United Kingdom digital technology sector still outpacing the rest of the economy

Tech Nation 2018 report: UK tech is surging past the rest of the economy

UK digital technology sector still outpacing the rest of the economy

The study found that the digital tech sector is worth almost £184 billion to the United Kingdom economy, up from £170bn in 2016.

The latest report shows that the United Kingdom has digital suburbs not just cities, with the number of jobs in the digital technology sector growing 5-times the rate of the rest of the United Kingdom economy between 2016 and 2017.

Unveiling its 2018 research, Tech Nation said the progress reinforced the UK's ambition to be the best place in the world to start or build a digital tech business.

The report also makes absolutely no mention of the effect of the United Kingdom leaving the EU's Digital Single Market.

"The UK's tech sector is growing nearly three times faster than the rest of the economy". DeepMind, acquired by Google in 2014, is a global leader in AI and still based in London.

The UK was in the top three countries in the world for total capital invested in digital tech companies in 2017, behind the U.S. and China. Companies that have gone from start-up to household names, with stock market listings worth billions of pounds in less than a decade, include Just Eat, Zoopla and Purplebricks. But London is the engine for United Kingdom digital tech industries. "That is why we need to be able to attract more senior leaders from USA and Chinese tech hubs".

Tech Nation also flagged a strong year for deals including big data outfit Aquila Insight being bought by Merkle. These cities include: Portsmouth, Bristol, Cambridge, Southampton, Oxford, York, Salisbury and Bath.

The Tech Nation report 2018 shows that the town beat Reading and London in terms of "digital density", which measures digital tech specialisation in clusters compared to density in the UK.

The stereotype that tech is the territory of millennials is also misplaced as 72% of United Kingdom digital tech workers are, on average, over 35.

Around 15pc of those in digital tech jobs are from a black, Asian or ethnic minority background, significantly higher than the 10pc across all United Kingdom jobs.

So has the tech sector been left adrift by the British voters' decision to abandon the EU? Only 19pc of the digital tech workforce is female, compared to 49pc across all United Kingdom jobs.

In other words, with over half of London tech workers born outside the UK, Brexit and its impact of the future immigration status of much-needed tech talent will continue to overshadow the entire issue.

Outside of London, once again, two out of the top three main concerns would be affected by how immigration will play out before and after Brexit. In general, tech communities across the United Kingdom appear optimistic for their growth prospects. Access to funding (49%) and bad transport links (29%) make up the next two setbacks.

Looking at Edinburgh, jobs in digital tech were found to total 9,704, while business turnover for the city reached £1.1bn and turnover by employee came in at £118,000.

"Tech Nation 2018 not only highlights the underlying strength of our digital economy but also emphasises its huge potential", said United Kingdom digital secretary Matt Hancock. "Our world-leading tech firms are growing fast and creating the high-skilled, high-paying jobs of the future", commented Digital Secretary Matt Hancock. They are a hotbed of innovation, creativity and entrepreneurial spirit.

"This is a huge success story for the United Kingdom but we also want to make sure that the benefits of the digital tech boom are reaching every corner of the United Kingdom, so that we can build a Tech Nation that works for everyone", he added.

United Kingdom tech companies have more foreign customers than companies in Silicon Valley.

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