Overseas Investment in West Midlands Soars, But Other Regions Lag Behind

By Anushka Malhotra

1 minute 42 seconds

Investment

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Quick Read: Overseas investment in the West Midlands soared by 72 percent in 2023, creating nearly 7,000 jobs, while other UK regions, especially the north, faced declines.

Overseas investment into the UK rose in 2023, according to new EY research, but the national increase obscured deep regional imbalances. The West Midlands recorded a 72 percent increase in overseas investment projects last year, creating almost 7,000 jobs. The region, which includes cities like Birmingham, Coventry, and Wolverhampton, received 172 projects, second only to London in the number of projects and jobs created.

"The West Midlands' UK-leading FDI figures are testament to the strength of our frontier technologies and our talented workforce"

said Richard Parker, Mayor of the West Midlands.

Given the number of jobs created through overseas investment, Parker emphasised the importance of ensuring that the region's skill base matches global demand.

Greater London also saw growth, recording a 20 percent increase in FDI projects, driven primarily by the tech and financial services sectors. Scotland experienced a 14 percent increase in investment projects, bringing its annual total to 142, the highest on record. This increase was largely due to a rise in renewable energy investments.

However, regions across the north of England faced challenges. FDI projects fell by 22 percent, with Manchester suffering the most. Having been the top spot for international investors outside London in 2022, Manchester fell behind Birmingham and Edinburgh last year after FDI projects dropped by 31 percent. Yorkshire and the North West recorded their lowest levels of FDI projects since 2014.

"Last year proved challenging for the North West, and Manchester slipped down the rankings after a drop in investment numbers,"

commented Peter Arnold, EY UK Chief Economist.

The UK economy has consistently been held back by regional imbalances. In her Mais lecture, Chancellor Rachel Reeves noted that productivity lagged the national average in all of England's largest cities.

Arnold highlighted that improving the attractiveness of the UK's regions could be a crucial driver of investment and growth in the coming years. The EY survey indicated that the most important factors for investors considering regional investments outside London were access to regional grants and the skills of the local workforce.

"The diversity of sectors outside the capital could become a significant asset for the UK if it plays to its regional strengths,"

Arnold said.

"Manufacturing and utility supply are key sectors in Scotland, the North, and the Midlands. With targeted strategic investment and support, these areas have the potential to emerge as vital hubs for the innovation and implementation of sustainable technologies, driving the nation's progress in the clean tech arena."

What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun