Birmingham's Tech Hub: Growth, Investment, and Collaboration Fuel Innovation

By Anushka Malhotra

1 minute 39 seconds

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Quick Read: Birmingham emerges as a thriving tech hub with significant growth in startups, investments, and multinational interest, bolstered by a robust talent pool and supportive ecosystem, according to industry experts and key stakeholders.

Birmingham, the UK's second-largest city, is rapidly evolving into a thriving tech hub, attracting attention for its remarkable growth in startups, investments, and multinational interest. With over 2,000 tech startups and 6,000 tech businesses, the city is asserting itself as a prominent player in the tech industry landscape.

According to reports from the government and Tech Nation, the West Midlands, particularly Birmingham, witnessed the fastest-growing tech sector in the UK in both 2021 and 2022. This growth is further highlighted by a surge in venture capital investment, with 2023 marking a record level of funding for Birmingham startups, showcasing the city's increasing appeal to investors.

Rebekah Taitt, Lloyds Bank’s regional development director for Midlands, SME & Mid Corporate, commented,

"The Mission Sustainability project has given WMG students the opportunity to work and collaborate with industry leaders and experts in the latest innovative solutions and showcase their talents and skills to investigate more sustainable ways of solving tomorrow’s problems today."

Birmingham's tech ecosystem thrives on the foundation of a robust talent pool, with around 40% of the tech workforce in the West Midlands based in the city. The region's five universities contribute significantly to this talent pool, offering a diverse range of skills and expertise to fuel innovation and growth in the tech sector.

Yiannis Maos, founder and CEO of TechWM, emphasised the city's welcoming ecosystem, stating,

"Birmingham’s tech ecosystem is a special place. The ecosystem is welcoming key players from major industries as they buy into the brilliant potential that Birmingham has to offer."

The city's industrial legacy also plays a crucial role in its tech development, with a history of innovation and manufacturing excellence. Today, Birmingham continues to lead in various sectors, including medtech, fintech, digital marketing, and gaming, with 25% of the UK's gaming sector based in or around the city.

Collaboration between public and private sector stakeholders is essential for realizing Birmingham's tech potential. Zephaniah Chukwudum, director, Local Government, Microsoft UK, emphasised the importance of such collaboration, stating,

"By harnessing the strengths and expertise of each sector, Birmingham can pave the way for a future where technology not only propels business success but also fosters positive societal transformation."

With a vibrant tech sector and a collaborative ecosystem, Birmingham is poised to continue its ascent as a leading tech hub, driving innovation, economic growth, and societal impact.

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What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun