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However, the clinical impact of this technology may be improved by reducing the inflammatory response brought on after implantation of capsules <jats:italic>in vivo<\/jats:italic>. Within this study a biocompatible polymeric delivery system combining alginate and photo\u2010crosslinked methacrylated glycol chitosan (MGC) was developed. This approach involved encapsulating cells in calcium\u2010alginate beads, coating with MGC and photo\u2010polymerizing using UVA in the presence of photo\u2010initiator (VA\u2010086), resulting in the formation of capsules \u223c600 \u00b5m in size. Crosslinking of the MGC outer wall allowed control over capsule swelling and improved the capsules overall properties. Capsule characterization demonstrated the stabilizing influence of polymerization and fluorescence imaging showed that the distribution of glycol chitosan is dependent on molecular weight. Good islet viability and insulin release was demonstrated <jats:italic>in vitro<\/jats:italic> over the course of a month, and <jats:italic>in vivo<\/jats:italic> transplantation of the capsules demonstrated good biocompatibility, particularly when compared with standard alginate\/poly\u2010<jats:sc>l<\/jats:sc>\u2010ornithine\/alginate capsules. \u00a9 2014 Wiley Periodicals, Inc. 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