governments to back Glasgow in growing its innovation ecosystem. The Scottish Government is due to publish its fresh Innovation Strategy plan and I would hope to see the role of the city region’s three innovation districts featuring as primary platforms for agencies like the Scottish National Investment Bank and Scottish Enterprise to support industry growth.
I would also think – especially after the narrow rejection of the Clyde Green Freeport bid – that the UK and Scottish Governments should together allocate one of the two Scottish Investment Zones to Glasgow. Bringing fresh money and targeted tax incentives to the research commercialisation work of the universities, colleges and the three innovation districts would undoubtedly cement Glasgow’s status as an emerging tech hub.
Property services firm CBRE recognised that status, naming Glasgow the third-top tech destination outside London in its UK Tech Cities Report 2022. Perhaps we can also persuade Ben to change his mind.
Stuart Patrick is CEO of Glasgow Chamber of Commerce