As governments, investors and founders gather ahead of SuperReturn Tech Sovereignty this June, the conversation is shifting from innovation to scale. Former UK Government Minister for Economic Security, Alan Mak MP, argues that ambitious countries must attract capital, invest in infrastructure and close their scaleup gap to deliver tech sovereignty.

Become a ScaleUp nation to deliver tech sovereignty

Over the past two decades, policymakers have focused on how to create more start-ups. The results are visible: record venture funding, expanding ecosystems, and a steady pipeline of innovation. But in 2026, and in the years ahead, the defining question is no longer who can start companies. It is who can scale them.

In the modern economy, sovereignty is not determined by invention alone, but by the ability to scale technologies into globally dominant firms and geopolitically significant tech sectors.

Sovereignty is no longer determined by invention alone, but by the ability to scale technologies into globally dominant firms.
Alan Mak, MP

Becoming a ScaleUp Nation, a country capable of scaling, not just starting, technology companies, is therefore not merely an economic ambition. It is the foundation of technological sovereignty and a geopolitical imperative. This presents a particular opportunity for so‑called “middle powers” in a world dominated by the US and China.

Sovereignty in the age of compute

Technology now shapes geopolitical power in much the same way military hard power once did.

By 2030, artificial intelligence alone is expected to contribute approximately US$16 trillion to the global economy. Yet the infrastructure underpinning that growth is highly concentrated. Around 90% of advanced semiconductors, for example, are produced in Taiwan.

This combination, extraordinary economic upside paired with concentrated supply, has forced governments to rethink sovereignty. In this context, sovereignty does not mean autarky. It means having the domestic capability to build, scale and sustain critical technologies over time.

Scale is built, not invented

A clear global pattern has emerged. Many countries excel at generating research, funding early‑stage innovation and producing world‑class founders. Far fewer can provide the conditions required for scale. These include access to late‑stage capital, industrial and digital infrastructure, and the ability to retain ownership of globally competitive firms.

The result is a structural imbalance: innovation is distributed, but scale is concentrated.

Innovation is distributed, but scale is concentrated, and scale is where value and control are decided.
Alan Mak, MP

It is at the point of scale that both economic value and strategic control are ultimately determined.

The infrastructure constraint

Scaling frontier technologies and becoming a ScaleUp Nation is no longer simply a capital challenge. It is an infrastructure challenge. Artificial intelligence, semiconductors and advanced manufacturing all rely on physical systems that are capital‑intensive, energy‑intensive and geographically constrained.

Three constraints are becoming decisive. First, compute. Training frontier AI models now requires thousands - often tens of thousands - of high‑performance GPUs. Access to computing has become a gating factor for innovation. Second, energy. Data centres and AI infrastructure demand vast, reliable and affordable energy supplies. In many markets, grid capacity and energy costs are now primary barriers to investment. Third, supply chains. From semiconductors to critical minerals, production remains concentrated in a small number of geographies, creating systemic risk and strategic dependency.

Capital will not deploy at scale into environments where infrastructure cannot support it.
Alan Mak, MP

These are not marginal issues. They increasingly determine where companies choose to scale — and where capital is willing to follow.

The capital bottleneck

Alongside infrastructure, capital remains the other binding constraint on becoming a ScaleUp Nation. While early‑stage funding is widely available, scale‑up capital is not. In Europe, pension funds allocate less than 1% of assets to venture and growth equity, severely limiting the pool of patient capital required to build global firms.

In contrast, other systems demonstrate what is possible at scale. Saudi Arabia’s Public Investment Fund committed $45 billion to a single technology investment vehicle, illustrating the magnitude of capital required to compete in frontier sectors.

The consequence of this gap is that companies are built in one jurisdiction but scaled in another and ultimately owned elsewhere. This is not just an economic loss. It is a loss of strategic capability and sovereignty.

There is a growing realisation that capital and infrastructure are interdependent. Capital requires infrastructure to deploy effectively. Infrastructure requires capital to be built and expanded. Neither is sufficient on its own.

Countries that succeed in scaling technologies are those that align deep pools of private capital, enabling infrastructure (compute, energy, supply chains) and policy frameworks that support long-term investment. This is what defines a true ScaleUp Nation.

Private capital as a geopolitical resource

One of the most significant shifts in the global economy is the growing role of private capital in shaping geopolitical outcomes. In frontier sectors, the scale of investment now required exceeds the capacity of the state alone. Tens of billions are needed not just to invent technologies, but to deploy them globally. As a result, private capital - particularly pensions and sovereign funds - has become a strategic asset.

Private capital has become a strategic asset in determining geopolitical power.
Alan Mak, MP

Countries that can mobilise institutional capital into these sectors gain a structural advantage. They develop tech sovereignty and geopolitical influence.

Those that cannot remain dependent on external capital to scale their own innovations, and in doing so, cede sovereignty to others.

The opportunity to deliver tech sovereignty

The transition from start‑up ecosystems to scale‑up systems represents a major strategic opportunity.

Countries that can build infrastructure capable of supporting frontier technologies, mobilise capital at scale and retain high‑growth firms will not only capture economic value. They will shape global standards, supply chains and alliances.

Put simply, technological sovereignty in the 21st century will not be determined by who invents the future. It will be determined by who can build the infrastructure, mobilise the capital and scale the companies that define it. In other words, technological sovereignty will be delivered by those countries that choose to become ScaleUp Nations.