TRANSFORMING UK INDUSTRIES THE RT HON MP THE PRIME MINISTER FOREWORD Britain’s world leading tech sector gives us a competitive edge that is not just EILEEN BURBIDGE CHAIR, TECH CITY UK transforming our daily lives but also our AND PARTNER, PASSION economy – we are a becoming a true Tech GERARD GRECH CEO, TECH CITY UK Nation. It’s also helping us to transform the way Government works. Welcome to Tech Nation 2016, our second annual publication We’ve seen some real successes with Tech on the UK’s digital economy. City UK, but this is not purely about specialist Fuelled by a strong digital growth trajectory, the UK is an evolving startups and digital businesses. Tech is truly Tech Nation. The 2016 report demonstrates the clear contribution transforming the way we do all kinds of that digital technology is making to employment in digital and business, right across the country. traditional industries, and to the economy across the country. Indeed, more than half of all digital jobs The opportunities are enormous if we are to fulfil our potential aren’t in high-tech hubs of or Leeds – as a nation driven by digital tech innovation. The journey starts they are in businesses of every description, in with knowing what we have to offer and where we need to get every sector – in those that would not traditionally to, working with a highly supportive Government to create the be considered digital businesses at all. optimum set of conditions for continued growth. The digital economy is expanding at an The response from the digital community and their eagerness extraordinary pace, creating jobs and fuelling to share data in support of Tech Nation 2016 has been growth in regions and cities up and down phenomenal. The entire team at Tech City UK would like to thank the country, adding some £87 billion to the our research partner Nesta, and project partners GrowthIntel, economy and every year, providing security and Github, AngelList, Burning Glass, Crunchbase, dealroom.co, opportunities for working people. Frontier Economics, InvestNI, Leeds Data City, Meetup & Multiple This Government has stood foursquare and everyone who participated in this research project. behind the country’s digital transformation, The picture painted by Tech Nation 2016 reflects the core CONTENTS backing new technologies, investing in values of the digital mindset – always changing, innovating and 3 FOREWORD infrastructure, supporting investment, removing optimising. The result is an industry worth celebrating. barriers to innovation and helping upgrade 4 ABOUT US the digital skills that a modern work force 6 INTRODUCTION needs. And we will continue to back, with all levers at our disposal, the innovation, creativity 8 IN NUMBERS and entrepreneurship that is redefining and 10 KEY FINDINGS strengthening the modern British economy. 26 FUELLING GROWTH 32 PROFILING THE GEOFF MULGAN CEO, NESTA

UK DIGITAL Digital technologies are unlike any others Perhaps the most striking message in Tech LANDSCAPE – they change everything businesses do. Nation 2016 is the extent to which digital skills 104 PROFILING DIGITAL That's why, as this research confirms, digital now bring big rewards, with the average digital jobs and activity are becoming ever more job offering salaries over £15,000 higher than SECTORS important in traditionally non-digital areas non-digital jobs. Nesta has been campaigning 114 METHODOLOGY of the economy – from retail to financial for many years to promote digital making and services and the public sector. coding skills, promoting computer science in 118 GLOSSARY The team at Nesta led on the collection the curriculum, and code clubs of all kinds. Here FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 120 PROGRAMME and analysis of the data and drafting of Tech is powerful evidence that hope will persuade OVERVIEW Nation 2016, crunching the numbers behind the parents and young people to take up digital fantastic graphics in this report. It's a snapshot skills – and not just help themselves to earn 122 P ROJECT PARTNERS of a fast-expanding area of the economy, with and achieve more, but also help the UK become 124 C OMMUNITY over 80% of clusters seeing growth in turnover even more of a technological powerhouse TECH NATION 2016 / PARTNERS or jobs in the last year alone. in the future. @NESTA / @TECHCITYUK \ 2 \ 5 ABOUT US CORE PROJECT PARTNERS

We believe the UK is the best place to start and grow a digital business. Through dedicated programmes, we support the digital technology sector’s need for skills, infrastructure, and investment. We gather and share vital information, which informs policymakers. We give digital entrepreneurs a national and local voice. Our work accelerates the growth of digital businesses, in London and across the UK, at all stages of their development. You can see our work in action with Future Fifty, Digital Business Academy, Tech Nation, Upscale, the Tech Nation Visa Scheme, Tech Nation Cluster Alliance, HQ-UK and Northern Stars, as developed and delivered by our sister team Tech North. We aim to make life better for the digital entrepreneur.

techcityuk.com ACKNOWLEDGEMENTS State for Trade and Investment; Liam Maxwell, [email protected] GDS; Daniel Korski and Chris Hopkins at No.10 Tech City UK project team: Emma Swift, Downing Street; Andrea Young and Harry Lund, @TechCityUK Lyndsay Baker, Pan Demetriou, Ryan Procter, Department for Culture, Media and Sport, for Lindy Pyrah, Francesca Cahill, Amita Parikh their support on the Tech Nation project. Nesta is the UK’s innovation and Elizabeth Diaferia. We’d like to extend our gratitude to the 1800+ foundation. We help people Nesta research team and report authors; businesses who completed our survey, and to and organisations bring Hasan Bakhshi, Juan Mateos-Garcia and the 36 businesses featured as case studies. great ideas to life. We do this Madeleine Gabriel with assistance from John Thanks to the 135 community partners (see by providing investments Davies and Stian Westlake and thanks to page 124) who helped promote the survey and grants and mobilising Matthew Williams for his input to the analysis. and to those who participated in the research research, networks and Thanks to our data partners for assistance in interviews (see page 117). Thanks to those who skills. We are an independent the research; Tom Gatten, Prashant Majmudar provided additional oversight and content for charity and our work is and Sam Stephens at GrowthIntel; Andy Chung the report; our Tech North colleagues (Laura enabled by an endowment at Angellist; Hal Bonella at Burning Glass; Gene Bennett, Paul Lancaster and Coral Grainger), the from the National Lottery. Teare at Crunchbase; Ian Hathaway at Frontier Tech Nation Alliance who continue to support Nesta is a registered charity Economics; the open data from Meetup and their local tech communities, Jon Bradford, in and Wales Github; David Greer and Maureen McGuigan at Jonathan Brech, Louize Clarke, Emma Cheshire, 1144091 and Scotland InvestNI; and Alex Craven at Leeds Data City. Neil Cocker, Jamie Coleman, John Connolly, Thanks to our communication partners; Katy Charlotte Crossley, Bonnie Dean, Matt Desmier,

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA SC042833. Turner at Multiple, Nick Giles, Eleanor Dampier, David Dunn, Katie Gallagher, Tony Hart, Mike Hall, This work contains statistical data from Jack Davies and Matthew Rowlands at Seven David Hartley, Michael Hayes, Liz Humphries, ONS which is Crown Copyright. The use of Hills, and to our copywriters Hattie Garlick and Matt Johnston, Phil Jones, Fiona Lettice, Kevin the ONS statistical data in this work does not Helena Smith. Thanks to our designers Robin McManus, Nick Milner, Jim Moodie, Steve Orr, imply the endorsement of the ONS in relation to www.nesta.org.uk Worrall at Seven Hills, and Zarina Holmes. Joe Pearce, Emma Philpott, Ben Ravilious, Alan TECH NATION 2016 / the interpretation or analysis of the statistical data. Thanks to The Hon. Ed Vaizey MP, HM Minister Scrase, Lee Strafford, Nick Sturge, Sophie Taylor, @NESTA / @TECHCITYUK [email protected] This work uses research datasets which may not for Culture, Communications and Creative Steve Wainwright, Amy Watson, Tristan Watson,

\ 6 exactly reproduce National Statistics aggregates. @nesta_uk Industries; The Rt Hon. Lord Maude, Minister of Doug Ward and Belinda Waldock. \ 7 What’s New Tech Nation 2016 has applied the data-driven approach of the first Tech Nation WHAT IS THE to a much wider set of information. Led by Nesta, DIGITAL TECH ECONOMY? this year’s report analyses data from the Office of Includes all jobs within the Digital Tech National Statistics, Burning Glass online job ad database, Industries and digital tech jobs within GitHub, Meetup users and traditionally non-digital industries GrowthIntel’s pioneering website analysis. The result is an unprecedented understanding of the Digital Tech Economy and its impact on employment, productivity and GVA. Digital Tech Traditional (non-digital) Industries Industries

Includes businesses operating in Includes businesses operating in digital technology according to the non-digital industries according to INTRODUCTION ONS, such as computer programming the ONS, such as wholesale and activities, publishing of computer retail trade, education, etc. games, etc.

Digital tech businesses are at the of The findings of this report shows the There are three job types within the Digital Tech Economy* the UK economy and are playing continued growth of digital tech clusters. These an important role in driving growth. findings are focused upon the areas where The impact of this dynamic sector is digital technology businesses are having the Native Support Transformer profound, predicated on a fundamental greatest impact: economic growth, employment, belief in innovation and doing things productivity and the digital disruption of Digital job in digital Non-digital job in digital Digital job in traditional differently. Digital tech businesses traditional industries. tech industries tech industries industries are transforming the employment landscape, At the heart of Tech Nation 2016 is a detailed (Front-end developer in a (Marketing Manager in a data (Data Scientist in the driving productivity, and reimagining overview of the sector specialisms, benefits and software company) analytics company) public sector) challenges in 27 notable digital tech clusters traditional industries. For further information, see methodology, pg 116-119 Last year, Tech City UK conducted one of the across the country. Details of the unique DNA most comprehensive, community-led research of each cluster sit alongside headline statistics projects into the growth of digital tech clusters. around employment, turnover and average WHAT IS A This was the start of an iterative process salaries. This is designed to compare and designed to reflect the constantly evolving contrast the key digital tech clusters that shape DIGITAL TECH BUSINESS? nature of technology in the UK’s business our Tech Nation. The report also turns its eyes to landscape. the sectors in which the UK is excelling. Business that provides a digital technical In partnership with Nesta for Tech Nation Ultimately, Tech Nation 2016 demonstrates service/product/platform/hardware, or heavily 2016, Tech City UK has tracked clusters to a Digital Tech Economy that is transforming relies on it, as its primary revenue source. gauge the UK’s Digital Tech Economy. To get a British business for individuals, cities and the comprehensive insight into digital employment, country as a whole. We hope this landmark They are active across the economy we’ve analysed data from Government, job report is an invaluable resource for the network advertisements and official ONS data, allowing of professionals, entrepreneurs, investors and 01 02 03 FROM TECH CITY UK IN PARTNERSHIP WITH NESTA us to understand the impact of the digital policymakers that make up the digital tech Operating in Disrupting traditional Creating new technology economy on wider business, community. digital sectors industries sub-sectors employment, and economic trends. A full Apps and software Public sector, film and Edtech, Fintech breakdown of the methodology behind the development, data broadcast media research can be found on page 114. management and analytics TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK

\ 8 *See Nesta/Tech UK (2015), 'Dynamic mapping of the information economy industries' \ 9 DIGITAL TURNOVER IN PARTNERSHIP WITH TOTAL3 LONDON £62.4bn READING & BRACKNELL £10bn 80% BRISTOL & BATH IN NUMBERS £8.2bn Over 80% of Tech Nation clusters have seen growth in digital £2.2bn turnover, digital DIGITAL TECH DIGITAL TECH BIRMINGHAM jobs and advertised £1.8bn digital salaries ECONOMY INDUSTRIES (See page 32 for definition of cluster) DIGITAL TURNOVER GROWTH (2010-2014)3 jobs1 £161bn SOUTHAMPTON 1.56m turnover3 +180% TRURO, REDRUTH & CAMBORNE Job creation 58,000 faster than the2.8x rest of the +153% digital tech DUNDEE businesses economy (2011-2014) found across Grew 32% +129% the UK faster than LONDON 32% the rest of the economy +101% (2010-2014)3 BRISTOL & BATH +53%

DIGITAL JOBS1 PRODUCTIVITY3 DIGITAL SALARY2 £50,000 TOTAL (SALES PER WORKER) GROWTH (2012-2015) Almost £50K average 58,000 advertised salary2 identified active digital LONDON BRISTOL & BATH LEEDS tech businesses4 328,223 £296,340 +29% MANCHESTER LONDON NEWCASTLE & DURHAM 36% TOP SECTORS4 51,901 £205,390 +27% higher than the national advertised average2 READING & BRACKNELL READING & BRACKNELL SUNDERLAND App & Software Development

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 17% 40,440 £196,800 +26% Digital Tech BIRMINGHAM SOUTHAMPTON EDINBURGH Economy jobs Data Management exist within 12% & Analytics 36,768 £171,720 +26% traditionally 41% non-digital Hardware, Devices BRISTOL & BATH OXFORD SOUTHAMPTON 1 & Open Source TECH NATION 2016 / industries @NESTA / @TECHCITYUK 11.5% Hardware 36,547 £170,460 +25%

1 Annual Population Survey (2014) \ 10 2 Burning Glass (2015) refers to advertised digital salary \ 11 3 Annual Business Survey/Business Structure Database (2014) 4 GrowthIntel (2015) Glossary GVA KEY FINDINGS Gross Value Added measures the contribution of each economic unit by estimating the value Building on last year’s inaugural report, of an output (goods Tech Nation 2016 is the most ambitious or services) less data-driven mapping of the UK’s digital the value of inputs tech ecosystem to date. used in that output’s production process. Our key findings are: It is used in the estimation of GDP 01 DIGITAL TECH: Turnover The amount of DRIVING THE ECONOMY money taken by a Digital Tech Industries are a key contributor business over a year to the UK’s economy, growing faster in turnover, GVA and productivity than the rest of the economy.

02 FROM DIGITAL INDUSTRIES TO DIGITAL ECONOMY Digital technologies are transforming businesses beyond the Digital Tech Industries.

03 GROWING OPPORTUNITY: DIGITAL TALENT AND SKILLS The Digital Tech Economy is creating highly paid employment opportunities across the UK, almost three times faster than the rest of the economy.

04 THE POWER OF CLUSTERS AND NETWORKS Clusters of digital tech businesses are playing a key role in supporting growth across UK cities, growing at a faster rate than their local economies. FROM TECH CITY UK IN PARTNERSHIP WITH NESTA TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 12 \ 13 \ 14 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA KEY FINDINGS these operate outside of London. 75% UK. the of within tech businesses digital active 58,000 identifies Data from GrowthIntel Job growth of London. outside are80% based workforce.the rest the 2.8x faster of is than 2014 which and 2011 between grew 11.2% jobs economy: the rest the of to outpace continues This Industries. Industries and digital tech jobs within Traditional Tech Digital the Economy, in jobs all covering Tech Digital the in jobs million are 1.56 There 01 DIGITAL TECH BUSINESSES VOLUME: DIGITAL TECH ECONOMY JOBS: other sectors other Jobs in Economy jobs Digital Tech These jobs can be found across the country; country; the across found be can jobs These

growth in turnover and GVA. economy. Digital Tech Industries have seen fast employment isrising faster than the rest of the The Digital Tech Economy ispowering growth; DRIVING THE ECONOMY DIGITAL TECH: 4 % 11 %

2.8x compared totherest Digital TechEconomy faster jobgrowthinthe are digital techbusinesses 1.56m the economy Dig jobs existwithinthe 7 ital Tech Economy o 5% u tside London of Tech City UK, Nesta, ABS, 2015 ABS, Nesta, UK, Tech City GVA Tech year-on-year growth Industries’ and Digital 1. I In 2014,theGVA ofthenation’sDigitalTech 20 32% fasterthanthenationalaveragebetween Industries wasestimatedat£161billion.Itgrew in turnover.In2014,turnoverofDigitalTech than jobsinthee Tech Industrieswere90%moreproductive chart 1).Overthesameperiod,jobsinDigital an additional£19billiontotheeconomy(see B DI G n growth etween 2010and2014GVA grew27%,adding Ye d RO 10 and2014. G Similarly, therehasbeenrapidgrowth us arly I tries wasestimatedat£87billio TAL ECHINDUSTRIES £69.2Bn WTH: 2008 -2.9 c onomy overall.

