Welcome to GK’s first policy spotlight report on emerging regulatory markets. The next decade and beyond will be defined by global challenges ranging from climate change and food security to geopolitical instability and competition for resources. Governments around the world will be forced to address these with urgency, but the solutions are likely to depend on technological advances and scientific discoveries that are only just emerging or are yet to be made.
The UK has a thriving research and innovation culture and is at the cutting edge of the development of some of the most transformative technologies of the century. Advancements in agri-tech mean food security can be strengthened and the environmental impact of farming can be reduced by growing more in vertical farms, breeding crops to be more resilient to a changing climate, or using drone technology to precision-spray pesticides to protect biodiversity. The development of quantum technology will allow for seismic improvements in healthcare scanning and diagnostics, meaning some diseases such as Alzheimer’s will be detectable long before the first symptoms develop. Advancements in space technology will be used to create pharmaceutical labs in lower earth orbit that harness microgravity to revolutionise cancer treatments and grow human organs, or to capture the constant and unfiltered power of the sun in orbiting solar panels to beam down to earth to reach net zero targets.
There is no doubt that these are the industries of the future and emerging technologies will be responsible for driving economic growth across the world. Supporting businesses in these industries to innovate, scale and commercialise is a huge political priority for any government. Without them, economies risk being left with a diminishing industrial base and significant job displacement, the political and economic implications of which are severe for incumbents. The increasing pressure on public spending from declining economic growth, ageing populations and rising costs means that politicians will be more dependent than ever on the private sector to develop and finance emerging technology. To catalyse growth in the UK, the government is keen to work closely with businesses and investors to create a regulatory landscape that balances safety with the freedom to innovate, scale and commercialise. Without doing so, the UK risks nurturing research and innovation only to see commercial gains realised overseas. Those who engage with policymakers will be welcomed by a government in listening mode.
We also include as a counterpoint to our UK analysis updates on comparable developments in the US prepared by GK’s American partner, Washington, DC-based Anchor Advisors. As in the UK, US policymakers see emerging regulatory markets as a means of demonstrating global leadership in innovative industries, while at the same time generating domestic jobs and economic activity. Development of these industries face more cross-currents in the US than in the UK given the Trump Administration’s focus on cutting spending across many science-focused federal agencies, while restricting grants and limiting activities among a number of US research universities, which have been key to America’s leading global role in areas like quantum and agri-tech. However, these policy-driven headwinds create an opening for U.S.-focused private companies and investors, which have an opportunity to step in as the federal government and academic research institutions pull back from many cutting-edge sectors.
Curiosity has always been in GK’s DNA and in 2025 we dedicated considerable time to understanding and engaging with the emerging industrial sectors of the future. Ranging from technological developments in already highly regulated sectors to the sectors that are just emerging as future economic powerhouses, we have put them under the microscope to unpick the political, policy and regulatory opportunities and challenges on the horizon. We have spoken to the policymakers in government who are thinking about how to regulate these new technologies and how to realise their full economic potential. And we have met with the talented innovators and entrepreneurs behind the development of new technologies to understand what regulatory hurdles they face and what needs to be overcome for them to achieve commercial success.
This downloadable report is an introduction of that thinking to you. It is not exhaustive of the emerging regulatory markets we have identified and is instead intended to signpost some of the sectors our emerging regulatory markets practice will be focusing on in 2026. We know our investment community is keen to understand the risks and opportunities in these spaces to stay ahead of competitors in origination strategies, and most importantly, to invest for the future. We are here to support you with just that. With the decades of combined experience that informs our counsel, GK has some of the most talented and creative consultants in the industry and through our embedded European and US partnerships, we are uniquely positioned to offer a truly global perspective. Using that expertise to support businesses and investors to understand and grow the future sectors of our economy is what gives us energy.
