Oxford Economics report and GP Bullhound reports suggest formidable growth for London and the UK’s technology sector.
I’ve read with interest recent details of research by Oxford Economics indicating a significant growth in London’s tech sector over the next decade. The study forecasts growth of around 5.1% for the digital tech sector year on year over a 10 year period, bringing to London and the UK £12 billion of revenue and creating potentially 46,000 jobs.
If the forecasts are to be believed, they are certainly to be welcomed. A great deal of the growth relates to Financial Tech (“fintech”). The study sets out that London has more people than New York city or San Francisco working in fintech. The UK has been championing and promoting its skills in this area many years and has a particularly strong complimentary financial and tech sectors and related skills. Bolstering UK skills with sensible immigration, in order to ensure the UK is one of the “go to” places for skills in this area, should not be shied away from. Not only would the predicted dynamic growth bring invigorating and challenging jobs to Britain in terms of core Tech jobs but the knock on effect for the UK’s financial and services industries, key industries for the UK and for our capital, should not be underestimated.
Also, of note this month is a report/study from GP Bullhound. They suggest that 30 technology companies of US$1billion plus have been formed in Europe over the last 14 years. The study went on to say that 39 were created in the US during that time.
Interestingly, both reports counted some companies such as Ocado and Spotify as tech companies due to their heavy reliance on technology. This is a debate I often have with people about what actually is a tech company now. Whether or not some of the forecast growth in London and the UK will be in relation to what we traditionally call the tech industry or not, clearly the innovation coming out of the US and various other countries throughout the world will continue, but it would be nice for those of us sitting in the UK and working in this industry to see creativity booming here too. As Richard Holway mentioned on techmarketview.com, we still await a “vibrant IPO market” on the London Stock Exchange. But in the meantime, this is all good news for the UK.