A Blueprint for Motorsport Innovation in Advanced Manufacturing

How Motorsport Innovation is Transforming the UK’s Advanced Manufacturing Industry

Motorsport is a technology incubator that drives breakthroughs in high-value engineering (HVE), advanced manufacturing, and sustainable powertrains.

Living Lab partnered with the UK Government to develop a motorsport-driven high-value engineering strategy, leveraging the industry’s expertise to enhance R&D, manufacturing innovation, and industrial competitiveness.

[ 01 The Power of Motorsport innovation in High-Value Engineering ]

The UK motorsport industry is a global leader in high-performance engineering, with £7.1 billion in annual sales and 38,500 jobs in automotive technology, composites, and energy-efficient drivetrain development.

By transferring motorsport innovation the sector fuels advancements in:

Sustainable propulsion systems
Aerodynamics and lightweight materials
Additive manufacturing and digital engineering
Energy-efficient powertrains and battery technology

Motorsport can have a transformative effect on industrial innovation, driving economic growth through high-paying R&D and manufacturing jobs. When anchored by motorsport, and the advanced industrial processes the participants inspire, nations unlock a powerful engine for progress. Motorsport, in particular, sits at the intersection of high-value engineering (HVE) and cutting-edge technology, delivering advancements that ripple across industries such as automotive, aerospace, clean energy, and advanced manufacturing.

Motorsport Innovation as an Industrial Accelerator

Every great project begins with a bold vision. Harnessing motorsport’s culture, processes, and technologies to supercharge the UK’s HVE research and manufacturing sector was ambitious—and complex. Motorsport thrives on competitive advantage, where technological breakthroughs remain highly protected. Teams guard their innovations, preferring to iterate rapidly rather than patent them.

Our challenge? To take the competitive edge found in motorsports innovation and translate it into an actionable strategy that would drive economic transformation, innovation, and long-term competitiveness.

Benchmarking Global Leaders in Advanced Manufacturing Technology

We transformed an ambitious vision into a clear, actionable strategy for a motorsport-driven high-value engineering hub. Starting with an in-depth feasibility study, we:

Benchmarked global leaders like Motorsport Valley, Bavaria’s automotive clusters, and Cambridge’s technology hubs to identify success factors.
Analysed industry trends, economic data, and motorsport’s role in driving advancements in sustainable powertrains, aerodynamics, and composites.
Engaged with stakeholders—from OEMs and SMEs to policymakers, universities, and race teams—to uncover priorities and opportunities.

The result? A strategic roadmap combining modern infrastructure, shared facilities, event programming, and skills development to position the hub as a magnet for R&D, investment, and job creation.

Our approach was realistic, data-driven, and collaborative—challenging assumptions, mapping pathways to success, and delivering a practical blueprint for long-term economic transformation.

The Chemistry

Sports economy strategy and planning
Data-driven Motorsport Industrial Feasibility studies
Benchmarking Against Global Sports and Industrial Hubs
Stakeholder Engagement and Alignment
Long-Term Infrastructure, technology and Event Roadmaps
Economic Modelling, Incentives, and Investment Attraction
Skills Development and Innovation Programmes
Technology Transfer and Sustainability Integration

[ 02 Key Components of the UK’s Motorsport-Driven Innovation Model ]

Sports as an industrial ACCELERATOR

Our High-Value Engineering Strategy

Manufacturing is a global engine of economic growth, representing over £6.7 trillion globally and contributing significantly to national GDP, innovation, and employment.

In the UK, high-value manufacturing (HVM) accounts for 10% of Gross Value Add (GVA), half of all exports, and three-quarters of the nation’s business R&D. But this sector is not just about economic metrics. It is the catalyst for transforming nations’ innovation ecosystems, strengthening industrial clusters, and unlocking long-term competitive advantage.

High-Value Engineering (HVE) sits at the nexus of this transformation. With motorsport as a strategic anchor, nations can propel advanced technologies, from sustainable powertrains to composites and additive manufacturing. The UK motorsport industry is a global leader in HVE with £7.1bn in sales generated from 4,500 SMEs. The industry supports 38,500 full and part-time jobs, including 25,000 engineers. Alongside that, the HVE segment of UK manufacturing accounts for 35% of all exports and contributes £151bn worth of value toward the UK’s balance of payments.

Motorsport-developed industrial processes such as non-destructive testing, simulation and manufacturing processes, short timescales and so on are increasingly relevant to mainstream manufacturing. Companies such as Prodrive, Williams Advanced Engineering, Ricardo, Xtrac, McLaren Applied Technologies and many less well-known names are all developing stand-alone businesses to commercialize motorsports-related technologies, such as active aerodynamics, composites, advanced gearboxes, high-output diesel engines and energy-efficient drive trains.

Understanding the Opportunity

We transformed an ambitious vision into a clear, actionable strategy for a motorsport-driven high-value engineering hub.

Starting with an in-depth feasibility study, we:

[ 01 ]

Benchmarked global leaders

We benchmarked against leading global hubs like San Jose-San Francisco and San Jose-San Francisco, Cambridge in the United Kingdom, Daejeon Germany’s advanced automotive clusters in Bavaria and Cologne, identifying what made them thrive.

