LONDON, Oct. 2 (Xinhua) -- A senior British official on Thursday called on pension schemes to channel more capital into home-grown science and technology firms, as the government launched a new innovation cluster map to direct investment to high-potential regions and sectors.
Speaking at the British Private Equity & Venture Capital Association showcase, the country's science minister Patrick Vallance said there are "far too many British companies at the cutting edge of emerging technologies, like AI, biotechnology and quantum, to which investors are underexposed."
Government figures show 16 billion U.S. dollars was invested in British start-ups and scale-ups last year, with more than 8 billion dollars raised in the first half of 2025, exceeding France and Germany combined. Vallance said greater pension investment would help promising firms scale up, delivering long-term returns for savers and keeping more jobs in Britain.
To support investors, the government unveiled a new Innovation Clusters Map highlighting areas where business and research networks thrive. Examples include life sciences in north-west England, where companies are developing new cancer drugs and vaccines, and Glasgow, a hub for satellite technology.
Industry data suggest pensions remain cautious. A report by Pensions for Purpose found that defined contribution schemes invest only 0.5 percent of their assets, about 3 billion pounds (3.99 billion U.S. dollars), in venture capital and growth equity, despite managing more than 1 trillion pounds in total.
Think-tank New Financial noted pension funds' allocation to British equities has dropped from over 40 percent in 2013 to less than 9 percent in 2023, urging a domestic weighting of at least 20 percent that could unlock more than 75 billion pounds by 2030.
Analysts say many pension trustees are reluctant to allocate heavily to venture capital because of liquidity concerns, high costs and the complexity of managing such investments, even though some early-stage funds can deliver strong outperformance. (1 pound=1.33 U.S. dollar) ■
