In Summary
- UK businesses now lead in working with startups on AI, with most seeing them as key to their plans.
- These partnerships are working well, with UK companies seeing better results than others in Europe.
- Innovation is now a top priority, with senior leaders getting involved instead of just R&D teams.
- Success comes from strong teamwork, with businesses, startups, universities, and tech firms working together.
Over the past few years, the UK has undergone a quiet transformation in the world of corporate innovation. Once seen as lagging behind its European peers, the UK has emerged as a continental leader in the field of Open Innovation - particularly when it comes to integrating artificial intelligence (AI) into business strategy.
Sopra Steria Next’s Open Innovation Report 2025, in collaboration with INSEAD business school, revealed that UK companies are setting the pace across Europe in partnering with startups to deliver cutting-edge technology solutions. The report paints a compelling picture: 81% of UK corporates now view startups as crucial to executing their AI strategy - the highest figure in Europe.
This isn’t just about intent. The UK is also delivering tangible results. British firms report successful outcomes in three out of every four startup collaborations, significantly outperforming the European average of 65%.
From caution to conviction
This marks a remarkable turnaround. Just two years ago, the outlook for Open Innovation in the UK was far less optimistic. In 2023 edition of our Open Innovation Report, nearly a third of UK businesses said they had no plans to partner with startups - the lowest rate in Europe at the time.
What’s changed? The rapid evolution of AI has played a major role. With talent shortages, high development costs, and technological complexity slowing down internal innovation efforts, large organisations have increasingly turned to the agility and specialist expertise of startups. As a result, Open Innovation - once a nice-to-have - has become a strategic imperative.
Innovation is now a boardroom priority
The shift in mindset is also reflected in organisational structure. Over half of UK firms now place responsibility for Open Innovation with senior leadership — signaling that it’s no longer the domain of isolated R&D teams, but a core part of business strategy.
This commitment is paying off. In addition to its AI leadership, the UK is also ahead of the curve in emerging technologies like quantum computing, where it leads Europe in corporate-startup collaborations. It also ranks second on sustainability-focused innovation, showing a broad-based embrace of transformative thinking.
A culture of collaboration
According to Sopra Steria UK CEO John Neilson, the UK’s innovation surge stems from a recognition that AI is now “at the core of corporate strategy.” Startups, with their speed, talent, and focus, are essential partners in turning ambition into reality.
Adding to this, the UK’s success is also down to a collaborative mindset - involving not just startups, but industry partners, hyperscalers, and academia.
However, the road ahead isn’t without challenges. Cultural mismatches between startups and large organisations continue to pose hurdles. But with the right support systems in place, these partnerships can thrive — unlocking value not just for businesses, but for society as a whole.
A model for Europe?
As companies across the continent race to keep up with technological change, the UK is showing what’s possible through ecosystem based innovation. Open Innovation is no longer a buzzword - it’s the blueprint for staying competitive in a fast-moving world.