London’s booming digital tech sector turned over £56bn last year, further strengthening the capital’s reputation as a world leader for technology.
From growing fintech businesses such as Transferwise and Mondo to innovative e-commerce platforms such as Farfetch and Matchesfashion.com, London’s tech sector is booming.
The sector has become so successful in recent years in fact that the capital is now home to 14 out of 47 of Europe’s unicorns (businesses worth over US$1bn) – double the number of the next closest country.
And according to the latest Tech Nation report by Tech City UK, the sector is showing no signs of slowing down. According to the report, which was launched last week, the capital’s digital tech businesses turned over £56bn last year, supporting over 300,000 jobs.
The report also shows that a total of 7,682 businesses were setup in the sector between 2011 and 2015 and 20% of the companies involved in the sector can be classed as high-growth businesses.
Gerard Grech, CEO of Tech City UK, said: “Tech Nation 2017 shows how rapidly the UK’s tech innovation and productivity are gathering momentum. There are now significant tech hubs all over the UK, attracting both international investment and overseas talent.
“Tech careers now pay 44% more than the national average wage. These foundations will be crucial as we prepare to leave the EU. We need to maintain access to skilled workers while doubling down on home grown tech talent. And we need to think big. This report is all about working together on a common vision: the UK as a global leader in tech.”
Gerard’s comments were echoed by the secretary of state for culture, media and sport, Karen Bradley, who said: “This Tech Nation report highlights the fantastic performance of the UK’s digital sectors which are driving growth across the whole country and creating well-paid and highly skilled jobs at twice the rate of other industries.
“Earlier this month government published the UK Digital Strategy which will help secure the UK’s place as a world-leading digital economy, attracting the best and brightest of global talent and making Britain the best place to start and grow a digital business.”
David Gann, VP of innovation at Imperial College, spoke about how the city’s leading educational institutions are helping the sector continue to grow rapidly. Gann said: “One of the reasons the UK’s tech sector has been growing so strongly is the presence of world-class universities across the country. Our universities have been producing outstanding research in many new areas of science and tech, including nano technology, artificial intelligence and materials.
“At Imperial and at other universities around the country there is great excitement that commercialisation of some of this research is finally happening. We must continue to foster strong links between academia and companies to help build a sustainable digital tech sector that values great research and science, for the benefit of the whole economy.”
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