With the release of its Modern Industrial Strategy, the UK Government has shown its hand with regards to where it sees the country’s technological future.

Taking in the Strategy as a whole is a wide-ranging affair, but at the heart of its sector plan for digital and technology, lies a targeted focus on six “frontier technologies” identified not just for their inherent potential, but for their unique capacity to supercharge growth across the entire economy.

Advanced Connectivity Technologies (ACT), Artificial Intelligence (AI), Cyber Security, Engineering Biology, Quantum Technologies, and Semiconductors – these are the chosen engines, the lens’ through which the government is hoping it can oversee economic growth (with regards to tech, that is – bear in mind this is only one part of one sector plan, but it’s an important one.)

UK Government analysis suggests the adoption of these and other emerging technologies could contribute up to 8.4% to the UK’s real GDP by 2035, potentially accounting for half of the country’s projected GDP growth in the coming years.

Beyond pure economic metrics, these technologies promise revolutionary applications: transforming financial services with quantum-powered analytics, boosting business productivity through AI, advancing life-saving precision medicine via engineering biology, securing critical infrastructure, and fundamentally enabling the transition to a net zero future. Beyond this, they all possess dual-use potential, bolstering both economic growth and national security.

The strategy recognises that these digital frontiers don’t exist in isolation. They require robust foundations – critical minerals like gallium and germanium for chips, vast quantities of silicon and copper, fibre optics for networks, and a construction sector equipped to build the necessary data centres and labs. Parallel initiatives, like the 2025 Critical Minerals Strategy and a £2.5 billion Steel Strategy, are being mobilised to secure these essential inputs.

Previously, we took a look at how the Digital and Technologies Sector Plan would affect business. But today, it’s all about tech.

With that in mind, here’s how the UK Government plans to unlock growth in each frontier tech domain.

1. Advanced Connectivity Technologies (ACT)
The UK boasts a rich heritage in connectivity, from Marconi to the world’s first satellite video call from a mobile in Wales in 2025. Today, its ACT footprint is significant, with an estimated 2,800 firms contributing £11.1 billion in global GVA in 2024. ACT is the bedrock for future technologies, estimated to deliver £14.6 billion in UK productivity benefits by 2035.

• The Approach: Building on existing gigabit broadband and 5G roll-out, the government is investing heavily to position the UK as a future shaper of ACT, particularly 6G. Over £300 million has been spent since 2022 on R&D programmes like the Open Networks Programme and establishing key labs (UK Telecoms Lab, SONIC Labs) and training centres.

• The Goal: By 2035, the ambition is for more UK-developed technologies to be used globally, creating a thriving domestic ACT ecosystem that attracts significant private investment, maximises 5G benefits, and leverages UK security strengths.

• Key Moves: A new four-year, £240 million research programme targets commercialisation in priority areas like defence and transport. £130 million will bolster lab infrastructure, including a new partnership between key Catapults. Ensuring spectrum availability and deepening international collaborations (especially with Japan, India, US, EU) to shape secure, sustainable, and inclusive 6G standards are also critical pillars.

2. Artificial Intelligence
AI is transforming industries at breakneck speed, and the UK is determined to stay at the forefront. Private sector investment in UK AI businesses has exceeded £44 billion since July 2024, with London ranking as the world’s third-largest VC cluster for AI. The UK ranks first in Europe and fourth globally in the AI Index, home to giants like Google DeepMind and Arm, and vibrant startups like Wayve.

• The Approach: The AI Opportunities Action Plan is the roadmap, backed by over £2 billion in spending review commitments. Key initiatives include launching AI Growth Zones (starting in Culham) to unlock investment in AI data centres by streamlining planning and power access, and massively expanding public compute capacity. The UK’s AI Research Resource, featuring supercomputers Isambard-AI and Dawn, becomes operational this summer.

• Addressing Challenges: Recognising the energy demands, the government has established the AI Energy Council, exploring solutions from next-gen renewables to small modular reactors (SMRs), backed by over £2.5 billion for SMR development. A major push to upskill 7.5 million people to use AI by 2030 aims for widespread adoption, alongside deploying AI in public services (e.g., GOV.UK Chat).

• Key Moves: £1 billion to scale the UK’s AI Research Resource 20-fold by 2030, plus up to £750 million for an Edinburgh supercomputer. Beyond this, the government is investing £500 million to establish a Sovereign AI Unit, aimed at strengthening national capabilities and ensuring long-term access to cutting-edge AI infrastructure and talent. Developing a balanced AI and copyright framework is a priority, alongside promoting adoption via a new AI Adoption Fund and regional support. Accelerating AI-enabled scientific breakthroughs in strategic areas is another focus.

3. Cybersecurity
Cybersecurity is fundamental to economic stability. In the UK, the industry generates £13.2 billion in revenue and £7.2 billion in exports (2023). According to the UK Gov, hubs in the South West, Greater Manchester, Lancashire, and Belfast are thriving, attracting global players (Alfac, Liberty Mutual, IBM) and fostering homegrown champions (Darktrace, NCC Group).

• The Approach: Supporting innovation and talent is key. Programmes like CyberASAP have helped spin out 34 academic startups, while CyberFirst (now part of TechFirst) has supported 415,000 students. The Cyber Essentials scheme continues to grow. The crown jewel in development is the National Cyber Innovation Centre in Cheltenham, designed to catalyse collaboration and attract an additional £1 billion investment into the Golden Valley development.

