Today’s panel discussion: UK Investment Hotspots – Innovation Cities, featuring Bidwells, Prologis, Liverpool City Council, and Newcastle City Council painted a far richer picture, one where innovation is no longer confined to a single corridor, but is emerging across a constellation of ambitious, confident cities.
What became clear is that the UK’s next wave of growth will be shaped not by geography, but by ecosystems: places that understand their strengths, nurture their talent, and build the infrastructure that allows innovation to take root.
Innovation Is Becoming More Distributed
Bidwells’ Partner, Head of Investment and Property, Robert Leadbetter opened the session by acknowledging the complexity of defining innovation. It is, as he put it, “slippery”, interdisciplinary, creative, and constantly evolving. Yet the ingredients that make a city investable are surprisingly consistent: a strong sector ecosystem, a deep talent pool, a compelling lifestyle offer, specialised infrastructure, and access to capital.
These factors compound over time. Oxford and Cambridge, for example, grew nearly three times faster than the national average in the decade to 2015, driven by the gravitational pull of knowledge‑intensive businesses. But the most striking insight from the research was not the dominance of the Golden Triangle, it was the diversity of specialisms emerging across the UK. Cities are no longer competing on scale; they are competing on depth.
Capital Is Selective, Not Scarce
Prologis’ Paul Weston offered a candid view of investor sentiment. Capital is still flowing, but it is flowing more cautiously. The era of “core” real estate is on pause; investors want value‑add opportunities, development‑led strategies, and assets that can outperform in a higher‑rate environment.
Construction has slowed, creating a future supply gap that savvy investors are already positioning for. Logistics demand remains robust. Amazon alone has taken millions of square feet in recent months. And life sciences, after a quieter period, are showing signs of renewed momentum.
The message was clear: capital is not retreating from the UK. It is simply waiting for the right propositions, in the right places, with the right fundamentals.
Liverpool: A City Leaning Into Its Strengths
Liverpool’s story is one of clarity and confidence. Liverpool City Council’s Kate Bull noted the city has doubled down on life sciences, a sector that has grown by an extraordinary 83% over the past five years, far outpacing the national average. With 40,000 students studying health and life sciences across four universities, and the largest cluster of specialist hospitals in Europe, Liverpool has the talent and institutional heft that investors crave.
The creation of an Innovation Zone, aligned with the Freeport, has brought £165 million of government investment into a tightly defined geography. The goal is to unlock £800 million of private capital and create 8,000 jobs. Crucially, the city has achieved something many others struggle with: genuine collaboration across seven NHS trusts, universities, and industry partners. It is a rare alignment of assets, ambition, and affordability.
Newcastle: Proof That Long‑Term Strategy Works
Insight from Jenny Hartley of Newcastle City Council showed that this city’s success is the result of patient, disciplined planning. The Newcastle Helix, a 24‑acre innovation district backed by Legal & General, Newcastle University, and the council, is now a magnet for global names. Buildings are fully let before completion. Leonardo, DSTL, and Lockheed Martin have all chosen the city, drawn by transferable skills in AI, advanced manufacturing, and defence.
What stands out is Newcastle’s agility. When Lockheed Martin needed a UK base for its satellite programme, the city moved quickly, aligning planning, land, and infrastructure to secure the investment. It is a reminder that innovation is not just about assets; it is about responsiveness.
Newcastle’s challenges are familiar: power constraints, planning delays, and political uncertainty. But its trajectory is unmistakably upward.
The Golden Triangle Is No Longer the Whole Story
Both Liverpool and Newcastle were clear that they are not trying to replicate Oxford or Cambridge. Instead, they are building complementary strengths. The UK’s innovation economy is becoming a network, not a hierarchy. Liverpool leads in clinical research and manufacturing. Newcastle is emerging in AI, defence, and space technology. The Golden Triangle remains a global powerhouse for deep science. London continues to dominate capital and talent.
This distributed model is healthier, more resilient, and more reflective of the UK’s true potential.
The Barriers Are National, Not Local
Despite the optimism, the panel was frank about the systemic issues holding cities back. Planning complexity is stifling growth, with Cambridge cited as a prime example of overlapping authorities and stalled infrastructure. Energy constraints are now the single biggest blocker of development, from logistics to data centres to lab space. Political instability - both local and national - creates hesitation at precisely the moment when long‑term certainty is needed.
These are not problems that cities can solve alone. They require national leadership, regulatory reform, and a more strategic approach to infrastructure.
Energy Could Define the Next Decade
Perhaps the most revealing moment came during the audience Q&A on energy, in a reflection of Bidwell’s UKREiiF Day One panel on Clean Energy for Growth, it was noted that the UK has enormous untapped potential. Warehouse roofs alone could host 15GW of solar, but outdated feed‑in tariffs and slow grid connections make it commercially unviable. Developers are exploring microgrids and behind‑the‑meter solutions, but the regulatory environment is lagging behind the market.
Energy is no longer a sustainability issue. It is an economic development strategy. Cities that solve it will win.
A New Model for UK Growth
The panel closed with a sense of cautious optimism. The UK is not short of talent, ideas, or investable cities. It is short of enabling conditions. But Liverpool and Newcastle show what is possible when cities understand their strengths, build long‑term partnerships, and present a coherent story to investors.
The next chapter of the UK’s innovation economy will not be defined by a single corridor. It will be defined by a network of places that know who they are, what they offer, and how to turn potential into performance.
