UK Tech Sector's Economic Impact.pdf

The UK's digital tech sector has been world-leading, with British firms attracting more capital than any other European country. The sector's strength in technology and innovation is built on the UK's excellence in R&D and creative thinking, with a breadth of tech activity across the country and powerful networks being forged by the next generation of entrepreneurs. The digital tech sector makes an essential contribution to local economies in towns and cities, with clusters built around AI, machine learning, cyber security, and big data industries supporting growth, jobs, and productivity in communities large and small.

The UK's tech sector has been concentrated in London and the South East, but the government aims to promote economic growth and prosperity across the whole UK. The Prime Minister wants to see the tech sector realise its huge potential to boost communities and economies across the entire nation. Every entrepreneur, innovator, and employer in the tech sector and beyond can help make this happen, and together, they can build a stronger and fairer country.

The 2018 Tech Nation Report highlights the UK's digital economy has seen astonishing growth over recent years, but it has also experienced challenges, including the UK's changing relationship with the EU. The report features over 70 business case studies and received the largest response yet from members of the UK tech community, with more than 3,400 submissions. The report also includes interactive data visualisations, community insights, and founder views online.

Key findings from the report include:

Collaboration and global connectivity helps the UK tech sector grow 2.6 times faster than the rest of the economy.
The UK cements its position as a global tech leader, with its digital tech sector being a shining light not only in Europe but also on a global scale.
Global connections are key to domestic success, with 25% of the world's entrepreneurs reporting a significant relationship with two or more others based in London.
The UK has digital suburbs, not just cities, with London's digital density being below the UK average at 0.92, while Newbury at 15.5 is the most tech specialised local economy in the UK.
The highest proportion of clusters (36%) emerged as balanced ecosystems, 26% are scaleup dominant, and 12% startup dominant.
Access to talent and investment continue to challenge tech communities across the UK, with 83% of clusters citing access to talent as their biggest challenge.
UK tech communities value quality of life and sense of place, with communities identifying the top ecosystem strengths as: 1) appealing area; 2) helpful tech community; 3) proximity to a university.
UK software developers are highly skilled, with 75% of developers reporting they have a degree in computer science or a related field.