The rapidly growing UK technology sector will outperform all other industries in terms of job creation by 2020, a new report suggests.
Compiled by the London-based Tech City organisation under the Tech Nation initiative, the study performed a comprehensive analysis of the growth of the technology industry across the UK.
Although based in London in the heart of the area in Shoreditch known for a high concentration of technological start-ups, Tech City concluded that 74 per cent of the UK’s digital companies actually operate outside of London with the most dynamically growing clusters, after Inner London, being Bristol and Bath, Reading, Greater Manchester, Belfast and Liverpool.
The study predicts the sector, which already employs 7.5 per cent of the UK workforce (about 1 46 million people), will be generating more now jobs in five years than any other industry.
"The digital economy has become an integral part of our country and the rapid growth of many digital businesses has confirmed Britain's position as a global hub of technology excellence,” Prime Minister David Cameron commented on the project. "We are committed to supporting the growth of our digital industry nationwide and Tech Nation shows the great innovation and thriving entrepreneurial spirit that is driving the sector forward across the country."
Tech Nation is the first time the UK's digital businesses, including employment figures and areas of specialisation, have been comprehensively documented.
The project, developed and curated by Tech City UK in partnership with DueDil, shows the growth of digital businesses within specific areas/regions - ‘clusters’ - across the UK. Tech Nation’s analysis shows that the UK’s tech clusters are driving economic growth nationally and that the growth of digital businesses reaches far beyond the capital. Interestingly, 50 per cent of the UK’s digital companies were only founded in the past seven years.
“Today’s report reveals the depth of the sector and the complex array of skills, specialisms and strengths that truly make us a Tech Nation.,” said Baroness Joanna Shields, Chair of Tech City UK and Digital Adviser to the Prime Minister. “The unprecedented level of detail and analysis of business starts, revenue and job growth give us a first-hand view of the clusters and businesses that make up the UK digital economy.”