Can the UK become a global powerhouse for HealthTech?

Decisive reforms have created an economic opening for health technologies, write Richard Stubbs, chief executive of Health Innovation Yorkshire and Humber, and Dame Barbara Hakin, chair of the Health Tech Alliance

The summer of 2025 marked a pivotal chapter in the evolution of the UK’s health and care landscape.

The publication of the government’s 10 year health plan and Life Sciences Sector Plan promise a new era defined by structural overhaul and digital innovation.

In July, the Medicines and Healthcare products Regulatory Agency (MHRA) introduced international reliance routes with Australia, Canada, and the US, making it easier and faster for medical technologies, including AI, to reach UK patients.

This is a decisive step for the UK in signalling it is open for health innovation.

By reducing duplication and recognising international approvals, these reforms streamline market access and free domestic capacity to assess high‑impact technologies.

This is more than a regulatory tweak, it’s an economic opening.

The economic opportunity

A recent report commissioned by the Health Innovation Network and delivered by Frontier Economics,’The Size of the Health Innovation Prize‘ shows how valuable that opening could be.

Under a high-growth scenario, foreign direct investment (FDI) into UK health innovation could deliver up to £32bn in economic benefits by 2035, generating 158,000 new jobs, £22 billion in gross value added, and a 1:1 boost in domestic R&D investment.

These are not marginal gains; they represent long-term, high-quality gains the UK urgently needs.

The NHS is still seen as slower‑moving and commercially opaque when it should be a testbed for innovation

This potential is already visible.

At HLTH Europe, where the Health Innovation Network showcased the UK’s capabilities, international businesses expressed strong interest in entering the UK market, attracted by our world-class research infrastructure, the NHS’s reputation as a trusted reference customer, and a policy environment that increasingly prioritises safety, equity, and evidence.

Restraints with procurement processes and scaling

Despite this interest, innovators told us the same thing: the UK remains one of the hardest health markets to scale in. Admired for research and regulatory rigour, the NHS is still seen as slower‑moving and commercially opaque when it should be a testbed for innovation.

A recent Health Tech Alliance report, based on workshops with policymakers and industry, identified key issues with today’s NHS procurement: complex central infrastructure, fragmented local communication, unclear pathways and guidance, and stretched decision‑makers.

These are not barriers of intent but of inertia, the result of under‑resourced adoption infrastructure and the absence of a national implementation strategy.

Closing the gap between invention and adoption

This is where collaboration is critical.

Networks like the 15 health innovation networks and the Health Tech Alliance help close the distance between invention and adoption and embed forward-looking processes such as value‑based procurement.

We work at the intersection of supply and demand: helping innovators understand the complex realities of delivering within the NHS, while supporting system leaders to make informed decisions on what to adopt, when, and how.

From real‑world evaluation to aligning innovations with the goals of integrated care systems, we offer the trusted, practical support needed to turn promising pilots into lasting progress.

What’s often overlooked is that the challenge in the NHS is less invention than implementation.

Health systems globally struggle to scale beyond early adoption because incentives, infrastructure and headroom to implement simply aren’t there. That holds back patient outcomes and economic value alike.

To unlock the full economic potential, we must invest in adoption architecture that enables system-wide uptake

The MHRA’s reforms, aligned with the UK life sciences vision and the government’s 10 year health plan, point to a welcome shift: they simplify access, signal openness, and reaffirm the UK’s commitment to be a destination for delivery as well as discovery.

To unlock the full economic potential, we must now invest in the adoption architecture that enables system‑wide uptake.

The UK has always been a science powerhouse, and the appetite is certainly there.

Global investors see value in our data-rich environment, our mission-led approach to health equity, and our capacity for impact at scale. The challenge now is to match that with adoption, translating research brilliance into tangible benefits for patients, staff, and the economy.

We need to prove that the UK is not just for pilot phases, but for scaling too.