How the UK government can drive growth – by supporting AI innovation

The UK is one of the top destinations for Chinese entrepreneurs looking to tap foreign markets – but some of those who come find they don’t get enough opportunity.

That’s according to delegates at the 2024 China-UK Technology Summit in London.

Dr. Guohao Li, a Chinese entrepreneur specialising in AI infrastructure, told CGTN he was considering shifting his company to the U.S. in order to take advantage of greater availability of capital and to tap into the deeper tech ecosystem there.

“London hasn’t yet reached the entrepreneurial density seen in places like Silicon Valley,” he noted, pointing to the need for better community support and networking opportunities. 

His company, CAMEL-AI.org, focuses on creating multi-agent AI systems, but he is contemplating a move to the U.S., where he believes the start-up environment is more conducive to growth.

Li also emphasised that a supportive ecosystem, including government funding and a collaborative culture, is essential for start-ups. 

Data from British Patient Capital reveals that only 49 percent of UK deep-tech firms reach their second funding round, compared to a U.S. figure of 63 percent.

Research foundation

Nevertheless, the UK still holds key advantages over its European neighbors as a result of its well-established university networks.

Dr Isabel Zhang, an investor from HCVC, which has spent nearly a decade funding on deep tech, biotech, and health tech, said academic institutions were crucial to kickstarting new projects with venture capital. 

"Early-stage venture capital requires curiosity and a deep understanding of tech, much like academic research," Zhang said.

Founded by a former biomedical scientist, HCVC actively encourages scientists and PhD students to bring their research to market. Zhang said that London's top universities are retaining their lead over competitors, despite increasing competition in AI development from countries like France and Germany.

Since its founding in 2015, the annual summit has encouraged knowledge-sharing, innovation and economic cooperation between the two countries. 

"This year’s theme, 'Co-curate, Co-create, and Co-evolve,' focused on harnessing collective expertise to drive technological progress," said Lintong Li, one of the chairs of the organizing committee and PhD of Imperial College London. "The summit covers key topics like Artificial Intelligence (AI), smart cities, life sciences and entrepreneurship, with an exhibition showcasing emerging tech start-ups." 

This year, AI was a particular spotlight, with recent Nobel Prize-winning research in physics and chemistry underscoring the field's advancements.

Economic opportunity

A recent Grant Thornton report highlighted Chinese companies' significant role in the UK economy, particularly post-COVID recovery. The report recorded 21 percent revenue growth among Chinese businesses in the UK, with over 200 companies achieving turnovers exceeding $6.5 million. 

However, despite these successes, speakers at the summit acknowledged some challenges for Chinese entrepreneurs in the UK market.

Yuki Yuan, a PhD student at Imperial College, established a charity to help bridge these gaps for Chinese entrepreneurs. 

“Though the UK offers support networks, Chinese entrepreneurs still face challenges entering the local start-up ecosystem, especially around venture capital and fundraising,” she explained. 

Yuan highlighted that economic downturns often present unique opportunities for start-ups, as large corporations may reduce their budget to survive, while smaller companies can adapt and grow quickly.

Dr Nicola Gasparini, a senior lecturer at Imperial College London and co-founder of Lyris, a smart glass and solar cells company, said that cross-border collaboration is essential to retain the UK’s position as an innovation economy. 

His company specialises in organic semiconductors that allow scalable solar device production, with applications ranging from greenhouses to health-monitoring devices.

"Partnering with China, a global leader in solar technology, could significantly accelerate our progress," Gasparini noted. He believes despite geopolitical challenges, collaboration in scientific research benefits all parties involved.