HOT TOPIC
NATIONWIDE SUCCESS FOR THRIVING UK TECH SECTOR
From smart cities to tech hubs, David Sapsted gives an overview of regional tech growth across the UK and explains that while the ‘London Bubble’ continues to reign supreme as Europe’s tech capital, other towns and cities across the UK are quietly establishing themselves as major players in the digital world of tomorrow.
I
t is not so much a technological revolution as a technological devolution. In February, for example, the government-backed organisation
Tech Nation held the finals of its second Rising Stars competition, Britain’s only national, early-stage scale-up contest. When the almost 400 contesting ventures were whittled down to 10 winners, only two were from London, with the others coming from Truro, Cambridge, Edinburgh, Birmingham, Southampton, Glasgow, Manchester and Cardiff. Mike Jackson, entrepreneur success
director at Tech Nation, comments, “The Rising Stars are great examples of the strength of the UK tech ecosystem. The winners highlight that innovation, determination and ambition in this fast- growing sector can be found right across the UK.”
UK TECH: A BOOMING SECTOR Recent research for the government’s Digital Economy Council illustrates the ever-strengthening position of the UK’s tech sector, which is growing six times faster than the rest of the economy. Last year, investment in UK digital tech
reached a record high of $13.2 billion, up $4.1 billion on 2018 and representing a third of all European tech investment. Venture capital investment rose by 44 per cent year-on-year – a rate of growth that outstripped the US, China, Germany and France.
Fintech, artificial intelligence (AI) and
deep tech, and clean energy were the best performing disciplines. While London’s pre-eminent role remained unassailable as home to some 40 per cent of the industry’s employees, the role of regional centres has become increasingly important. Data from KPMG showed a sharp 37 per cent rise in venture capital investment in start-ups last year in regions all over the UK. Antony Walker, deputy CEO of the industry
association techUK, says, “The UK has a world-leading digital economy, but historically much of the wealth and employment generated by the tech sector has been concentrated in London and the South East. The good news is that this is changing. One of techUK’s members, Sidetrade, has just opened a brand new AI tech hub in Birmingham, creating 70 high-value jobs that will bring real benefit to the West Midlands. Investments such as this are what the government’s narrative about ‘levelling-up’ is all about, ensuring that the towns and cities that were at the heart of the industrial revolution can play a full part in the digital revolution. “The growth of high-tech industries
also has important political and social benefits, giving the regions that champion these industries a new identity and drive, encouraging metro mayors and local authorities to demand more and have greater aspirations for their communities. We have seen this work in both the West Midlands and Manchester.”
6 | RELOCATE | SPRING 2020
YORKSHIRE
MANCHESTER BIRMINGHAM READING CARDIFF
CAMBRIDGE
EDINBURGH BRISTOL
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