Tech Nation 2017 is the most comprehensive analysis of the UK’s Digital Tech Economy to date, showing how the digital tech industries are driving economic growth, employment and regional development:
- The UK has 1.64 million digital tech jobs. The growth rate of digital jobs was more than double that of non-digital jobs between 2011 – 2015.
- The digital economy is growing 50% faster than the wider economy.
- In 2015, the turnover of digital tech industries was £170 billion, up by 22% in five years.
- The economic output (GVA) of the digital tech industries is £97 billion.
- The average advertised digital salary in the UK is £50,663 – 44% higher than the average non-digital salary.
- In 2016, 68% of digital tech investment (over £4.6 billion), was recorded outside of the capital, testifying to a diversifying investment landscape.
- Digital tech workers are helping to boost UK productivity. The GVA of a digital tech worker is more than twice that of a non-digital worker at £103,000 compared to £50,000.
- More than 50% of digital tech businesses told us that talent supply is their number one growth challenge.
- Thirteen percent of digital tech employees in the UK are from abroad, this rises to 31% in London and the South East.
- Tech Nation 2017 features 30 thriving tech clusters across the UK: Belfast, Birmingham, Bournemouth & Poole, Brighton, Bristol & Bath, Cambridge, Cardiff & Swansea, Dundee, Edinburgh, Exeter, Glasgow, Hull, Ipswich, Leeds, Leicester, Liverpool, London, Manchester, Middlesbrough, Newcastle, Norwich, Nottingham, Oxford,Plymouth, Reading, Sheffield, Southampton, Sunderland, Truro & Redruth and Worcester & Malvern.
The Government offers tax benefits for investors in early stage digital businesses:
- The rate of R&D tax credit for companies with fewer than 500 employees has been increased to 225%
- The Patent Box Scheme which lowers Corporation Tax to 10% on profits from the development and exploitation of patents and certain other intellectual property in the UK has been introduced
- The Seed Enterprise Investment Scheme (SEIS) provides 50% income tax relief for UK taxpayers investing in qualifying startups for the first £100,000 seed investment
- The Enterprise Investment Scheme (EIS) offers 30% income tax relief for private investors – bringing the scheme in line with the relief available in contributions into venture capital trusts
There is a wealth of information highlighting why the UK’s digital industry is thriving. We aim to help you find this information quickly and easily.
Here’s a list of useful data and stats which show why the UK’s digital economy is in such good health, making the UK the ideal place to build and grow a digital business.
London is becoming a global force to be reckoned with and the digital sector has been driving the capital’s economy:
- London has been ranked number one city in Europe for supporting both startups and scale-ups in the European Digital City Index
- London-based tech companies raised a total of 2.2$bn in 2016, eclipsing the $1.3 billion for the total amount raised in 2014
- More than one third of Europe’s unicorns ($1bn valued businesses) are based in the capital
- Just seven years after the launch of Tech City, venture capital into London is now 16 times higher than in 2010
- In 2015, more than 300,000 people were employed in digital tech jobs in London, more than any other city in the UK
- A new tech company is started in London every hour
For more detailed data on London, and other UK clusters, visit our Tech Nation insights website.
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