£67.2Bn % 2009 +1.1% £68Bn 2010 n. +5.2% £71.5Bn 2011 +4.2% £74.5Bn

2012 32% Digital T estimated turnoverofthe £ (2010 -2014) the nationalaverage digital turnoverthan faster growthin 2014 +8.7%

£81Bn 161bn

2013 ech Industriesin +7.4% £87Bn 2014

\ 15 @TECHCITYUK / @NESTA FROM DIGITAL INDUSTRIES 02 TO DIGITAL ECONOMY KEY FINDINGS 3. Proportion of digital tech businesses in traditional industries (%) The Digital Tech Economy is creating new industries and transforming existing ones. 44.7% Marketing, PR and design 38.5% Science and high tech 35.9% Aerospace and defence 33.2% Film and broadcast media The Digital Tech Economy is increasingly diverse, development, Data management & Analytics, 32.4% Electronics equipment and instruments encompassing digital tech businesses and and hardware, Devices & open source hardware 20.1% Electronic parts and components digital workers across all industries. Our analysis are currently the nation’s largest. 18.4% Publishing and print shows the extent to which digital innovation is New ‘born digital’ sub-sectors, such as having an impact across businesses and the games and cloud computing are forming. 17.9% Consumer goods people working for them. Equally exciting are the innovations that are 16.5% Sports and leisure The Digital Tech Economy is increasingly evolving within traditional industries and forming 15.7% Civic and social organisations diverse. We have identified 16 different sectors new sub-sectors, like Fintech and Healthtech. 15.6% Consultancy and advice within the UK (see chart 2); App & software 15.1% Business support services 14.7% Pharmaceuticals and biotech 13.1% Facilities services TRANSFORMING THE BUSINESS LANDSCAPE 12.7% Agriculture, fisheries and industrial food productions 12.5% Professional training 2. Sector specialisms of digital tech businesses (% breakdown) 11.1% Finance 11% Arts and music 16.7% App & software development 9.9% Recruitment and HR 11.7% Data management & analytics 9.1% Education 11.3% Hardware, devices & open source hardware

8.5% Enterprise software & cloud computing Tech City UK, Nesta, GrowthIntel, 2015 8.3% Telecommunications & networking 8.2% Digital advertising & marketing 7.7% E-commerce & marketplace 6.3% Digital media & entertainment 5.1% Cyber security From the to the emergence of mass production techniques, the adoption of 5.0% Fintech new technologies in non-tech industries has driven 1.8% Gaming productivity throughout history. Today, in the UK, 45% we are witnessing one of these periods of change. 1.3% Online gambling According to data from GrowthIntel (see chart 3), 1.3% Social networks 44.7% of businesses operating within marketing, PR and of marketing, FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 0.9% IoT & connected devices design, and 33% operating within film and broadcast PR and design media, are now primarily digital technology businesses. 0.6% Edtech companies are Likewise, 18% of businesses in publishing, 17% in now digital tech 0.4% Healthtech consumer goods and 16.5% in sports and leisure are businesses also digital technology businesses. Tech City UK, Nesta, GrowthIntel, 2015 TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 16 \ 17 6. Digital jobs within the top 5 employers 7. Digital ad growth in traditional industries of digital talent (traditional industries) (according to the online job market)

65,870 Advertising Public Administration1 and Market 59% 02 Research KEY FINDINGS 60,520 Education Office administration 70% TRANSFORMING THE EMPLOYMENT LANDSCAPE 48,010 2 4. Digital Tech Economy jobs breakdown Financial Services Financial services 79% Digital Tech Economy: Job breakdown Digital Tech Jobs (excluding support): 34,210 Industry breakdown Retail3 Public administration 90% Native 31,370 22% Other financial services and Transformer 41% Traditional Digital Tech insurance activities 41% Industries Industries Healthcare 110% 52% 48% Support 37% 1 public administration and defence; compulsory social security 2 except insurance and pension funding of Digital Tech 3 Economy jobs are except motor vehicles and motorcycles Tech City UK, Nesta, Burning Glass within traditional

See page 9 for further information Industries Online job market data from Burning Glass In 2015 over a third of digital job adverts were Tech City UK, Nesta, APS, 2015 reveals a similar story. Between 2012 and 2015, in traditional industries. Chart 8 shows the largest the number of adverts for digital jobs across volume of digital job adverts were for roles within Of the 1.56 million jobs in the Digital Tech This trend highlights how traditional industries traditional industries grew by 34%. Those within Financial service activities, Education and Human Economy, 41% or as many as 648,000 digital are adapting to society’s growing reliance on the health sector, which witnessed the greatest health services. tech jobs are within traditional industries digital technology. E-commerce is one powerful growth, rose by an astonishing 109.8% (see chart (see chart 4) Within these industries digital example. Looking at the GrowthIntel data, over 7). Public administration, defence and social tech jobs make up a growing percentage of 40% of traditional fashion businesses now use security rose by 90.3% and financial services by 4 their workforce, notably in Programming and E-commerce to expand their trade, along with an almost as impressive 78.5%. broadcasting and Scientific research (see chart 32% of consumer goods businesses and 14% of 4 This analysis is based on the SIC divisions of businesses advertising 5) Looking at total numbers, the top employers food and drink retail businesses. for digital jobs. It is important to note that that this data is not available for all job ads. In the most recent period analysed of digital tech jobs include the Public Sector and (January-September 2015), there is industry data for 39% Education (see chart 6). (375,000) of the digital job ads we have analysed.

5. % proportion of digital tech jobs within traditional industries 8. Top 10 traditional industries by volume of online digital job adverts

10.3% Programming and broadcasting activities 12415 Financial service activities, except insurance and pension funding 9.1% Scientific research and development 12406 Education 8.8% Financial service activities, except insurance and pension funding 9712 Human health services 7.9% Insurance, reinsurance and pension funding, except complusory social security 8465 Public administration and defence, compulsory social security

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 78% Activities auxiliary to financial services and insurance activities 7757 Insurance, reinsurance and pension funding, except compulsory social security 7.4% Advertising and market research 7384 Retail trade, except for motor vehicles and motorcycles 6.8% Electricity, gas, steam and air conditioning supply 6136 Advertising and market research 6.6% Repair and installation of machinery and equipment 5682 Office administrative, office support and other business support activities TECH NATION 2016 / 6.4% Activities of head offices; management consultancy activities 4707 Scientific research and development @NESTA / @TECHCITYUK 4.9% Libraries, archives, museums and other cultural activities 4394 Activities auxiliary to financial services and insurance activities \ 18 \ 19 Tech City UK, Nesta, APS, 2014 Tech City UK, Nesta, Burning Glass, 2015 DIGITAL TECH SALARY GROWTH

10. Highest growth of advertised digital GROWING OPPORTUNITY: salaries among Tech Nation clusters (2012-2015) 03 DIGITAL TALENT AND SKILLS KEY FINDINGS Leeds +29% Across the UK, the Digital Tech Economy is creating job opportunities for a range of skill sets. Newcastle & Durham +27%

Sunderland +26% AVERAGE DIGITAL TECH SALARIES According to Burning Glass data, over a million online % 80% adverts for digital jobs were placed in the UK in the first 36 Edinburgh +26% of clusters have nine months of 2015. The average advertised salary for seen advertised these roles was just under £50,000, 36% higher than digital salaries rising the national average. An evident ‘digital premium’ exists higher advertised faster than the local across the country (see chart 9) and salaries are rising. salary for digital Southampton +25% average roles, than the national average Tech City UK, Nesta, Burning Glass

The average advertised salary for digital In fact, advertised digital salaries rose faster 9. Advertised digital salaries (top 20 Tech Nation clusters) roles grew by 13% between 2012 and 2015, than the local average in 8 out of 10 of the 19% faster than the average advertised salary cluster areas we analysed, in particular Belfast, £58,978 London for non-digital roles. This pattern occurs across Southampton and Glasgow. £51,575 Reading & Bracknell the country: 77% of the digital tech clusters we Demand for digital talent shows no signs of £51,227 Edinburgh identified have seen average advertised salaries slowing. In fact, while the need for specific roles for digital roles increase by more than 10%, with varies, 43% of digital tech businesses say that £48,127 Southampton the highest advertised salary growth occurring skills shortages are limiting their growth. £47,959 Leeds in Leeds (see chart 10). £47,499 Oxford £47,185 Cambridge 11. D ifference between advertised digital salary growth and advertised £46,854 Glasgow local average salary growth, 2012-2015 (Top 10 clusters by growth) £45,501 Bristol & Bath 14.8% Belfast £45,205 Manchester 12.7% Southampton £44,068 Newcastle & Durham £43,274 Brighton 11.6% Glasgow £42,926 Cardiff & Swansea 9.5% Truro, Redruth & Camborne £42,153 Liverpool 8.4% Oxford

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA £42,097 Ipswich 8.1% Bristol £42,058 Sheffield & Rotherham 7.9% Leeds £41,538 Birmingham £39,695 Exeter 7.9% Manchester TECH NATION 2016 / £39,000 Sunderland 7.4% Exeter & Newton Abbot @NESTA / @TECHCITYUK £38,069 Dundee 7.2% Edinburgh \ 20 \ 21 Tech City UK, Nesta, Burning Glass, 2015 Tech City UK, Nesta, Burning Glass, 2015 DIGITAL TECH SPECIALISMS FOR INDIVIDUALS

13. Importance of sources for skills development according to digital tech businesses

66.5% Self-taught programming 03 60.1% In-house training KEY FINDINGS 43.7% Mentoring 38.6% Online training ATTRACTING DIGITAL TECH TALENT 26.8% Local universities

12. W here digital tech businesses source talent 15.6% External training (Tech Nation 2016 Survey) 15.4% UK Universities

Tech City UK, Nesta, Tech Nation 2016 Survey 53.1% Experienced talent from a local cluster 35.8% Universities in a local cluster Informal or in-house training remains the In software development activities, this 35.2% Online most common source of skills development, with ‘self-taught’ cohort is enabled’ in large part by 29.7% Experienced talent from the UK universities ranking relatively low (see chart 13). online open source platforms. Github is the key 19.3% EU Again, there is a divergence among open-source platform for developers, with more 18.4% Recruiters clusters. Businesses in Leeds (77%), Norwich than 18,000 active users in the UK. Chart 14 15.6% UK Universities (73%) and Reading & Bracknell (71%) heavily reveals high user activity is concentrated around rely on company in-house training for skills the key digital tech clusters such as London, 15.6% Non-EU development. Meanwhile self-taught learning Cambridge, Manchester, Oxford, Brighton, Bristol

Tech City UK, Nesta, Tech Nation 2016 Survey is viewed as most important in Edinburgh (81%) & Bath, Edinburgh, Glasgow and Belfast. and Glasgow (79%).

14. Co ncentration of programming language specialisation among Github users in Tech Nation clusters*

Belfast Birmingham To counter the skills demand, UK digital tech Brighton Bristol & Bath 20% businesses are recruiting from diverse sources (see Cambridge chart 12). Cardiff & Swansea Areas such as Reading & Bracknell, Cambridge and Dundee Edinburgh London in particular, are hiring from overseas, including of digital tech Exeter & Newton Abbot both EU and non-EU countries. Whilst in Brighton, Glasgow businesses say Bournemouth & Poole, and Bristol & Bath, experienced Hull Ipswich that EU countries talent from local cluster is cited as the most common (beyond the UK) are Leeds source. Cambridge, Oxford, Edinburgh and Sheffield are Liverpool an important source also more reliant on local universities for talent. London of talent Yet despite the role of universities in supplying Manchester Newcastle & Durham 2.5 technical talent, more than 50% of the universities within Norwich the identified clusters produce fewer computer science Oxford gged graduates than the national average given the size of Sheffield & Rotherham Southampton their student base. FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Sunderland 0 in Dundee, Ipswich, Sunderland, Glasgow, Belfast and Worcester & Malvern R

C Lo Specialisation: 1 3 Bournemouth & Poole all produce disproportionate Go digital tech ve C CSS C++ PHP Perl Tex HTML Java ve+C Ruby Scala Shell VimL Python -2 numbers of computer science graduates. Bristol & Bath, Makefile businesses source JavaScript talent from local Cambridge, Reading & Bracknell, Newcastle, Norwich Objecti CoffeeScript Objecti universities and Oxford, meanwhile punch above their weight in TECH NATION 2016 / maths and physics disciplines, which are also integral to Tech City UK, Nesta, GitHub, 2015 @NESTA / @TECHCITYUK the Digital Tech Economy. * Bournemouth & Poole, Truro, Redruth & Camborne, and

\ 22 Reading & Bracknell not included due to limited data \ 23 THE POWER OF CLUSTERS CLUSTERS: THE KEY BENEFITS 04 AND NETWORKS 17. Key Benefits across Tech Nation clusters (national average %) KEY FINDINGS The Digital Tech Economy is leading the growth of local economies across the country. 64% 63% 55% 53% 51%

40% 40% THE NATIONAL PICTURE 15. Economic performance of Tech Nation clusters (% of clusters that experienced Tech Nation 2016 profiles 27 key digital growth 2010-2014) tech clusters across the UK, examining 26% 24% how their concentration of talent and networks are accelerating the growth Digital GVA 86% of digital tech businesses.1 The majority of digital tech clusters have seen growth in recent years. In Access to networks local Access to property commercial Access to talent university Access experienced to talent industry Access to support business Access to partners trading Strong local cluster brand Access privateto finance Access publicto finance fact, in almost all clusters, the local Digital Jobs 82% Tech City UK, Nesta, Tech Nation 2016 Survey Tech Industries have outpaced all others on nearly every economic measure (see In our Tech Nation survey, respondents told This is particularly clear in Edinburgh chart 15). Turnover 89% us their UK location brings a number of benefits (where 87% of businesses cite it as a benefit) (see chart 17). The most popular benefit, cited by Birmingham (82%) Bristol & Bath (81%). 64% of businesses, is access to local networks. 1 T his list doesn’t include all areas with high levels of digital business intensity or employment in the UK, 2 especially those whose tech sectors are dominated by Productivity 57% large businesses. Some examples of such areas include Guildford and Aldershot, Wycombe and Slough, Luton and Watford and Milton Keynes and Aylesbury. Some 18. Key Benefits within Tech Nation clusters (local average %) commentary on these areas is provided in the cluster profiles section. 2 Based on Turnover per worker ABS/BSD Belfast Birmingham Bournemouth & Poole 16. Top five leading indicators Brighton of cluster growth Bristol & Bath Cambridge 4 BUSINESS TURNOVER: TURNOVER: JOBS: PRODUCTIVITY Cardiff & Swansea 3 DENSITY TOTAL GROWTH TOTAL (sales per worker) Edinburgh (compared to UK) Glasgow Hull 1.3x £62.4bn +180% 328,223 £296,340 Ispwich Reading & London Southampton London Bristol & Bath Leeds Bracknell £9.96bn +153% 51,901 £205,390 Liverpool London 1.3x Reading & Truro, Redruth Manchester London % reporting Manchester location offers Brighton Bracknell & Camborne benefit Newcastle & Durham 40,440 £196,800 100

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 1.1x £8.16bn +129% Reading & Reading & Norwich Cambridge Bristol & Bath Dundee Bracknell Bracknell 80 Oxford 60 1.1x £2.2bn +101% 36,768 £171,720 Reading & Bracknell 40 Sheffield & Rotherham Bournemouth Manchester London Birmingham Southampton 20 Truro, Redruth & Camborne & Poole 0 £1.8bn +63% 36,547 £170,460 t TECH NATION 2016 / 1.1x Birmingham Leicester Bristol & Bath Oxford funding er brand @NESTA / @TECHCITYUK ate funding rcial property London Local networks Talent indusry Priv Public Talent education Trading partners omme Business Suppor Clust C \ 24 \ 25 3  Digital tech businesses as % of total businesses Tech City UK, Nesta, Tech Nation 2016 Survey 4  The amount of money taken by a business over a year 04 KEY FINDINGS

MEETUPS INTERNATIONAL COLLABORATION Networks and face-to-face contact are gaming in Brighton, E-commerce in Liverpool, Many digital tech businesses are international in their essential to successful digital tech clusters. and information security in Belfast and Norwich. outlook: around a third have partners and suppliers Data from Meetup can be used to understand Clusters may be a local phenomenon, but in the EU or North America. There are divergences this activity. Almost 180,000 individuals for today’s businesses, networks know no such among clusters, however. For instance, Cambridge 1in6 across the country have been involved boundaries, UK digital tech businesses currently and Norwich-based businesses have comparatively customers of digital in digital tech Meetups. collaborate across the UK and internationally. greater numbers of partners in North America. tech businesses in There has been an explosion in Meetup In fact, Meetup data reveals a considerable Cambridge and Oxford have more partners in Asia Cambridge are activity since 2010, with 1,359 digital tech groups level of cross-cluster networking taking place. than other clusters do, while London and Oxford are in North America currently active in the UK. These groups cover The figures confirm London’s centrality to the the clusters most likely to work with partners from an ever-expanding set of technologies and UK’s Digital Tech Economy, and its strong ties EU countries. industries (see chart 19). with Bristol & Bath, Brighton and Cambridge. Analysis of the markets in which UK digital tech Meetup data also reveals local areas of However, they also show regional networking businesses operate reveals a similar pattern (see chart expertise: Edtech is strong in Oxford and Bristol in areas such as the North West and the 20). Again, Oxford and Cambridge have the highest & Bath, software development in Cambridge, West Midlands. proportions of businesses selling internationally.

20. Top clusters trading internationally (% businesses with 19. Diversity of Meetup group topics 2006-2015 customer base in named location)

100 Web Development North America Software Development Digital Media & Marketing General Tech Europe Data Infrastructure Entrepreneurship Asia Other Mobile Development Data Analytics

50 E-Commerce Product & Project Management Open Source User Experience & Design Bitcoin

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Fintech Edtech Games Development % % % % %

Healthtech % % TECH NATION 2016 / Information Security @NESTA / @TECHCITYUK % % 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Makers, Hackers & IoT 14 Manchester 13.8 Oxford 13.4 Belfast 16.9 Cambridge 16.7 Oxford 14.6 Belfast 11.7 Cambridge 10.8 & Bracknell Reading 4 Newcastle \ 26 \ 27 Tech City UK, Nesta, Meetup, 2015 Tech City UK, Nesta, Tech Nation 2016 Survey FUELLING GROWTH: DRIVING PRODUCTIVITY

SUSTAINING THE SUCCESS OF THE DIGITAL TECH SECTOR The UK’s Digital Tech Economy has great strengths. Now, the entire digital tech ecosystem, including entrepreneurs, educators, central and local policymakers must work together to identify and address key challenges. By doing so, the community can secure the future success of digital tech businesses across the country. Our research suggests five areas of focus for these efforts. 01 SKILLING UP A DIGITAL WORKFORCE 02 FOCUS ON FINANCE 03 DEVELOPING THE UK’S DIGITAL INFRASTRUCTURE 04 CULTIVATING CLUSTERS 05 DEVELOPING DATA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 28 \ 29 01 The UK’s 02 SKILLING UP A digital FOCUS ON DIGITAL WORKFORCE companies FINANCE are thirsty

