Building an innovation powerhouse in the world's first industrial city
Bradley Topps, project director of a new £1.7bn tech and science district in Manchester, on AI, tech policy and rebooting the UK's startup ecosystem.
It's not exactly grim up north for UK startups. But there's no doubt that centres of innovation in the south tend to hog the limelight and draw a disproportionate share of investment.
It wasn't always this way. During the Industrial Revolution, Manchester was arguably the most innovative city in the world. Since then, it has slipped behind the "golden triangle" of London, Oxford and Cambridge - but is now working hard to regain its leading position.
Bradley Topps, a self-described "proud Mancunian" and Project Director of a new £1.7bn science and tech innovation district in Manchester called Sister, argues that it's time to unlock the "immense untapped potential" of his home city.
Sister is a 15-year joint project from The University of Manchester and Bruntwood SciTech. It launched last year and aims to transform the University's former North campus into a four-million-square-foot innovation district for science and technology.
The district will focus on sectors like digital tech, health innovation, biotechnology, advanced materials, and manufacturing, offering state-of-the-art facilities, connecting high-growth businesses with investors and fostering collaboration between UK and global companies. So far, its customers includes Concretene, Kraken Technologies and Sustainable Ventures.
We spoke to Topps to find out how to develop an AI ecosystem in the north, find out what the government's doing wrong and get some ideas on how to solve lingering problems with the UK's tech sector.
What's life like for startups in the UK right now?
"Start-ups today are not just grappling with funding and talent shortages, but they’re also navigating a challenging economic environment. Tax hikes and rising interest rates have pushed investors to seek faster returns and larger stakes, resulting in many businesses leaving the UK to pursue markets overseas where they can retain more of their equity.
"The government has a key role to play here in supporting early-stage businesses and preventing a talent drain. R&D tax credits are a good example of tax incentives that encourage a culture of innovative thinking at a time when businesses are having to think carefully about long-term investments. In this environment, it’s important not to stifle the entrepreneurial spirit of our start-up community, and instead, use this as an opportunity to harness their innovative mindset to help tackle the big challenges we face as a society, while kick-starting the economy.
"Beyond government support, innovation districts and start-up hubs provide essential support to boost startup success. Not only do they help ventures navigate the changing business landscape and connect them with the right support networks, they provide the tools and services they need to grow and scale in the UK. This includes training opportunities, R&D facilities, business guidance and access to investors. All the things startups need for long-term success."
What can the UK do better in order to become a serious player in fast-growing industries like AI?
"The UK has all the core ingredients to be a global leader in AI. We have world-class academic institutions, a strong entrepreneurial spirit and a legacy of scientific and technological innovation. Yet, barriers like access to talent and funding continue to hold us back from gaining more global recognition and building more UK-based unicorns.
"From a talent perspective, we’re struggling to innovate at speed because we’re experiencing a brain drain, especially in high-demand industries like AI. To deliver the AI Action Plan, the government needs to train tens of thousands of workers by 2030, but to plug the current skills gap, they're looking to attract international talent through relaxed visa rules and scholarship programmes. While this addresses a short-term need, it risks deepening our reliance on international experts in the long term.
"Funding is another barrier for tech start-ups. The UK excels at innovation, but we struggle to commercialise these enterprises. Too often, IP ends up being acquired by global investors who are generally more optimistic and risk-tolerant. The solution to these problems lies in shifting mindsets and attitudes towards transforming ideas into businesses.
"We need to cultivate an ecosystem that offers early-stage companies the right investment opportunities and resources to scale quickly at home, while offering accessible learning opportunities to upskill the nation. Only then can we realise the UK’s full potential as an AI powerhouse.”
What has Westminster done wrong and how can we better support innovation in the UK?
"To turn a promising concept or piece of technology into something commercially viable, you need the right people, the right support, and the right environment. Universities have historically been centres for innovation, but public funding has been significantly reduced, threatening our talent pipeline and the success of spin-out businesses.
"Beyond university funding, a broader structural issue lies in how investment is distributed across the UK. Funding for innovation has largely remained concentrated in London, excluding high-potential regions that bring unique strengths to the table. This imbalance not only limits the growth of regional ecosystems, but underestimates the value of local specialisms whether its advanced materials in Manchester, biotech in Edinburgh or robotics in Birmingham.
"To build a sustainable and inclusive innovation economy, the government needs to recognise and invest in these regional hubs. That begins with stronger collaboration between the public and private sectors to support innovation hubs and startup accelerators that anchor local ecosystems. Supporting early-stage businesses through these networks will drive faster, more impactful growth that ensures innovation thrives not just in the capital but across the country."
What role has the north played in British innovation and are we seeing a move to decentralise innovation away from, say, Oxford, Cambridge and London?
"The North has been a longstanding powerhouse of innovation in the UK. Manchester is a prime example - it’s the birthplace of the industrial revolution, it’s where the atom was first split and the first programmable computer was built. Today, it remains a centre point of innovation with students at the University of Manchester leading in the development of the world’s purest silicon which is essential for building AI chips.
"While the UK’s Industrial Strategy acknowledged the need to expand innovation investment beyond the ‘Golden Triangle’ with AI Investment zones, more needs to be done to showcase the huge opportunities that exist in different regions. Traditionally, Oxford, Cambridge and London have been central hubs associated with innovation, because of the universities but also because this is where a lot of key investors are based. As a result, most of our unicorns have come out of these areas which put them firmly on the map.
"However, regions like the North offer immense untapped potential. With world-class universities, vibrant cities and competitive salaries and cost of living, they attract young talent and foster cutting-edge work in areas like AI and advanced materials. Manchester for instance is home to the Institute for Data Science and AI, as well as Alan Turing Innovation Catalyst and the National Graphene Institute.
"To compete globally, the UK must invest in and celebrate innovation across all regions. Promoting northern success stories and supporting regional ecosystems will unlock broader economic growth and ensure the UK remains at the forefront of global technological and scientific advancement."
What are the startups you’re most excited about - and how do they point the way forward for UK innovation?
"I’m really excited about the plethora of green start-ups that are emerging. These businesses will play a crucial role in tackling climate change and developing sustainable alternatives to our most pressing energy challenges.
"What’s especially exciting is how these innovators are addressing the ripple effects of emerging technologies - especially AI. From reducing water consumption in data centre cooling to pioneering new methods of powering AI systems sustainably, it’s start-ups that are laying the groundwork.
"These early-stage businesses bring fresh perspectives and bold ideas that have the potential to reshape not just industries, but the way our society functions. This is where real, long-term change begins."
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