The UK government’s recent announcement of an £86 billion investment in science and technology highlights several key sectors and technologies poised to drive economic growth and innovation.
We are interested to understand the priority sectors and technologies targeted for UK R&D funding. If you want to know the priority sectors for R&D grant funding and the priority technologies for R&D grant funding, our summary will help.
The Key Sectors prioritised for R&D funding in the UK from 2025 onwards are:
- Life Sciences: Emphasis on accelerating drug discovery and medical research, particularly in regions like Liverpool.
- Advanced Manufacturing: Investment aimed at enhancing manufacturing capabilities and integrating cutting-edge technologies.
- Defence: Support for defence innovation, with Northern Ireland noted for its expertise in defence equipment.
- Semiconductors: Focus on semiconductor design and manufacturing, with South Wales highlighted as a hub for this industry.
Lets take a look at each of these in a bit more detail:
Life Sciences
Primary Focus: Drug discovery, medical research
Key Adjacent Sectors:
- Biotechnology – Tools for genetic engineering, synthetic biology, and cellular therapy
- Pharmaceutical Manufacturing – Scale-up of therapeutics and vaccines
- Medical Devices & Diagnostics – Development of imaging tools, sensors, wearable tech
- Digital Health / HealthTech – Remote monitoring, AI diagnostics, telemedicine platforms
- Regenerative Medicine – Stem cell therapies and tissue engineering
- Bioinformatics & Genomics – Big data and AI for genetic analysis and personalised medicine
- Public Health R&D – Disease modelling, prevention strategies, health policy integration
- Clinical Research Services – CROs, trial design, patient recruitment platforms
Advanced Manufacturing
Primary Focus: Enhanced capabilities using next-gen technologies
Key Adjacent Sectors:
- Industrial Automation & Robotics – Smart factories, cobots, autonomous systems
- 3D Printing / Additive Manufacturing – Prototyping, complex component manufacturing
- Materials Science & Engineering – Composites, smart materials, sustainable alternatives
- Precision Engineering – Ultra-fine machining for aerospace, automotive, medtech
- Digital Twins & Simulation – Virtual replication of industrial processes
- Energy-Efficient Manufacturing – Green processes, circular economy integration
- Industrial IoT (IIoT) – Sensors, predictive maintenance, process optimisation
- Supply Chain Innovation – Blockchain in logistics, AI-driven inventory systems
Defence
Primary Focus: Innovation in defence equipment and systems
Key Adjacent Sectors:
- Aerospace & Space Technologies – Military aircraft, satellites, autonomous drones
- Cybersecurity & Cryptography – Threat detection, secure communications, quantum encryption
- Dual-Use AI Systems – Surveillance, logistics, threat modelling
- Autonomous Vehicles (Air, Land, Sea) – Drones, UGVs, naval robotics
- C4ISR Technologies – Command, control, communications, intelligence systems
- Resilience & Infrastructure Protection – Sensors, disaster response, critical systems
- Advanced Materials for Defence – Ballistics, heat resistance, stealth coatings
- Simulation & Training Systems – VR/AR training, digital battlefield models
Semiconductors
Primary Focus: Chip design, fabrication, and next-gen electronics
Key Adjacent Sectors:
- Microelectronics & Nanotechnology – MEMS, nano-fabrication tools, quantum dots
- Quantum Technologies – Chips for quantum computers, sensors
- Photonic Devices – Optical computing, fibre optics, LiDAR
- Embedded Systems – IoT device integration, real-time computing
- AI Hardware – Accelerators, neuromorphic chips, edge computing processors
- Telecommunications Infrastructure – 5G/6G systems, baseband processors
- Power Electronics – GaN/SiC semiconductors for EVs and clean energy
- Cleanroom Manufacturing Tech – Facilities, automation, supply chain equipment
Cross-Sector Enablers
These support multiple areas above:
- Artificial Intelligence & Machine Learning
- High-Performance Computing (HPC)
- Clean Energy Technologies (e.g. hydrogen, fusion)
- Data Infrastructure & Cloud Platforms
- Advanced Materials & Chemistry
There are specific and Key Technologies that will be priorities for R&D funding the UK from 2025 onwards, which are:
- Artificial Intelligence (AI): Funding directed towards AI breakthroughs to bolster various sectors and stimulate economic growth.