FUELLING GROWTH Around 40% of digital entrepreneurs say that for talent Just under 40% of digital entrepreneurs they face challenges finding skilled digital surveyed say that they face challenges as a 30% workers. result of limited access to finance. Young people are the digital workforce of the Encouraging and publicising private future and steps must be taken to equip them Digital businesses make considerable investment opportunities in the Digital Tech with the skills required for jobs in digital tech use of local universities to recruit talent, Economy would help to address this, particularly of digital companies businesses. Here’s how: but entrepreneurs highlight that graduates at later stage funding rounds, and particularly plan to seek angel sometimes lack, either the business skills, or the outside London. and VC funding in • Introduce the younger generation to the the next year possibilities of a career in digital, through most up-to-date technical skills, needed to go Public sector funding schemes meanwhile, initiatives such as Dorset’s annual ‘Digital straight into work. (whether local, national, UK or EU), have greatest Wave’ conference for schools Universities need to address these concerns by: effect when they take into account the following: • Connect pupils and industry: for • Collaborating with businesses to respond • The ‘minimum viable product’ is more example, The Studio school and sixth to talent gaps, and using local employment important for a digital startup than form college in Liverpool offers students demand data to shape courses a ‘prototype’ placements and mentorships in coding and • Securing industry accreditation of courses • To innovate, digital companies often need to 03 entrepreneurship • Embedding digital skills such as prioritise salaries over capital expenditure DEVELOPING • Expand apprenticeships into digital careers, quantitative analysis, data visualisation and • Company growth cannot be measured by learning from examples such as the computing into other disciplines job creation alone, since that will not take THE UK’S DIGITAL NextGen Skills Academy, where leading Inevitably the demand for digital skills in fast- into account the use of freelancers INFRASTRUCTURE employers in the visual effects and video growing, skills-intensive sectors within the Digital games industry have designed higher Tech Industries will outstrip domestic supply. apprenticeships, and from the social media For this reason, digital businesses have apprenticeship scheme run by The Juice stressed that access to international, as well as High-speed connectivity remains a priority Academy in the North West local, talent is vital to their growth. for digital tech businesses. 28% of digital The UK’s migration policy is central to tech businesses in our Tech Nation 2016 bridging the skills gap, and the Tech Nation Visa survey reported digital infrastructure as a scheme is a direct response to the needs of challenge. digital tech businesses. data on availability of superfast broadband to households demonstrates that broadband services are still unevenly distributed across the UK. 21. Challenges to growth according to digital tech businesses Better data on business access to broadband and other digital infrastructure would enable cities 43% Access to talent to ensure that companies get the connectivity they need in order to thrive and grow. 39% Access to finance 29% Low sector awareness 28% Digital infrastructure FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 27% Economic climate 23% Commercial property 22% Physical infrastructure TECH NATION 2016 / 16% Lack of advice & mentorship @NESTA / @TECHCITYUK 11% Regulation

\ 30 Ofcom 2015 \ 31 Tech City UK, Nesta, Tech Nation 2016 Survey TTWA figures are the average of the broadband coverage in the area’s postcodes. Data: Ofcom Infrastructure Report, 2015. \ 32 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA FUELLING GROWTH • – devel the fostering means This clusters. local their of development the prioritise must policymakers country, the Throughout around the UK have been nurtured successfully. nurtured have UK the been around highlight other methods through which clusters • • • topic. the on reports Tech Nation2015andanumberofNesta’s infrastructure andcollaboration–asnotedin 0 CLU CU to finance, research and talent from startups collaboration between corporates and small and large alike, and encouraging The Tech City UK Best Practice series will series Tech Practice The Best UK City local level at a innovation to promote initiatives wider in businesses tech digital Involving graduates and young entrepreneurs thereby encouraging loyalty from local In their needs publicise to better order in businesses, individual their and of clusters visibility the to increase universities, as such institutions Su Li S 4 trategies should include: stening to businesses in the cluster, the in to businesses stening vesting in attracting and retaining talent, retaining and attracting in vesting pporting local networks and anchor and networks local pporting o

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w i hole nnovation s ystem be encouraged to continue. to continue. encouraged be organisations opening up their data sets should private and of public trend the and data, open of benefits towards economic the points of evidence body Agrowing data. open through championing innovation in industry and society report. this in shown as – classifications of alternative to use makeneed good over time. make comparisons robust cannot we SIC abetter Without statistics. economic UK review of on-going Bean's Charles Professor for apriority is this Addressing Tech Industries. like Digital the sectors dynamic with keep speed to struggle statistics official in used (SIC) codes policy decisions or analyse their impact. national policymakers cannot make informed and key. is data local it, quality Without Good 05 DATA DEVELOPING The Open Data Institute is already already is Data Institute Open The however, meantime, the In policymakers Classification However, Industrial Standard the

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\ 33 @TECHCITYUK / @NESTA In Tech Nation 2016, digital tech clusters have been identified based on quantitative indicators such as the density of PROFILING digital tech businesses within an area (GrowthIntel), economic performance and growth rates (ONS and THE UK DIGITAL other data sources), and the level of community activity (Meetup). This has been supplemented LANDSCAPE by qualitative insight such as the existence of networks and Digital tech businesses are concentrated in supporting organisations engaged with local tech clusters across the country. The following businesses, the presence pages profile 27 of these clusters, identifying of startup/entrepreneurial communities and the conditions for growth driving the individual participation in the Tech Nation interviews and success stories of each and every one. survey conducted for this report. EAST OF ENGLAND NORTH OF ENGLAND CAMBRIDGE LHUL PSWICHI LEEDS NORWICH IVERPOOLL ANCHESTERM LONDON & SOUTH EAST  NEWCASTLE BRIGHTON & DURHAM LONDON  SHEFFIELD & FORDOX ROTHERHAM READING & BRACKNELL SUNDERLAND SOUTHAMPTON NORTHERN IRELAND THE MIDLANDS BELFAST BIRMINGHAM LEICESTER SCOTLAND WORCESTER & MALVERN NDEEDU EDINBURGH GLASGOW SOUTH WEST  BOURNEMOUTH & POOLE BRISTOL & BATH  EXETER & NEWTON ABBOT  TRURO, REDRUTH & CAMBORNE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA WALES CARDIFF & SWANSEA TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 34 \ 35 NOTABLE COMPANIES EAST OF ENGLAND

A region known for agriculture, energy and high technology, the East of England is also notable for its research excellence. It is home to Cambridge, arguably the oldest technology cluster in the UK, alongside two of the largest collections of research parks in the UK in both Cambridge and Norwich, and BT’s Global research park in Ipswich. IN NUMBERS Driven by Cambridge, the region continues to DIGITAL TECH have strengths in high ECONOMY JOBS technology and hardware. These leading clusters are supported by industrial 152,136 parks in Southend and PROPORTION OF JOBS IN Brentwood, and technical THE EAST OF ENGLAND services in Harlow and WITHIN THE DIGITAL TECH Bishop’s Stortford. ECONOMY 5.2% NOTABLE CLUSTERS DIGITAL GVA* 1 3 CAMBRIDGE 2 £4.6bn 1 IPSWICH 2 3 DIGITAL CONTRIBUTION NORWICH TO REGIONAL GVA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 5.3% DIGITAL DENSITY TECH NATION 2016 / 18.3% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 36 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 37 JELENA ALEKSIC DIGITAL TECH ECONOMY JOBS Founder & CEO GeneAdviser 18,532 ADVERTISED DIGITAL SALARY £47,194 DIGITAL DENSITY1 EAST OF ENGLANDEAST Our ambition is to streamline Europe’s fragmented genetic testing market, using technology to create an international online 21% 2 marketplace, linking test laboratories with DIGITAL GVA clinicians and enabling them to find, order and pay for tests. £649 million There is so much support for early-stage businesses in Cambridge, from Cambridge DIGITAL GROWTH University Entrepreneurs to Innovation

CAMBRIDGE Forum and EnterpriseWISE. Being part of the Accelerate Cambridge programme at the Judge Business School has helped us to EMPLOYMENT navigate the Cambridge biotech scene. +1% 2011-2014 The whole business ecosystem in the town has been of huge benefit. So many different people have been happy to give us their time, One of the oldest and most well-established expertise and support to get us going. clusters in the UK, Cambridge has produced 15 digital tech companies worth over a billion TURNOVER dollars. It is the third most densely populated “A lot of serendipity +46% 2010-2014 cluster of digital tech businesses in the UK, happens around and a top ten cluster for digital employment NOTABLE UNIVERSITIES Cambridge – you bump and productivity. & COLLEGES into someone in a Although it has growing specialisms in IoT & ANGLIA RUSKIN UNIVERSITY coffee shop and people connected devices and Software development, UNIVERSITY OF CAMBRIDGE just talk about their GVA Cambridge also has an established history in cyber businesses; It’s probably NOTABLE COMPANIES security, hardware, electronics and data, highlighted one of the best network +12% 2010-2014 APPLE by the large numbers of R programmers based in communities anywhere” ARM the area (according to Github data). CHARLES COTTON SPOTIFY Digital tech businesses benefit from a highly- Cambridge Phenomenon skilled talent pipeline from the University of Cambridge and a wide-reaching support NOTABLE SECTORS community. Organisations like Cambridge Network IOT & CONNECTED DEVICES (School for Scale Ups) and Cambridge Wireless Access to Access also support growing startups, as do Agritech-East, ENTERPRISE SOFTWARE commercial to local 45% Cambridge Cleantech and One Nucleus. 86% property networks & CLOUD COMPUTING Small businesses are benefitting from the growing number of Ideaspace incubators, the APP & SOFTWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access University’s hub for early stage innovation, the St Access to DEVELOPMENT to finance 43% Johns Innovation Centre (Europe’s first incubator) 80% graduate-level and the Judge Business School’s Accelerate talent DATA MANAGEMENT Cambridge. Meanwhile, leading corporates such as & ANALYTICS , HP, Huawei and more recently Apple have Access to Weak economic also established a presence there. TECH NATION 2016 / climate 31% 80% business @NESTA / @TECHCITYUK support 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 38 \ 39 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) DAVE LADBROOK COO DIGITAL TECH ECONOMY JOBS Itoworld 9,981 ADVERTISED DIGITAL SALARY £42,096 1

EAST OF ENGLANDEAST DIGITAL DENSITY ITO World specialises in the provision of high quality, public transport data feeds 16% that power the major journey planning DIGITAL GVA2 and navigation apps and data visualisation IPSWICH software. Data is collected through ticketing £190 million systems, sensors attached to vehicles, traffic signals, surveys, focus groups and social DIGITAL GROWTH media. All of this can help us understand how the transport system operates and how people behave. Ipswich has been key to our success. EMPLOYMENT It has given us low cost offices and close +3% 2011-2014 proximity to universities and London. We have quick access to international markets and have been able to recruit Ipswich is a growing digital cluster encompassing excellent people, while the local digital tech new startups such as ITO World, Sharedband and community and BT’s R&D campus have Silicon Safe, as well as more established tech TURNOVER provided skilled talent at senior levels. companies like HTK and Smart421. Ipswich has +24% 2010-2014 strengths in a number of sectors, including Digital advertising & marketing, Telecommunications & NOTABLE UNIVERSITIES “There’s telecoms networking, Fintech and Photonics. & COLLEGES BT has a research centre in the area, which has here, there’s big data, UNIVERSITY CAMPUS SUFFOLK helped to attract talent, some of whom have left to there’s Fintech; there’s start or join new digital tech businesses nearby. BT quantum technology. GVA There’s lots happening NOTABLE COMPANIES shares its campus with companies including Cisco, +16% 2010-2014 Huawei and Ericsson, and has strong links with here and a lot of it is BT absolutely world class.” CISCO leading universities including Cambridge and MIT. HUAWEI Community engagement has helped drive the IAN BUXTON growth of Ipswich’s digital industry. The IP Network Chair, Innovation Martlesham and SyncIpswich hold regular Meetups, while the NOTABLE SECTORS Eastern Enterprise Hub provides resources for E-COMMERCE aspiring entrepreneurs. Innovation Martlesham also Access Weak digital houses digital tech businesses including Nokia, CIP & MARKETPLACE to local infrastructure 47% Technologies and Zog Energy. 58% networks DIGITAL MEDIA & University Campus Suffolk works with partners across the country to provide STEM skills ENTERTAINMENT

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access development and meet employer demand. Access to DIGITAL ADVERTISING to finance 33% % commercial 57 property & MARKETING APP & SOFTWARE Low sector Access to DEVELOPMENT TECH NATION 2016 / awareness 32% 53% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 40 \ 41 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 42 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA EAST OF ENGLAND UNIVERSITY OF EAST ANGLIA EAST ANGLIA OF UNIVERSITY Limited access infrastructure NORWICH Weak digital NOTABLE UNIVERSITIES NOTABLE UNIVERSITIES Low sector sector Low awareness NORWICH UNIVERSITY to finance to NOTABLE COMPANIES % of digital tech businesses VIRGIN MONEY MONEY VIRGIN NAKED WINES NAKED WINES OF THE ARTS ARTS THE OF & COLLEGES 46 39 43 AVIVA AVIVA % % %

Grants4Growth. as such schemes with addressed slowly being is of to access finance challenge the while startups, as Whitespace are providing for affordable space such spaces Co-working over members. 1,000 now claims which SyncNorwich, Developers and studies. media and television film, and engineering software science, computer including of subjects graduates out turns meanwhile, arange in Anglia, photography, University of East The film. and digital design, art, of graduates games video in provides astrong of Arts the University supply Norwich universities. two leading and country the researchconcentration and of science parks in to area The access third has the talent. highest creators Axon Vibe. entrepreneurs technology location and Rainbird, business Proxama, artificial intelligence company Telecommunications & networking. as &marketing well as advertising Digital cluster, exhibiting growing strengths in early-stage an is Norwich industries, energy and food agriculture, thriving Known its for Meetup groups include Hot Source, Norfolk HotSource, Norfolk include groups Meetup however, benefit, leading Norwich’s its is payment mobile include Local successes Rainbird Technologies Chairman Co-founder and Founder, Proxama and Whitespace and Proxama Founder, % of digital tech businesses proving it.” community then and new, trialling it inthe somethingbuilding that’s very for good it’s ecosystem amini services in Norwich... have prototyped “Quite afew companies Developers and Whitespace. co community, tech local the supporting have in invested and here, why we’re headquartered &NUA). It’s (UEA universities two its from flowing talent great with innovations, new to prototype ofdata. absence the in even solutions to provide enough powerful is and uncertainty handles technology The it. need they when to just many accessible system to knowledge make that a software in it encode and subject, any on knowledge human take scarce experts helps which w At Rainbird, we’ve developed an award NEIL GARNER DUEZ JAMES inning ArtificialIntelligence technology, 55 66 64 Norwich is a fantastic city to live and to and live city afantastic is Norwich % % %

property commercial Access to networks to local Access education Talent ­ f ounding Norfolk Norfolk ounding ­ e.g. cost of taxes, production, subsidies (Source:ABS/BSD) inputs of value minus services) or (goods 2 Total output businesses total %of as businesses tech 1 Digital £148 million 16 5,306 £3 D ADVERTISED D DIGI NOTABLE SECTORS NOTABLE DIGI DIGI + + I GI PPSOFTWARE & -COMMERCE ELECOMMUNICATIONS IGITAL ADVERTISING + & MARKETPLACE & NETWORKING & MARKETING A E T D     DEVELOPMENT 22 22 T % T T D TAL 3 6,098 AL AL G AL JOBS TECH ECONOMY % GROWTH % % V ENSITY A 2 2010-2014 2010-2014 2012–2015 GVA TURNOVER SALARY ADVERTISED IGI 1 TAL S ALARY

\ 43 @TECHCITYUK / @NESTA NOTABLE COMPANIES LONDON & SOUTH EAST

London & the South East has led the UK’s growth into a Tech Nation. From the original ‘tech belt’ in Berkshire to the creative tech centre of Brighton, the region has long played host to multinationals and fast- growing companies alike – from , , Cisco and Amazon, to Future Fifty’s Deliveroo, TransferWise and Peak. Tech hubs across London IN NUMBERS have attracted a broad range of high tech and DIGITAL TECH digital tech companies, ECONOMY JOBS while the digitally dense areas of Reading & Bracknell and Brighton 619,722 & Hove are supported PROPORTION OF JOBS IN by growing clusters LONDON & THE SOUTH Southampton and Guildford. EAST WITHIN THE DIGITAL Other notable hubs include Wycombe, Slough, Milton TECH ECONOMY Keynes, Swindon and Luton. 7% DIGITAL GVA* NOTABLE CLUSTERS £59bn 4 BRIGHTON DIGITAL CONTRIBUTION 5 6 LONDON TO REGIONAL GVA

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 5 6 7 OXFORD 12% 7 8 4 READING & DIGITAL DENSITY BRACKNELL 8 TECH NATION 2016 / SOUTHAMPTON 20% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 44 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 45 SIMON RILEY Founder & CEO DIGITAL TECH ECONOMY JOBS Maker Club 15,536 ADVERTISED DIGITAL SALARY £43,274 DIGITAL DENSITY1

We have created our own technology and

LONDON EAST SOUTH & 23% developed a range of technology courses DIGITAL GVA2 that teach a mix of professional 3D design software, basic electronics and the coding £744 million language C++. We want everyone to be able

BRIGHTON to design, code and print their own products. Being based in Brighton has been key DIGITAL GROWTH to our growth. The city is close to London and full of creative businesses. A huge range of great networking events make EMPLOYMENT connecting with them easy. Originally, Wired +11% 2011-2014 Sussex supported us and their accelerator program, FuseBox24, gave us free space and mentoring. Both Brighton and Sussex A large digital creative industry has cemented universities help young companies access Brighton’s status as a leading cluster. It has one graduates for reduced commercial rates, so of the most dense populations of digital tech talent is never an issue. TURNOVER businesses in the UK and the largest digital +17% 2010-2014 workforce within non-digital industries. Digital technology success stories include NOTABLE UNIVERSITIES Brandwatch, a social media monitoring company “Someone once said & COLLEGES that raised $33 million in 2015, Brilliant Noise, and that collaboration is one UNIVERSITY OF BRIGHTON Crunch Accountancy. of Brighton’s biggest UNIVERSITY OF SUSSEX competitive advantages The talent pool from local industry is often cited GVA and I think that’s NOTABLE COMPANIES as a leading benefit by businesses in the area. The +42% absolutely right” 2010-2014 AMERICAN EXPRESS University of Sussex also generates talent, while BRANDWATCH the Sussex Innovation Centre encourages the PHIL JONES CEO, Wired Sussex EDF development of young entrepreneurs. Over 80% of workers cite the community as a major benefit, as the city hosts a number of NOTABLE SECTORS industry events including Develop, dConstruct DIGITAL ADVERTISING and the Brighton Digital Festival. It is also home to Access to Weak digital organisations and co-working spaces that foster & MARKETING graduate- infrastructure 38% growth such as MDHUB and The FuseBox, a 78% level talent GAMING Eagle Lab, and Natwest’s Hatch. Wired Sussex, in particular, has been pivotal in APP & SOFTWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Access to establishing a cooperative data centre that helps Access DEVELOPMENT commercial 36% businesses access high-speed broadband across 78% to local property the cluster. networks DATA MANAGEMENT & ANALYTICS Limited access Positive TECH NATION 2016 / to finance 34% 72% cluster @NESTA / @TECHCITYUK brand 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 46 \ 47 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) LAURENCE KEMBALL-COOK DIGITAL TECH ECONOMY JOBS Founder Pavegen 328,223 ADVERTISED DIGITAL SALARY £58,978 DIGITAL DENSITY1

