The UK, with the third largest tech sector in the world, is well-positioned to successfully partner with leading and emerging digital economies. But innovation does not exist within the constraints of country borders. In fact, international partnerships and collaboration are key to making sure that technology works for people, economies, societies, and the planet.
Recent years have seen the UK government sign a number of innovative bilateral initiatives including Fintech Bridges, Space Bridges, and Digital Economy Agreements. While many of these have been successful, it is critical the new government continues to work with partners around the world to best position the UK tech sector for international success.
Establishing tech bridges – a model for success?
One of the most promising initiatives in fostering international collaboration has been the establishment of Fintech Bridges, as exemplified by the UK-Australia Fintech Bridge. These arrangements serve as international regulatory sandboxes that allow companies to test innovative products and services in a controlled environment while ensuring compliance with relevant regulations.
By doing so, they help companies – especially those that are inherently innovative and operate in difficult regulatory environments – scale into new markets more effectively.
“The new government has a unique opportunity to drive innovation through international partnerships ”
Daniel Clarke, TechUK
The UK-Australia Fintech Bridge has demonstrated the potential of such partnerships. Under this agreement, regulatory authorities from both countries collaborate to support fintech startups, allowing them to operate in each other’s markets through regulatory sandboxes. The success of this initiative, which has seen over 42 UK fintech companies expand into Australia, shows that to support innovative, high-growth sectors, you need innovative trade policies.
To build on this success, TechUK has called on the new UK government to establish additional Tech Bridges – which include regulator-to-regulator dialogue – with other key markets, across more technology sub-sectors.
These partnerships would support the international expansion of some of the UK’s most innovative tech companies and help diminish the technical trade barriers which so often arise from varying regulations.
Prioritising digital economy agreements
In an increasingly digital world, the UK must also focus on negotiating Digital Economy Agreements (DEAs) with priority markets. The UK-Singapore DEA, for instance, has been a model for how such agreements can facilitate innovation. DEAs are adaptable to new technologies and provide mechanisms for regular stakeholder input, ensuring that the trading relationship remains modern and responsive to technological advancements.
The next UK government should build on this model by negotiating additional DEAs with key markets. These agreements would not only support the digital economy but also provide a framework for cooperation on emerging technologies, such as artificial intelligence, quantum computing, cyber security, blockchain and much more.
Exploring and enhancing dialogues on technology and trade
The US-EU Trade and Technology Council, despite yielding few concrete results, has been a critical forum for discussing transatlantic cooperation on issues such as export controls, foreign direct investment screening, and technology standards. These are issues that are inherently global and ever-changing and thus require a consistent, ongoing dialogue. The UK should seek to learn the lessons from the US-EU Trade and Technology Council and explore options for dialogues with key partners.
Moreover, where bilateral science and technology partnerships already exist such as the newly signed UK-India Technology and Security Initiative, the UK should prioritise operationalising them in consultation with industry stakeholders. For example, the UK’s bilateral tech forums with Japan and India offer significant opportunities for closer cooperation on emerging technologies. By strengthening these partnerships alongside industry support, the UK can remain at the forefront of critical conversations on technology and trade.
The new government has a unique opportunity to drive innovation through international partnerships by building on successful initiatives like Tech Bridges, prioritising digital economy agreements, and enhancing dialogue with core partners. These efforts will not only support the growth of high-tech sectors but also ensure that the UK remains a leader in global dialogues around technology and regulation.
Daniel Clarke is policy manager for international policy and trade at TechUK.