- Battery Technology: Development of longer-lasting batteries to support energy storage solutions
- Engineering Biology: Advancements in this field to revolutionize food, fuel, and material production
Lets break those out:
Artificial Intelligence (AI)
Core Focus: Algorithmic breakthroughs and AI adoption across sectors
Adjacent & Enabling Technologies:
- Machine Learning (ML) – Supervised, unsupervised, reinforcement learning
- Deep Learning – Neural networks for vision, speech, NLP
- Natural Language Processing (NLP) – Language understanding and generation, translation
- Computer Vision – Image and video analysis, object detection, facial recognition
- Edge AI – AI processing on local devices (low latency, privacy-preserving)
- Federated Learning – Decentralised model training across devices for privacy/security
- AI Chips & Hardware – Neuromorphic computing, GPUs, TPUs, and AI accelerators
- Explainable AI (XAI) – Transparency and auditability in automated decision-making
- Autonomous Systems – Self-driving vehicles, drones, robotics
- Digital Twins – Real-time virtual models powered by AI for simulation and monitoring
- Ethical AI & AI Governance – Bias mitigation, fairness, accountability tools
- Human-AI Interaction – Voice assistants, decision support systems, conversational AI
- AI in Cybersecurity – Threat detection, anomaly detection, predictive risk analysis
Battery Technology
Core Focus: High-performance, long-duration energy storage
Adjacent & Enabling Technologies:
- Solid-State Batteries – Enhanced safety and energy density using solid electrolytes
- Lithium-Sulfur (Li-S) and Lithium-Air Batteries – Advanced chemistries with potential for higher energy output
- Sodium-Ion Batteries – Cost-effective alternative to lithium with abundant materials
- Redox Flow Batteries – Scalable solutions for grid-scale energy storage
- Supercapacitors / Ultracapacitors – Rapid charge/discharge for short-term storage
- Battery Management Systems (BMS) – Real-time monitoring, safety, and lifecycle optimisation
- Recycling & Second-Life Batteries – Circular economy tech for reusing materials and extending battery life
- Smart Charging & V2G (Vehicle-to-Grid) – Technologies that integrate batteries with energy systems and smart grids
- Thermal Management Technologies – Heat dissipation solutions to improve battery safety and lifespan
- Materials Discovery via AI – Using AI/ML to discover new battery materials (e.g., electrolytes, anodes)
- Energy Harvesting – Technologies enabling micro-charging from environmental sources (vibration, solar, RF)
Engineering Biology
Core Focus: The rational design and modification of biological systems
Adjacent & Enabling Technologies:
- Synthetic Biology – Designing biological parts, devices, and systems for novel functions
- Genome Editing (e.g., CRISPR-Cas9) – Targeted gene modification for agriculture, medicine, and industry
- Bioprocess Engineering – Scaling biological reactions for industrial production (e.g. biofuels, enzymes)
- Metabolic Engineering – Rewiring cellular pathways to produce high-value compounds (pharmaceuticals, chemicals)
- Cell-Free Systems – Biomanufacturing platforms that function without living cells
- Microbiome Engineering – Manipulating microbial communities for health, agriculture, and environment
- Biosensors & Bioelectronics – Devices that detect biological data for diagnostics or environmental monitoring
- Agricultural Biotechnology – Genetically optimised crops, microbial biofertilisers, precision farming
- Algae-Based Biomanufacturing – Renewable feedstocks for fuels, plastics, and nutrients
- Protein Design & Enzyme Engineering – Tailored proteins for industrial, therapeutic, or research use
- Biocomputing – Using biological molecules (like DNA) for computation and data storage
- Biofoundries & Automation – Robotic platforms for rapid DNA synthesis, design-build-test-learn cycles
- Regenerative Medicine – Tissue scaffolding, bioprinting, and stem-cell based therapies
Cross-Cutting Technologies Supporting All Three Areas
- High-Performance Computing (HPC) – Supports AI modelling, materials simulation, and bioinformatics
- Quantum Computing – Long-term enabler for materials discovery and complex biological simulations
- Data Infrastructure & Cloud Platforms – Required for AI training, biology data sharing, and BMS systems
- Advanced Materials Science – Shared across battery and biomanufacturing innovation
- Cyber-Physical Systems – Integration of AI, IoT, and robotics in manufacturing or medical applications
Summing Up
This list of sectors and technologies that are priorities for UK R&D funding was produced by the UKs Department for Science, Innovation and Technology. Whilst it covers the priority sectors and technologies, if your innovation research project of development plan doesn’t quite fit into one of these categories, please get in touch as there are both Open Calls for Funding and EU calls for Funding that might be suitable.
We are experienced in matching innovation projects to funding opportunities, and writing winning proposals. We are always happy to advise on the potential for funding – get in touch here.
Alex Chalkley
I have over 20 years experience in founding and scaling businesses, mainly focused on the non-dilutive funding sector. Since 2008, I have built, trained and mentored teams to successfully draw down over €100m in non-dilutive funding from the UK and EU for clients spanning multiple sectors.
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