The United Kingdom has emerged as a leading force in Europe for corporate collaboration with start-ups, particularly within the sphere of artificial intelligence (AI), according to new analysis from the Open Innovation Report 2025. The report, compiled by European technology firm Sopra Steria Next in conjunction with the French business school Insead, surveyed 1,643 organisations across 12 European countries, including 181 corporates and 78 start-ups in the UK.
The findings reveal that over 80% of British businesses now consider start-ups "crucial" to their AI strategies, signalling a strong reliance on external innovation to drive technological advancement. Three out of four UK corporates reported that their collaborations with start-ups met most or all of their objectives, a success rate notably higher than the European average of 65%.
Open innovation—the strategy of partnering with external start-ups to develop new technologies and business models—is viewed by many UK firms as essential to maintaining competitiveness. This shift is reflected in governance structures, with 52% of UK companies assigning responsibility for open innovation to senior leadership, fostering clearer oversight and a concentrated strategic approach.
John Neilson, Chief Executive at Sopra Steria UK, emphasised the strategic integration of AI in corporate agendas, stating, “AI is no longer a peripheral concern – it’s now at the core of corporate strategy. In the UK, this has led to an ever-increasing appetite for Open Innovation and a rising number of successful collaborations between large corporates and dynamic start-ups. Just two years ago, we warned of the risk of UK companies being left behind… it’s been encouraging to see how UK businesses have risen to the challenge and are now seizing this opportunity with real conviction.”
In addition to AI, UK firms are actively engaging with other emerging technologies, such as quantum computing. Approximately 14% of organisations reported involvement in quantum computing collaborations over the past two years, the highest level reported in Europe. Sustainability-driven innovation also holds a prominent place, with over half of corporate respondents identifying it as a key focus area.
Tom Staley, Technology Advisory and Innovation Lead at Sopra Steria Next UK, noted the significance of these trends but also highlighted ongoing challenges: “With the current emphasis on AI, it’s reassuring to see the UK leading Europe in terms of AI collaborations. However, challenges remain, and cultural differences between corporates and start-ups have been identified as a significant barrier.”
The report indicates that partnerships with start-ups have evolved from peripheral initiatives to core components of corporate transformation strategies. This integration is particularly apparent as companies aim to scale emerging technologies within complex and cost-sensitive environments.
The Open Innovation Report 2025 thus underscores the UK's prominent position in fostering collaboration between established firms and innovative start-ups, positioning such partnerships as critical to advancing AI and other pioneering technologies within the contemporary business landscape.
Source: Noah Wire Services