[ 02 ]

analysed

We analysed economic data, industry trends, and motorsport’s role in driving innovation—such as its rapid advancements in sustainable powertrains, aerodynamics, and composites.

[ 03 ]

Engaged with stakeholders

From OEMs and SMEs to policymakers, universities, and race teams—to uncover priorities and opportunities. That’s where we find the Living.Lab chemistry.

Contributors

We met with more than 40 organisations across motorsport and high-value engineering, including educational institutions like Cranfield University, major automotive manufacturers such as Hyundai, Volkswagen, Lotus and Nissan, and leading parts suppliers like Ricardo and Magneti Marelli. Insights were also gathered from prominent race teams, including Williams F1, and McLaren. This breadth of input highlights the critical roles of education, R&D, OEM innovation, and race team operations in shaping the future of motorsport and high-value engineering industries.

[ 03 Insight ]

Motorsports innovation as an industrial ACCELERATOR

what did we learn?

The interviews provide a clear roadmap for how motorsport-driven hubs can be strategically developed and scaled. We can extract actionable insights that inform hub design, stakeholder alignment, and long-term success.

Formula E, for example, has seen technology trickle down into road cars. Although much of this technology is subtle, such as improvements in battery performance, it’s beneficial for consumers.

David Pender Richards CBE Former chairman of Aston Martin

Insight

[ 01 ]

Focus on the Innovation Flywheel

Insight: Volkswagen currently invests more in R&D than any other company worldwide, outpacing the likes of Apple, Samsung and Microsoft, whose lifeblood is technological advancement. Additionally, there are 2 automakers in the top 10 R&D spenders, 8 in the top 25, and 11 among the top 50. This dominance reflects on the role motorsport can take as a technology incubator.

Planning Response: Integrate Motorsport-developed industrial processes such as non-destructive testing, simulation and manufacturing processes, and short timescales into mainstream manufacturing. Auto manufacturers and OEMs are better placed to commercialise motorsports-related technologies, such as active aerodynamics, composites, advanced gearboxes, high-output diesel engines, composite bonding, battery tech, BMS systems, and energy-efficient drive trains.

Outcome: A self-sustaining ecosystem where motorsport innovation drives value into adjacent industries like automotive, aerospace, and green tech.

[ 02 ]

Learning to Love (or Live with) the Sharing Economy

Insight: OEMs and race teams cited the need for cost-effective, shared facilities to lower the barriers to entry for SMEs and drive innovation.

Planning Response:

Design hubs to act as innovation flywheels by integrating shared infrastructure—such as CFD labs, additive manufacturing centres, and hybrid propulsion testing—to facilitate rapid prototyping and collaboration.
Develop hubs that offer: State-of-the-art testing environments: wind tunnels, simulation labs, and composite manufacturing.
Technology-sharing platforms: A framework to encourage cross-sector R&D collaboration and knowledge transfer.

Outcome: Hubs that operate as magnets for global investment and industry clustering, maximising occupancy and economic outputs.

[ 03 ]

Align with Skills and Academia

Insight: The German model of long-term guaranteed university funding for development technologies underscores the importance of linking skills pipelines to industry needs.

Planning Response: Establish partnerships with regional universities and technical institutions to create:
STEM training programmes that align with motorsport and high-value engineering demands.
Research partnerships to accelerate R&D in emerging fields like sustainability, electric mobility, and additive manufacturing.

Outcome: A pipeline of future-proof talent and a dynamic hub that fosters both commercial and academic innovation

[ 04 ]

Leverage Branding and Commercialisation

Insight: Emphasise the role of visibility and branding in securing commercial success for hubs.

Planning Response: Position motorsport hubs as:
- Global showcases for innovation: Events, partnerships, and media coverage create international visibility.
- Sustainability leaders: Motorsport hubs as live laboratories for net-zero technologies enhance their appeal to stakeholders and investors.
Outcome: A commercially viable ecosystem with strong brand equity and long-term investment potential.

[ 05 ]

Prioritise Policy and Incentives

Insight: Stakeholders highlighted the need for clear policies, incentives, and government-backed support to drive momentum.

Planning Response: Build a framework of:

Tax incentives and grants to encourage R&D and investment.
Enterprise zone status to attract global players and stimulate local economies.
Policy alignment with national industrial strategies to position the hub as a key pillar of economic transformation.
Flexible tenancy models: Attract SMEs, Tier 1 suppliers, and start-ups by reducing CAPEX risk.

Outcome: A competitive, business-friendly environment that accelerates growth and attracts long-term tenancy.

[ FIG 05 ]

Which Incentives work?

Motorsport innovation cluster incentives ranked

[ 04 Actions & Results]

Sports as an industrial ACCELERATOR

From Track to Transformation

By combining motorsport’s unique innovation ecosystem with funding mechanisms, workforce development, and sustainability practices inspired and existing government HVM programmes, the strategy delivered measurable outcomes. These include accelerated R&D, increased industry participation, and global investment—creating a blueprint for economic transformation and industrial success.

