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Our High Growth Clusters and Innovation Ecosystem

Why it matters

The West Midlands is home to globally leading businesses and world-class research from 15 universities, with strengths at the intersection of traditional industries and emerging technologies. For over 200 years, the region has shaped the global economy and continues to lead in sectors driving 21st-century growth. The Plan for Growth (2022) identified eight key economic clusters with strong investment potential and a few emerging ones, representing around 15% of the regional economy but with outsized potential to boost productivity and create high-value jobs. The UK’s Modern Industrial Strategy (2025) aligns with this vision, aiming to increase business investment by harnessing regional sector strengths and unlocking local, inclusive growth opportunities.

Man in wheelchair lifting weights in the gym
Man in wheelchair lifting weights in the gym
Manufacturing supports 273,000 jobs and contributing £22 billion annually. Anchored by major firms and innovation centres, the West Midlands has deep, high-value supply chains and is becoming a hub for next-generation manufacturing, driven by robotics, AI, and a dynamic logistics sector. A global shift toward net zero, digitalisation, and supply chain resilience creates opportunities to strengthen emerging sectors like electric vehicles and low-carbon aerospace.
Smart energy systems are key to achieving the net zero goal by 2041 and future economic growth. The West Midlands has a nationally recognised edge in energy systems, with strengths in heat pumps and smart technologies highlighted in the Modern Industrial Strategy. A mix of specialist SMEs, major firms and leading centres are together supporting around 20,000 jobs.
The West Midlands has considerable strengths in medical devices, diagnostics and associated digital healthcare, with the largest medical devices cluster in the UK comprising over 700 firms, employing over 14,000 people and generating a combined turnover of £6bn.
The West Midlands has been recognised by the UK government as one of the fastest growing tech hubs in the UK, with a highly diverse digital sector and notable strengths in Artificial Intelligence (AI), Advanced Connectivity Technologies (ACT), Quantum Technology and Cyber Security Technologies.
Birmingham is a large and historic financial services hub, with HSBC, Lloyds Banking Group and Deutsche Bank operating in the city.
The West Midlands has shaped the global economy through innovation and continues to remain a hub where breakthrough begins. Driven by strong partnerships between business, academia and the public sector. Home to six research-active universities and a rich mix of innovation institutions.

What we want to see in 10 years

Our priority business clusters grow faster than forecast.

The West Midlands will be globally recognised as a centre for excellence in our chosen clusters.

What we will deliver in three years

Download full plan

Cluster plans for our five key clusters

A targeted cluster development programme to scale high-growth businesses

Moving our businesses into new industries with a supply chain programme to exploit new opportunities in growing areas of the global economy

Business energy transition advice and support

An enhanced Innovation Partnership with Government and investment in applied R&D

A WM AI Acceleration Plan

What change will feel like for residents and businesses

Residents will have access to high-skill, well-paid careers in the West Midlands. Local businesses will gain confidence from clear long-term cluster strategies, while outside investors and entrepreneurs will be drawn by the region’s strong commitment to its key strengths, creating new jobs.