The UK’s failure to capitalise on the commercialisation of its technology means it is no longer at the forefront for global technology research and innovation, a cornerstone for driving economic growth. As a result, British tech practitioners are upping sticks and heading across the pond to the US where funding is readily available from investors, willing to support R&D, production and commercialisation. This is according to Clive Mayne, managing partner, ExeTec Consulting.

“The UK government should take significant action to create a supportive financial framework, which allows experienced technology practitioners, to drive innovation and commercialisation of the UK tech sector,” Mayne says. “...China, Japan, France, Germany and the US have all committed vast amounts of time, money and infrastructure to supporting technological growth and recognises the value of doing so will underpin the future of their economies. The UK however, is failing to keep pace.”

“On the surface, positive strides are being made with the UK government committing £200m, but in the grand scheme of things this is more like a drop in the ocean. The UK has a reputation for innovative technology design and we still hold our own in that respect, however, what often goes wrong is translating this to commercial success," he continues.

In order to challenge this, he says two key elements need to be addressed. The first, readily available early stage funding to the support development of the technology, which has become increasingly difficult as venture capitalists have to wait longer for an exit, he says, often at lower multiples and are naturally more risk adverse and wanting more proof of success before investing. "To change that dynamic needs some real encouragement for the investor community to take greater risks to get greater rewards not a new government department.

"The second issue is the lack of experience in bridging the gap between great technology innovation and the commercial creativity to maximise its market potential. In truth this is probably the more difficult to achieve and what sets the US apart in that respect is that they simply have a more supportive environment for people to the take risks.”

Mayne concludes: “In the UK most venture capitalists will concur that the experience and skills to position technology in the market place and drive commercial adoption of the products both at home and overseas markets is one of the biggest concerns when investing in a company and ideally want someone with the experience of having done it before. Of course that will only occur over time if the cycle of success can be ignited.”

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