Innovation unlocked by Scotland's aligned national ecosystem
“Value matters because life sciences is a long game. Drug development, diagnostics, medtech and digital health rarely follow linear growth curves. Flexibility in leases, space and scale is essential.”
Mark Hanna, Director of Asset Management, Kadans Science Partner
In life sciences, innovation rarely fails because of a lack of ideas or great research, more often, it stalls because companies operate in silos and the costs of turning ideas into reality or applying research rises faster than the company itself. For founders navigating grant cycles, investor expectations and long development timelines, the question is both where can we innovate and how can we fund it long-term.
Across the UK and Europe, the pressure is mounting as rents in established science clusters continue to rise and competition for talent drives churn. For early-stage companies emerging from incubators or university spin-outs, the jump from supported environments into independent space can feel like a financial cliff edge. This is where Scotland has a powerful advantage.
Scotland combines world-class research and clinical excellence with international connectivity and access to a skilled workforce, often with strong talent retention levels which I believe is one of Scotland’s most underappreciated strengths.
Cities like Glasgow consistently rank among the best in the UK for retaining graduates, particularly in STEM disciplines. With universities in close proximity including Glasgow, Edinburgh, Strathclyde, Heriot-Watt and others, there are clear, visible pathways from PhD to industry that reduce churn and create stability for employers which is invaluable. In Scotland, teams are more likely to stay, grow together and build institutional knowledge over time.
Crucially, Scotland works best when it leans into its collective strengths rather than forcing its cities to compete with one another. Edinburgh’s global reputation in data and discovery science complements Glasgow’s strengths in manufacturing, medtech and applied research. The close distance between the two cities should be viewed as an asset. Instead of duplicating effort, Scotland has the opportunity to operate as a connected innovation corridor, where companies can access different capabilities without fragmenting their operations or culture.
There is also a structural advantage that often goes unnoticed. Scotland benefits from a more aligned national ecosystem, with organisations like Scottish Enterprise able to operate strategically at scale. Compared with the fragmented landscape elsewhere in the UK, this alignment can reduce friction, speed up decision-making and give investors and occupiers greater confidence.
Affordability is often framed as a compromise with cheaper space implying lower quality. In reality, Scotland offers something different, which is value, offering a cost base that allows companies to grow without being crushed by overheads. Purpose-built labs, technical infrastructure and professional meeting space that meet global standards, but at costs that allow founders to reinvest in people, technology and intellectual property rather than rent alone.
Value matters because life sciences is a long game. Drug development, diagnostics, medtech and digital health rarely follow linear growth curves. Flexibility in leases, space and scale is essential. Scotland’s emerging science infrastructure is increasingly designed with that reality in mind, supporting companies as they move from bench science to commercial operations without forcing them to relocate every few years. Purpose-built translation infrastructure is beginning to close this historic gap. Glasgow’s new Health Innovation Hub, located adjacent to the Queen Elizabeth University Hospital, exemplifies how clinical access, research capability and commercial space can be integrated to support companies as they move from bench science into real world application.
At Kadans Science Partner, we’re proud to be developing and operating HiH in Glasgow in collaboration with the University of Glasgow.. The building is now more than 70% let and is home to the Digital Health Validation Lab (DHVL), Chemify and Panthera.
Great science alone does not create successful companies. Innovation needs physical space, such as labs, validation facilities and collaboration environments delivered at the right time and de-risked enough for capital to follow. Where Scotland has historically underperformed is not in research quality or clinical capability, but in translating those strengths into scalable, investable environments but encouragingly, that is beginning to change.
Recent demand for high-quality lab and technical space demonstrates that companies are actively choosing Scotland when the fundamentals stack up. For international companies, Scotland also offers a compelling and scalable UK base post-Brexit with access to talent, strong academic partnerships, supportive government agencies and a cost profile that makes multi-site European strategies more viable.
Scotland already has the science, the talent and the clinical excellence. By continuing to align infrastructure, policy and investment around those strengths, it can thrive globally.
Mark Hanna is Director of Asset Management Kadans Science Partner