The UK Government’s Life Sciences Competitiveness Indicators 2026 report provides a snapshot of how the sector is performing globally. It compares the UK with key international markets across investment, research and talent.

The findings point to a recovery in investment and continued strength in research. At the same time, they highlight growing pressure on skills that could shape the sector’s future

What sits behind these trends is the role of the built environment in supporting growth.

A return of investment confidence

The report shows a strong rebound in investment into the UK life sciences sector. Foreign direct investment reached £2.1 billion in 2024, recovering after a period of decline and moving the UK back into the top tier globally. Equity investment also increased to £4.5 billion, maintaining the UK’s position as one of the leading markets.

This renewed confidence reinforces the UK’s attractiveness for life science businesses. However, investment needs to be matched by the right infrastructure to deliver results

As funding increases, demand for high-quality laboratory and innovation space will continue to grow.

Life science businesses need environments that support rapid experimentation, regulatory requirements and changing technical needs. This includes reliable power, strong digital connectivity, and flexible lab configurations.

Without this, investment risks slowing before it can translate into meaningful outcomes. Buildings designed for laboratory use, or retrofitted to support it, will be important in enabling businesses to move quickly from research to commercialisation.

A globally competitive research base

The UK continues to perform strongly as a research destination, supported by high levels of public investment in health R&D.

Institutions across London, Oxford and Cambridge remain central to this strength. Together, they form one of the most established life sciences clusters in the world. For occupiers, proximity to this ecosystem is a key advantage. Access to research, clinical infrastructure and specialist expertise helps accelerate innovation.

In this context, location plays an important role in supporting growth. That’s why we are proud to be at the heart of Canary Wharf and linked to a cluster of development and expansion in the area.

Skills pressure and the need for clustering

The report also highlights a decline in the number of graduates entering core scientific disciplines. This creates a longer-term challenge, particularly as demand grows for skills that combine science, data and engineering.

As talent becomes more limited, clustering becomes more important. Locations that bring together businesses, research and infrastructure can help improve access to skills and support collaboration. Innovation districts in London are expected to play a growing role in this.

This is why we know that engaging future generations through 17cc is so important. We want to inspire the future thinkers and innovators, showing them they have a critical role to play in life sciences within the city.

Designing for a changing sector

The needs of life science occupiers are influencing how buildings are designed and delivered.

Flexibility is increasingly important. Spaces need to support different stages of growth and adapt to changing requirements. Technical performance is also critical, including power, ventilation and connectivity

At 17 Columbus Courtyard, these requirements have been considered through the building’s design and retrofit. Features include flexible lab and office space, fitted laboratories, scalable floorplates, strong power capacity and shared facilities that support collaboration. This reflects a wider shift towards buildings that can evolve alongside occupiers.

The built environment’s role in future competitiveness

The Life Sciences Competitiveness Indicators 2026 report shows a sector that is recovering but facing longer-term challenges. Investment, research and talent will remain central to the UK’s position. The spaces where innovation happens are also a key part of that picture. Supporting future growth will depend on providing environments that enable research, encourage collaboration and allow businesses to scale. The built environment will continue to play an important role in shaping the sector’s competitiveness.