Scotland's life sciences sector is only going to get bigger

The Scottish Government recently announced that, in 2021 it surpassed its 2025 turnover target for the sector, generating a record-breaking £10.5bn. This is not a bubble that looks likely to burst anytime soon.

So what are the reasons behind the growth of the Scottish life sciences sector – and what are the trends, opportunities and challenges arising in 2025 for this rapidly developing sector?

Collaboration: The health of the life sciences sector to date comes from collaboration between businesses, universities and healthcare professionals, and government funding. Life sciences has been one of the Scottish Government’s priorities in recent years – evidenced by, for example, the donation of £8m from Scottish Enterprise for the construction of Dundee’s Life Sciences Innovation hub. This year is also set to see the opening of a new Life Sciences Hub in Glasgow, representing a visible vote of confidence.

Capital: Such promising sector growth has not gone unnoticed by venture capital firms, which are increasingly investing in the sector. In one recent example, a clinical stage diagnostics company, Dxcover Limited, received considerable funding from a new investor, Maven, to facilitate its growth, in a deal that is reflective of growing confidence in the sector’s potential. The British Business Bank’s Investment Fund for Scotland has also been active in supporting the sector, earmarking over £10 million for smaller businesses in its first year.

Scotland is also an attractive proposition for foreign investors, and its foreign direct investment growth rate remains higher than the UK average. Scotland also leads the UK in research and development projects, with 24 per cent of those entering the UK being based in Scotland, according to EY’s Attractiveness Survey.

AI opportunities: AI has transformative potential in the life sciences sector and in Scotland, this could be driven by iCAIRD – an industrial research centre for AI research in digital diagnostics. It brings together a pan-Scottish alliance of 15 partners from industry, the NHS and academia – another example of how partnerships between these bodies are driving the industry’s success.

However, AI development must be handled carefully, and challenges lie ahead when it comes to protecting data privacy, patient safety and regulatory compliance. AI progress should never come at the expense of public trust! Robust regulatory frameworks and strong ethical guidelines will be an essential part of ensuring AI can be used to drive the life sciences sector forward.

Foreign markets: The future of Scottish life sciences is promising, with the sector well-positioned to provide responses to global health challenges and flourish in foreign markets. The Scottish Government is helping companies realise US ambitions through Scottish Enterprise’s US MarketBooster Programme, which is intended to help Scottish companies to enter and scale in the US.

An export plan for the Scottish life sciences sector has also been developed by the Scottish Government, alongside Scottish Development International and the Industry Leadership Group for Life Sciences. It picks out some key areas for action, including building on the existing customer base in the US.

The overall diagnosis for Scottish life sciences is highly positive. The investment infrastructure is there, and the sector well-placed to continue growing, thanks to strong partnerships and collaborations and genuinely groundbreaking innovations.

Dr Julie Nixon, managing associate, TLT