Tech City UK, the UK government backed organisation tasked to accelerate the growth of digital businesses, and innovation charity Nesta, today (11 Feb 2016) launch the Tech Nation 2016 report in partnership with core data partner, GrowthIntel. The most comprehensive analysis of the UK’s Digital Tech Economy, Tech Nation 2016 finds that it has a strong impact on employment nationwide and is creating highly paid job opportunities, accounting for 1.56M jobs across the UK
Tech Nation 2016 demonstrates the growth of the Bristol & Bath cluster, showing the turnover of digital tech businesses grew by 53% between 2010 and 2014.
- The UK’s Digital GVA is £87 Billion
- The UK’s Digital Tech Industries are growing 32% faster than the national average of the rest of the economy (on the basis of turnover)
- The UK’s Digital Tech Industries have a combined annual turnover of £161 billion
- There are 1.56 million jobs in the Digital Tech Economy. 41% of digital tech jobs (including support jobs) exist outside of the Digital Tech Industries, within traditionally non-digital industries such as the public sector and financial services
Key findings for Bristol & Bath:
- Average salary in Digital Tech Industries: £45,501
- Digital GVA: £1.8 billion
- Digital density (digital businesses as % of total businesses): 18%
- Employment growth: 9%
- Turnover growth: 53%
- GVA growth: 26%
- Key sectors (compared to UK): Digital advertising and marketing, gaming; apps & software development, telecommunications and networking
- Key cluster benefits: commercial property (82%), local networks (81%), business support (65%)
The Tech Nation 2016 report is produced jointly with Nesta, who led on the data collection and analysis as well as initial drafting of the report. The report was also supported by core data partner GrowthIntel. Contributing data partners include AngelList, Burning Glass, Crunchbase, dealroom.co, Frontier Economics, Github, InvestNI, Leeds Data City, and Meetup.
With more than 2,000 respondents from digital businesses across the country also contributing insights, the latest iteration of Tech Nation 2016 showcases the continued growth and evolution of the UK’s digital tech economy.
Ed Vaizey, Minister for the Digital Economy, comments, “Digital technology companies are redefining the UK’s business landscape whilst creating new opportunities for entrepreneurs, investors and workers across the country. Tech Nation 2016 sets out how digital tech innovation is disrupting the UK economy, creating high-quality employment opportunities and driving productivity nationwide. We are delighted to present these findings which show how Britain’s digital technology continues to influence the wider business economy.”
Gerard Grech, CEO of Tech City UK, comments: “Tech Nation 2016 provides an unprecedented insight into the growing economic importance of the UK’s digital businesses.
“This report demonstrates the extraordinary growth rate of the UK’s digital tech industry, and its increasingly profound influence on established non-digital industries, such as retail and health.
“Tech Nation 2016’s findings will prove invaluable to industry, international investors and digital businesses themselves, acting as a detailed topography of the UK’s digital economy and signposting where future opportunities lie.”
Geoff Mulgan, CEO of Nesta, comments: “Digital technologies are unlike any others – they change everything businesses do. That’s why, as this research confirms, digital jobs and activity are becoming ever more important in apparently non-digital industries.”
“And it’s why the pay premium is so high, at an average of over £15,000 for digital over non-digital jobs. I hope that parents and teenagers will get the message – that acquiring digital skills pays off, wherever you are.”
Nick Sturge of Engine Shed, said: “Tech Nation 2016 shows that digital tech businesses are helping power the economic growth of Bristol & Bath. Our specialisms in digital advertising, cloud, gaming, software development and telecommunications are developing the cluster a nationwide reputation for digital excellence. As digital tech businesses are now enabling disruption across a wide range of traditionally non-digital industries will ensure the continued success and growth of this cluster for years to come. The exciting nature of the technologies and applications involved will help inspire a new generation of talent from our local schools.”
Nigel Toon of XMOS, said: “Having close working relationships with the local community of digital companies in Bristol & Bath has been of huge benefit to XMOS. The ability to share ideas and expertise across a collaborative cluster enables our business to grow faster and more sustainably. The digital tech ecosystem here is fantastic for starting and growing a digital tech business, and Bristol & Bath is rightly being recognised as a leading environment for digital tech entrepreneurs.”
Carlos Morgado, Group Chief Technology Officer of JUST EAT, said: “Since we founded our Bristol Tech Hub in 2014, the pool of outstanding, multi-disciplinary talent in the South West has enabled us to create a valuable team in a very short period of time. Bristol is at the centre of a cluster of world-class universities, providing us with access to the South West’s dynamic technology talent pool. We have an ideal base to contribute to JUST EAT’S success and drive the next wave of invention and innovation for our customers around the world.”