May 2026 The Scottish Deep Tech Story When heavy industry declined in the 1960s, Scottish development agencies made a deliberatebet on electronics. Over the following decades, “Silicon Glen” grew into a significant hub forsemiconductor manufacturing and electronics assembly. At its peak in the mid-1990s,Scotland produced over a third of Europe's PCs and employed 55,000 people in the sector. The2000 downturn hit manufacturing hard, and much of that work moved offshore. But These challenges are recognised, and meaningful work is underway: The Critical TechnologiesSupercluster is building coordination across Scotland's photonics, quantum, and semiconductorstrengths. The Deep Tech Supercluster programme is developing manufacturing pathways forhardwareventures to move from prototype to large-scale production.Initiatives andorganisations like Techscaler, the National Robotarium, and the Scottish National Investment That same period saw parallel development in other fields. Scotland's life sciences sector grewaround its strong medical schools and NHS infrastructure, while the space sector emergedfrom a combination of geography, satellite data expertise, and engineering capabilities. Thesedifferent threads have produced a distinctive profile and a strong foundation for so-called To ensure we play our part in actualizing Deep Techʼs potential, we as a University haveestablished the Deep Tech Innovation Centre at the Adam Smith Business School. Our goal is tocontribute through research into how the operational and strategic challenges hindering ScottishDeep Tech from realising its full potential might be addressed — including through theexploration of alternative approaches to funding, ownership, governance, and pathways to Today, nearly sixty percent of venture capital invested in Scotland goes to deep tech — aconcentration second only to Switzerland among comparable economies. There is genuinedepth across multiple sectors, a healthy early-stage pipeline, and a committed base ofdomestic investors and funding schemes. However, challenges remain in translating thesestrengths into scaled outcomes. Per capita deep tech investment still lags global leaders Jillian GordonProfessor of Felix HoneckerLecturer Gemma MilneLecturer in Technology andInnovation Management 1Introduction 2The Scottish Deep Tech Ecosystem3Sector Deep Dives4Recommendations What you need to know. Scottish VC- backed deeptech startups are nowworth a combined $7.9B Biotech, Pharma and AI -Scotlandʼs leading deeptech sectors Deep tech spinoutscontribute 56% of totalecosystem value Deep tech funding makesup 57% of all Scottish Venture capital investment hasgrown 7.8x in the last 10 years toreach the third highest year forDeep tech funding ever with Startups founded since 2015have experienced the mostsignificant growth. Worth a Scotlandʼs deep tech pipeline isheavily concentrated at the earlystage, particularly in Biotechand AI, highlighting a strong University spinouts are acornerstone of Scotlandʼs deeptech ecosystem. More than 80university spinouts account for43% of all VC-backed deep tech grown 97x in the last decade. Between 2020 and 2025, 6 out ofevery 10 venture dollarsinvested in Scotland went toDeep Tech startups, well abovethe European average of 32% Deep tech is still relativelyunderfunded with ~75% ofstartups receiving less than AI is becoming an increasinglyimportant driver of deep techactivity. AI startups have raised$216M since 2020, and AI nowrepresents 21% of deep tech VC Scottish universities rankstrongly in the UK and Europefor deep tech entrepreneurship,highlighting Scotlandʼs strong Five Priorities for Scotland's Deep Tech Ecosystem Scotland needs structured team formation programmes, sector-specific commercial talent pipelines, and postgraduate and executive educationdesigned for the scale-up phase, equipping not just founders but the operational and commercial leaders that deep tech ventures need to grow. 1Introduction 2The Scottish Deep Tech Ecosystem 3Sector Deep Dives Scotland's deep tech funnel is heavily tilted towardthe early stages, with over 200 startups andbreakouts but just 5 scaleups. At the top end, 4 coltsand a unicorn in Exscientia represent solid In science and engineering,we have individuals with anentrepreneurial mindset, butgenerally they're not the bestpeople to be the CEO. Mystudents say 'I do not want to We have this strangedemographic of companies;lots of micro or small SMEenterprises at one end, then asmall number of large Stakeholders across the ecosystem point to two interconnectedchallenges behind this tilt. First, companies tend to plateau at20–30 employees before either being acquired — typically byforeign buyers — or stalling entirely, leaving a pronounced gap Scientific and engineering talent is widely recognised asabundant, but commercial leadership capable of navigating thetransition from lab to market to scale is commonly cited asscarce. Building pathways to domestic