London is the epicentre of the European start-up scene according to the World Economic Forum’s Global Competitiveness Study.
The start-up boom around East London’s Tech City, the introduction of programming to the school curriculum as well as the TV show Dragon’s Den have been credited with helping the UK grow its technology industry.
According to the yearly report, the UK is now ranking fifth for the availability of latest technologies, eight for cluster development and 10th for its capacity for innovation.
The UK’s scientific institutions are the second best in the world and the collaboration between universities and industry has been rated the global number four. The capacity to attract skilled workers also puts the UK in the fourth position.
Assessing factors driving productivity and prosperity in 140 countries, the report placed the UK overall on the tenth position for competitiveness, one position worse than last year.
"We have seen an advance in technology prowess in the UK and this is certainly down to things such as Tech City and the change in national curriculum in 2014,” said Robyn Klingler-Vidra, an international political economy lecturer and senior researcher at LSE Enterprise who worked on the study.
"The global competitiveness of the tech sector in the UK is growing and an area to be really excited about.
"Scientific research and universities is also certainly an area of strength. I think it's a combination of outstanding universities and the ideas that are coming out of them combined with what is happening in Tech City that is driving this advance in competitiveness in the tech sector.”
He further stated the gap between pure research and business in the UK is closing.
However, the report gives warning signs that the UK is falling short in the needs of its macroeconomic environment, where Government debt and the budget deficit conspire to place it 108th out of 140 countries.
"In the long run, the country will have to continue efforts to improve its macroeconomic environment (108th); the Government deficit is still very high (5.7 per cent of GDP, ranked 118th) and its public debt has doubled since 2007, now accounting for almost 90 per cent of GDP (123nd)."