In the urban environment, wind and solar

LONDON EAST SOUTH & 20% energy are inefficient. Our tiles, however, are 2 perfect for this environment, harnessing DIGITAL GVA LONDON energy from constant footfall. We are based in Kings Cross, a thriving £35.9 billion epicentre of technological growth from which we can be connected to Europe DIGITAL GROWTH within hours via Eurostar. Many of our global clients travel through Kings Cross on a regular basis as a result. London is a tremendous city that EMPLOYMENT pioneers innovation and our location remains +13% 2011-2014 pivotal to Pavegen's entrepreneurial journey. It is our aim to become an integral part of urban infrastructure. When we scale our The home of 13 tech ‘unicorns’ ($1bn valued new product, Kings Cross Station would be businesses), the capital tops the Tech Nation the perfect place to deploy our technology. rankings for levels of digital employment, TURNOVER average salary in digital tech businesses and +101% 2010-2014 growth in GVA from the Digital Tech Industries. Support for London’s digital businesses comes “In many ways, London NOTABLE UNIVERSITIES from a wide range of venture capital firms as well is a natural home for & COLLEGES as a growing number of incubator and accelerator our business: having options, including Seedcamp, Entrepreneur maintained its position KING’S COLLEGE LONDON First, Upscale, MassChallenge, Collider, Startup as the leading global GVA LONDON SCHOOL OF ECONOMICS BootCamp, Ignite, Wayra, Techstars, Microsoft financial centre for +127% 2010-2014 UNIVERSITY COLLEGE LONDON Ventures, Future Fifty and the London Stock several centuries.” NOTABLE COMPANIES Exchange’s ELITE. RHYDIAN LEWIS AMAZON Over 90 co-working spaces provide homes for CEO, RateSetter startups, including Central Working, Level39, GOOGLE Trampery, Second Home, TechHub, White Bear NOTABLE SECTORS Yard, HereEast, WeWork and Warner Yard. Tech FINTECH hotspots include East London's Tech City, King's Access Limited access Cross, Camden, and Tech City Croydon. SOCIAL NETWORKS to local to finance 41% Among London’s digital tech superstars are 69% networks DIGITAL ADVERTISING Transferwise, which is changing the world of finance, Deliveroo, currently disrupting the global e- & MARKETING

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Access to commerce industry and Unruly, now dominating Access to DIGITAL MEDIA commercial 38% the ad tech scene. 64% commercial property With an array of community organisations property & ENTERTAINMENT including Coadec, Innovate Finance, Open Data Institute, FabLab, 3beards, Tech London Advocates Weak economic Access to TECH NATION 2016 / and Tech City UK, as well as a colossal Meetup @NESTA / @TECHCITYUK graduate-level climate 22% network membership of over 100,000, the London 52% talent 1 Digital tech businesses as % of total businesses digital tech ecosystem is the beating heart of the 2 Total output (goods or services) minus value of inputs \ 46 \ 47 % of digital tech businesses UK digital sector. % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) EKATERINA DAMER Co-founder DIGITAL TECH ECONOMY JOBS Prolific Academic 24,680 ADVERTISED DIGITAL SALARY £47,498 1 There is a growing need to understand how DIGITAL DENSITY digital tech is impacting our lives. Research on the use and effects of digital media is

LONDON EAST SOUTH & 19% booming. Our startup allows researchers DIGITAL GVA2

OXFORD to draw on a large participant pool instantly and to find the right participants fast, for any type of online research. £1.2 billion Being based in Oxford has been useful in three ways. We’ve benefited from valuable DIGITAL GROWTH discussions with students and faculty at the the University of Oxford and Oxford Entrepreneurs. Being part of Oxford’s Startup Incubator connected us with EMPLOYMENT potential investors and to trusted law and +32% 2011-2014 accounting firms. Finally, working from the Saïd Business School’s Oxford Launchpad has led to very fruitful introductions. A major hub for research, Oxford has produced a number of highly successful startups including DeepMind, BioCarbon TURNOVER “Unique to Oxford is Engineering, Natural Motion and Sophos, the availability of talent, +42% 2010-2014 which had the largest IPO in UK history the quality of life that last year at a £1bn valuation. NOTABLE UNIVERSITIES Oxford has a history of expertise in Healthtech you can offer people, & COLLEGES and Edtech and still has the largest Meetup connections with OXFORD BROOKES UNIVERSITY groups in these sectors in the UK. It specialises in universities that allow UNIVERSITY OF OXFORD Cyber security, App & software development and really different, special GVA collaborations.” NOTABLE COMPANIES Enterprise software & cloud computing. +19% 2010-2014 NATURAL MOTION Oxford businesses have a strong international JIM MOODIE Founder, Edspire and BPM Logic, RM EDUCATION focus with 40% of their customers based outside and organiser of Oxford Startups SOPHOS the UK. As a growing cluster, it has the second Meetup highest demand for digital tech jobs, and the second highest concentration of digital tech NOTABLE SECTORS employment. C YBER SECURITY With University of Oxford and Oxford Brookes Access Weak digital University nearby, the cluster’s digital tech A PP & SOFTWARE to local infrastructure 33% businesses are the most likely to cite talent from 74% networks DEVELOPMENT universities as a leading benefit. Local networks are also important, such as the Oxford Startups E NTERPRISE SOFTWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Low supply Meetup, Digital Oxford, the Said Business School’s Access to & CLOUD COMPUTING of affordable 33% co-working space, the Oxford Launchpad, and 61% graduate-level property Isis Innovation. talent GAMING

Limited access Access to TECH NATION 2016 / to finance 30% 59% business @NESTA / @TECHCITYUK support 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 50 \ 51 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) TIM BARKER CEO DIGITAL TECH ECONOMY JOBS Datasift 40,440 ADVERTISED DIGITAL SALARY £51,576 DIGITAL DENSITY1 DataSift provides technology allowing you to capture, analyse and act on all types of human

LONDON EAST SOUTH & 23% generated data – from social networks, blogs, DIGITAL GVA2 news articles, likes and discussions. We have been in Reading for 8 years and £6.4 billion our first round of funding came from Finance South East. The University’s Enterprise Centre DIGITAL GROWTH

READING & had contractual terms that were perfect for a startup and was well connected with BRACKNELL organisations like Business Link. Reading is well connected but without EMPLOYMENT the high costs of London. Thanks to +19% 2011-2014 Oracle and Symantec, there is a very large skilled workforce and talent pool while the University means we are connected to the Reading & Bracknell continues to score next generation of stars. highly on a number of key economic indicators: it has one of the largest digital tech workforces TURNOVER and some of the highest salaries in the country, “I think there hasn’t +23% 2010-2014 as well as the highest density of digital tech been very much in terms businesses. of getting the digital NOTABLE UNIVERSITIES Reading is developing specialisms in Enterprise community together. & COLLEGES software and cloud computing, as well as Data We’re setting up digital BRACKNELL AND management and analytics. Notable tech startups collectives which will be WOKINGHAM COLLEGE include Fairsail, Altitude Angel, Blue Sense for like-minded people GVA UNIVERSITY OF READING Networks, and Fantoo. that want to work together +40% 2010-2014 NOTABLE COMPANIES The cluster is driven by international talent, and drive change.” CISCO with 29% of businesses stating they employ LOUIZE CLARKE HUAWEI non-EU citizens – the highest figure in the UK. Founder, ConnectTVT MICROSOFT The University of Reading and a high level of experienced industry talent have also made the NOTABLE SECTORS cluster attractive internationally. It has a reputation CYBER SECURITY for innovation in science and enterprise and Access to Limited talent recently received funding for a multi-million pound E NTERPRISE SOFTWARE commercial supply 38% big data analytics centre, created to address 77% property & CLOUD COMPUTING environmental problems. Incubators and collaboration hubs are helping D ATA MANAGEMENT

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access the community. Co-working space GROW@ Access & ANALYTICS to finance 38% GreenPark hosts tech events like the Festival of % to local Digital Disruption, while local platform ConnectTVT 71 networks D IGITAL MEDIA advocates for the growth of digital companies & ENTERTAINMENT and workers in the region through initiatives and Access to Low sector Meetup groups TECH NATION 2016 / awareness 27% 56% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 52 \ 53 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NICK ALLOTT CEO & Co-founder DIGITAL TECH ECONOMY JOBS Nquiringminds 24,975 ADVERTISED DIGITAL SALARY £48,126 DIGITAL DENSITY1

LONDON EAST SOUTH & 18% DIGITAL GVA2 Nquiringminds is an IoT company developing SmartCities technologies. In November 2015, £1.2 billion we were shortlisted in the inaugural Innovate UK Small Business Innovation Awards for our Open City Data IoT Platform (OCDP) that DIGITAL GROWTH we are currently working with Southampton City Council, Liverpool City Council and Cambridge County Council. PRODUCTIVITY3 Our location has helped us on this path to success. The University of Southampton +65% 2010-2014 is among the top 15 research-led universities

SOUTHAMPTON in the UK. Through its SETSquared With an impressive 180% growth in average centre, we’ve been introduced to partner turnover between 2010 and 2014, and over 80% companies and received mentoring. It helps of digital tech businesses trading overseas, with everything from grant applications to TURNOVER Southampton is now a rapidly growing cluster. business review panels and provides vital +180% 2010-2014 Its growing specialisms include Digital media support to the digital tech community here. & entertainment, Hardware & devices, and Data NOTABLE UNIVERSITIES management. & COLLEGES One of the cluster’s key assets is the University SOUTHAMPTON SOLENT of Southampton. Its Science Park provides UNIVERSITY workspace for digital tech and science businesses “Southampton is GVA UNIVERSITY OF SOUTHAMPTON well connected and hosts The Catalyst Centre, which offers +87% 2010-2014 NOTABLE COMPANIES additional support for entrepreneurs. both physically and JP MORGAN The university is a founding member of the electronically. The SKANDIA SETsquared Partnership, ranked by UBI Global as extensive road, SSE PLC the leading University Business Incubator. Part of a motorway, rail, ferry wider network within the UK, the organisation helps and airport links mean NOTABLE SECTORS that mainland Europe entrepreneurs, academics, and early stage startups HA RDWARE, DEVICES & grow into successful commercial businesses. and the rest of the UK Southampton Solent University also supports are within easy reach, OPEN SOURCE HARDWARE as well as nearby students starting their own businesses. D ATA MANAGEMENT Events and Meetups for members of the digital national parks; it makes tech industry abound, ranging from monthly Southampton very & ANALYTICS attractive, pleasant and FROM TECH CITY UK IN PARTNERSHIP WITH NESTA programming socials to Startup Weekend, while E -COMMERCE recently opened Venture Coworking provides rewarding” space for early stage startups. ALAN SCRASE & MARKETPLACE SETsquared at the University of Southampton Business D IGITAL MEDIA Incubation Manager & ENTERTAINMENT TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 54 \ 55 3 Digital sales per worker NOTABLE COMPANIES THE MIDLANDS

As the birthplace of the industrial revolution, the Midlands has a long history in innovation and continues in the Digital Tech Economy; pioneering telecommunications, leading in the automotive industry, developing the jet engine, and contributing to integrated circuit and semiconductor research. With local universities providing a strong supply IN NUMBERS of talent, Birmingham leads the region. Yet digital DIGITAL TECH tech is making its mark ECONOMY JOBS across the region; Great Malvern’s cyber security centre, Leicester’s digital 206,433 expertise, Nottingham’s PROPORTION OF JOBS IN early stage tech community, THE MIDLANDS WITHIN and Leamington Spa’s THE DIGITAL TECH growing gaming hub – ‘Silicon Spa’. Available ECONOMY property, university talent and a growing number 4.4% of networks are enabling growth across the region. DIGITAL GVA* 10 9 £6.4bn 11 NOTABLE CLUSTERS DIGITAL CONTRIBUTION TO REGIONAL GVA 9 FROM TECH CITY UK IN PARTNERSHIP WITH NESTA BIRMINGHAM 10 LEICESTER 4.4% DIGITAL DENSITY 11 WORCESTER TECH NATION 2016 / & MALVERN 16.4% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 56 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 57 DIXON JONES Marketing Director DIGITAL TECH ECONOMY JOBS Majestic 36,768 ADVERTISED DIGITAL SALARY

THE MIDLANDS £41,538 DIGITAL DENSITY1 18% Majestic is a specialist marketing search 2 engine which maps the internet and how DIGITAL GVA pages link together. Being in Birmingham, and in particular £1.13 billion based in the Innovation Birmingham campus, has had immense benefits for us. DIGITAL GROWTH We have close ties with the local universities, helping us to recruit the best of the UK’s graduating developer talent.

BIRMINGHAM We have also been able to collaborate on EMPLOYMENT European and privately funded research. +15% 2011-2014 Birmingham’s great rail links to London and airport connections to most European capitals has also proved useful, while being The UK’s second largest city, Birmingham is in here has improved staff retention rates and the top five employers of digital talent. With a the quality of their work/life balance. history of advanced manufacturing, TURNOVER Birmingham is now building emerging +17% 2010-2014 specialisms including Digital advertising & "The message we need marketing and Enterprise software & cloud to continue to spread far NOTABLE UNIVERSITIES computing. and wide is that startup & COLLEGES The city’s affordable property and local talent cash goes a lot further ASTON UNIVERSITY pool are key, enabling home-grown startups to in Birmingham, and the BIRMINGHAM CITY UNIVERSITY flourish while also attracting major companies, local skills pool makes GVA UNIVERSITY OF BIRMINGHAM such as ASOS, to the area. The Custard Factory it an obvious choice to +31% 2010-2014 NOTABLE COMPANIES creative quarter, and the area of Digbeth in which base a tech business.” ASOS it is set, provide a growing hub for businesses. In DR DAVID HARDMAN MBE HSBC March, the Innovation Birmingham Campus for the CEO of Innovation Birmingham tech and startup community will also open iCentrum, a new £8m development to showcase NOTABLE SECTORS collaborative technology. ENTERPRISE SOFTWARE Support from local networks, such as Silicon Access to Limited access Canal, is strong, with 82% of survey respondents & CLOUD COMPUTING commercial to finance 39% ranking it as a key benefit, while events like 85% property DIGITAL ADVERTISING Launch48 provide support and mentorship. & MARKETING

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Low sector Businesses in Birmingham are also the second Access ONLINE GAMBLING awareness 28% most likely in the UK to source their talent from 82% to local local universities, which include University of networks TELECOMMUNICATIONS Birmingham, Aston University and Birmingham & NETWORKING City University. Weak economic Access to TECH NATION 2016 / climate 22% 60% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 58 \ 59 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) BEN RAVILIOUS Co-founder DIGITAL TECH ECONOMY JOBS ParticiPoll 21,273 ADVERTISED DIGITAL SALARY

THE MIDLANDS £38,293 DIGITAL DENSITY1 15% 2 ParticiPoll lets you drop audience polls into DIGITAL GVA existing PowerPoint presentations. Audience members vote by visiting the presenter’s £386 million personal voting URL, then the results appear LEICESTER live in the presentation. DIGITAL GROWTH ParticiPoll was one of the first companies to be born of Leicester’s digital tech startup community, which we helped found in 2013. Networks of other entrepreneurs were EMPLOYMENT pivotal in helping us to work out, quickly, +29% 2011-2014 which direction to take the company in. We have had a huge amount of advice, inspiration and moral support from fellow A newcomer to the Tech Nation list, Leicester businesses. I think that is the city’s key exhibited nearly 30% growth in digital strength. The universities and Leicester City employment. The city’s history in textiles, Council have also been very helpful with TURNOVER hosiery and manufacturing has established work spaces, funding and encouragement. +63% 2010-2014 a flourishing creative sector, which has contributed talent to the evolving tech NOTABLE UNIVERSITIES ecosystem. & COLLEGES Leicester’s success stories include public sector DE MONTFORT UNIVERSITY “The city council just CMS provider Jadu.net, audience polling system get it in Leicester. With ParticiPoll.com and mobile market research app GVA UNIVERSITY OF LEICESTER a City Mayor there’s CrowdLab.com. IBM also recently located their strong leadership and +50% 2010-2014 NOTABLE COMPANIES Client Innovation Centre in the heart of the city. some really dedicated HASTINGS DIRECT Their growth has been supported by local officers who know how IBM networks and organisations such as Leicester Tech important it is to get SANTANDER Startups, a group created by entrepreneurs who startups access to the NOTABLE SECTORS meet regularly to showcase products and exchange right kind of funding.” ideas. New co-working spaces continue to appear JIM WILLS E -COMMERCE to support businesses, including the Dock, and De Co-founder, Crowdlab Montfort University’s new co-working space. & MARKETPLACE A reliable stream of talent is emerging from the E NTERPRISE SOFTWARE city’s universities, including De Montfort University, Loughborough University and the University of & CLOUD COMPUTING

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Leicester, ranked in the top 1% of universities SOCIAL NETWORKS worldwide. The University stages events for aspiring entrepreneurs and contributes a significant FINTECH number of graduates to technology companies. TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK

1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 60 \ 61 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) ROBIN KING CEO DIGITAL TECH ECONOMY JOBS Deep-Secure 7,285 ADVERTISED DIGITAL SALARY

THE MIDLANDS £36,941 DIGITAL DENSITY1 17% 2 Deep-Secure designs software that enables DIGITAL GVA the exchange of very sensitive information between computer networks of different

