The OLS’s annual release reveals how the UK life sciences sector performs internationally and domestically, including the context of their operating environment compared to similar countries.
The statistics show a difficult investment environment for the UK life sciences industry as the UK saw a further drop in the estimated value of inward life sciences foreign direct investment (FDI) in 2023. This marks the second year-on-year decline since 2021 and ranking the UK eighth compared to comparators. Moreover, inward investment into the UK in 2023 was £0.8 billion, a 21% drop compared to 2022.
UK Government institutions performed £160 million of medical and health sciences R&D, amounting to 0.01% of GDP, far lower than most comparators. While the the value of expenditure on R&D performed by the UK private non-profit sector was £973 million, or 0.04% as a percentage of GDP, which placed the UK in the middle of the ranking of comparators.
Equity finance raised by the UK life sciences sector similarly dropped in 2023, following a previous drop in 2022 from 2021. Equity finance raised in 2023 fell to £2.9 billion, a 14% decrease compared to 2022. However, similar decreases were also seen in most comparator countries and as a result, the UK ranked third against comparators in 2023, up from fourth in 2022 and behind only the USA and China.
In slightly better news, UK exports of medical technology products in 2023 was £10.1 billion, an increase of £0.5 billion (5%) since 2022. However, this still only ranks the UK eleventh amongst comparator countries. Imports of medical technology products in 2023 stood at £15.5 billion, placing the UK sixth amongst comparator countries.
The number of individuals undertaking life sciences apprenticeships decreased by 9%, however, this dip is to be expected following a 25% increase in 2021/22. Therefore, the sector’s future workforce remains in relatively good health.
