The Innovation League Table: Unveiling the UK’s R&D Powerhouses

The UK economy relies heavily on research and development (R&D) to drive future growth and maintain global competitiveness. While much focus is placed on national investment, a deeper look at regional data reveals pockets of extraordinary innovation intensity across the country.

This Innovation League Table ranks the UK’s top ten regions / groups of counties by one key metric: the number of R&D tax relief claims filed as a percentage of all local businesses (excluding sole proprietors, partnerships, and not-for-profit organisations) in that area. This measure reveals where business investment in innovation is truly embedded in the local economic fabric.

The Top Spot: A Triumph for Life Sciences

Claiming the number one position is Cambridgeshire and Peterborough with an outstanding R&D claim rate of 4.87%.
Although Peterborough is generally considered the largest urban area by population, the success of Cambridge and the ‘Cambridge Cluster’ is intrinsically linked to its globally renowned research institutions.

The dominant industries driving this innovation are:

• Life Sciences and Pharmaceuticals: A world-class hub for biotech and drug discovery.
• Information and Communication Technology (ICT): Home to numerous ‘silicon fen’ tech companies.
• Agri-Food: Innovation focused on farming technology and food science.

London’s Financial and Professional Core

Two central London areas feature prominently, proving that innovation is not solely a manufacturing or science pursuit.

• #2. Inner London – West (4.03%): This area, encompassing Westminster and the City of London, is dominated by Financial Services and Professional Services. The high claim rate reflects the huge investment in financial technology (FinTech), regulatory compliance, and high-value consultancy services.

• #6. Inner London – East (3.03%): Focused around the Canary Wharf financial district, this area mirrors the West’s strength in Financial Services, particularly corporate and investment banking, with associated professional service support driving R&D claims.

Regional Excellence Across the Nations

The league table showcases a strong performance from areas outside of England, highlighting significant investment in national centres:

• #3. Northern Ireland (3.48%): A diverse set of innovation drivers including a strong Advanced Manufacturing & Engineering cluster (particularly in Aerospace), alongside innovation in the Agri-Food sector.

• #4. East Central Scotland (3.22%): Anchored by Edinburgh, this region’s innovation is heavily concentrated in the Financial Services sector (asset management and insurance), often overlapping with FinTech R&D.

• #10. South East Wales (2.44%): This area demonstrates a commitment to innovation in traditional sectors like Heavy Industry (Steel and Metals) and High-Value Manufacturing, focusing on supply chains for the Automotive and Aerospace industries.

What happened to the Midlands?

Nothing really – neither the East or West Midlands made it into the Top 10. Herefordshire, Worcestershire and Warwickshire are number 12, Shropshire and Staffordshire are #14 with Derbyshire and Nottinghamshire at #15. The same applies to Yorkshire, with West Yorkshire at #16 and East Yorkshire at #17.

Industrial Specialisms Driving R&D

Innovation often clusters around specific industrial strengths:

• #5. West of England (3.09%): Dominated by Bristol, this region is a national powerhouse for Aerospace and Defence, demonstrating deep R&D investment into complex engineering and security technologies.

• #7. North Eastern Scotland (2.82%): The city of Aberdeen is the anchor, with innovation concentrated in Oil and Gas Extraction and related engineering services—R&D here is critical for improving efficiency and developing sustainable energy transition technologies.

• #9. Berkshire, Buckinghamshire and Oxfordshire (2.68%): Famous for the Oxford research ecosystem, this area is a significant hub for Information Technology, Telecommunications, and Advanced Engineering, notably in motorsport R&D.

League Table

This league table clearly illustrates that innovation in the UK is diverse, with regions specialising in everything from high-tech life sciences and engineering to financial services and traditional heavy industry. The common factor across all ten is a business community actively investing in R&D to secure their competitive future.

Sources:  HMRC R&D tax relief claim statistics 2025 and ONS (nomis) data 2025. Businesses excludes sole proprietors, partnerships and not-for-profit.

Any Questions?

If you have any questions relating to securing the right funding for your innovation projects, please get in touch with ABGi.  A representative will get back to you to discuss your unique needs and explain how we can assist.