Devon tech cluster grows
Tech City UK, the UK government backed organisation tasked to accelerate the growth of digital businesses, and innovation charity Nesta, today 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 1.56 million jobs across the UK.
Tech Nation 2016 demonstrates the growth of the Exeter & Newton Abbot cluster, with the turnover of digital tech businesses growing by 41% between 2010 and 2014.
UK findings:
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 Exeter & Newton Abbot:
· Digital employment: 11,412
· Average salary in Digital Tech Industries: £39,695
· Digital GVA: £133 million
· Digital density (digital businesses as % of total businesses): 16%
· Employment growth: 161%
· Turnover growth: 41%
· GVA growth: 84%
· Key sectors (compared to UK): E-commerce & marketplace, digital advertising & marketing, app & software development, fintech
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 over 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, said: “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, added: “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, said: “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.”
Neil Finnie, founder of Corkscrew, said: “The nature of the community here in the South West lends itself to exciting collaborations and partnerships across sectors and industry that is developing the perfect environment for the creation of innovative new business.”
Darren Westlake, CEO of Crowdcube, added: “For us, our location has helped us attract top talent; it offers employees both a better work-life balance and a challenging and rewarding career in an innovative and growing business. That alluring mix has enticed top talent from the likes of Google, eBay, Octopus Ventures, KPMG, Amazon and Goldman Sachs, as well as Devon’s top local talent, and post-graduates from the University of Exeter.”
