Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 19
19
Acknowledged
The Government should consider making funding to build the capacity of technology transfer offices contingent...
Recommendation
The Government should consider making funding to build the capacity of technology transfer offices contingent on their ability to deliver significant volume of throughput and provide evidence of success in building capacity and developing skills in their local economies. (Recommendation,Paragraph 58)
Government Response Summary
The government agrees with the overall intent of the recommendation and highlights initiatives to improve access to finance for deep tech companies and strengthen specialist investor capability through the British Business Bank and venture capital fellowships, but does not commit to making funding for technology transfer offices contingent on their performance metrics.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the overall intent of this recommendation. We recognise the importance of improving access to finance for science and deep tech companies, and the need to strengthen specialist investor capability across the UK, particularly in strategic sectors such as quantum and have recently announced a specialist procurement programme ProQure that will be part of stimulating the private sector investment base. The British Business Bank will play a key role here through its expanded capacity which will allow it to make £2.5 billion of investments per year from 2026/27. This will allow for a greater focus on building the ecosystem of specialist investors in IS8 sectors including in strategic deep tech sectors. Expansion of the Bank’s Enterprise Capital Funds and Investor Pathways will also support new and emerging specialist fund managers. We agree with the Committee the need to expand specialist knowledge which is why we will continue to build on initiatives such as the Cluster Innovation Hubs, the successful Science and Technology Venture Capital Fellowship Scheme and related programmes that build investor skills across the UK, alongside plans for a Local Growth Network to develop regional investment ecosystems. We are making progress and delivering against the Mansion House Accord, which will be reported once commitments begin to convert into committed capital flows. The second annual progress update on the Mansion House Compact (16 October 2025) shows that, by February 2025, signatories doubled their unlisted equity investment in DC default funds from £0.8 billion to £1.6 billion. Through the Science & Technology Venture Capital Fellowship, we are supporting the next generation of fund managers to develop the capability to invest in Science & Technology. We agree with the Committee’s reflection that investor awareness of deep tech opportunities is crucial, this is why the scheme includes regional events to showcase innovation ecosystems across the UK and build investor awareness of opportunities within deep tech and life sciences. By the end of 2026, a total of 40 mid-career investors will have completed the Programme, providing specialist training and network-building support to enable them to progress into S&T fund management roles. A formal launch of the Alumni Network took place in March, providing a trusted community for continued professional development, knowledge-sharing and sustained engagement between investors and DSIT on Science and Technology policy. We are currently focusing our efforts on these areas rather than specific investor envoys for deep tech sector.