Research highlights power of open innovation to support the UK’s industrial strategy in professional services
New research from Oxford Brookes University demonstrates how open innovation can play a critical role in delivering the UK Government’s industrial strategy by accelerating technology adoption and improving productivity in the professional services sector. The study highlights the importance of collaboration between industry, innovators and regulators in enabling one of the UK’s most economically significant sectors to modernise and respond to rapid technological change.
The research, led by Oxford Brookes Business School, focuses on the legal sector and examines the impact of the LawTech Open Innovation Lab (LOIL) Challenge – a nine‑month open innovation programme delivered by SuperTech WM. The programme brought together mid‑to‑large law firms, professional technology SMEs and the Solicitors Regulation Authority to address shared challenges in client onboarding and regulatory compliance, providing new evidence on how collaborative approaches can overcome longstanding barriers to innovation in legal and wider professional services.
The research shows that in creating an appropriate trusted environment, open innovation and co‑creation can be highly effective in a sector traditionally resistant to joint working, with participants reporting strong collaboration, enhanced market insight and greater readiness to adopt new technologies.
Tackling a shared industry challenge
Client onboarding, including Know Your Customer (KYC) and Anti‑Money Laundering (AML) processes, remains a major operational and regulatory burden for law firms. Despite a growing LawTech market, firms report dissatisfaction with fragmented solutions and slow adoption.
SuperTech is a West Midlands based cluster organisation supporting innovation in the professional services sector. Having run successful innovation challenges in the FinTech sector, and using the learnings from those programmes, it was possible to bring together four law firms: Mills & Reeve, Gateley, Fieldfisher and Shoosmiths, to work collectively through the innovation challenge. This included defining the common challenge, agreeing the shared use cases and engaging directly with innovative technology providers.
The programme focused on four priority areas:
automating and improving client data collection
using AI to streamline conflict checks
real‑time screening for sanctions and politically exposed persons
secure digital client onboarding portals
Strong evidence of impact
Researchers from Oxford Brookes University observed and analysed the programme using interviews, ethnographic observation and participant feedback. The findings show exceptionally high levels of engagement and satisfaction, with collaboration rated 5 out of 5 by both law firms and SMEs.
The study identifies four key enablers underpinning successful collaboration:
willingness to challenge established practices
shared understanding of organisational needs
trust‑building among participants
reciprocal, non‑transactional relationships
These enablers allowed firms to move beyond sales‑led procurement models towards genuine co‑creation of solutions.
Expert perspectives
Professor Nick Wilton, Dean of Oxford Brookes Business School, said:
“This project demonstrates that when the right conditions are created, even highly competitive and regulated sectors like legal services can collaborate effectively. The LOIL Challenge provides compelling evidence that open innovation can accelerate technology adoption and strengthen the sector’s long‑term competitiveness.”
Hilary Smyth‑Allen, Chief Executive of SuperTech West Midlands, said:
“The LOIL Challenge shows that open innovation is not just theory – it works in practice. By bringing law firms, innovators and regulators together around shared problems, we’ve shown that collaboration can unlock faster, better outcomes for the whole sector.”
Benefits for firms, innovators and policymakers
The report highlights wide‑ranging benefits for participants, noting stronger connections between all participants.
For law firms, benefits included:
clearer insight into emerging LawTech solutions
reduced risk when exploring new technologies
cultural and skills development within firms
While for the tech SMEs reducing time to market timeline benefits included:
· Product validation or re-design requirements
· Greater understanding of demand-side needs and
· Ongoing conversations with potential clients
For policymakers, the findings underline the value of cluster‑led, place‑based innovation programmes in supporting SME adoption of advanced technologies, aligning closely with the UK’s Modern Industrial Strategy and the Technology Adoption Review.
Shaping the future of legal innovation
The researchers conclude that there are no shortcuts to effective innovation in professional services. Instead, sustainable progress depends on collaboration, shared learning and trust between demand and supply.
SuperTech’s open innovation programme provides a model that could be replicated across other regions and sectors, helping professional services firms modernise, adopt AI‑enabled technologies and remain globally competitive.
Read the LawTech Open Innovation Lab Report in Full Here
Notes to editors
The full report, LawTech Open Innovation Lab (LOIL) Challenge: An analysis of the experience in the Open Innovation experiment in the law sector in the West Midlands, UK, is authored by Dr Francisco Trincado‑Munoz, Benedetta Bisetto and Professor Tim Vorley of Oxford Brookes University.
About SuperTech
We support technology and innovation-led growth for the professional and financial services sectors in Birmingham and the West Midlands. As leaders of a powerful ecosystem, we make sure that organisations can access the services and opportunities needed to achieve truly transformational impacts. Together, we can unlock the future of Next Generation Services for economic success - for our businesses, our region, and throughout the UK. https://www.supertechwm.com/