The UK tech sector retains its position as the world’s third largest ecosystem despite an increasingly challenging global economic backdrop, according to new figures from Deal room. The figure highlights the growth of fast-growing tech companies and the rise of a new generation of tech ‘unicorns’ (valued at more than $1 billion).
These businesses are fuelled by decades of pioneering science and technology research, which is delivering technological breakthroughs across a range of sectors including finance, sustainable travel, health research and electronic device development. These are reflected in the high level of investment being poured into startups and scaleups.
As the UK looks to build a digital economy, tech UK is calling on Government to take a number of important steps that will accelerate innovation, strengthen UK businesses and drive productivity across the wider economy. These include ensuring the right incentives for businesses to invest and grow, not penalising business and consumers via an Online Sales Tax, boosting productivity in key emerging technologies where the UK is a leader, and leveraging the country’s capital and financial assets to unleash the next wave of tech success stories.
Invest in the skills needed to develop and deliver tech solutions for future generations
The UK’s tech ecosystem is built around a strong focus on upskilling and reskilling for the industry. A recent report revealed that nearly 3,000 edtech companies have raised PS1.7bn over the last five years to provide training and skills development, and to help people to find work in the sector.
This is a hugely important area of the tech sector for attracting talent and keeping staff in the long term, especially in an era where digital skills are in high demand. The government has backed this approach with a number of initiatives, such as the COVID scheme and Tech Nation, which have helped to attract and recruit a wide range of digitally skilled staff.
A key strength of the UK’s innovation ecosystem is its universities. In particular, the so-called “Golden Triangle” of Cambridge, Oxford and London are renowned for translating pioneering IP into commercially viable products.
It’s this reputation for commercialization that is driving the rise of a new generation of innovative tech businesses, which have the potential to transform the world, from social care, green energy and healthcare to electronics and financial services. This is also underpinned by the fact that the UK has a strong culture of innovation and technology.
Britain’s tech sector has enjoyed a remarkable period of growth over the past decade, generating an estimated £1.5 billion per year in investment alone. The UK is a world leader in accelerating the adoption of emerging technologies and, with its world-class academic institutions, a major source of scientific and technological knowledge.
As the UK faces a tough economic landscape and looming job losses, we need to take urgent action to protect the industry. This will require both short-term solutions, such as new grants for tech companies, and longer-term policy that aims to support businesses throughout their lifespan.
