The UK is in danger of becoming an ‘incubator economy’ whose startups move overseas as they scale, according to lawmakers.
The House of Lords Communications and Digital Committee says the UK needs to do a better job supporting UK AI and creative tech startups.
Committee chair Baroness Stowell said the UK has the potential to “be a powerhouse of growth for AI and creative tech companies”, but so far these efforts have failed.
“We are at real risk of becoming an incubator economy instead, where UK start-ups develop innovative products and services before selling out or moving abroad, so other countries derive the economic benefit,” Stowell said.
“Too often it’s a case of the UK begins, other countries cash in. That has to change.”
In recent months, UK fintech unicorns Revolut and Monzo have both announced that they may list in the US rather than the UK stock market.
Barriers to successful scaling up in the UK include limited access to capital compared with other countries, the committee warned. There are also challenges in recruiting in-demand tech talent along with a business…
