Accelerating the UK’s bioeconomy: £4 trillion to unlock the growth potential of engineering biology

Discover how engineering biology could unlock a £4 trillion opportunity and position the UK as a global bioeconomy powerhouse – if we act now.

The UK stands at the precipice of a new industrial revolution driven by engineering biology. This emerging field has the potential to reshape industries, enhance sustainability and drive economic growth. However, despite its promise, challenges such as regulatory barriers, investment gaps, and workforce development must be addressed to fully unlock its potential. Following a working dinner in the House of Lords, Curia analyses the Chatham House discussion on engineering biology, outlining the necessary steps for policymakers to position the UK as a global leader in the bioeconomy.

The Bioeconomy: A Transformative Opportunity for the UK

Engineering biology represents a powerful confluence of biology, engineering, and digital innovation. By leveraging synthetic biology, AI-enhanced research, and cutting-edge biomanufacturing, the UK has an unprecedented opportunity to revolutionise key sectors, from healthcare and agriculture to sustainable materials and energy production.

At a recent House of Lords dinner hosted by Lord Kirkhope and organised by Capgemini in partnership with policy institute Curia, leading figures from government, industry, and academia gathered to discuss the future of the bioeconomy. The event underscored the UK’s strong position in this rapidly evolving field and highlighted critical areas that require policy intervention.

Strengthening the Regulatory Landscape

Regulation remains a double-edged sword for the bioeconomy. While robust regulatory frameworks ensure public safety and trust, overly rigid or outdated policies can stifle innovation. Brexit has given the UK a unique opportunity to design more agile regulatory systems that encourage biosolution development while maintaining high ethical standards.

Speakers at the House of Lords event called for the expansion of the recently established Regulatory Innovation Office to ensure frameworks remain responsive to scientific advancements. In particular, they highlighted the need for streamlined approval processes for novel bio-products, enabling the UK to compete globally without unnecessary bureaucratic delays.

Investment and Scale-up: Bridging the Funding Gap

One of the UK’s greatest challenges in engineering biology is the ‘scale-up gap’. While the country boasts world-leading research institutions and startup activity, many ventures struggle to secure late-stage investment. As a result, promising companies often relocate to the US, where capital is more readily available.

To combat this, policymakers must explore pension fund reforms that channel institutional investment into UK-based bioeconomy startups. Additionally, government-backed funding initiatives, such as tax incentives for high-risk biotech ventures and increased support for research commercialisation, could provide much-needed financial stability for emerging businesses.

The Role of Human Capital in Bioeconomy Growth

Innovation is only as strong as the workforce behind it. Despite its impressive academic research base, the UK faces a shortage of the multidisciplinary talent required to drive engineering biology forward. Addressing this gap requires strategic investment in education and workforce development.

Proposed solutions include

• Expanding engineering biology courses in universities to equip students with practical, industry-relevant skills
• Creating cross-sector training programmes that bring together expertise from biology, engineering, and data science
• Supporting international talent recruitment while fostering domestic talent pipelines to retain expertise within the UK

Encouraging a Risk-taking Culture

A major obstacle to scaling engineering biology in the UK is a cultural reluctance toward risk. Unlike in the US, where failure is often viewed as a stepping stone to success, UK innovators and investors tend to be more risk-averse.

To address this, policymakers should encourage the use of regulatory sandboxes – controlled environments where companies can test and iterate new bio-based solutions without the immediate pressures of full-scale commercialisation. Additionally, fostering a more entrepreneurial mindset within the sector could encourage greater investment in high-impact but high-risk biosolutions.

Ensuring Ethical and Sustainable Innovation

While engineering biology holds enormous potential, its growth must be underpinned by ethical and sustainable principles. Public trust is a crucial factor in the sector’s long-term success, and transparency will be key to building confidence in bio-based innovations.

Policy measures to support responsible innovation include

• Strengthening regulatory oversight to ensure ethical applications of engineering biology
• Implementing public engagement initiatives to educate and inform citizens about the benefits and risks associated with the bioeconomy
• Encouraging sustainability by taxing negative externalities, such as carbon emissions, while providing incentives for bio-based alternatives

The Path Forward: Policy Commitments for a Thriving Bioeconomy

The House of Lords discussion concluded with a clear consensus – the UK has the potential to lead the global bioeconomy, but it must act swiftly and decisively. To achieve this, the Government should prioritise

1. Increased R&D Funding: Ensuring early-stage innovation receives adequate investment
2. Regulatory Modernisation: Developing an agile framework that supports rather than hinders biosolution development
3. Investment in Biomanufacturing Infrastructure: Supporting domestic production capabilities to retain commercialisation within the UK
4. Stronger Public-Private Collaboration: Encouraging partnerships between industry, academia, and government to accelerate technology translation.

With the right strategic focus, the UK can harness engineering biology to drive economic growth, improve sustainability and cement its position as a global leader in this revolutionary field. The time to act is now.

Final Thought

The UK has all the elements needed to establish itself as a global hub for engineering biology – world-class research institutions, a thriving biotech ecosystem, and an emerging policy framework that supports innovation. However, realising this potential requires commitment, investment, and a willingness to embrace change. By fostering collaboration between academia, industry, and policymakers, the UK can drive groundbreaking advances in engineering biology that not only boost the economy but also address some of the world’s most pressing challenges. The opportunity is immense; the question is whether we are ready to seize it.

To find out more about Capgemini’s expertise in Engineering Biology, please visit: www.capgemini.com/gb-en/. Get in touch today by emailing Richard Traherne, Next Frontiers at Capgemini: richard.traherne@capgemini.com.

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