The UK Innovation Report 2025

What 750 UK founders, scale-up leaders and investors reveal about the trends, barriers and opportunities shaping R&D, and how to thrive in the changing R&D landscape.

Key insights from the report

1.46m

respondents average

annual R&D spend

82%

of respondents plan

to claim in 2025

92%

investor respondent

say R&D is vital

25%

of respondents fear an HMRC

enquiry

Why this report matters

Uncover industry trends

Explore the macro forces shaping innovation; from AI and sustainability to changing regulation and post-Brexit trade shifts.

Identify barriers to innovation

See the top challenges slowing R&D projects, including compliance complexity, administrative burden, and funding access.

See what investors expect

Learn how VCs and PEs assess R&D-heavy companies, the risk they watch out for, and the milestones they most value.

What's inside?

Chapter 1

The Innovation Landscape 2025

How UK businesses are pushing forward despite economic and regulatory challenges.

Chapter 2

Barriers to innovation

Why 52% of leaders say regulatory complexity slows them down and how to overcome it.

Chapter 3

An investor’s perspective

What 92% of investors want from portfolio companies, and how R&D relief drives growth.

Chapter 4

Driving a future of innovation

Best practices for audit-proof, efficient R&D claims under HMRC’s intensified scrutiny.

“UK founders are ready to innovate, but too often face red tape and fear of HMRC enquiries. R&D tax credits could power growth, but the process must be faster, simpler and more reassuring. Get that right, and we’ll supercharge the UK’s innovation economy.”