January saw an update to the Life Sciences Industrial Strategy, which was first published by the Government in 2017. Written by Sir John Bell, Regius Professor of Medicine at the University of Oxford, the report sets out how the UK can maintain its existing strength within the life sciences sector and increase the pace of economic growth, especially in a post-Brexit world.

Fast forward to 2020, now is the time to bolster the country’s global reputation in this space. Sir John emphasises the importance of academic institutions, pointing out that 42 per cent of UK life science companies have spun out from universities, 10 times the rate of other sectors. What’s more, the report states that the UK is home to five of the top 10 universities in the world by value of capital raised via their spin out companies, including Cambridge.

Sir John goes on to say that the make-up of the industry globally has changed with med-tech, data and digital-based technologies transforming the sector. Savills has firsthand experience of how these advancements are impacting how research and innovation is taking place within labs. What was once ‘state of the art’ is now yesterday’s news and this has required a new approach to space usage and optimisation. Future proofing is essential in order to provide agility to businesses moving forward.

In turn, we’re also seeing greater demand for space to cater for future growth as firm’s anticipate their next moves. This has translated into requirements across London, Oxford and Cambridge. However, to cater to this, the sector requires a variety of tenures, shapes and sizes to support companies throughout their gestation.

It’s also interesting that Sir John has commented on the need to attract and retain staff. Recently we’ve seen a shift in the way scientists work. No longer are they expected to be holed up in windowless rooms all day, but rather employers are investing in creating balanced workplaces which promote health and wellbeing as a priority. While a positive work environment is key, housing and infrastructure also play an important role in worker happiness and this still, in many cases, needs to be addressed.

Alluding to the Cambridge-Oxford-London axis, investments such as the Francis Crick Institute and others made by Oxbridge are continuing to promote the innovation triangle. However, with all this success, is there enough capacity in the market to support growth?

Although the markets of Oxford and Cambridge are relatively mature, there remains scope to develop further flexible space  to support thriving businesses. Supply of office and labs, especially in London, remains low and we anticipate that demand will outstrip supply in the next 10 years.

A possible solution can be found in proposed large infrastructure projects such as East West Rail (EWR), which will open up new locations. However, we’ll have to wait and see how attractive office and lab space is outside of the key cities. With improved travel times and potentially more affordable housing it could alleviate pressure.

Ultimately, one certainty is that we simply don’t have enough office or lab space in key locations to provide a crucial platform for further life science innovation within the UK. Government support continues to be important but, as Sir John suggests, collaboration with the private sector is key to securing long-term investment.

Further information

Read more: Report: The Oxford-Cambridge Innovation Arc