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Blog post: ‘Enhancing the UK Agri-Tech Sector: Mapping the path to Innovation and Commercial Success’

February 5, 2025

Innovation

The following blog post has been written by Dr Hamisu Salihu and is based on the findings from the Mapping the Innovation and Commercialisation Infrastructure for Agricultural Technology in the UK report.

The UK’s Agri-tech sector stands at a pivotal moment, with the potential to revolutionise agriculture domestically and on the global stage. However, gaps in infrastructure, funding, and collaboration hinder the sector’s capacity to translate innovative research into market-ready solutions. Overcoming these barriers/challenges through strategic investment and policy alignment can unlock significant economic and environmental benefits.

Using novel data from The Data City and evidence from in-depth interviews with a wide range of stakeholders, from policymakers, funders, technology developers, and academics/sector experts, the report highlights the sector’s strengths and weaknesses. While the UK excels in research and development and even piloting of cutting-edge agricultural technologies such as robotics, drones, and gene-editing, it faces commercialisation and scaling-up challenges.

The challenges / barriers

The report identifies critical challenges facing the sector. While early-stage innovation benefits from robust government support, businesses often falter at the commercialisation and scaling-up phases. A recurring theme in interviews with businesses and sector experts was the “funding cliff,” where securing the millions needed for later-stage developments becomes “very, very difficult in the UK” (Industry Expert 1). One business leader lamented, “Finance, finance, finance, and the lack of a good investment community inside the United Kingdom” (Business Respondent 3).

In addition to funding, the sector faces infrastructure deficits. Echoing this problem, a respondent who owns a crop gene editing company made the following remarks:

“Well, we have a huge issue in the gene editing space… there’s a huge initial cost required to start working in this area… So anybody who wants to enter into this market… needs to recreate all of the facilities themselves and that’s incredibly expensive… you need 10 million and that’s a huge ask for investors… there’s a huge need in the UK… for this centralisation of facilities that companies would be able to lease” (Business Respondent 13).

Collaboration and engagement among stakeholders also require improvement. Misaligned expectations between technology developers, farmers, and funders frequently impede progress. One expert observed, “There’s misaligned expectations… what can be delivered, the pace at which it can be delivered, and the return on investment for the farmers” (Expert Interview 1). Regular dialogue and joint initiatives can address these issues, creating a more cohesive ecosystem.

The adoption of new technologies by farmers presents further hurdles. High costs, limited awareness, and fragmented industry networks slow the uptake of innovations. Commenting on a case where a new technology was considered, one Business Respondent from an agri-tech project development company expressed scepticism, noting, “Although it [the technology] would likely improve efficiency, productivity, and fish health, it’s such an expensive technology that the market just can’t afford it” (Business Respondent 7). More financial incentives and trial programmes are essential to bridge this gap, allowing farmers to experience the benefits first-hand without undue risks.

The opportunities / way forward

To overcome these challenges, the report outlines several strategic investment areas. Key recommendations include developing high-TRL infrastructure, fostering collaborative funding models, and introducing tiered funding schemes. One interviewee emphasised the importance of Innovate UK’s role, stating, “Innovate UK provided us with the essential funding that allowed us to develop our prototype. Without their support, we would have struggled to move forward” (Business Respondent 2). However, there remains a need for greater funding support for technologies closer to the market.

Another pressing need is a national agri-tech roadmap. A comprehensive strategy would provide clear guidance for stakeholders, inspire investor confidence, and accelerate technology adoption. This roadmap could also include a directory of recommended technologies tailored to specific crops and conditions, addressing the confusion many farmers face when navigating the diverse agri-tech landscape.

The UK’s agri-tech sector has the potential to become a global frontrunner leader in sustainable agriculture. By addressing its current shortcomings and leveraging its innovative capabilities, it can drive significant advancements in productivity and promote environmental sustainability. The road ahead requires coordinated and collaborative efforts from policymakers, funders, farmers, and industry leaders, but the rewards—economic, environmental and societal—are well worth the investment.

References:

Salihu, H., Jibril, H., Roper, S., Ortega-Argiles, R., Yuan, P (2025) “Mapping the Innovation and Commercialisation Infrastructure for Agricultural Technology in the UK”, IRC Report No 019… Retrieved from: Mapping the Innovation and Commercialisation Infrastructure for Agricultural Technology in the UK.

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