MusicFutures: Transforming the UK's Music Innovation Ecosystem

Transforming Liverpool City Region (LCR) into a Global Leader in Music Innovation
Music is a universal language and cultural necessity delivering multigenerational societal benefits. It is a unique source of national pride, creating unforgettable moments and uniting people across diverse backgrounds and interests. The music sectors delivering these experiences are currently exposed to tectonic technological and socio-economic change. Over the next five years, MusicFutures will seize this transformative moment to establish Liverpool as the UK’s creative cluster for music and music business innovation. The cluster will drive artistic, technological and intellectual property (IP) breakthroughs that will diversify and strengthen the UK’s position at the forefront of the global music industry. As England’s only UNESCO City of Music, Liverpool is uniquely positioned to leverage its cultural heritage, strong industry infrastructure, and creative energy to become a sustainable, inclusive, and world-leading Music RD&I ecosystem.
Industry Context
The UK music industry contributes £6.7 billion to the economy, provides 210,000 jobs, and generates £4 billion in exports. However, this success masks systemic challenges that hinder musicians and freelancers from building sustainable careers. Government reports highlight a decline in grassroots venues and touring, which are crucial for nurturing new talent and community engagement. Inequities in copyright and contracts, and a lack of transparency in rights management and royalty distribution, create additional barriers for music makers. The precarity of working across “gig economies” worsens these issues, making it particularly challenging for artists, small businesses, and marginalised communities to achieve success. The result is strained talent pipelines and the inability of new voices to break through.
In this challenging environment, disruptive technologies like AI, XR, and blockchain present a pivotal and urgent opportunity to revolutionise music creation, distribution, and monetisation. By harnessing these technologies, artists can engage with their audiences in unprecedented ways, and retain more control over their creative output and resulting financial success. However, the potential of these technologies can only be realised if the industry and policymakers actively work to ensure equitable access and develop frameworks that support a diverse and inclusive music ecosystem.
The UK music sector operates within broader global industry trends where domestically produced music earns an ever-increasing share of national charts, and cities/regions within nations promote bespoke musical identities and industry credentials. Given these dynamics, a key R&D question emerges:
How can regional music innovation ecosystems incubate and enable cutting-edge artistic and technical practices that drive business growth and elevate the UK’s leadership in the global music industry?
Regional Opportunity
Liverpool has continuously pioneered and shaped global pop culture. Boasting the most UK number-one records and more than 1,400 music businesses, Liverpool’s music sector and global brand is ideally positioned for MusicFutures to catalyse innovation and growth within and beyond the region, and bridge sectoral gaps in the Creative Cluster/CoSTAR network, creating essential musical pathways into other creative sectors such as gaming, film, and XR.
What We Will Do
MusicFutures will launch a waterfront hub, fostering collaboration with 27 partners to generate sector insights and career pathways for artists and future music professionals. This environment will empower SMEs and entrepreneurs to innovate, attract investment, scale up, and adopt sustainable practices. Through diverse cross-sector programmes, we will fuel growth, drive environmental innovation, and champion inclusivity. MusicFutures will elevate both the region's and the UK's competitiveness in the global music market.