Northern Ireland is leading the UK in turning innovation into commercial success, according to new research from Ulster Bank, reinforcing its growing reputation as a hub for innovation-led economic growth.
Ulster Bank’s “From Innovation to Impact” report found that Northern Ireland has the highest proportion of scaling businesses of any UK region analysed, demonstrating the region's success in helping innovative firms grow and bring new products and services to market.
The research also revealed that grant-backed businesses across Northern Ireland have attracted more than £629 million in follow-on investment, highlighting the strength of the region's innovation ecosystem and its ability to attract funding for ambitious, high-growth businesses.
Despite these successes, the report identifies a significant opportunity for future growth. Ulster Bank found 98 innovative Northern Ireland businesses that are continuing to develop new products, services and technologies but have yet to realise their full commercial potential.
Supporting these businesses to grow and scale could unlock new investment, create high-value jobs and deliver long-term economic benefits across Northern Ireland.
The report highlights the important role played by collaboration between businesses, universities, investors and policymakers in creating an environment where innovation can thrive. It also found that businesses need more than finance alone to succeed, with access to leadership expertise, talent, customer networks and routes to market all playing a critical role in translating innovation into sustainable growth.
One business already demonstrating the value of that support is Northern Ireland-based Vikela, a body armour manufacturing business that is building and scaling its operations from Northern Ireland while pursuing opportunities for growth in international markets.
Having joined the Ulster Bank during at an early stage of the business, Vikela has benefited from dedicated support designed to help ambitious businesses scale, develop new opportunities and realise their growth potential. The company recently invested in a new 3D printer with investment secured from winning the 2026 Ulster Bank Pitch competition.
Peter Gilleece, CEO of Vikela, said:
“What started as quite a niche idea to see if 3D printing could be deployed to create lighter body armour than was already available has developed into a successful business and Ulster Bank has played an important role in supporting us on that journey.
“I knew from friends who had to wear body armour for their job that it was heavy and uncomfortable and was inspired to try and find a better solution. I may have had the initial idea, but actually turning that idea into a business was another thing entirely.
“Joining the Accelerator gave us access to valuable expertise, guidance and a network of people who understood the challenges and opportunities that come with growing an innovative business.
“The support we’ve received has helped us think bigger, strengthen the business and focus on the opportunities ahead. We’re proud to be growing from Northern Ireland and to be part of the thriving ecosystem of entrepreneurs who are achieving great things here.”
Gabriella Burnside, Ulster Bank Accelerator Manager, said:
"Northern Ireland is already demonstrating what can be achieved when innovative businesses are supported by a strong ecosystem of universities, investors, businesses and public sector partners.
"Our research shows the region is one of the UK's strongest performers when it comes to turning innovation into commercial success, with businesses attracting significant investment and a growing number successfully scaling.
"However, there is still huge potential to unlock further growth. Nearly 100 innovative businesses are developing exciting products, services and technologies but have yet to realise their full commercial potential. By helping these firms access the finance, expertise and networks they need, Northern Ireland has an opportunity to create more high-value jobs, attract further investment and strengthen long-term economic growth."
Ulster Bank believes the next challenge for Northern Ireland is not simply creating more innovation, but ensuring more innovative businesses can successfully scale and translate their ideas into lasting economic impact.
Key Findings
- Northern Ireland has the highest proportion of scaling businesses of any UK region
- Grant-backed firms have attracted more than £629 million in follow-on investment
- 98 innovative businesses have been identified as having significant untapped growth potential
Notes to Editors
- NatWest's From Innovation to Impact report analysed innovation activity and commercial outcomes across the UK.
- Northern Ireland is home to 490 innovative businesses, including 297 recipients of public innovation grants.
- The region has produced 108 university spinouts, with 70 also receiving public innovation funding.
- 27.3% of grant-backed firms have secured follow-on equity investment.
- 13.5% of grant-backed firms have achieved an acquisition or other successful exit, one of the highest regional rates in the UK.
- 10.8% of firms are classified as scaling businesses, the highest proportion of any UK region analysed.
- Grant-backed innovative firms have attracted £629 million in follow-on equity investment.
- 81 businesses have secured follow-on investment.
- 40 businesses have achieved an exit.
- 32 businesses have demonstrated a recognised scale-up signal.
- 98 businesses form Northern Ireland's "untapped innovation cohort" - active innovative companies that have not yet secured follow-on investment, achieved an exit or demonstrated a recognised scale-up signal.
- The untapped innovation cohort represents 33.0% of grant-backed firms in Northern Ireland, compared with a UK average of 38.1%.
About Ulster Bank’s research
The findings are drawn from Ulster Bank’s From Innovation to Impact report, which examines how the UK can better convert innovation into commercial growth and regional economic prosperity.
The analysis was conducted by Beauhurst on behalf of NatWest and is based on a dataset of 12,381 UK companies that have received at least one publicly disclosed innovation grant since 2011, including Innovate UK funding. Of these, 12,119 grant recipients were included in the commercial outcomes analysis.
Companies were assigned to one of five mutually exclusive outcome categories:
- Exited – acquired, listed on a stock market or sold to new owners
- Follow-on Equity – secured additional equity investment
- Scaling – demonstrating high-growth characteristics without a recorded equity event or exit
- Untapped Innovation Cohort – still trading but without a recorded exit, follow-on equity investment or recognised scale-up signal
- Ceased – no longer operating
Regional analysis is based on companies' registered addresses.
Throughout the report, the term "untapped innovation cohort" refers to businesses that remain active and continue to innovate but have not yet secured follow-on investment, achieved an exit or demonstrated a recognised scale-up signal.
Follow-on equity figures include all subsequent equity investment raised by grant recipients and should be interpreted as an association rather than a direct measure of grant impact.
For From Innovation to Impact: Northern Ireland (attached)
For the full UK report, visit Turning the UKs untapped innovation potential into regional growth
