New research published today (14 September) by NatWest Cymru has identified 160 innovative businesses across Wales with significant potential to drive future economic growth, create skilled jobs and attract investment.
The report, From Innovation to Impact, highlights a major opportunity to help more Welsh businesses turn innovation into commercial success.
NatWest Cymru describes these firms as an "untapped innovation cohort" for Wales: businesses already demonstrating innovation and commercial success, but with significant growth potential still to unlock.
The findings come against a backdrop of an innovation ecosystem that is already delivering results. Welsh grant-backed innovative businesses have attracted more than £1.28 billion in follow-on investment, demonstrating the strength of innovation across Wales and its ability to support ambitious, high-growth businesses.
Wales has developed recognised strengths in sectors including advanced manufacturing, compound semiconductors, life sciences, clean energy and digital technology, helping to position the nation as an increasingly important innovation economy within the UK.
The report also highlights the role of Welsh universities in driving innovation, with 201 spinout companies emerging from their research. Together, they represent a strong pipeline of new ideas, technologies and future businesses with the potential to contribute to long-term economic growth.
Businesses interviewed as part of the research said that finance alone is not enough to drive growth. Access to customers, commercial expertise, leadership support, routes to market and strong innovation networks were all identified as critical factors in helping innovative businesses scale successfully.
One business already demonstrating the value of that support is Cardiff-based Final Rentals, an award-winning travel technology company that has grown from a Welsh start-up into an international business operating in more than 65 countries.
Having joined the NatWest Accelerator in Cardiff during a key stage of its growth, the company has since expanded internationally and become the first business in Wales to secure a NatWest High Growth IP-backed loan, supported by intellectual property valuation specialist Inngot , which helped NatWest develop the IP loan offering. Today, Final Rentals continues to invest in innovation, intellectual property and new technology as it expands into new global markets.
Ammar Akhtar, Founder and CEO of Final Rentals, said:
"What started as an idea in Cardiff has grown into a global business, and NatWest has been part of that journey from an early stage.”
"When I joined the NatWest Accelerator, we were focused on how to take the business to the next level. Today, we're operating in more than 65 countries and continuing to grow internationally.
"The support we've received has helped us invest in innovation, expand into new markets and continue developing technology here in Wales that will support our future growth."
Welsh Government Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, said:
“Unleashing the full potential of the Welsh economy by driving higher productivity is our key economic mission.”
“Innovation and productivity go hand in hand and can help ambitious businesses scale successfully, develop new products and processes to compete in higher-value markets and create good quality employment opportunities in the process.
“I welcome this research, which further highlights that we are a nation with significant economic potential. We are determined to provide the leadership needed to turn that potential into performance.”
Siwan Rees, Manager for NatWest Cymru Accelerator, said:
"Wales has all the ingredients needed to be a leader in innovation, from world-class universities and research institutions to strengths in advanced manufacturing, semiconductors, life sciences and clean energy.”
"Businesses like Final Rentals show what can happen when innovative Welsh companies are given access to the right support and funding at the right time. As the first business in Wales to secure a NatWest High Growth IP-backed loan, Final Rentals demonstrates how innovative businesses can access growth capital without necessarily diluting ownership, helping them invest, recruit and expand more quickly.
"Too often, businesses with ambitious growth plans can find their progress constrained by limited access to capital. Through Venture Banking and innovative funding solutions, we're providing more options for high-growth businesses to unlock investment, commercialise new ideas and accelerate their growth journeys.
"What this research highlights is the opportunity to help more businesses follow a similar path, turning great ideas into commercial success. We have identified 160 businesses that are already innovating and growing. By helping these firms access the finance, expertise and networks they need to scale, Wales has an opportunity to create skilled jobs, attract further investment and drive the next chapter of economic growth."
Martin Brassell, CEO of Inngot, said:
“I think the important thing is to be able to spot companies, like Final Rentals, that have growth potential and that’s where the relationship network that a large bank like NatWest has is really important. Making those connections, finding that potential, and then being able to fund it.”
NatWest Cymru believes supporting more innovative businesses to scale successfully could strengthen productivity, attract additional private investment and help drive sustainable economic growth throughout Wales.