Actions & results

[ 01 ]

Driving R&D and Innovation Capacity

There are now seven cutting-edge UK high-value manufacturing centres which reduces the cost of innovation and allows SMEs, Tier 1 suppliers, and OEMs access to advanced facilities such as composite labs, CFD testing platforms, and additive manufacturing centres.

Facilitated partnerships between motorsport teams and other industries to accelerate technology transfer (e.g., sustainable propulsion systems, lightweight materials, and advanced energy recovery systems).

Case Study- TOYOTA Motorsport GmbH and AMRC

TOYOTA Motorsport GmbH (TMG) has partnered with the University of Sheffield’s AMRC to pioneer advanced lightweight materials and manufacturing processes. Combining TMG’s expertise in CNC, composites, and additive manufacturing with the AMRC’s cutting-edge research, the collaboration enhances performance and keeps TMG at the forefront of automotive technology.

This partnership leverages horizontal innovation to transfer technologies from other industries into motorsport, driving faster, leaner, cleaner solutions while cementing the AMRC’s role as a hub for high-value engineering.

[ 02 ]

Funding and Investment Support

Integrated government-backed incentives including R&D tax credits, enterprise zone grants, and innovation vouchers to de-risk investments and attract international players.

Enabled access to public-private funding streams for prototyping, testing, and scaling breakthrough technologies.

[ 03 ]

Workforce Development and Skills Alignment

Apprenticeships and Training Pathways: Develop industry-focused apprenticeships and hands-on technical training in areas like composites, digital manufacturing, and additive technologies.

Upskilling Programmes: Deliver tailored CPD courses for existing employees, enabling SMEs, OEMs, and Tier 1 suppliers to adopt emerging technologies and processes.

STEM Engagement: Promote STEM learning through partnerships with universities and technical institutes, aligning research and teaching with motorsport and high-value engineering demands.

Workplace Integration: Embed on-the-job learning by combining real-world motorsport projects with structured educational pathways to accelerate talent readiness.

Case Study- WMG Skills Centre

WMG addresses the skills shortage facing industries by delivering applied learning that drives immediate impact. Its short courses, developed with industry input, focus on key areas like Engineering, Automotive Electrification, Battery Engineering, and Digital Manufacturing.

Designed for efficiency, the courses equip employees with future-ready skills to boost productivity and adapt to evolving job roles. Taught by industry practitioners, WMG empowers businesses to stay ahead of the curve and future-proof their workforces.

[ 04 ]

Leverage Branding and Commercialisation

A significant outcome of the project was the alignment with UKTI’s GREAT Britain Campaign, leveraging Formula 1’s global platform to showcase the UK’s leadership in creative industries, technology, and branding excellence.

The campaign included a Creative Industries and Motorsport Seminar at the Brazilian Grand Prix, where UK companies—spanning design, technical innovation, and architecture—had an opportunity to promote their expertise to senior executives, government officials, and academics.

Notably, McLaren F1 partnered with the GREAT Britain Campaign to highlight the UK’s innovation ecosystem on an international stage. This collaboration demonstrated how motorsport can amplify the UK’s strengths in engineering, sustainability, and advanced manufacturing while promoting British talent in high-performance sectors.

Through events, curated displays, and the GREAT-branded brochure, this initiative created lasting connections, fostered commercial opportunities, and reinforced the UK’s position as a global hub for motorsport and industrial innovation.

[ 05 ]

Driving Policy and Incentives to Unlock Innovation

A core outcome of the project was the development of a robust framework for policy and incentives, which the UK’s Catapult Network model has successfully fostered.

Action:

Increased R&D Funding: The latest round of funding saw £1.6 billion over five years. This sustained government investment will build confidence for private sector growth, driving jobs, productivity, and GDP.
Incentives for Innovation: Introduced tax relief, innovation grants, and enterprise zone initiatives to de-risk R&D and attract SMEs and Tier 1 suppliers to motorsport hubs.

Results:

Attracted Private Investment: Government-backed policies instilled confidence, leading to increased private sector investment in innovation.
Accelerated Commercialisation: Businesses benefited from access to shared infrastructure, reducing the cost and time to bring cutting-edge technologies to market.
Economic Stability and Growth: The motorsport community delivered tangible results—boosting high-value job creation, industrial growth, and regional economic development.

UK motorsport is now a model for policy-driven innovation ecosystems, underpinned by public-private collaboration and sustained funding.

[ 05 The Future of the UK’s Motorsport-Driven Engineering Hub ]

Sports as an industrial ACCELERATOR

By combining motorsport’s unique innovation ecosystem with funding mechanisms, workforce development, and sustainability practices inspired by the HVM Catapult, the hub delivered measurable outcomes. These include accelerated R&D, increased industry participation, and global investment—creating a blueprint for economic transformation and industrial success.

Takeaways

Motorsport Teams as Innovation Drivers: Race teams act as live laboratories for advanced R&D.
OEMs Demand Shared Infrastructure: Facilities like wind tunnels, simulation labs, and composite centres are essential for innovation and cost efficiency.
Ecosystem Collaboration: Educational institutions and sponsors highlight the importance of skills, branding, and integration into a single, thriving hub.