MALVERN £252 million security levels. Worcestershire benefits from good road DIGITAL GROWTH and rail links with London, Birmingham and Manchester, enabling customers to reach us easily. Malvern’s cluster, meanwhile, possesses a diversity of technology EMPLOYMENT expertise. The Malvern Cyber Security +71% 2011-2014 Cluster, for instance, involves 80 SMEs WORCESTER & & WORCESTER cooperating together. It is also a great place to live – an Worcester & Malvern – sometimes referred to Area of Outstanding Natural Beauty, as ‘Cyber Valley’ – is a leading cluster for the home to a vibrant theatre, good restaurants, development of cyber security products and shops and close to the historic city of TURNOVER services, influenced by its close proximity to Worcester. +48% 2010-2014 GCHQ in Cheltenham and the SAS in Hereford. The cluster recorded a 71% increase in NOTABLE UNIVERSITIES employment between 2011 and 2014 – the second & COLLEGES highest growth rate in the UK. Productivity in the UNIVERSITY OF WORCESTER “Having a concentration area is also high, with a 48% growth in turnover of tech small companies GVA NOTABLE COMPANIES and 56% growth in GVA during the same period. in one place like Malvern GKN A number of the cluster’s cyber security allows them to network +56% 2010-2014 QINETIQ companies began as spinouts from QinetiQ, the with each other. They YAMAZAKI MAZAK privatised arm of the Government’s Defence form trusted partnerships Evaluation and Research Agency, including Deep- where they can discuss, Secure and D-RisQ. share and learn from NOTABLE SECTORS The digital tech community is supported by each other.” organisations such as Key IQ Ltd, which runs a EMMA PHILPOTT CYBER SECURITY co-working space encouraging networking and Founder, UK Cyber Security Forum collaboration. The Malvern Cyber Security Cluster, TELECOMMUNICATIONS a group made up of more than 80 small companies, & NETWORKING also cooperate on initiatives that improve the cyber security of local enterprises and raise awareness of ENTERPRISE SOFTWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA relevant issues among young people. & CLOUD COMPUTING APP & SOFTWARE DEVELOPMENT TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK

1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 62 \ 63 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NOTABLE COMPANIES NORTH OF ENGLAND

Once a key driver of the industrial revolution, the ‘Northern Powerhouse’ has proven itself as a leader in digital innovation; from Alan Turing at the University of Manchester producing the world’s first programmable computer to the creation of Sage, the UK’s only FTSE 100 . Home to seven leading clusters, the region has a range of sector expertise, from games in IN NUMBERS Liverpool and Healthtech in Leeds, to E-commerce DIGITAL TECH in Newcastle and software ECONOMY JOBS development in Hull. Growing communities can 16 18 also be found in areas 283,515 such as Bradford, York and PROPORTION OF JOBS IN Cheshire, home to the UK’s THE NORTH OF ENGLAND fastest supercomputer. WITHIN THE DIGITAL TECH 13 ECONOMY 12 15 14 17 NOTABLE CLUSTERS 4.2% 12 HULL DIGITAL GVA* 13 LEEDS £9.9bn 14 LIVERPOOL DIGITAL CONTRIBUTION 15 MANCHESTER TO REGIONAL GVA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 16 NEWCASTLE 5.2% & DURHAM DIGITAL DENSITY 17 SHEFFIELD & TECH NATION 2016 / ROTHERHAM 16.6% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs 18 \ 64 SUNDERLAND e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 65 MATT ABBOTT Director & Co-founder DIGITAL TECH ECONOMY JOBS Label Worx 6,070 ADVERTISED DIGITAL SALARY

HULL £37,258 DIGITAL DENSITY1

NORTH OF ENGLAND Label Worx is the world’s largest digital distributor of Dance & Electronic music to 16% iTunes, Beatport, Spotify, Amazon, Google DIGITAL GVA2 Play and more. Being based at the C4Di in Hull has £189 million allowed us to expand rapidly as the rent, living costs and wages are considerably less than they would be if we were operating DIGITAL GROWTH from London. Instead, we’ve been able to invest in well experienced staff, system developments EMPLOYMENT and cutting edge technology to ensure our business is the best it can be. +2% 2011-2014 Operating from the heart of Hull strengthens our company, allowing us to With an established track record in software grow faster than other businesses with far development, hardware, and publishing, higher operating costs. Hull’s current strengths include App & BUSINESS software development, E-commerce and Data +24% 2010-2014 management & analytics. “I think Hull has amazing The strong digital infrastructure provided by possibilities: we’ve got the NOTABLE UNIVERSITIES the KCOM Group has been key to the success best connectivity in the & COLLEGES of Hull’s diverse digital tech businesses, from country, an amazing start HULL COLLEGE locally established firms like Trident and Ebuyer, up hub and cost of buildings UNIVERSITY OF HULL to early stage companies such as Frillo, LabelWORX is very affordable. And it’s GVA NOTABLE COMPANIES and Sypro. just a beautiful part of the +14% 2010-2014 EBUYER The cluster’s startup community is small but world to live in.” PWC growing, with digital tech businesses in the area JOHN CONNOLLY TRIDENT having been boosted by increased access to loans MD, CD4I and support from local incubators, such as the Centre for Digital Innovation (C4Di). NOTABLE SECTORS Measures are also being put in place to E -COMMERCE address the challenge of accessing finance. The Access to Limited access Hull Business Development Fund provides up to & MARKETPLACE commercial to finance 34% £25,000 for businesses able to provide a sustained 77% property A PP & SOFTWARE benefit to the local economy. The Youth Enterprise Bank, meanwhile, provides grants to aspiring DEVELOPMENT

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Low sector entrepreneurs aged 19 or younger. Access HA RDWARE, DEVICES & awareness 32% 77% to local networks OPEN SOURCE HARDWARE D ATA MANAGEMENT Weak economic Access to & ANALYTICS TECH NATION 2016 / climate 25% 58% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 66 \ 67 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) COLIN RICHARDSON Co-founder DIGITAL TECH ECONOMY JOBS Cocoon 23,734 ADVERTISED DIGITAL SALARY £47,959 DIGITAL DENSITY1 LEEDS NORTH OF ENGLAND 18% Cocoon has designed a single device to 2 protect your whole home, across different DIGITAL GVA floors, all from one device. This also removes the need for customers to install £671 million additional motion sensors, keypads, or camera systems. DIGITAL GROWTH Being based in the North of England means that we have access to a wealth of engineering talent that we simply wouldn’t get elsewhere in the UK. The combination EMPLOYMENT of high-quality skills provision and a more +7% 2011-2014 relaxed quality of life makes day-to-day life in the office more enjoyable and creates a fantastic company atmosphere. This is really With a wealth of graduates from the city’s important to us and our team. numerous universities and education institutions, Leeds has a talent pool almost TURNOVER unrivalled in the UK. Between 2010 and 2014, “The biggest drawback +47% 2010-2014 the cluster experienced the highest advertised is the amount of profile salary growth in the UK, at 29%. that we have nationally NOTABLE UNIVERSITIES According to Leeds Data City, there are over – we’re nowhere near & COLLEGES 3,500 digital organisations in the area, with recognised as Bristol LEEDS METROPOLITAN specialisms including Digital marketing and and Manchester and UNIVERSITY ADVERTISED advertising, and E-commerce. Leeds has over Birmingham, but that is LEEDS TRINITY UNIVERSITY SALARY 2,000 data scientists and is home to the Leeds starting to change.” +29% UNIVERSITY OF LEEDS 2012–2015 Institute for Data Analytics (LIDA). It has clear AMY DE BALSI NOTABLE COMPANIES expertise in healthcare in the NHS spine Founder, Leeds Herd FIRST DIRECT project and HSCIC. SKY PLC It is also home to the Northern Internet Exchange, NOTABLE SECTORS ROCKSTAR LEEDS IX Leeds, which makes Leeds the only internet (BASED ON DATA FROM LEEDS DATA CITY) independent city in the UK outside London. Last year, Google opened its first ever Digital E-COMMERCE Access Limited talent Garage in Leeds, supporting over 3,000 businesses to local & MARKETPLACE supply 60% in 7 months. Leeds was also among 3 cities to 57% networks share £11m in government funding to develop APP & SOFTWARE technology hubs. DEVELOPMENT

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Access to Limited access The cluster’s leading businesses include Rockstar commercial DIGITAL ADVERTISING to finance 49% Leeds, which worked on the 54 million copy selling 55% Grand Theft Auto V, and Sky Bet, which employs property & MARKETING over 700 people. DIGITAL MEDIA Low sector Access to TECH NATION 2016 / & ENTERTAINMENT @NESTA / @TECHCITYUK awareness 34% 55% graduate-level talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 68 \ 69 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) MARTIN KENWRIGHT DIGITAL TECH ECONOMY JOBS CEO Starship 19,535 ADVERTISED DIGITAL SALARY £42,153 DIGITAL DENSITY1 NORTH OF ENGLAND 17% 2 Starship is a digital media, entertainment DIGITAL GVA and technology company. We decided to settle in Liverpool for a number of reasons: £269 million the depth and breadth of the talent pool, low business overheads, cost of living, quality of DIGITAL GROWTH LIVERPOOL life, three universities and the fact that it is an established centre of excellence for software development within the games industry. Even though we had to build a EMPLOYMENT completely new development studio from +7% 2011-2014 the ground up, the team we were able to recruit in the city has a formidable track record, decades of individual experience, Liverpool’s gaming heritage, which stretches phenomenal technical skills and are back to Psygnosis, and later Sony, is central incredibly talented. ADVERTISED to the cluster. The city’s introduction of co- SALARY working spaces have helped the cluster to grow, +16% with IoT & connected devices, App & software “The city’s continually 2012–2015 development and E-commerce among its NOTABLE UNIVERSITIES being redeveloped and specialisms. & COLLEGES re-energised. There’s a Liverpool’s commercial and residential property LIVERPOOL HOPE UNIVERSITY large student population, rents are among the lowest in the country, making UNIVERSITY OF LIVERPOOL so there’s a large graduate GVA it real value for money for businesses. The Baltic pool. We just need a NOTABLE COMPANIES Triangle, home to industry-focused school and smash hit to put us back +52% 2010-2014 FIRESPRITE college The Studio, is enjoying a revival as a hub on the map” SONY for entrepreneurs. MATT SOUTHERN STARSHIP GROUP The University of Liverpool and Liverpool Founder, Mint Games John Moores University attract some of the UK’s top talent, producing capable and employable NOTABLE SECTORS graduates. IOT & CONNECTED DEVICES Tech and science incubators include the Access to Limited talent Innovation Park, Science Park, Merseybio and A PP & SOFTWARE commercial supply 39% Launch 22 as well as Santander’s recently opened 73% property DEVELOPMENT incubator for rapidly growing, small businesses. Liverpool Vision has supported digital E -COMMERCE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access companies, helping to set up Baltic Creative CIC, Access & MARKETPLACE to finance 31% and networking initiatives such as kin2kin network, 67% to local and others including Creative Kitchen (lead by networks MINGGA Studio Mashbo), DoES Liverpool, and the eHealth Cluster. Low sector Access to TECH NATION 2016 / awareness 33% 53% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 70 \ 71 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) JAMIL KHALIL Founder & CEO DIGITAL TECH ECONOMY JOBS Wakelet 51,901 ADVERTISED DIGITAL SALARY £45,204 DIGITAL DENSITY1 NORTH OF ENGLAND 19% Wakelet is an online platform enabling you 2 to organise any content on the internet, and DIGITAL GVA to curate stunning, shareable collections. We help people to take control of the content £1.7 billion that interests, inspires and excites them. With its entrepreneurial culture, DIGITAL GROWTH Manchester makes sense for us. We were able to secure our first round investment of £1.1m from angels, led by Manchester-based and self-made business people. EMPLOYMENT MANCHESTER The city has a rich history of innovation. +13% 2011-2014 The current energy and vibe in Manchester, and its increasing openness to explore new approaches, has made it a great place to Manchester has established itself as one of develop interesting partnerships. the top five clusters in the UK, with the second highest GVA growth and digital employment TURNOVER over 50,000. It was recently awarded £10m “It’s a really vibrant +40% 2010-2014 as Innovate UK’s IoT City Demonstrator (in city and Manchester partnership with Cisco). is proud of its tech NOTABLE UNIVERSITIES Manchester’s specialisms include Edtech, heritage, but not inward & COLLEGES e-commerce and adtech, and historically, digital looking. And there’s a MANCHESTER entertainment. Global digital agencies located in ton of talent here.” METROPOLITAN UNIVERSITY Manchester include Amaze and Building blocks, GVA UNIVERSITY OF MANCHESTER AL MACKIN while leading companies include online car booking Founder, Formissimo +92% 2010-2014 UNIVERSITY OF SALFORD service rentalcars.com and Northern Stars NOTABLE COMPANIES winner Peak. BARCLAYS Support organisation Manchester Digital, and BBC events such as Ladies that UX, the weekly Friday GOOGLE Drinkabout MCR and the Lean Conf have fostered NOTABLE SECTORS this active community, complementing the city’s EDTECH academic specialisms in materials science and Access to Limited talent computer science. D IGITAL ADVERTISING commercial supply 51% Rise, , Innospace, the Landing, 75% property & MARKETING Together and SpaceportX provide space and assistance for startups, while MediaCityUK also FINTECH

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access contributes to Manchester’s future growth plans. Access to E -COMMERCE to finance 46% The recent injection of funds from Government 64% graduate-level will help fund the building of Forward Manchester, talent & MARKETPLACE creating a support hub for software engineers & tech entrepreneurs. Low sector Access TECH NATION 2016 / awareness 27% 61% to local @NESTA / @TECHCITYUK networks 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 72 \ 73 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) PAUL FELLOWS COO DIGITAL TECH ECONOMY JOBS Performance Horizon 22,237 ADVERTISED DIGITAL SALARY £44,068 DIGITAL DENSITY1 NORTH OF ENGLAND Performance Horizon is the leading provider of 19% SaaS solutions for digital partner marketing. DIGITAL GVA2 With most of our founders from

DURHAM Newcastle, in 2010 we made the decision to headquarter in the city, with a base in £764 million London. Our growth is testament to that decision. DIGITAL GROWTH We were ranked 16th in the 2015 Deloitte UK Technology Fast 50, a list of the 50 fastest- growing technology companies in the UK, earned through our 4 year growth of 1,131%. EMPLOYMENT We are second in the Northeast, which +5% 2011-2014 NEWCASTLE & demonstrates to clients and team members that world-class technology solutions can be built in Newcastle. We are proud of our With the second highest salary growth of any heritage in the Northeast and remain fully city in the UK at 26.6%, Newcastle & Durham committed to Newcastle. continues to build on its tech history; the TURNOVER technological institution, Sage, is still driving +29% 2010-2014 employment and innovation in the area. In addition to long established digital tech “We are very well served NOTABLE UNIVERSITIES companies, Newcastle & Durham has produced by universities here so & COLLEGES Reframed.tv and Leaf.fm, both of which were as much as recruitment DURHAM UNIVERSITY finalists of the recent Northern Stars competition. is always an issue for a NEWCASTLE UNIVERSITY Newcastle-based Moltin just raised $2 million from business there are a lot GVA NORTHUMBRIA UNIVERSITY US VCs. of talented people in +35% 2010-2014 NOTABLE COMPANIES The area’s benefits for digital tech businesses the area” ORCHARD include the high level of talent available. This is PAUL FELLOWS SAGE coupled with good support from the co-working COO, Performance Horizon Group VIRGIN MONEY space Campus North, the angel-led accelerator programme Ignite and venture capital firm NOTABLE SECTORS Northstar Ventures, which has over £95m under SOCIAL NETWORKS management. Access Low sector Further support comes in the form of Dynamo D ATA MANAGEMENT to local awareness 32% North East, The North East Technology Fund and 77% networks & ANALYTICS Newcastle Science Central’s office spaces, called The Core. E -COMMERCE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Weak digital Digital tech businesses in this cluster are more Access to & MARKETPLACE infrastructure 32% likely than those in any other to receive support 75% commercial from an accelerator, and the second most likely property MINGGA to receive mentoring support. Limited access Access to TECH NATION 2016 / to finance 27% 71% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 74 \ 75 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) DR SAM CHAPMAN CIO & co-founder DIGITAL TECH ECONOMY JOBS TheFloow 14,313 ADVERTISED DIGITAL SALARY £42,058 We are best known for delivering the DIGITAL DENSITY1 world’s most advanced telematics data NORTH OF ENGLAND management solutions through device- agnostic predictive analytics and digital 18% 2 end-user services, all with a view to making DIGITAL GVA vehicles safer and cheaper for all. Since we began in 2012, The Floow has £273 million grown from a team of 3 to more than 60 expert scientists, engineers, designers and DIGITAL GROWTH support staff. Our success is driven in part by our

