The Challenges Ahead of the U.K in Commercializing Technology Businesses

Warren East, the former CEO of British chip design firm Arm, highlighted the challenges the U.K. faces in commercializing technology businesses globally. He emphasized the need for a mindset shift from the investor community to secure a spot on the world stage. According to East, the lackluster growth and poor rates of GDP per head in the U.K. are a cause for national embarrassment. One of the main issues that East pointed out was the tendency of British firms to relocate or list abroad due to difficulties in achieving global relevance from the U.K.

East raised concerns about the fact that a considerable amount of innovation is created in the U.K. but is then exported to other countries for commercialization. This trend, according to East, results in a scenario where British-made technologies are exploited elsewhere, depriving the U.K. of the economic benefits. He stressed the need for the U.K. to focus on getting the commercialization process right in order to retain the value generated from its innovations.

Encouraging Risk Appetite

One of the key solutions proposed by East to address the challenges facing the U.K. in commercializing technology businesses is to encourage more risk appetite among investors. He pointed out that while the U.S. has far deeper pools of capital and higher investor risk appetite, the U.K. needs to support high-growth tech firms by fostering a culture of risk-taking. East acknowledged that there is no “silver bullet” solution to the problem but stressed the importance of promoting a supportive environment for startups to scale up.

East also highlighted the need for changes to capital market rules in the U.K. to attract more investments from pension funds into startups. He suggested that stimulating risk appetite among investors through regulatory changes could help in addressing the funding gap faced by high-growth tech firms. While there have been efforts within the British entrepreneurial community and venture capitalists to push for these changes, East noted that businesses cannot wait for the rules to change and must take proactive steps to secure funding for growth.

The Way Forward

East’s insights shed light on the challenges ahead of the U.K. in commercializing technology businesses on a global scale. The need for a mindset shift, a focus on retaining innovation value, encouraging risk appetite among investors, and advocating for regulatory changes to support startups are crucial steps that the U.K. must take to compete effectively in the technology market. While the road ahead may be challenging, East’s optimistic outlook on the potential for change and growth in the U.K. tech sector provides hope for a brighter future.