Technology & Digital
London has long been regarded as a global innovation leader, with scaleups in the capital now growing at 56%. But Manchester, Birmingham, Cambridge, Liverpool and the Thames Valley are getting in on the tech act too.
Sector at a glance
- 56% - The recent growth rate for London Tech Scaleups
- 6x - The growth in artificial intelligence investment from 2014 to 2018
- 51.7% - The increase in employment in the tech category between 2011 and 2018
The Technology & Digital sector is an important growth area for the UK’s small and medium-sized enterprises. Figures released by the Department for Digital, Culture, Media & Sport in February 2020 reveal that the UK’s Technology & Digital sector added £149bn to the overall UK economy in 2018, more than £400m per day, and accounting for 7.7% of the UK economy.
With digital solutions becoming particularly important for many public and private organisations during the COVID-19 pandemic, it’s unsurprising that investors have continued to back technology and digital firms through this period. Despite significant COVID-induced headwinds across the UK, tech firms raised a total of £4.2bn in investment funding between January and June 2020.
London firms alone raised £3.2bn in funding during this period – more than digital businesses in Paris, Stockholm, Berlin and Tel Aviv combined – with Fintech, enterprise software and energy tech firms receiving the biggest shares of this investment. Such resilience in the face of adversity shows that the UK Technology & Digital sector remains a major player on the global stage.