SHEFFIELD & & SHEFFIELD location. In Sheffield, we have access to 2 ROTHERHAM universities renowned for their digital and PRODUCTIVITY3 scientific innovation. The outstanding talent +19% 2010-2014 available locally has proved critical. Sheffield is also a growing hub of digital tech activity and so is well placed to support Sheffield & Rotherham’s strengths are built high-growth companies like The Floow. on expertise in Data management & analytics and Telecommunications & networking, with EMPLOYMENT recentlyestablished specialisms in Hardware, IoT “As a community of +3% 2011-2014 and E-commerce. startups Sheffield is The cluster has an established support network, NOTABLE UNIVERSITIES maturing. 3 of the 10 with organisations such as Dotforge delivering & COLLEGES Northern Stars are from the tech-for-good accelerators in Sheffield, Leeds and SHEFFIELD HALLAM UNIVERSITY city, which demonstrates Manchester. Maker and hack culture is prominent SHEFFIELD UNIVERSITY that there is a real depth TURNOVER in Sheffield with makerspaces such as ROCO and of talent and commitment NOTABLE COMPANIES Access Space bringing digital technologies to a to building compelling new +45% 2010-2014 HSBC centuries-old heritage of craft and making. businesses.” Workspaces range from community co-working PLUSNET (BT) EMMA CHESHIRE WANDISCO at Union St to space at Electric Works. The Sheffield CEO, Dotforge City Region Enterprise Zone is ranked the UK’s top enterprise zone for modern manufacturing and NOTABLE SECTORS technology, while new industry association Sheffield E-COMMERCE & Digital exists to support digital tech companies Access to Limited access and workers. MARKETPLACE graduate-level to finance 36% The positive momentum in South Yorkshire’s % 67 talent HARDWARE, DEVICES & largest cluster has been recognised by the UK Government. In the 2015 Budget it was one of three OPEN SOURCE HARDWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Weak economic cities to share £11m in funding dedicated to building Access to APP & SOFTWARE climate 36% technology hubs. % comercial 62 property DEVELOPMENT ENTERPRISE SOFTWARE Low supply Acces to & CLOUD COMPUTING TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK of affordable 34% 53% business 1 Digital tech businesses as % of total businesses property support 2 Total output (goods or services) minus value of inputs e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 76 \ 77 % of digital tech businesses % of digital tech businesses 3 Digital sales per worker DOMINIC MURPHY Managing Director DIGITAL TECH ECONOMY JOBS Geektalent 3,675 ADVERTISED DIGITAL SALARY £38,999 DIGITAL DENSITY1 NORTH OF ENGLAND 12% DIGITAL GVA2 Our product set contains a recruitment platform for companies, a careers portal £107 million and a labour market intelligence platform. We analyse hundreds of data points from DIGITAL GROWTH millions of people across multiple social sites to understand the real time labour market. We have received amazing support from EMPLOYMENT SUNDERLAND Sunderland Council, Sunderland Software +17% 2011-2014 City and the community of companies we are part of in the Software Centre. Dynamo North East has made us part of a growing Sunderland has enjoyed steady growth, with digital tech community, collaborating to raise employment rising by almost 17% since 2010. In the profile of the industry. addition to a long-standing specialism in Having recently been one of the Tech TURNOVER App & software development, it has North Northern Stars, we look forward +44% 2010-2014 growing expertise in Hardware, Games and to gaining further support to help us Telecommunications & networking. launch globally. NOTABLE UNIVERSITIES The local software scene can be traced back & COLLEGES to 1996 with the creation of Domain Names, a CITY OF SUNDERLAND COLLEGE company that grew to become the largest domain UNIVERSITY OF SUNDERLAND provider in Europe. “There are lots of GVA Much of the cluster’s recent growth stems from incentives to set +29% 2010-2014 NOTABLE COMPANIES businesses up within EPIC GAMES the establishment of Sunderland Software City in 2009. A joint partnership between the private, the Sunderland TECHNICALLY COMPATIBLE Software Centre where UNITED SOFTWARE public, and education sectors, it has already supported over 400 businesses and aims to create we are. The council is more than 2,000 jobs by 2020. Opening in 2015, very pro­-software, NOTABLE SECTORS the North East & Tees Valley Digital Catapult Centre pro­-digital businesses.” TELECOMMUNICATIONS is helping businesses increase efficiency DOMINIC MURPHY and productivity. Managing Director, Geek Talent & NETWORKING Sunderland has benefited from the presence GAMING of companies such as Geek Talent, Epic Games, Technically Compatible and United Software, while HARDWARE, DEVICES &

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA the University of Sunderland’s Hatchery acts as a OPEN SOURCE HARDWARE startup incubator for students and graduates. APP & SOFTWARE DEVELOPMENT TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK

1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 78 \ 79 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NOTABLE COMPANIES NORTHERN IRELAND

Rising from a strong industrial heritage in shipbuilding and aerospace, Northern Ireland is entering the next chapter of its history of innovation with digital technology. Outside of London and the South East, Digital Tech Industries are contributing the highest proportion of GVA to this area’s economy. With excellent talent from local universities, low overheads IN NUMBERS and available business support, Northern Ireland DIGITAL TECH is creating an environment ECONOMY JOBS for digital tech businesses to thrive. Belfast continues to be the leading cluster, 24,741 19 closely followed by a PROPORTION OF JOBS fast growing cluster in IN NORTHERN IRELAND Derry, alongside smaller WITHIN THE DIGITAL TECH communities in Newry and Omagh. ECONOMY 3.1% NOTABLE CLUSTERS DIGITAL GVA* 19 BELFAST £1bn DIGITAL CONTRIBUTION TO REGIONAL GVA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 5.4% DIGITAL DENSITY TECH NATION 2016 / 16.6% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 80 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 81 JOHN REID CEO DIGITAL TECH ECONOMY JOBS Repknight 7,935 ADVERTISED DIGITAL SALARY £35,680 DIGITAL DENSITY1 NORTHERN IRELANDNORTHERN RepKnight’s location is of vital importance 19% to our success, providing us with the ideal DIGITAL GVA2 ecosystem in which to run a cybersecurity BELFAST company. Being based in both Belfast and £521 million London allows us to capitalise on two key sources of talent and support the growth DIGITAL GROWTH of our company. Our network of research and development staff at CSIT in Queen’s University, Belfast, is an important source of technical talent while BUSINESS London’s status as a digital tech hub provides +34% us with a wide range of skills and expertise. In the future, our dual locations will allow us to manage our growth and development Belfast is Northern Ireland’s leading digital both flexibly and dynamically. technology cluster. Digital Tech Industries ADVERTISED contribute 5.4% GVA to the region’s economy; SALARY the second highest proportion in the UK. +5% The cluster has developed specialisms in App & “There’s now a vibrant 2012–2015 software development, E-commerce & marketplace, tech community bringing NOTABLE UNIVERSITIES and Digital media & entertainment, and is also seeing skills and experiences & COLLEGES significant developments in Data management & from the rest of the UK, QUEEN’S UNIVERSITY BELFAST analytics and Cyber security, with companies such Ireland and the US – UNIVERSITY OF ULSTER as RepKnight and Analytics Engines. people are coming back NOTABLE COMPANIES Belfast’s digital community is cited as its leading here with ten, 20 years’ ALLSTATE strength, with networks including NISP Connect and significant experience.” CITIGROUP Innovation Ulster. Other strengths lie in affordable STEPHEN MCKEOWN SEAGATE property spaces, such as the Northern Ireland CEO, Analytics Engines Science Park and Farset Labs, and the strong talent pipeline generated by Queen’s University and NOTABLE SECTORS the University of Ulster, which have facilitated the APP & SOFTWARE impressive growth of businesses such as Kainos.. Access Limited talent Access to finance across the cluster is improving DEVELOPMENT to local supply 40% through the work of local angel network Halo, and 54% networks E-COMMERCE funds such as TechStart NI, Invest NI and the Invest Growth Fund. Belfast also has one of the highest & MARKETPLACE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access numbers of digital tech businesses operating within Access to CYBER SECURITY to finance 49% traditional industries. 46% commercial property DIGITAL MEDIA & ENTERTAINMENT Low sector Access to TECH NATION 2016 / awareness 46% 44% graduate @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 82 \ 83 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NOTABLE COMPANIES SCOTLAND

Traditionally an economy dominated by heavy industries such as shipbuilding, steel and petroleum, Scotland’s rising digital tech scene is notable for its sector diversity and the emergence of two billion dollar companies, Skyscanner and Fanduel. With a thriving community, great talent, and continued 20 growth, Edinburgh leads as Scotland’s digital tech 21 centre. Glasgow’s growing IN NUMBERS 22 pool of software developers continues to draw major DIGITAL TECH corporates, while Dundee ECONOMY JOBS has consolidated its position as a leader in the UK’s games sector. Aberdeen is 101,397 also benefiting from recent PROPORTION OF JOBS IN public investment in support SCOTLAND WITHIN THE centres and broadband. DIGITAL TECH ECONOMY 3.9% NOTABLE CLUSTERS DIGITAL GVA* 20 DUNDEE 21 EDINBURGH £1.5bn 22 DIGITAL CONTRIBUTION GLASGOW TO REGIONAL GVA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 2.2% DIGITAL DENSITY TECH NATION 2016 / 16.6% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 84 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 85 DR MHAIRI TOWLER Founder & CEO DIGITAL TECH ECONOMY JOBS 3,318

SCOTLAND ADVERTISED DIGITAL SALARY £38,069 DIGITAL DENSITY1 16% DIGITAL GVA2 DUNDEE At Vivomotion, we create stunning animations to illustrate scientific concepts. £61.4 million We benefit greatly from being located in Dundee. First, Vivomotion received startup funding from Dundee City Council as well DIGITAL GROWTH as support from The University of Dundee and Business Gateway. There is also an existing client base here within the life PRODUCTIVITY3 sciences sector. For us, this has lead to new international clients. +67% 2010-2014 Dundee has two leading universities involved in life sciences, as well as the Dundee, the birthplace of iconic games James Hutton Institute which is the UK’s Lemmings and Grand Theft Auto, continues to leading facility for agricultural research. punch above its weight as a digital tech cluster. There is a strong creative sector too, TURNOVER At 129%, it had the third highest growth in with Dundee being awarded UNESCO City +129% 2010-2014 turnover in the UK, while its GVA grew by 42%. of Design status last year. We create jobs Dundee’s growing specialisms are in Hardware, that cross the life sciences and creative NOTABLE UNIVERSITIES App & software development, as well as Gaming, sectors in a city that has expertise in both. & COLLEGES where companies like Outplay Entertainment, Tag ABERTAY UNIVERSITY Games and YoYo Games continue to complement UNIVERSITY OF DUNDEE high-growth Digital Media & Entertainment firms GVA NOTABLE COMPANIES like Brightsolid, eeGeo and Waracle, and established “We’re really well +42% 2010-2014 BRIGHTSOLID companies such as DC Thomson and NCR. placed geographically, NCR The strength of the cluster is underpinned by and as a small and OUTPLAY education, with the University of Abertay, which closely formed City, was the UK’s first university centre of excellence the sector is tight-­knit for computer games education, and Duncan of and well supported by NOTABLE SECTORS Jordanstone College of Art & Design. the universities and GAMING Beyond gaming, Dundee hosts the annual NEoN colleges” Digital Arts festival. Last year, the event showcased ALISON HENDERSON ONLINE GAMBLING digital and electronic art from Japan, China, Hong CEO, Dundee & Angus Chamber A PP & SOFTWARE Kong, Korea and Taiwan. Digital tech businesses in of Commerce Dundee have, on average, 11% of their customers DEVELOPMENT

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA based in Asia. HA RDWARE, DEVICES & OPEN SOURCE HARDWARE TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 86 \ 87 3 Digital sales per worker LESLEY ECCLES Co-founder DIGITAL TECH ECONOMY JOBS Fanduel 21,335

SCOTLAND ADVERTISED DIGITAL SALARY £51,227 1 Being in Edinburgh has given FanDuel the DIGITAL DENSITY support, guidance and funding opportunities we needed to establish ourselves and grow. 18% In the early stages of developing our 2 product and launching the business, the DIGITAL GVA University of Edinburgh was a great source of support. Today, it continues to provide £378 million great talent for us. We were hosted within the University’s Edinburgh Technology DIGITAL GROWTH Transfer Centre until 2012, and benefited EDINBURGH from contacts made through the Informatics Ventures programme. Our first round of funding was provided EMPLOYMENT by 2 Scottish investors: Pentech Ventures +23% 2011-2014 and the Scottish Investment Bank. Now, as an established businesses, we enjoy sharing our experience and learning with the next The Scottish capital is a leading UK tech generation of digital tech startups. cluster, home to billion dollar companies such as Skyscanner and Fanduel, along TURNOVER with rapidly growing startups like TV “Edinburgh’s got an +48% 2010-2014 Squared and Administrate. The city saw the fifth highest growth in digital amazing quality of life, a NOTABLE UNIVERSITIES employment (2010-2014) and had considerable good university base, it’s & COLLEGES growth in average digital salary. International not prohibitively expensive, HERIOT-WATT UNIVERSITY tech companies, such as Amazon, Cisco, Oracle, there’s a really active QUEEN MARGARET UNIVERSITY Microsoft and IBM, have now also created bases angel community... all of GVA UNIVERSITY OF EDINBURGH those things boil down to a in Edinburgh. +58% 2010-2014 Edinburgh’s strengths in academia and software, pretty unique platform for NOTABLE COMPANIES launching companies.” AMAZON and excellent local networks, have created a CISCO stimulating environment for startups to grow. Over JOHN PEEBLES CEO, Administrate SKYSCANNER 2,630 people regularly attend technology Meetups in the city, and it has one of the largest active NOTABLE SECTORS Github developer communities. FINTECH Incubators such as Codebase have helped Access Limited talent to support the startup community. Edinburgh E -COMMERCE to local supply 47% businesses are more likely than others to take 87% networks & MARKETPLACE advantage of local business and technical support. Edinburgh’s rapid digital growth has led to skills D IGITAL ADVERTISING

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited access shortages, despite access to top universities and Access to & MARKETING to finance 38% colleges being a key benefit. 85% commercial property E NTERPRISE SOFTWARE & CLOUD COMPUTING Weak economic Access to TECH NATION 2016 / climate 32% 81% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 88 \ 89 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 90 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA SCOTLAND UNIVERSITY OF STRATHCLYDE OF UNIVERSITY GLASGOW SCHOOL OF ART ART OF SCHOOL GLASGOW UNIVERSITY OF GLASGOW GLASGOW OF UNIVERSITY Limited access infrastructure infrastructure Limited talent GLASGOW Weak digital NOTABLE UNIVERSITIES NOTABLE UNIVERSITIES to finance to NOTABLE COMPANIES MORGAN STANLEYMORGAN supply % of digital tech businesses & COLLEGES 55 45 48 AXIS AXIS BBC BBC % % %

spin-outs. spin-outs. for 7th company ranking UK the in startups, homegrown excels supporting particularly in of Strathclyde University the while of talent, supply are central of Art, toSchool providing astrong of Strathclyde, of Glasgow, University Glasgow and source. as atalent programmers that citing they rely self-taughtcompanies on of Glasgow 77% with for companies, pipeline talent community, developer haveonline created also a Merchantthe City. Adimo in and Design ISO District, Services Financial International the Stanley in Morgan and Morgan JP Quay,Pacific Clydeand in Park, Axis City Space that illustrate in BBC STV Glasgow’sand vibrancy; startups. tech of digital to anew breed ahome providing city the in of several one locations and Oven, in Rookie Govanhome to – now Offices Fairfield of the by development the highlighted is cluster powerhouse to leading digital technology Glasgow’s transformation from industrial The city’s universities, including the University University the including universities, city’s The Local networks, as well as astrong Github developments ofThere thriving are anumber Adimo &CEO Founder Founder, RookieOven % of digital tech businesses more people” in the community, There’s more activity across technology. aculturalbeen change say“I’d there has and share knowledge. other each to support founders fellow with up meeting scene, tech a growing of part recently, been we’ve More scene. arts local the and Universities, Strathclyde and Glasgow from talent great and savings cost significant from benefited purchase. to path a seamless providing rates and through click basket –increasing supermarket online to ashopper’s directly marketing of form any by connecting We this solve purchased. even be can’t products their where to websites people driving products, dollars on marketing and promoting their atrillion over half spend brands FMCG shoppable. marketing brand makes Adimo MICHAEL HAYESMICHAEL KELLYRICHARD 55 66 Creativity thrives in Glasgow and we’ve we’ve and Glasgow in thrives Creativity 72 % % % talent graduate-level Access to local networks Access to property commercial Access to

e.g. cost of taxes, production, subsidies (Source:ABS/BSD) inputs of value minus services) or (goods 2 Total output businesses total %of as businesses tech 1 Digital £480 million 18% £46,8 26 NOTABLE SECTORS NOTABLE DIGITAL GROWTH DIGI ADVERTISED D DIGI DIGI + + + NTECH & SOFTWARE ENTERPRISE NETWORKS SOCIAL & E-COMMERCE FI    45 42 13 TAL G T D TAL CLOUD COMPUTING MARKETPLACE ,350 AL JOBS TECH ECONOMY % % % VA ENSI 54 2 2010-2014 2010-2014 2011-2014 GVA TURNOVER EMPLOYMENT TY

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\ 91 @TECHCITYUK / @NESTA NOTABLE COMPANIES SOUTH WEST

The economy of the South West has traditionally been very diverse, ranging from a strong tourist and food industry across Cornwall, Devon and Somerset, to an industrial heritage in aerospace and silicon chips in Bristol. Bristol & Bath is the leading cluster in the region with digital expertise continuing to focus on software, gaming, media and its roots in hardware IN NUMBERS & devices. Bournemouth & Poole and Exeter & DIGITAL TECH Newton Abbot both have ECONOMY JOBS specialisms in Digital Advertising & Marketing and E-commerce is growing. 135,713 In addition, a number of PROPORTION OF JOBS major corporates, in mobile IN THE SOUTH WEST technology and electronics, WITHIN THE DIGITAL TECH can be found in Swindon. ECONOMY 5.2% NOTABLE CLUSTERS DIGITAL GVA* 23 BOURNEMOUTH & POOLE £3.3bn 24 DIGITAL CONTRIBUTION BRISTOL & BATH TO REGIONAL GVA 25 FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 24 EXETER & NEWTON ABBOT 4.2% 26 DIGITAL DENSITY 25 23 TRURO, REDRUTH TECH NATION 2016 / & CAMBORNE @NESTA / @TECHCITYUK 26 117.3% *Total output (goods or services) minus value of inputs

\ 92 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 93 DUNCAN COOK Managing Director DIGITAL TECH ECONOMY JOBS 3 Sided Cube 13,965 ADVERTISED DIGITAL SALARY SOUTH WEST £37,519 DIGITAL DENSITY1 As a digital tech business we are not too reliant on infrastructure so choosing Bournemouth, 21% which has one of the best coastlines and DIGITAL GVA2 lifestyles in the UK, made sense! & POOLE We work with UK organisations like Mind, £350 million RNLI and Lloyds Banking Group, but 80% of our business is overseas, with clients like the American Red Cross, Nordstrom, IFRC and DIGITAL GROWTH ASPCA. Sourcing talent can be a challenge. To combat that we run courses, free of EMPLOYMENT charge, at our local university, teaching +15% 2011-2014 students exactly what’s happening in the industry. We offer internships and jobs to