• Key Moves: Expanding CyberASAP (£10 million) to support 25 academic teams yearly and funding the Cyber AI Hub in Belfast (£2 million). £6 million boosts the Cyber Runway accelerator for 60 startups annually. Further TechFirst bursaries target skills in underserved areas. £24 million promotes ‘secure by design’ hardware using the CHERI blueprint. A comprehensive Cyber Growth Action Plan is due summer 2025.

4. Engineering Biology
Engineering biology is revolutionising sectors from healthcare (novel vaccines, precision medicine) to sustainable production (low-carbon fuels, precision-bred crops). The UK ecosystem, considered the strongest globally outside the US and China, boasts over 1,000 businesses clustered in Edinburgh, Bristol, London, Cambridge, and Scotland’s Central Belt.

• The Approach: The UK is Europe’s leading biotech hub (40% of VC investment). 2024 saw £3.7 billion in equity financing, a 106% jump. A £100 million investment into Engineering Biology Mission Hubs and Awards in Feb 2024 bolstered research. Regulatory reform is crucial: the Precision Breeding Act (2023) creates a new framework for agritech innovation, tapping into a projected £11 billion global market by 2030. Past investments (e.g., £100m Synthetic Biology for Growth programme) delivered returns of 3-9x.

• Key Moves: Launching a £196 million National Engineering Biology Programme for researcher-led R&D. Investing £184 million in an Engineering Biology Scale-up Infrastructure Programme for pilot and manufacturing facilities. Accelerating regulatory reform via the Engineering Biology Sandbox Fund and the new Regulatory Innovation Office (RIO). Building stronger innovation networks and pursuing international leadership bilaterally and multilaterally.

5. Quantum Technologies
Quantum computing, sensing, and communications promise profound benefits, like accelerating drug discovery and optimising hospital logistics. The UK is already a global leader, ranking second in quantum investment globally in 2023. The Oxford-Cambridge corridor alone has attracted over £782 million since 2000, fostering companies like Oxford Ionics, Riverlane, and Quantinuum.

• The Approach: A new ambitious long-term programme aims to secure a 15% share of the global quantum market (estimated £137 billion by 2040) and attract 15% of global private equity investment by 2033. The decade-long National Quantum Technologies Programme (over £1.1bn invested since 2014) has built world-leading research and catalysed £692 million in private investment. Close collaboration with the US, Japan, Canada, Australia, and the EU continues.

• Key Moves: Progressing five National Quantum Missions (navigation, infrastructure sensing, NHS sensing, advanced quantum network, world-leading UK quantum computers by 2035) backed by £670 million for quantum computing. Providing a 10-year funding commitment for the National Quantum Computing Centre (NQCC). Developing a comprehensive skills action plan informed by the Quantum Skills Taskforce.

6. Semiconductors
These tiny chips underpin everything digital, AI, and advanced tech. The UK industry has grown 8% annually, with revenues projected up to £17 billion by 2030. South Wales hosts the world’s first compound semiconductor cluster (£434m GVA in 2024), with other hubs in Cambridge, Scotland, and Bristol. Strengths lie in design, compound semiconductors, and photonics.

• The Approach: Capitalising on the research base and supporting startups via programmes like ChipStart (cohorts on track to raise £40m+). Addressing supply chain reliance through international partnerships, including engagement with the EU’s Chips Joint Undertaking. A £60 million National Wealth Fund investment into Pragmatic Semiconductor scales up flexible circuit manufacturing in the North East.

• Key Moves: Establishing a new £19 million UK Semiconductor Centre for cross-sector leadership. Launching two new £25 million Innovation and Knowledge Centres (Neuromorphic Computing, Heterogeneous Integration). A £5 million Chip Design Enablement Programme boosts design capability. A £35 million UK-wide skills programme, including bursaries and a new Centre for Doctoral Training, addresses the talent pipeline.

Beyond innovation and scaling, the strategy emphasises creating pathways for technology adoption across the economy. This involves identifying opportunities with other industrial sectors, leveraging the R&D Missions Accelerator Programme to ensure clear routes to impact, exploring public procurement pathways via a new Commercial Innovation Hub (including defence), and working on the standards, norms, and values – particularly through the Regulatory Horizons Council and initiatives for safe and responsible AI assurance – essential for safe and effective integration.

Recommended reading

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• UK Gov Launches National Tech Skills Drive for AI Future
• UK Gov Pledges £86BN to ‘Turbo-boost’ Regional R&D

The UK’s targeted bet on these six frontiers is a high-stakes strategy. It leverages existing pockets of world-class excellence, injects substantial public funding to de-risk and accelerate development, and aims to position British businesses at the forefront of global markets worth trillions.

Speaking in the sector plan foreword, secretary of state for science, innovation and technology, Peter Kyle, said: “The pace of technological change is increasingly rapid – and changing the world of commerce and work, faster than ever.

“The challenge for government is to energetically support the discovery, development and adoption of technologies impacting the future shape of the global economy so that British industry can continue to compete and succeed. We embrace that challenge because we want to ensure Britain’s families and communities experience the opportunity and security economic success brings.”