According to Tech Nation Report 2018, the UK tech sector is growing 2.6 times faster than the rest of the economy, suggesting that the UK’s thriving tech sector will be a driving force in the country’s growth. Consequently, digital tech sector jobs increased five times faster than the other sectors of the UK economy. The sector’s value has increased from £170bn in 2016 to £184bn last year.
The report revealed that London’s tech sector is hot on the heels of US tech hub Silicon Valley. First by having a higher percentage of overseas customers and secondly by being one of the most mobile-connected cities in the world. London has 61% 4G coverage and more than 700 individuals for each public Wi-Fi hotspot.
London is not the only city playing a significant role in the tech sector. The report named Bristol as the location of the UK’s most competitive and productive tech cluster. The city has a collaborative and exciting nature, and that feature has attracted many tech start-ups to begin operations there.
Engineering excellence has long been a part of Bristol’s history. This has helped other sectors to thrive in the city, including microelectronics engineering and aerospace.
The UK Government is also helping stimulate the tech sector. Chancellor Philip Hammond announced recently that the Government will allocate £51m to the research and development of innovative technologies in Wales. This decision aligns with the UK’s Industrial Strategy, designed to increase the earning power and productivity of the country’s residents through technological innovation.
The UK tech sector is having a significant impact on the nation’s economy as it attracts customers and businesses from around the world.
Earlier this year, the Government announced that several international venture capitalists and tech companies had invested almost £1bn into the country’s artificial intelligence (AI) industry. This investment will go towards increasing the available skills in this sector by funding data science teachers and AI specialists.
The tech sector should still thrive regardless of the outcome of Brexit negotiations. It will find opportunities to collaborate in France, Germany and Italy, as these countries also have bustling tech sectors. If UK tech companies continue to grow at as high a rate as expected, then the overall economy should also grow at a healthy pace.
To find out how you can take advantage of the UK’s growing tech sector, one of our team would be happy to discuss. Contact Us.