BOURNEMOUTH those that shine. Our Head of iOS came Bournemouth & Poole is one of the top 10 through this program, so it has worked clusters in the UK for employment growth and pretty well. has the third highest density of digital tech TURNOVER businesses. +39% 2010-2014 The cluster’s strengths lie in its digital creative industry; App & software development and Data “It’s just a fantastic NOTABLE UNIVERSITIES management & analytics, as well as a strong place to live, and I & COLLEGES agency community working in Digital advertising don’t believe that ARTS UNIVERSITY and marketing. geographic location is a BOURNEMOUTH UNIVERSITY These sub-sectors are supported by a steady barrier to working with GVA NOTABLE COMPANIES supply of digital talent from local industry, while international clients any +68% 2010-2014 JP MORGAN creative companies, including RedWeb and more, at all.” LUSH Sunseeker, act as hubs for local creative talent. MIKE HAWKYARD MERLIN ENTERTAINMENTS Major corporations, including Nationwide, Barclays MD, Amuzo and JP Morgan also have a presence. Local universities are also key. The highly NOTABLE SECTORS acclaimed National Centre for Computing TELECOMMUNICATIONS Animation at Bournemouth University produces Access to Limited access VFX graduates, who have gone on to work on & NETWORKING graduate-level to finance 42% award-winning films and video games. 86% talent DATA MANAGEMENT Bournemouth boasts a high quality of life, and hosts events for the digital community such as & ANALYTICS

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited talent Meetdraw, Silicon Beach, and Digital Wave. It has Access APP & SOFTWARE supply 34% co-working spaces such as by-the-sea and the 68% to local Factory Studios. The council is active in the tech networks DEVELOPMENT community with Bournemouth Borough Council SOCIAL NETWORKS winning Digital Council of the Year in 2015. Low supply Access to TECH NATION 2016 / of affordable 32% 58% business @NESTA / @TECHCITYUK property support 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 94 \ 95 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NIGEL TOON President & CEO DIGITAL TECH ECONOMY JOBS XMOS 36,547 ADVERTISED DIGITAL SALARY SOUTH WEST £45,501 1 XMOS is a leading supplier of multicore DIGITAL DENSITY microcontroller microprocessors, at the cutting edge of internet connected devices. 18% Our semiconductor products are used 2 by customers across the globe in a range of DIGITAL GVA applications from consumer audio products to robotics and automotives, where the £1.8 billion XMOS xCORE processors are supporting the next generation of real-time networking DIGITAL GROWTH systems in cars. Being based in Bristol, we are part of a large community of micro electronics and software engineers. We also have close EMPLOYMENT links with the local universities. In fact, the +9% 2011-2014 technology behind XMOS was originally developed within Bristol University. We are one of the university’s most successful BRISTOL & BATH & BRISTOL Bristol & Bath has continued to grow spin-outs to date. impressively; turnover has increased by 53%, and it is recognised by Centre for Cities and + % TURNOVER McKinsey & Company as one of the two globally “Our pool of talent has 53 2010-2014 significant digital tech clusters in the UK, grown as major tech including over 60,000 digital workers in the NOTABLE UNIVERSITIES firms have chosen to broader region. & COLLEGES With a history in aerospace and digital invest in the region UNIVERSITY OF BATH software, the cluster’s specialisms now include over the last few years, UNIVERSITY OF BRISTOL Telecommunications & networking, Gaming, Virtual so the recruitment GVA UNIVERSITY OF of senior people has reality, and Cloud computing. Aardman, JUST EAT, +26% 2010-2014 THE WEST OF ENGLAND IMDb, Oracle, IBM, Sony and Hewlett Packard have become easier.” NOTABLE COMPANIES all been attracted by the strong digital ecosystem. NICK STURGE Centre Director, Engine Shed AMAZON (IMDB) Local networks TechSPARK and High Tech Bristol (and SETsquared) HEWLETT PACKARD & Bath are thriving; 81% of local business owners stated collaboration as a benefit, while 5,000 NOTABLE SECTORS people regularly attend tech Meetups in the area, D IGITAL ADVERTISING the third most in the UK. Access to Limited access Hubs like Bristol Games Hub, Engine Shed, Bristol & MARKETING commercial to finance 35% & Bath Science Park and the Bath Guild are also 82% property MINGGA supporting the growth of digital tech businesses. The Bath & Bristol SETsquared programmes A PP & SOFTWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Limited talent generated over £48million of investment in 2015 Access DEVELOPMENT supply 28% and were named the world’s best university 81% to local incubator by UBI Global. networks T ELECOMMUNICATIONS & NETWORKING Weak digital Access to TECH NATION 2016 / infrastructure 28% 65% business @NESTA / @TECHCITYUK support 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 96 \ 97 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) DARREN WESTLAKE CEO DIGITAL TECH ECONOMY JOBS Crowdcube 11,412 ADVERTISED DIGITAL SALARY SOUTH WEST £39,695 DIGITAL DENSITY1 16% 2 Crowdcube is the world’s first and leading DIGITAL GVA investment crowdfunding platform. Since 2011, over £135m has been invested £133 million EXETER & & EXETER in more than 350 raises from a crowd of 250,000 people. By opening up equity DIGITAL GROWTH investment to everyday investors we enable tech businesses to reach hundreds of potential investors. For us, our location has helped us attract EMPLOYMENT top talent; it offers employees both a better +161% 2011-2014 work-life balance and a challenging and rewarding career in an innovative and growing business. That alluring mix has

NEWTON ABBOT Digital Tech Industries are central to Exeter’s enticed top talent from the likes of Google, economy. Between 2010 and 2014 it experienced eBay, Octopus Ventures, KPMG, Amazon a 161% growth in its digital tech employment, and Goldman Sachs, as well as Devon’s top TURNOVER the highest in any cluster. local talent, and post-graduates from the +41% 2010-2014 The city scored highly on productivity during University of Exeter. that period, with digital tech businesses reporting NOTABLE UNIVERSITIES a turnover growth rate of 52%, while GVA grew by & COLLEGES 84%. Local success Crowdcube has successfully SOUTH DEVON UNIVERSITY funded over 345 companies. TECHNICAL COLLEGE Exeter Science Park provides space for “The nature of the GVA UNIVERSITY OF EXETER digital tech businesses, while The Generator is community here +84% 2010-2014 NOTABLE COMPANIES Devon’s first and biggest co-working space. Local in the South West CROWDCUBE businesses are also supported by talent from lends itself to exciting PAVEY GROUP South Devon University Technical College and collaborations and ROKK MEDIA the University of Exeter, which offers Digital and partnerships across Technology Solutions as a degree apprenticeship. sectors and industry NOTABLE SECTORS Local support organisations and networks that is developing the E -COMMERCE contribute to Exeter’s success. Meetup groups perfect environment include Digital Exeter and Exeter Web Meetup, while for the creation & MARKETPLACE Koncept works with early stage entrepreneurs and of innovative new D IGITAL ADVERTISING startups to create usable products. Ignite Students’ business.” & MARKETING Guild, based at the University of Exeter, works with NEIL FINNIE FROM TECH CITY UK IN PARTNERSHIP WITH NESTA students to help turn their ideas into startups. Founder, Corkscrew A PP & SOFTWARE DEVELOPMENT FINTECH TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK

1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 98 \ 99 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) ROB LOVE Chairman DIGITAL TECH ECONOMY JOBS Crowdfunder 1,380 ADVERTISED DIGITAL SALARY SOUTH WEST £34,367 DIGITAL DENSITY1 We are the UK’s number 1 rewards-based crowdfunding platform, with an online 17% community of over 350,000. DIGITAL GVA2 Crowdfunder was founded in Cornwall thanks to the support of Plymouth University, a leading educational player in £31 million the county and were a founding partner. The introduction of superfast broadband DIGITAL GROWTH

CAMBORNE meant we could locate our cutting edge digital tech business on a beach in Newquay and enjoy the benefits of a stunning view, a highly motivated and creative workforce, EMPLOYMENT and go surfing on a Friday! +1% 2011-2014

While Truro, Redruth & Camborne is an early “A rural location has stage cluster, between 2010 and 2014 overall traditionally been seen digital turnover rose by 153%. Early analysis as a weakness. Cornwall TURNOVER indicates a growing expertise in Data is dissolving that +153% 2010-2014 management & analytics, Hardware & devices, urban myth, driven by TRURO, REDRUTH & TRURO, Edtech, and App & Software development. NOTABLE UNIVERSITIES superfast connectivity, The area has a history of innovation such as & COLLEGES a pipeline for delivering Goonhilly Earth Station, which received the first TRURO PENWITH COLLEGE tech skills and a transatlantic TV images in 1962. strong collaborative GVA NOTABLE COMPANIES Access to superfast broadband is key to the community.” BLUEFRUIT cluster’s potential today, with Cornwall having +127% 2010-2014 BELINDA WALDOCK HEADFORWARDS the most extensive commercial and residential Co-Founder Software Cornwall, SULLIVAN CUFF broadband of any rural location within the UK. Agile on the Beach Organiser, Cornish companies also report benefiting Author of Being Agile in Business from access to local networks, such as Software Cornwall, a community of digital tech businesses NOTABLE SECTORS that work closely with local colleges and DATA MANAGEMENT universities to design courses that match their Access to Limited talent industry needs. Other initiatives include Agile on & ANALYTICS commercial supply 68% the Beach, an annual two-day conference that 44% property HARDWARE, DEVICES & brings together the cluster’s digital tech community. OPEN SOURCE HARDWARE

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Low sector Local success stories include Bluefruit, a Access EDTECH awareness 52% software development company looking to 44% to local address the skills gap by supporting local code networks APP & SOFTWARE clubs for kids. It provides free training courses for DEVELOPMENT 15-18 year olds along with work experience and Limited access Access to TECH NATION 2016 / apprenticeship schemes. @NESTA / @TECHCITYUK to finance 48% 36% business support 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 100 \ 101 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) NOTABLE COMPANIES WALES

Alongside Wales’ key sectors of energy, advanced manufacturing and professional services, digital technology has made its mark. A leading life sciences hub with a thriving creative industries ecosystem, Wales’ expertise spans software, electronics, digital media and entertainment and is home to three market leaders – Confused.com, moneysupermarket.com and GoCompare.com. Low IN NUMBERS cost of living and a strong talent pool have helped DIGITAL TECH support the sector, as well ECONOMY JOBS as growing support from the Welsh government. Digital infrastructure initiatives are 43,342 creating vital conditions PROPORTION OF JOBS for growth. IN WALES WITHIN THE DIGITAL TECH ECONOMY

NOTABLE CLUSTERS 3.2% 27 CARDIFF & DIGITAL GVA* SWANSEA £0.6bn DIGITAL CONTRIBUTION TO REGIONAL GVA FROM TECH CITY UK IN PARTNERSHIP WITH NESTA 27 2.3% DIGITAL DENSITY TECH NATION 2016 / 15.4% @NESTA / @TECHCITYUK *Total output (goods or services) minus value of inputs

\ 102 e.g. cost of production, taxes, subsidies (Source:ABS/BSD) \ 103 WARREN FAUVEL Founder & CEO DIGITAL TECH ECONOMY JOBS Nudjed

WALES 18,925 ADVERTISED DIGITAL SALARY £42,926 DIGITAL DENSITY1 Nudjed is a unique surveying and analysis tool that uses behavioural psychology 17% models to predict potential behaviour DIGITAL GVA2 change in populations and allows clients to create wellbeing programmes that make health improvement more likely. £369 million

SWANSEA We are currently working with a number CARDIFF & of NHS, local authority and Public Health DIGITAL GROWTH organisations and we have found that there are many benefits to being based in Cardiff. There are lots of active, supportive ADVERTISED communities of entrepreneurs. SALARY Organisations like Cardiff Start and Welsh +21% ICE have been incredibly valuable to us and 2012–2015 the Welsh Government is very supportive of new business, with various technology Cardiff & Swansea, the two main clusters in funds, tax incentives and graduate Wales, featured in the UK’s top 10 clusters for employment schemes designed to help digital salary growth and GVA growth. TURNOVER startups to succeed. The cluster has emerging specialisms in Cyber +15% 2010-2014 security, App & software development, alongside a foundation in E-commerce, Fintech and Sporttech. NOTABLE UNIVERSITIES Startups to watch include Pwinty, a photo printing "With the right balance & COLLEGES API, the e-learning company Noddlepod, and of good infrastructure, CARDIFF METROPOLITAN E-commerce business Veeqo. good skill base, Cardiff UNIVERSITY Local spaces like Welsh ICE, Indycube and is positioned to be GVA CARDIFF UNIVERSITY GloWorks have been vital to the success of a leading place for +94% 2010-2014 NOTABLE COMPANIES growing startups, as has TechHub Swansea, which technology businesses" ADMIRAL arrived in 2013. OWEN DERBYSHIRE BBC WALES The emergence of local networks like Cardiff Founder, Properr PINEWOOD STUDIOS Start and the support of industry groups such as united.diff and Games Dev South Wales, NOTABLE SECTORS have further helped to foster the entrepreneurial SOCIAL NETWORKS community. Access to Limited talent Cardiff’s three universities provide digital tech CYBER SECURITY commercial supply 59% businesses with an established pipeline of talent, 84% property T ELECOMMUNICATIONS with 57% of local businesses noting this as a key benefit. Recognising the importance of digital, & NETWORKING

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA the Welsh Government has also been active in Access Limited access A PP & SOFTWARE supporting the Digital Tech Industries through to local to finance 48% 61% programmes such as Finance Wales Tech Seed networks DEVELOPMENT Fund and Accelerated Growth Programme.

Weak digital Access to TECH NATION 2016 / infrastructure 34% 57% graduate-level @NESTA / @TECHCITYUK talent 1 Digital tech businesses as % of total businesses 2 Total output (goods or services) minus value of inputs \ 104 \ 105 % of digital tech businesses % of digital tech businesses e.g. cost of production, taxes, subsidies (Source:ABS/BSD) PROFILING DIGITAL SECTORS

As well as understanding where the UK’s digital companies are growing by geographical location, Tech Nation seeks to showcase the sectors these companies are excelling in. We want to highlight the specialisms that are at the beating heart of the UK digital economy. In this section we examine 16 digital sectors, and highlight the notable areas of expertise within the UK based on data from GrowthIntel. We provide overviews alongside case studies of UK companies leading within the digital sectors. APP & SOFTWARE DEVELOPMENT CYBER SECURITY DATA MANAGEMENT & ANALYTICS DIGITAL ADVERTISING & MARKETING DIGITAL MEDIA & ENTERTAINMENT E-COMMERCE & MARKETPLACE EDTECH ENTERPRISE SOFTWARE & CLOUD COMPUTING FINTECH GAMING HARDWARE, DEVICES & FROM TECH CITY UK IN PARTNERSHIP WITH NESTA OPEN SOURCE HARDWARE HEALTHTECH IOT & CONNECTED DEVICES ONLINE GAMBLING TECH NATION 2016 / SOCIAL NETWORKS @NESTA / @TECHCITYUK TELECOMMUNICATIONS &

\ 106 NETWORKING \ 107 \ 108 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA DIGITAL SECTORS development a Ci a technology bu It’s t design a machine-to-machine c to smartphones from range that devices for software and for c the d a & & App &Software App nd datascien pp companiesinc

READING & BRACKNELL &BRACKNELL READING BATH & BRISTOL OXFORD &POOLE BOURNEMOUTH BRIGHTON IN: FOUND EXPERTISE

tymapper. B Oxford, Poole, The k The U racknell. c op o

CASE STUDY evelopment o APP SOFTWARE& APP  D w nsumers, EVELOPMENT lusters a nd i ey K’s e the job by providing dedicated and formal training to all employees. to all training formal and dedicated by providing job the for skills right have they the ensuring and people talented recruiting to approaches by innovative underpinned is Growth doubled. almost have numbers staff years three last the in Bristol, and London Derry, Belfast, offices: UK-based four and international four across people development to enterprise customers. software agile and solutions technology digital provides Kainos ca ntegration, mo xpertise i pabilities d s c nd inesses, suchasQubit.So e isproducin Reading and &Bath Bristol re B

Development TV setup boxes. setup TV S eb d l ude Headspacea aaS/web s f s righton, Bo n s oftware a ommunications, s evelopment, d riving t oftware de b ile a g lucrativeB2Bretail ervices. his s urnemouth nd t

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lude Employing more than 750 than more Employing survey by CIOmagazine, CSO and PwC and CSO by CIOmagazine, survey increase in IT security incidents. the sector’s value and importance. to testament is space incubator and accelerator security Europe’scyber as first London situational awareness. cyber provides Shadows Digital company social media and dark sources, while London &Swansea. Cardiff and include Oxford, Reading & Bracknell, London sector, for top the performers other hub while acentral provides Worcester cluster &Malvern CEO 2 1 2020. by $170bn to to grow predicted and year at $75bn last market measured ainternational in operating security, cyber in leader aglobal is UK The BRENDAN MOONEY Cyber Security Ventures report, Q4 2015 report, Ventures Security Cyber The Global State of Information Security® Survey 2016, a worldwide aworldwide 2016, Survey Security® Information of State Global The CARDIFF &CARDIFF SWANSEA LONDON &BRACKNELL READING WORCESTER &MALVERN OXFORD IN: FOUND EXPERTISE Last year, UK businesses reported a38% reported year,Last businesses UK The establishment in the capital of Cyber of Cyber capital the in establishment The Belfast-based RepKnight monitors open CYBER SECURITY 1

2 GCHQ in the the in GCHQ J. (2014),J. London Nesta: Mateos-Garcia, and A. Bravo-Biosca, H., Bakhshi, performance', firm on 3 data. their exploit not that do firms than productive more are 10% companies businesses are growing rapidly. Data-driven Poole and London. Reading & Bracknell, Cambridge, Bournemouth & and machine-to-machine communications. science, machine learning, cloud computing top capabilities in artificial intelligence, data with companies, of range awide includes sector &Analytics Management Data UK’s The taught, especially in the STEM subjects. STEM the subjects. in especially taught, universities are researching how data skills are To however, potential. this full address their currently preventing companies from reaching Inside the Datavores: estimating the effect of data and online analytics analytics online and data of effect the estimating Datavores: the Inside LONDON &POOLE BOURNEMOUTH CAMBRIDGE &BRACKNELL READING BRIGHTON IN: FOUND EXPERTISE Big data is driving trends in this sector, this in trends and driving is data Big Its highest performing clusters include Brighton, Barriers to accessing analytical talent are are talent analytical to accessing Barriers

