From local innovation to global trade: what local innovation priorities mean for your business

Co-written by Alice Hurst, Innovation Policy Manager at West Midlands Combined Authority & Dan Carins, Policy Manager (Business) at the West Midlands Combined Authority.

Published: 30 October 2025

Innovation isn’t just a buzzword in the West Midlands: it’s a growing engine of business growth, regional transformation, and increasingly, international trade. Through a clear set of regional priorities and a strategic partnership with central government, the West Midlands Combined Authority (WMCA) is building an innovation ecosystem that’s delivering results and opening new opportunities for businesses not just locally, but globally.

Innovation priorities with global potential

At the heart of this approach are WMCA’s innovation priorities, which guide how the region engages with UKRI, Innovate UK, DSIT, and other national and international partners. For businesses across the region, whether you're a startup, a scale-up, or a cluster leader, this is a moment to engage. The innovation landscape is evolving, and the opportunities to collaborate, commercialise, and export have never been stronger.

Innovation as a launchpad for exporting

Innovative businesses are more likely to export. Products and services developed in high-growth clusters, from clean tech and health/med-tech to advanced manufacturing and digital, are in demand globally. WMCA’s innovation priorities are designed to help SMEs tap into this potential and scale internationally.

Local innovation partnership fund (LIPF)

LIPF offers a minimum £30m for the West Midlands to invest in high-potential clusters. It’s designed to unlock co-investment, align with tools like Investment Zones, and support business-led innovation. For SMEs, this means more opportunities to develop export-ready products and services in globally competitive sectors.

Partnership with UKRI and global networks

WMCA is working with UKRI to ensure regional strengths are reflected in national funding decisions. The Local Action Plan with Innovate UK connects businesses to grants, equity, and growth finance, including opportunities that support international expansion.

WMCA is also leading a Horizon Europe network, opening doors to European funding and collaboration. This gives West Midlands businesses access to international research partnerships and export markets

Innovation diplomacy in action: Birmingham–Ulsan collaboration

A standout example of international innovation is WMCA’s involvement in DIATOMIC, a transnational collaboration with Ulsan, South Korea. Facilitated by Connected Places Catapult, this partnership supports joint R&D in hydrogen, clean tech, and smart mobility, helping SMEs test products in new markets and build global networks. It’s a model for how innovation can drive international trade.

Boosting spinouts and scale-ups for global reach

From Midlands Mindforge to the £16m “Forging Ahead” bid, WMCA is helping universities commercialise research and build a pipeline of high-growth spinouts. These businesses are often born global, with export potential baked into their business models.

What this means for West Midlands businesses

WMCA’s innovation priorities and delivery model are designed with business in mind. Here’s how you can engage, and go global:

Collaborate on innovation projects aligned with regional priorities, from clean tech and health tech to advanced manufacturing and digital.
Access funding and support through programmes like LIPF, Horizon Europe, and UKRI’s export-focused initiatives.
Partner with universities and Public Sector Research Establishments to commercialise research and develop export-ready technologies.
Shape future investment by engaging with WMCA’s cluster leadership groups.
Explore international opportunities through innovation diplomacy models like DIATOMIC and regional trade missions.