The Digital Tech economy

Key findings of the 2016 Tech Nation report show that access to great talent is the biggest potential risk to the UK's digital economy.

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Digital technology companies are driving growth and transforming the employment landscape in the UK.   Tech City UK, in collaboration with Nesta, has published a comprehensive report on the nature and health of the UK’s tech industries.

The digital tech sector ranges from app and software development (accounting for 16% of the entire sector), through telecoms and networking (8%) to gaming (1.8%) and healthtech (less than 1%).  The development of regional clusters of expertise is helping drive growth, giving companies access to local networks, talent pools and potential collaborators and partners.

Key findings

  • There are 58,000 active digital tech companies in the UK – 75% based outside of London
  • There are 1.56 million jobs in the digital tech economy
  • 41% of these are with traditional industries
  • Digital tech jobs are growing 2.8 faster than other roles
  • 80% of these roles are based outside of London
  • Digital role salaries are on average 35% higher than other roles
  • 43% of digital entrepreneurs say that problems finding talent is the major challenge to continued growth
  • While 39% say access to finance is their major barrier to growth

The full Tech Nation report can be downloaded here.