UK Digital Businesses Play Essential Role in Economy Growth
12th February 2016
A study conducted by Tech City UK has revealed that digital technology businesses are playing an essential role in the UK economy’s growth. The innovation that this sector is generating is profound with businesses transforming the employment landscape, driving productivity and reimagining traditional industries.
The key findings to note from the report are:
- Digital technology industries are a key contributor to the UK’s economy, growing faster in turnover, GVA and productivity than the rest of the economy.
- Digital technologies are influencing businesses beyond the technology industry.
- The digital technology economy are creating well paid employment opportunities, three times faster that the rest of the economy, across the UK.
- Digital technology businesses are supporting growth across UK cities.
In partnership with Nesta, Tech City UK analysed nationwide data to understand the impact of the digital economy on wider business trends. The report found that the areas with the highest cluster of digital technology companies were benefitting from better employment rates, turnover and average salaries. The report also noted that there has been a surge in digital technology communities with almost 180,000 individuals across the country taking part in Meetups. Networks and face-to-face contact have helped these tech hub areas grow nationally and now the sector has over 1300 active groups in the UK.
Prime minister David Cameron commented: “Britain’s world leading tech sector gives us a competitive edge that is not just transforming our daily lives but also our economy. Tech is transforming the way we do all kinds of business.”
Eileen Burbidge, Tech City UK chair added: “The UK’s credentials as a home for digital excellence have been well established, and now Tech Nation 2016 provides a new level of insight into the impressive productivity of our digital economy – driving growth across all sectors and regions of the country.”
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