The Open Innovation Report 2025, developed with academics from the INSEAD business school, found that 81% of UK companies consider startups to be “crucial” in executing their AI strategy – the highest in Europe ahead of Spain (69%) and Denmark (65%). 

The latest findings also show that UK corporates report the highest level of startup collaboration success in Europe, with objectives achieved in three out of every four projects – well above the European average of 65%.

Meanwhile, more than half (52%) of UK companies have now placed responsibility for Open Innovation with top management – second only to Luxembourg (53%) when compared to their European counterparts.  

The UK also leads the continent in the proportion of quantum computing collaborations over the past two years (14%) and ranks second – behind Norway (61%) – when it comes to interest in sustainability-driven innovation (51%).

The latest findings show a remarkable turnaround in the popularity of Open Innovation – where corporates collaborate with dynamic startups to seek out new solutions to business challenges – in the UK.

Sopra Steria Next’s previous study, published in 2023, revealed that UK corporations had fallen behind the rest of Europe, with almost a third (31%) having no plans to partner with startups in the next 18 months – at the time, the lowest level of Open Innovation in Europe.

Since then, with AI advancing at an unprecedented pace, companies across Europe have been racing to integrate its capabilities into their operations. Yet many large organisations face significant barriers when developing and rolling out their AI strategy using internal resources alone, with talent shortages, high development costs, and the complexity proving to be key challenges.

Against this backdrop, Open Innovation has emerged – nowhere more so than in the UK – as a strategic necessity, enabling corporates to collaborate with agile, tech-driven startups to accelerate AI deployment and maintain competitive edge.

John Neilson, CEO Sopra Steria UK, said: “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 startups. Just two years ago, we warned of the risk of UK companies being left behind the rest of Europe in realising the benefits of Open Innovation. Since then, it’s been encouraging to see how UK businesses have risen to the challenge and are now seizing this opportunity with real conviction – but there’s always more we can do. By continuing to remove barriers and create the right environment to accelerate these powerful corporate-startup collaborations, we’ll continue to drive positive change in business and society.”

Tom Staley, Technology Advisory and Innovation Lead, Sopra Steria Next UK, said: “In a challenging economic environment, where rapid technological advancements are redefining entire industries, the UK has recognised the need to collaborate; engaging with hyperscalers, industry, academia and startups to understand and pursue new opportunities. With the current emphasis on AI, and the need to ensure well-informed solutions, it’s reassuring to see the UK leading Europe in terms of AI collaborations. Moreover, it's great to see the UK place responsibility for Open Innovation with senior management. This has resulted in the highest startup collaboration success rate across Europe; with 75% of organisations reaching their objectives all or most of the time. However, challenges remain, and cultural differences between corporates and startups have been identified as a significant barrier, meaning that our commitment to act as a catalyst for Open Innovation is more important than ever.”

The Open Innovation Report 2025 surveyed 1,643 organisations across 12 European countries, including 181 corporations, and 78 startups in the UK.

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