How to make UK HealthTech more investable

Lloyd Price
2 hours ago
6 min read

How to make UK HealthTech more investable

Making UK HealthTech more investable requires a multi-faceted approach, encompassing strategic shifts, tactical execution, and consistent activities. The UK has a strong foundation with world-class research institutions, a thriving startup ecosystem, and the unique asset of the NHS, but faces challenges related to capital shortages, regulatory complexities, and skills gaps.

The overarching strategy should focus on building a robust, predictable, and supportive environment that attracts both domestic and international capital. This involves a coordinated effort across government, industry, and the NHS.

Key Strategic Pillars

Streamlined Regulatory & Market Access: Reduce the time and complexity for HealthTech products to gain regulatory approval and be adopted by the NHS.
Enhanced Funding & Incentives: Increase the availability and attractiveness of investment capital for HealthTech companies at all stages of development.
Talent & Skills Development: Address skills shortages and ensure a strong pipeline of skilled professionals for the HealthTech sector.
NHS as an Innovation Enabler: Transform the NHS into a proactive partner in the development, testing, and adoption of HealthTech, shifting from a cost-focused to a value-based procurement approach.
International Competitiveness: Position the UK as a global leader in HealthTech, attracting overseas investment and facilitating exports.

Tactics: Implementing the Strategy

These are the specific approaches and methods to achieve the strategic objectives.

1. Regulatory & Market Access Tactics

Mutual Recognition of Approvals: Implement policies to recognise regulatory approvals from trusted international jurisdictions (e.g., FDA, EU), streamlining UKCA approval for products already validated elsewhere.This incentivises companies to invest in NHS clinical trials and establish European operations in the UK.
Accelerated Access Pathways: Strengthen and expand initiatives like the Accelerated Access Collaborative (AAC) and the new integrated, rules-based medical technology (medtech) pathway. These aim to fast-track promising innovations into the NHS.
Harmonised NHS Guidelines: Work towards standardising and harmonising guidelines across NHS Trusts to simplify requirements for manufacturers and reduce fragmentation in market entry.
Value-Based Procurement: Shift NHS procurement from a lowest-cost focus to one that prioritizes patient outcomes, long-term savings, and innovative potential. This encourages investment in higher-value, impactful technologies.
Early Engagement with NHS: Promote early and continuous engagement between HealthTech companies and relevant NHS stakeholders (local organisations, regional innovation networks) to ensure products address real-world needs and gain buy-in.

2. Funding & Incentives Tactics

Targeted R&D Tax Credits: Introduce specific and enhanced R&D tax credits for clinical trials conducted with the NHS to restore the UK's competitiveness in clinical trials and attract more investment.
Capital Gains Tax (CGT) & Enterprise Management Incentive (EMI) Reforms: Adjust tax rules to better reward employees of high-risk, early-stage HealthTech companies, encouraging experienced professionals to join entrepreneurial ventures.
"Open Call" Funding Model: Develop more flexible and accessible public funding mechanisms, such as an "open call" model, to allow SMEs to access resources on demand and simplify application processes.
Leverage Existing Funding Bodies: Encourage bodies like Innovate UK and the British Business Bank to further tailor their programs and support for HealthTech, including investment readiness training and pitch panels.
Attract Private Investment: Create a more attractive environment for venture capital, angel investors, and private equity by demonstrating clear pathways to commercialisation and scalable business models within the UK healthcare system.

3. Talent & Skills Development Tactics

HealthTech Industry Partnership (HIP): Establish an industry-led partnership, endorsed by the government, to address skills shortages through specialised training programs and collaboration with academia (e.g., UK Research and Innovation, Office for Life Sciences).
Foster Entrepreneurial Talent: Provide support and incentives for individuals to pursue careers in HealthTech, addressing the "brain drain" and encouraging R&D to remain in the UK.
International Accelerator Programs: Expand programs that connect UK HealthTech companies with international markets and talent, fostering global partnerships and investment.

