A leading healthcare innovation body has cautiously welcomed Scottish Government plans for a new innovation fund, potentially playing a ‘transformative role’ in accelerating collaborative breakthroughs inspired by academic entrepreneurs

In the recently published Programme for Government 2026-2031, it was stated that there are ambitions to work with the Scottish National Investment Bank (SNIB) in launching such a fund with a prime focus placed on university spinouts.

Health and life sciences has been identified as one of the Scottish Government’s four innovation priorities across the next five years, helping to create “a world class health system built on world class resources”.

The Programme for Government insists that “our health system can only be as strong as the investment we make in its facilities and workforce — both of which are central to people receiving the best care, in the best settings, from the best professionals.

The expectation for the fund is to collaborate “with leading universities to leverage private capital, and work across the public sector to ensure strong wrap-around support”.

While the First Minister last week confirmed plans to simplify NHS structures by replacing the country’s 14 territorial health boards with two strategic boards, innovation body InnoScot Health believes that a dedicated and independent fund could be an important step in ensuring that forward-thinking ideas remain to the fore for patient benefit during a period of change and uncertainty within NHS Scotland.

Executive Chair at InnoScot Health, Graham Watson said: “The Programme for Government reforms are essentially aimed at improving outcomes for people and communities — and the Innovation Fund plans could be pivotal to supporting early progress.

“If its potential is realised then cautiously, it represents an opportunity to strengthen healthcare-focused innovation and research on a sustainable basis.

“Progressive thinking is key to the future of healthcare, but it must be supported by meaningful investment that recognises the inherently risky nature of a dedicated innovation fund, and which, if targeted correctly in priority areas and underpinned by an effective new Digital Health and Care Record, could lead to significant long-term gains.

“The Scottish Innovation Fund, if properly established, could play a transformative role in improving healthcare across the country.”

Areas for improved innovation named in the programme include the use of digital technology to support people in preventing type 2 diabetes, and expansion of virtual wards to reduce pressure on hospitals and improve outcomes through the provision of quality care in domestic settings.

The Scottish Government said it will “implement the recommendations of the five-year review of the Scottish National Investment Bank (SNIB) and align public finance institutions in Scotland behind a shared mission to support innovation, high-growth businesses, scale-up activity and strategic infrastructure investment”.

The Scottish Government says it further plans to develop a Glasgow-Edinburgh Arc and an East Coast Arc between Aberdeen, Dundee and St Andrews, and expects to consult on other opportunities to boost productivity and innovation by linking research, universities, and businesses.

Ministers will also “consult on a Procurement Bill to address further opportunities to modernise procurement, maximise economic and social impact and protect Scotland’s interests, including how to drive innovation in health and care and amplify support for community wealth building through procurement”.