UK leading Europe in AI start-ups, tech report claims
29 April 2025, 12:04
More than 1,500 organisations across 12 European countries were surveyed
The UK has emerged as Europe’s leader in corporate collaboration with start-ups, particularly in artificial intelligence, new analysis shows.
More than four in five British businesses (81%) now view start-ups as “crucial” to their AI strategies, with corporate start-up partnerships achieving higher success rates in the UK than anywhere else in Europe.
The figures come from the Open Innovation Report 2025, produced by European tech firm Sopra Steria Next in collaboration with French business school Insead.
They surveyed 1,643 organisations across 12 European countries, including 181 corporates and 78 start-ups in the UK.
Open innovation – the practice of working with external start-ups to develop new technologies and business models – is increasingly seen by UK firms as central to competitiveness.
Three out of four UK corporates say their start-up collaborations met most or all of their objectives, compared with an average of 65% across Europe.
Senior leadership is playing a growing role with just over half of UK firms (52%) placing responsibility for open innovation at the top of the organisation, a move that has contributed to clearer governance and stronger strategic focus, the report suggested.
John Neilson, chief executive at Sopra Steria UK, said: “AI is no longer a peripheral concern – it’s now at the core of corporate strategy.
“In the UK, this has led to an ever-increasing appetite for Open Innovation and a rising number of successful collaborations between large corporates and dynamic start-ups.
“Just two years ago, we warned of the risk of UK companies being left behind… it’s been encouraging to see how UK businesses have risen to the challenge and are now seizing this opportunity with real conviction.”
UK firms are also among the most active in emerging technologies with 14% reporting engaging in quantum computing collaborations in the past two years – the highest proportion in Europe.
Interest in sustainability-driven innovation also remains strong, with over half of corporates citing it as a key focus area.
Tom Staley, technology advisory and innovation lead, Sopra Steria Next UK, said: “With the current emphasis on AI, it’s reassuring to see the UK leading Europe in terms of AI collaborations.
“However, challenges remain, and cultural differences between corporates and start-ups have been identified as a significant barrier.”
The research suggests that start-up partnerships are no longer peripheral initiatives but increasingly integrated into corporate transformation agendas – particularly as firms seek to scale emerging technologies in complex, cost-sensitive environments, the report said.
