The North East is home to a thriving life sciences cluster, supported by world-class research institutions, innovative businesses, and a strong culture of collaboration. But a critical barrier to growth remains: the shortage of suitable laboratory space.
A new report, Unlocking Laboratory Space for the North East Life Sciences Sector, sets out practical steps to address this challenge and position the region as a leading UK hub for innovation-driven growth. We spoke to Michelle Duggan, Head of Inward Investment at the North East Combined Authority, to find out what the report means for businesses, landlords, and investors.
What is the report about and why was it commissioned?
This report is taking on one of the key challenges facing our life sciences sector: the lack of fit-for-purpose laboratory space. We know the North East has incredible strengths in research and innovation, but without the right infrastructure, businesses can’t start, scale, or attract investment. This study explores market demand, technical considerations and practical interventions to unlock supply. It’s about creating the conditions for growth for the dynamic companies we have in the region and enabling new entrants to the market, either through start-ups or inward investment. We want to ensure that the region’s scientific excellence is matched by the facilities it deserves.
Why is this issue so important right now?
Demand for lab space is immediate and growing. We have spinouts from our universities, scaling biotech firms, and established companies all looking for flexible, high-quality facilities. If we don’t act now, we risk losing talent and investment to other regions.
The report gives us a roadmap to accelerate conversions of existing vacant properties, encourage flexible leasing, and develop shared infrastructure. These steps will help us capture forecasted growth in research-intensive industries and strengthen the North East’s position on a national and global scale.
Who can benefit from the findings and recommendations?
There are three main groups:
- Life sciences companies – from startups to established firms who need space to grow.
- Landlords and developers – who can unlock new revenue streams by converting underused properties into labs.
- Investors – who want confidence that the region is ready for innovation-led growth.
We’ve also created tools and guidance to make it easier for businesses and property owners to take action. These are available on the North East Growth Hub.
What practical support is available for businesses and landlords?
We’ve developed a ‘Finding and fitting out lab space step-by-step guide’ that covers everything from technical fit-out considerations to flexible leasing models. We’ve also partnered with experts like Ryder Architecture and Naylors Gavin Black, who are offering initial advisory support free of charge. The objective is to remove barriers and de-risk development, so more companies can access the space they need without prohibitive costs or delays.
How does this fit into the bigger picture for the North East economy?
Life sciences is one of our fastest-growing sectors and a key driver of high-value jobs and innovation. By unlocking lab space, we’re not just supporting individual businesses, we’re strengthening the entire ecosystem. This aligns with the UK Life Sciences Sector Plan and our Local Growth Plan, ensuring the North East is equipped to compete globally. Acting now means we can attract inward investment, retain talent, and create a platform for long-term economic growth.
Where can businesses find the report and tools?
Everything is available on the North East Growth Hub website, including the full report, toolkit, and case studies from companies that have successfully adapted their own spaces. These stories show what’s possible and provide practical insights for others considering similar projects.