Home Business Insights & Advice An insight into the UK’s growing tech sector

An insight into the UK’s growing tech sector

by John Saunders
27th Jun 19 1:29 pm

Britain is creating more tech companies worth an approximate $1billion (£786m) than any other companies in Europe, according to the latest findings.

Not just that, but the UK tech sector is growing 2.6 times faster than the overall economy, and is ranked as the second most connected place for tech in the world next to Silicon Valley in the US.

Needham Laser technologies has become one of the leading manufacturers of industrial laser systems and is one of the multiple tech companies that have made their home Whitchurch, Shropshire alongside other tech giants Rockford IT and Midland Computers. There is also a surprisingly high level of tech employment in Livingston, Reading, Burnley, Enniskillen and Swindon, but London has made it into the global top 10 of the digital tech ecosystem.

Gerard Grech, CEO of Tech Nation, agreed that London being in the top 10 was the first gigantic landmark for Tech Nation.

“The UK’s tech sector is growing almost three times faster than the rest of the economy. What started as Tech City is increasingly Tech Nation. London is the world’s second most connected hub after Silicon Valley. We need to make the most of that, as our new relationship with the EU will undoubtedly force us to be even more adaptive, innovative and ambitious,” he commented.

Over a third of Europe’s fastest-growing tech companies are located in Britain, and according to a government-led study by Digital Economy Council, the US had created 703, while China has made 206. Britain has truly become an international world power in terms of it’s IT advancements.

UK entrepreneurs have stated that they are optimistic about the future of the UK’s tech sector, with 70% of respondents expecting the number of businesses to rise over the next 12 months (as polled in 2018). The issue challenging the industry, however, is the recruitment of women. Only 19% of tech jobs are filled by women, compared to 49% of all other UK jobs.

Still, the UK represents a sizeable global hub of technology talent and accounts for 5 per cent of all high-growth tech workers employed globally. Only Germany has more employed in tech than in any other country in Europe. Among this, financial services are the most significant contributor to job creation in the UK tech business. Insurtech and Fintech employers account for more than 25 per cent and 18 per cent of the high growth rate of the workforce.

Other sub-sectors have also paved the way to the UK’s success, such as artificial intelligence, cyber, and cleantech. All three sectors are attracting government attention and investors, which suggests that they may have more job openings in the coming years.

In total, approximately 1.2 billion pounds is expected to be invested from all over the world, Prime Minister Theresa May stated “Already we are one of the best places in the world to start and grow a tech business… British Tech is growing over one-and-a-half times faster than the rest of the economy, adding more than £130 billion to our economy every year. But if we are going to maintain our position as a global leader, our challenge is how we develop British Tech and make it even better. We want this to be the place everyone thinks of – and comes to – first when they want to develop their world-changing tech ideas. This is a challenge shared between industry and Government.”

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