UK MedTech startups call for reform to drive innovation

The Centre for Process Innovation (CPI) has released a series of reports exposing deep-rooted barriers that are holding back UK MedTech startups and spinouts.

Drawing on insights from 240 small and medium-sized enterprises (SMEs), 100 investors and 10 university technology transfer offices, the findings offer the most comprehensive analysis yet of the hurdles faced by innovators in medical technology.

The research spans three interconnected studies:

Together, these reports provide a roadmap for reform, urging government, regulators and the NHS to collaborate in unlocking the potential of UK MedTech.

Regulatory bottlenecks are hindering progress

One of the most significant barriers identified is the complex regulatory environment.

Many SMEs reported difficulties navigating the Medicines and Healthcare products Regulatory Agency (MHRA), citing limited resources and a lack of accessible guidance.

CPI recommends the introduction of a ‘freemium’ advice service – offering free basic guidance and paid in-depth support to help innovators bring products to market faster.

Without such measures, UK companies risk falling further behind international competitors, particularly those in the United States, where regulatory and funding pathways are considered more streamlined.

Funding gaps threaten SME growth

Investment is another critical concern. UK MedTech startups frequently secure early funding but struggle to attract Series B and later-stage investment, pushing many to look overseas for financial backing.

To reverse this trend, the reports call for:

• Expanded tax relief for R&D, particularly for SMEs running UK-based clinical trials.
• Greater government co-investment in scaling companies.
• Strengthening of the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS).

These measures, CPI argues, would ensure the UK retains its most promising MedTech talent and innovation.

NHS adoption remains fragmented

The reports also highlight a disconnect between innovators and the NHS. Fragmented procurement processes and limited visibility of NHS priorities are discouraging investors and delaying patient access to transformative technologies.

To address this, CPI proposes creating an NHS Priority & Clinical Register that would set out unmet needs and procurement intentions, giving entrepreneurs and investors a clearer sense of demand.

Dr Alex Cole, Director of Market Strategy at CPI, explained: “The NHS is a real shining star of the UK, but for innovators to benefit from it, they really need to know what the unmet needs are and who within the organisation is willing to engage.

“Success or failure is often dependent on the correct NHS and clinical engagements. Our proposed clinical register should be the paradigm shift we need.

“These reports show that the UK has the talent and ideas, but without joined-up support, we risk losing the economic and clinical benefits to other countries.

“We call on policymakers, NHS leaders, investors and universities to act on the recommendations and collaborate to unlock the full potential of UK MedTech innovation.”

Delivering on national strategies

With both the NHS 10-Year Plan and the Life Sciences Sector Plan launched in July 2025, emphasising the importance of medical technology, stakeholders agree that accelerating UK MedTech innovation is critical.

The CPI reports, developed through the MedTech Accelerator: Rapid Regulatory Support (MARRS) Fund, offer tangible steps towards realising that vision.

By tackling barriers in regulation, investment and NHS adoption, the UK could position itself as a global leader in MedTech – driving economic growth while improving patient outcomes nationwide.