Scotland has a longstanding reputation for punching above its weight when it comes to science and engineering – supported not only by our world-class academic institutions, but also a strong ecosystem of spin-outs and start-ups. This is particularly true in ‘deep tech’, with a number of success stories in recent years going on to achieve global success.
Yet, with so much economic uncertainty this year we have unfortunately seen a number of high-growth potential companies in Scottish deep tech fall into administration. Perhaps the highest-profile example being M Squared Lasers, a Glasgow-based photonics company, which was a genuine world leader in its field.
It’s easy for setbacks like these to dampen sentiment towards an industry that many believe will be an important part of Scotland’s future – not least the government, which is prioritising high-end manufacturing and innovation. Nevertheless, there are plenty of reasons to be optimistic about the future of Scottish deep tech and what its potential contribution to our economy is.
First, it’s worth defining what exactly deep tech entails. Essentially, it covers a broad spectrum of technologies born from advanced research, science, and engineering, addressing and solving complex problems across many sectors. What makes it so exciting is the sheer scale of innovation: game-changing technologies that have the potential to reshape the way we live.
From advancements in sensor technology that support human health, to robotics streamlining supply chains and satellites delivering essential imagery and data, deep tech spans a wide range of technologies that shape our everyday lives. But, it’s not an industry that receives a huge amount of attention – partially because, as a consumer, you often don’t often see or realise when you are directly interacting with the products.
Crucially, though, deep tech is a long-term and often risky journey. Unlike other industries where success is measured by rapid customer growth, progress is defined differently. It requires significant investment in research and development, and the achievement of technical milestones, securing patents, or obtaining regulatory approvals. These steps can take a long time, but each one is essential in turning breakthrough innovations into solutions that can shape the future – and, when it works, the outcomes can be truly transformative.
Scotland’s opportunity
With Scotland’s rich industrial heritage, deep tech is one of the natural successors that builds on our core strengths. While figures for Scotland alone are difficult to come by, according to the Royal Academy of Engineering’s State of UK Deep Tech report, the sector now attracts more than £5 billion of annual venture capital across the UK.
With that, each year we are seeing more companies scale successfully while new ventures spin out of universities such as Edinburgh, Strathclyde, and Heriot-Watt, driving progress in areas including semiconductors, biotechnology, quantum technologies, advanced sensors, and photonics. Together, they’re redefining our innovation landscape and underpin high-growth global markets for Scotland such as subsea systems, medical technologies, and space.
The recent launch of the Deep Tech Supercluster programme is also a highly encouraging support mechanism for all of this. Backed by Scottish Enterprise, the National Robotarium, the National Manufacturing Institute Scotland (NMIS), and the Smart Things Accelerator Centre (STAC), this pilot initiative represents a significant step in supporting, scaling, and showcasing some of Scotland’s most innovative deep tech organisations.
By accelerating the journey from research to market, it has the potential to drive transformative innovation. Like any pilot initiative – particularly in an area like deep tech – there will inevitably be challenges along the way. However, with strong support from government agencies, universities, and private sector partners, this programme has the potential to generate real momentum in strengthening and expanding Scotland’s deep tech ecosystem.
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The importance of talent
Funding is often cited as one of the biggest challenges for deep tech in Scotland – and that is absolutely true. It is well known that the sector attracts much less funding than its equivalents in the Golden Triangle between London, Oxford, and Cambridge, as well as in Europe. And there is plenty of work that needs to be done to address that gap.
But, less talked about is the importance of attracting the right talent, which isn’t just valuable – it’s essential. I’ve been fortunate to collaborate with industry-leading experts, from pioneers in quantum technologies to structural specialists designing the next generation of launch vehicles that deliver satellites into orbit. What consistently stands out about these individuals is not only their technical excellence, but also their passion, determination, and commitment to using their expertise to create a positive impact.
If Scotland is to realise the potential that its deep tech sector offers, we need a strong pipeline of skilled individuals who can drive its success. Scotland is fortunate to have a wealth of exceptional homegrown talent, but it is equally important to attract expertise from beyond our borders. By bringing the very best minds to Scotland, we can ensure these companies create pioneering products with real, global impact.
But, across the continent, there is so much competition for the right talent. Senior executives in these areas have options – they need to know the opportunity is right, there is an ecosystem to work within, and the technology can deliver on the world stage. We have all those ingredients in Scotland, but we need to start telling a more compelling story about what we have to offer.
Building momentum
We can’t let the challenges of recent months obscure the fact that deep tech is a huge opportunity for Scotland. The sale of Reactec to Ideagen earlier this year – and, going further back, Intel’s purchase of Optoscribe and Broadcom’s acquisition of Pyreos – demonstrates a track record of developing technologies global companies are interested in. The likes of Novosound, iGii, Sunamp, Pure Lifi, Sofant Technologies, and Orbex are continuing that today.
Scotland’s deep tech ecosystem holds tremendous potential. The sector has already made impressive strides, with innovative companies emerging across a range of technologies and established organisations continuing to grow, raise investment, and scale their impact. Now it’s time to start telling that story with greater confidence, helping to attract more funding and the right talent that can bring forward new technologies with the power to transform markets.
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