4. NHS as an Innovation Enabler Tactics

Integrated Data Platforms: Continue the expansion of Federated Data Platforms and Secure Data Environments within the NHS to provide richer, anonymised datasets for R&D and innovation, attracting companies leveraging AI and data analytics.
Pilot and Scale Programs: Actively support and promote pilot programs for new HealthTech solutions within the NHS, with clear pathways for successful technologies to be scaled across the system.
Focus on System-Wide Efficiencies: Encourage HealthTech solutions that demonstrably reduce bottlenecks, save staff time, and improve throughput across entire care pathways, not just individual units.
Proactive Engagement with Innovation: Shift the NHS culture to be more receptive and proactive in seeking out and adopting innovative HealthTech solutions that address key challenges like waiting times, patient outcomes, and system efficiency.

5. International Competitiveness Tactics

Export Support Programs: Boost exports through a comprehensive program of overseas customer engagement events, supported by the Department for Business and Trade (DBT).
Promote UK Success Stories: Actively showcase successful UK HealthTech companies and their impact to attract foreign direct investment and partnerships.
Strategic Alliances: Foster collaborations with international healthcare systems and technology hubs to facilitate knowledge exchange and market access for UK HealthTech.

Activities: Day-to-Day Execution

These are the concrete actions and initiatives that bring the tactics to life.

For HealthTech Companies

Develop Strong Value Propositions: Clearly articulate how your product addresses an unmet need, solves a critical problem for patients and clinicians, and provides quantifiable value (e.g., cost savings, improved outcomes).
Build Robust Evidence Bases: Generate high-quality clinical evidence and real-world data to demonstrate effectiveness and cost-effectiveness for NICE evaluations and NHS adoption.
Understand Regulatory Requirements Early: Proactively engage with regulatory bodies (e.g., MHRA) and seek legal advice to ensure compliance from the outset, avoiding costly delays.
Engage with the NHS: Participate in NHS innovation programs, attend industry events, and build relationships with relevant trusts and integrated care boards to understand their needs and align your solutions.
Prepare for Investment Readiness: Develop detailed business plans, conduct thorough market research, and assemble a strong management team. Seek advice from specialised financial advisors and participate in investor readiness programs (e.g., Innovate UK's Invest-Ability).
Protect Intellectual Property (IP): Safeguard R&D results through formal mechanisms like NDAs and patents.
Network and Collaborate: Attend industry conferences, participate in accelerator programs, and collaborate with academic institutions, other businesses, and patient groups.
Focus on Scalability: Design solutions with scalability in mind, considering how they can be integrated into existing NHS infrastructure and expanded across different care settings.
Demonstrate Cybersecurity and Data Resilience: Given the sensitivity of health data, prioritize robust cybersecurity measures and demonstrate compliance with data protection regulations (GDPR, UK Data Protection Act).

For Government & Support Organisations

Regular Consultations: Conduct ongoing consultations with industry stakeholders to understand challenges and refine policy.
Funding Calls: Issue regular and targeted funding calls for HealthTech innovation, particularly addressing identified NHS priorities.
Training Programs: Deliver specialised training programs for HealthTech professionals and entrepreneurs, focusing on areas of skills shortages.
International Roadshows: Organise trade missions and showcase events in key international markets to promote UK HealthTech capabilities.
Data Sharing Initiatives: Facilitate secure and ethical access to NHS data for approved research and development, adhering to patient privacy guidelines.
Public Awareness Campaigns: Raise awareness among the public and healthcare professionals about the benefits and potential of HealthTech.
Monitoring and Evaluation: Continuously monitor the impact of policies and initiatives on HealthTech investment and adjust as needed.

By implementing these strategies, tactics, and activities, the UK can significantly enhance the investability of its HealthTech sector, driving economic growth, improving patient outcomes, and solidifying its position as a global leader in healthcare innovation

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