Following a pivotal Autumn Budget containing several measures to drive tech R&D and adoption, Plexal today announces our inaugural Impact Report to showcase how long-term government investment in innovation can drive the national economy. The report, developed by independent economic analysis firm Perspective Economics, shows Plexal has contributed £731m to UK GDP since our inception in 2017, including over 9,400 jobs.
The Impact Report provides crucial findings, with Plexal founded by Delancey Real Estate on the Here East campus as part of the UK Government ambition to drive social regeneration following the London Olympic Games. In closing the gap between the public sector, industry, startups and academia, we work to solve society’s most pressing problems through accelerating access to novel startup solutions. Whether overcoming business growth blockers and transforming industries or ensuring national security; on the ground, online and in space, the report found this long-term government investment has delivered economic and social value.
In addition to building places for innovators, Plexal establishes regional clusters, provides innovation consultancy and delivers a range of programmes for government and industry. In fact, £426m of gross value added (GVA) has been achieved from just £31m of direct public sector contracts awarded to Plexal, representing a return of £13.74 for every £1 spent by government. Programmes have been run with entities including the Department for Science, Innovation and Technology, the National Cyber Security Centre, the Foreign, Commonwealth and Development Office, alongside programmes commissioned by the private sector, in support of government strategy.
Aligned with the government vision for the UK to be the best place in the world to start and grow a technology business, we connect companies with investors, government departments and industry. By doing so, Plexal has supported over 1,270 companies and helped 141 companies that have participated on Plexal programmes collectively raise £898m in funding, as well as £69m in innovation grants.
Importantly, the Impact Report shows these results are equitable across the UK, with 62% of funding raised by companies registered outside of London. Of the more than 9,400 jobs directly and indirectly created by Plexal operations, 67% were in businesses outside of London, indicating that investment in the tech ecosystem is paying off nationwide.
There’s evidence that momentum is building in the UK tech ecosystem. The Impact Report highlights that over the last 12 months alone, Plexal has unlocked £183m in gross value added (GVA), 25% of the total GVA over the last seven years, and supported the creation of 2,360 jobs. Clearly, as more innovative businesses grow, the dividends from investment are trending upwards.
Andrew Roughan, CEO of Plexal, said: “We’re incredibly proud of the positive impact Plexal is having, both on the economy and society. After all, it’s the unique – but too infrequently harnessed – combination of government, industry, academia and novel startup solutions that’s best placed to solve our biggest challenges.
“It’s particularly rewarding to see the tangible effects of our collaborative work increase exponentially. This validates the value of long-term government investment in UK innovation, which is paying off by stimulating growth at a crucial time for the country, amidst peak disruption through ever-evolving emerging technologies, such as AI, which present exciting opportunities ahead.”
