Britain is facing challenges in retaining the economic benefits of scientific research conducted within its borders, according to Chris McDonald, the newly appointed minister for science, innovation, and investment. McDonald, who previously served as industry minister and has a background as a chemical engineer in the steel sector, highlighted concerns that promising discoveries developed at UK universities often require investment from abroad to reach commercial viability.

Speaking ahead of a G20 innovation meeting in North Carolina focused on artificial intelligence regulation, McDonald emphasized that while world-class science is being produced at British institutions, the final stages of development and scaling frequently depend on funding sourced outside the UK. He explained that early incubation occurs domestically, but “the last bit of investment” typically comes from other countries, leading companies or technologies to relocate overseas. This trend, he warned, results in Britain losing out on potential profits and control over intellectual property.

Universities have attempted to address this gap by creating spin-out companies to develop and market academic innovations. However, McDonald noted that these enterprises face difficulties growing within the UK due to limited access to capital and suitable facilities. In sectors such as critical minerals, businesses founded on British research have reportedly had to seek financial support from the United States or other international markets to scale up, transferring intellectual property rights abroad in the process.

The minister called for increased private investment in British research to counter the prevailing mindset among many startups that funding must be secured from the US or the European Union. Additionally, McDonald pointed to a scarcity of “industrial laboratory space” in Britain, which he identified as a barrier to the development and expansion of innovative companies.

While McDonald’s remarks underscore the need for greater domestic support for scientific commercialization, the extent to which funding and infrastructure constraints are leading to an outflow of intellectual property remains a subject of debate. Some industry observers argue that global capital flows and market access can benefit British science in the long term, even when companies base themselves overseas. Nonetheless, the minister’s comments highlight ongoing concerns about the UK’s ability to fully capitalize on its research strengths amid increasing international competition for investment.