The Center for Process Innovation (CPI) has released a series of reports revealing the deep-rooted barriers that are thwarting startups and spin-outs in the UK.
Based on insights from 240 small and medium-sized businesses (Small and Medium Enterprises), 100 investors and 10 university technology transfer offices, this finding provides the most comprehensive analysis of the hurdles facing medical technology innovators.
This study spans three interconnected studies.
Together, these reports provide a roadmap for reform and urge governments, regulators and the NHS to work together to unlock the possibilities of UK MedTech.
Regulatory bottlenecks are hindering progress
One of the most important barriers identified is the complex regulatory environment.
Many SMEs reported difficulties navigating the Medicine and Healthcare Products Regulatory Agency (MHRA), citing limited resources and lack of accessible guidance.
CPI recommends introducing a “freemium” advice service. We provide free basic guidance and in-depth support to help innovators bring their products to the market faster.
Without these measures, UK companies risk further falling into US competitors, particularly US competitors, where regulatory and financing channels are considered more streamlined.
Funding gaps threaten small and medium-sized businesses’ growth
Investment is another important concern. Although UK MedTech startups often secure early funding, they struggle to attract Series B and later investments, making many appear overseas in search of financial support.
To reverse this trend, the report calls for:
We have expanded the R&D tax cuts in particular for small and medium-sized businesses that are conducting UK-based clinical trials. Large scale of government co-investment in scaling companies. Enhancements to the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS).
The CPI argues that these measures ensure that the UK retains the most promising Medtech talent and innovation.
NHS adoption remains fragmented
The report also highlights the disconnect between innovators and the NHS. The limited visibility of fragmented procurement processes and NHS priorities is to block investors and slow patient access to transformative technologies.
To address this, CPI proposes the creation of NHS priorities and clinical registrations that set unmet needs and procurement intentions, giving entrepreneurs and investors a clear sense of demand.
Dr. Alex Cole, Market Strategy Director at CPI, explained: “The NHS is a truly illustrious star in the UK, but innovators need to know what their unmet needs are and who is engaged within the organization to benefit from it.
“Success or failure often depends on the correct NHS and clinical efforts. The proposed clinical registry must be a necessary paradigm shift.
“These reports show that the UK has talent and ideas, but without combined support there is a risk of losing economic and clinical benefits to other countries.
“We are calling on policymakers, NHS leaders, investors and universities to act and cooperate on recommendations to maximize the potential of MedTech’s innovation.”
Providing national strategies
With both the NHS 10-Year Plan and the Life Science Sector Plan launched in July 2025 underscoring the importance of medical technology, stakeholders agree that it is important to accelerate UK MedTech innovation.
MedTech Accelerator: CPI Reports, developed through the Rapid Regulatory Support (MARRS) fund, provide specific steps to realizing that vision.
By tackling barriers to regulation, investment and adoption, the UK is able to establish itself as a global leader in MedTech, driving economic growth while improving patient outcomes across the country.
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