& DATA MANAGEMENT  ANALYTICS 3

CEO and benefit fromTV advertising. measure about, think agencies and way the brands transforming is Though young, our technology campaigns. ad TV of performance the improve and ROI to increase agencies and brands enables platform analytics Our industry. the in platform attribution TV same-day accurate, most the provides TVSquared C ALUM SMEATON ALUM

search engine marketing. Adthena, a competitive intelligence tool for are patent pending technology OnScroll and successes notable UK’s the Manchester. Among Brighton, Norwich, Leeds, London and will grow bywill 5.5%. UK the in spend advertising that global forecasts year.13.4% previous from the year, This Carat 5 4 development and real-time advertising. app analytics, media to social provision SEO from services, of range awide includes itself development. Digital Advertising & Marketing tablet and mobile and UX design and UI design, audio and visual production, media and content includes marketing Digital Internet Advertising Bureau UK, H1 2015 Digital Adspend Results Adspend 2015 H1 Digital UK, Bureau Advertising Internet Carat Ad Spend Report, Sept 2015 Sept Report, Ad Spend Carat MANCHESTER LONDON LEEDS NORWICH BRIGHTON IN: FOUND EXPERTISE Clusters specialising in this field include The sector was worth £3.9bn in 2015 in £3.9bn was worth sector The

& DIGITAL ADVERTISING  MARKETING 5

4 , up , up

CASE STUDY

\ 109 @TECHCITYUK / @NESTA \ 110 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA DIGITAL SECTORS Brighton, London and Cambridge. &Bracknell, Reading and BBC, the and ITV as well as UK, the in studios television to oldest the home have a strong presence. This includes Manchester, corporates production and media major where also be found throughout the country particularly leading news and entertainment hub, clusters can millions of online readers each month. have News BBC and Guardian The MailOnline, the while globe, the across audiences vast musical attract Mixmag and Advisor Media & Entertainment. Mixcloud, Resident Digital in leaders world producing is UK The MANCHESTER CAMBRIDGE LONDON BRIGHTON &BRACKNELL READING IN: FOUND EXPERTISE In addition to London’s position as a world

CASE STUDY & DIGITAL MEDIA  ENTERTAINMENT develop new titles and further accelerate our global growth. to $9m we raised and Ventures June, in eye the ofGoogle caught success Our countries. different 165 in sold has and languages in 9 now is available title first Our globally. books over 1m selling us, for growth ofsignificant year successive second the was between storytelling, engineering, digital and print. intersection at the startup winning award an is Name My Lost

Co-founder and efficiently. efficiently. and simply organisations sector to public services Digital Marketplace, allowing businesses to sell to its revisions introduced recently Government & Poole, Manchester and Edinburgh. Durham, Sheffield & Rotherham, Bournemouth companies. JLabs accelerator supports retail technology Marketplace startups while John Lewis’s & E-commerce invests in instance, for Partners, Forward emerging. also are success, vertically aligned providers by this Prompted Skyscanner. and Eat Just- Deliveroo, as sector, such this in players top some producing is UK The ASI SHARABI EDINBURGH MANCHESTER &POOLE BOURNEMOUTH &ROTHERHAM SHEFFIELD DURHAM & NEWCASTLE IN: FOUND EXPERTISE Recognising the sector’s significance, The & Newcastle include Top field this in clusters -COMMERCE 2015 2015 & MARKETPLACE E Partners, Oct 2015 Oct Partners, UK schools on education technology annually. by spent £900m the and Knewton, and Pearson well-established education companies, such as &Durham. Newcastle and Liverpool field includeCambridge, Brighton, Manchester, Proversity and RefMe. Clusters specialising in the eSchools, including UK, are Europe from the in sectors. tech digital fastest-growing UK’s the of one is and education promote and learning to improve technology of use the is global position. EdTech UK’s while Edtech, the accelerates UK aided also has curriculum school into the 2 1 &Partners) Valued at (London £45bn www.ednfoundation.org/wp-content/uploads/EdtechUK_LP_report.pdf London & Partners and Ed Tech UK Report 2015 Ed Report Tech UK and &Partners London Edtech: London Capital for Learning Technology, EdTechUK, London & & London EdTechUK, Technology, Learning for Capital London Edtech: NEWCASTLE & DURHAM & NEWCASTLE LIVERPOOL MANCHESTER BRIGHTON CAMBRIDGE IN: FOUND EXPERTISE Its growth is supported by the presence of by presence the supported is growth Its Ten fastest of the Edtech companies growing The introduction of early years coding skills skills coding years of early introduction The EDTECH CEO and a tutor will pop up to help you pronounce the word. word. the pronounce you to help up pop will atutor and note, language aFlashSticks Scan languages. different 40 into translated and recognized it see will you and object random any Scan experience. learning immersive and adynamic with students language to provide technology, recognition object and reality augmented latest the with combined are notes Post-it® language Printed new. meeting methods learning old of example an is FlashSticks® VEEJAY LINGIAH 1 , Edtech , Edtech 2

27th 2015 Aug 3 by of 2014. from 81% 2019, up end at the traffic data mobile of worldwide for 90% account by 2019. Cloud applications, meanwhile, will enterprise application software will reach $201bn Oxford, Birmingham and Glasgow. Cambridge, &Bracknell, fact are in Reading sector clients their with and teams between collaboration innovating project management and is example, for Huddle, London-based work. way the businesses transforming increasingly enterprise software is productivity, enterprise improving as As well this growth. growth. this and against emerging technologies is driving scale global on a compete to firms on pressure Enterprise Software Spending to Grow: Gartner’, The Wall Street Journal, Journal, Street Wall The Gartner’, to Grow: Spending Software Enterprise GLASGOW BIRMINGHAM OXFORD CAMBRIDGE &BRACKNELL READING IN: FOUND EXPERTISE Gartner forecasts that total spending on for this top clusters UK’s the aside, capital The

 & SOFTWARE ENTERPRISE CLOUD COMPUTING 3 Growing

CASE STUDY

\ 111 @TECHCITYUK / @NESTA \ 112 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA DIGITAL SECTORS Ernst & Young Report 2014 Report &Young Ernst Finance driving growth. Government policy and initiatives like Innovate and environment regulatory asupportive with optimum conditions for Fintech companies, Leicester, by London. driven is strength the include Glasgow, Edinburgh, Manchester and identification. and &security payments mobile exchanges, peer-to-peer lending, data analytics, currency 1 GoCardless. and Circle Funding TransferWise, including based, UK are unicorns Fintech European of half Over revenues. annual in £20bn worth to be estimated sector the leader, with world aFintech is UK The Landscaping UK Tech, UK Trade & Investment & & Trade Tech, &Investment UK UK Landscaping L MANCHESTER EDINBURGH LONDON GLASGOW IN: FOUND EXPERTISE EICESTER The world’s leading finance capital creates capital finance leading world’s The Whilst clusters specialising in this area areas including across cuts sector The

CASE STUDY FINTECH consumer behaviour in the next 5years. next the in behaviour consumer in shift massive a We expect services. financial for providers tech using consider would they say of consumers thirds two UK, the In to banks. have now alternative areal consumers that means sector people across the world. by TransferWise, through transferred is £500m month, Every TransferWise is an online international money transfer platform. 1

The impact of technology on the financial financial the on oftechnology impact The

CEO and Co-founder 3 2 £1.72billion contributes currently and platforms, mobile to PCs and consoles from platforms, many across spread is sector Gaming The games market will be worth $113bn worth be market will games reality. the By 2018, augmented and virtual relief. tax games video and creative astrong graduates, industry university specialist gaming courses in the high-calibre UK, London. Oxford and Durham, & Newcastle Liverpool, are Brighton, clusters Auto. Currently,Theft strongest sector’s the from the including UK, Tomb Raider and Grand game franchises and companies have come Mateos-Garcia, (2014) Mateos-Garcia, TAAVET HINRIKUS A Map of the UK Games Industry' Bakhshi, H., Lenel, M. and and M. Lenel, H., Bakhshi, Industry' Games UK the of AMap 2015 Global Games Market Report, Newzoo Report, Market Games 2015 Global LONDON OXFORD DURHAM & NEWCASTLE LIVERPOOL BRIGHTON IN: FOUND EXPERTISE In the next few years we will see a rise in in arise few next see the weIn years will of number by high the driven is Growth video successful most world’s of the Some GAMING 2 to the UK economy. UK to the

3 globally.

sized computers used for learning programming. creators palm- of famed the the Pi, Raspberry theARM, designer of semiconductors, and number of leading hardware companies, including Rotherham. & Sheffield and Manchester, Bournemouth & Poole, Cambridge hardware include: Reading & Bracknell, as circuit RAM, boards and audio equipment. such device, or of acomputer parts and products they wish. as them to modify consumers to allow public to the and devices whose design has released been to machines refers Hardware Source Open SHEFFIELD &ROTHERHAM SHEFFIELD CAMBRIDGE &POOLE BOURNEMOUTH MANCHESTER &BRACKNELL READING IN: FOUND EXPERTISE Cambridge in particular has produced a a produced has particular in Cambridge Clusters with emerging specialisms in refersphysical the to Hardware specifically  ADAE DVCS & DEVICES HARDWARE, OPEN SOURCE HARDWARE SOURCE OPEN CEO and Co-founder deeper or wider research. wider or deeper to lead eventually could which data, gameplay through feedback valuable gain scientists helps also platform Our Yaleand University. Cambridge of University the including audience, wider a much to research their to bring laboratories private and universities leading from scientists with We partner players. global Peak is a mobile cognitive training platform with 7 million ITAMAR LESUISSE

mHealth and data analytics. data and mHealth of secondary care electronic health records, opportunities still exist to accelerate the adoption transforming health and social care, Deloitte, 2015 Deloitte, care, social and health transforming 5 4 Healthtech falls into four main categories last two and a half years to years over ahalf 100,000 and two last the in doubled than more has UK the in apps of health accelerator. Dotforge the number The year, Wayra’slast and Health including Velocity Five Year its realising Forward View. key and to agenda policy NHS Government’s the of to delivery central the is Glasgow, Healthtech Reading & Bracknell, Edinburgh, Oxford and digitalised health systems. telehealthcare, mHealth, health analytics and Digital Health in the UK: An industry study for the Office of Life Office the for study industry An UK: the in Health Digital Sciences, Deloitte, Sept 2015 Connected health: How digital technology is is technology digital How health: 2015 Connected Sept Deloitte, Sciences, GLASGOW OXFORD EDINBURGH &BRACKNELL READING CAMBRIDGE IN: FOUND EXPERTISE Several Healthtech accelerators launched Several accelerators launched Healthtech Cambridge, in clusters top performing With

HEALTHTECH 5

, but , but 4 : CASE STUDY

\ 113 @TECHCITYUK / @NESTA \ 114 TECH NATION 2016 / FROM TECH CITY UK IN PARTNERSHIP WITH NESTA DIGITAL SECTORS 1 ‘things’ device. security aconnected produces which Cocoon, and the innovative cleantech business Pavegen Manchester. Notable companies include and Rotherham & Sheffield Edinburgh, specialist clusters in Cambridge, Liverpool, are there £40m IoT in while innovation and transport. and research security, greentech, and energy healthcare, environment. It spans sectors including external the or other each with interact or sense to communicate, technology of physical objects containing embedded (IoT) network Things of the is Internet The potential both in the UK and around the world. the around and UK the in both potential Gartner Report 2015, ITP.net 2015, Report Gartner MANCHESTER &ROTHERHAM SHEFFIELD EDINBURGH LIVERPOOL CAMBRIDGE IN: FOUND EXPERTISE With Gartner predicting that 6.4bn connected connected that 6.4bn predicting Gartner With to invest pledged has Government The

CASE STUDY OT & CONNECTED I  DEVICES 1 will be in use in 2016, IoT 2016, in use in massive be has will to raise an alarm, at any time of the day or night, if they need help. need they if night, day or ofthe at time any alarm, an to raise community. the in while tracked and managed be can offenders which through aplatform we deliver former, the In health. and justice –criminal markets 2distinct in We operate are. people where and how to show technology monitoring remote provides Buddi In the latter, we provide a service enabling older people people older enabling latter, aservice the we In provide Durham and Leeds. Birmingham, Brighton, Liverpool, Newcastle & new efficiencies and innovations to the sector. technology is enhancing existing brands, bringing far from replacing high street betting shops But, shops. betting mortar and bricks their the increased costs they are incurring through to offset companies gambling enable platforms predominantly on mobile platforms. Online Gambling Commission CEO 2 (Online Gambling Commission). to £7.1bn 2010 in £5.6bn from 2014 in climbed revenue gambling UK growing. fast and The online gambling industry is multi-faceted SARA MURRAY Gambling Industry Statistics April 2010 to March 2015, 2015, to 2010 March April Statistics Industry Gambling LEEDS DURHAM & NEWCASTLE LIVERPOOL BRIGHTON BIRMINGHAM IN: FOUND EXPERTISE Top performing clusters in this sector include online, occurred growth of this Most ONLINE GAMBLING ONLINE 2

their child’s online activity. oversee parents to assist guide Safety Online’ Brighton, Bournemouth & Poole and London. &Swansea, Cardiff &Durham, are Newcastle Double. and Bristlr have launched: also Tinder Two Skiddle. ticket to alternatives the UK outlet, Fatsoma events the and platform YPlan, planner technology livesthrough social offline our shaping on attention their focusing are businesses UK , –many LinkedIn and WhatsApp –Facebook, by giants US dominated currently market is media social the While LONDON &POOLE BOURNEMOUTH BRIGHTON &CARDIFF SWANSEA DURHAM & NEWCASTLE IN: FOUND EXPERTISE The government has produced a ‘Child a‘Child produced has government The sector this in clusters top performing The Examples of this include the going-out SOCIAL NETWORKS SOCIAL CMO with them when they moved. Hub Relish to take their were even they able installation, and landline a for need no With by 39%. sales their to boost helped and quickly up set 24 hours, within delivered was service super-fast wireless our business, for example. When they experienced connectivity issues, day. Brothers Take working next Arancini the the delivered broadband, play & plug and contracts flexible offers Relish WILL HARNDEN new 5G systems. systems. 5G new technologies will continue as telcos develop ubiquitous. Significant investment into new and cheaper, powerful more are becoming cities. entire and networks to larger home the from within devices, to link IoT the continue networks, leaner, will agile more &Bath. Bristol and London Cambridge, Bournemouth & Poole, Reading & Bracknell, services. and content digital carry that software and hardware the selling and developing routers, switches, networks, to Wi-Fi components smartphone from covers everything sector The Telecommunications & Networking BRISTOL & BATH & BRISTOL LONDON CAMBRIDGE &BRACKNELL READING &POOLE BOURNEMOUTH IN: FOUND EXPERTISE As the price of connectivity declines, devices devices declines, of connectivity price As the to create standardisation embrace As telcos Clusters specialising in the sector include & NETWORKING TELECOMMUNICATIONS 

CASE STUDY

\ 115 @TECHCITYUK / @NESTA • An unsupervised text clustering approach ECONOMIC STATISTICS that extracted “tags” about businesses’ The main public source of business financial data areas of activity from the text in their in the UK is Companies House. Unfortunately, its websites. The analysis revealed 500 topics. coverage of key measures such as Employment, A business was tagged with one of these Turnover, Profits or Costs of Materials for smaller topics if the topic scored above a minimum businesses is low because businesses with less threshold based on the presence of related than 50 employees are exempt from reporting words in the business’ website. Just over half METHODOLOGY their full financials (228) of these topics described a business’ We accessed data about these important RATIONALE This appendix summarises the methodology industrial activity, and 49 were digital.2 Many we followed to do all this. We start by describing measures of economic performance from Rigorous measurement and mapping are a of the topics captured the geographical area the unit of geographical analysis we have used official ONS datasets: crucial way to raise awareness and recognition where a company operates. 4 to bound digital tech clusters across the UK. • The Annual Population Survey (APS) : of new and innovative industries in the eyes of APS is a household survey with information We used the tags extracted in the clustering stakeholders – be they investors, collaborators, about respondent’s occupation (SOC) and GEOGRAPHY analysis as the primary means for identifying customers, educators or policymakers. It is why industry of employment (SIC). We used it The starting point for defining our areas digital tech businesses in the dataset, and our two organisations – a national tech cluster to estimate employment in the Digital Tech geographically are the Office for National classifying them into digital sectors. GrowthIntel development agency and an innovation charity – Industries and the Digital Tech Economy. Statistics’ 2001 Travel to Work Areas (TTWAs) sectors played a complementary role in this have joined forces to produce this report. There were two reasons for using it over (we use the 2001 TTWAs instead of the recently process, and were also used in the analysis of One important challenge we face is the other official sources of employment data, released 2011 TTWAs because the latter are still digital intensity/disruption in non digital sectors.3 difficulty of measuring a dynamic sector like such as BSD or ABS. First, we wanted subject to revision and some of the datasets we The process to do this was as follows: digital tech. The Standard Industrial Classification to capture digital embeddedness, the use are not yet available for this geography). In • Any business that had been assigned (SIC) codes underpinning the official economic phenomenon of digital experts working in three cases, we draw on Tech City UK’s local at least one digital tag was defined as statistics – and used to derive the employment, non-digital industries, consistent with Tech knowledge to combine TTWAs for presentation a “digital tech business”. This led to productivity and value added estimates in this Nation 2016’s focus on the digitisation of purposes – Bristol & Bath, Cardiff and Swansea, the identification of 58,000 digital tech report – make it possible to track the growth the wider economy. Second, we wanted to and Bournemouth and Poole. Bristol & Bath very businesses out of a total of 320,000 of industries on a consistent basis. However measure freelancers and self-employed much identify as one community, with many businesses. since they are only updated very infrequently, workers, an important component of the organisations operating across both cities, and • We mapped the 49 digital tags resulting they have obvious limitations in capturing the digital workforce which is not measured in the area’s inward investment agency, Invest from the clustering analysis to a list of evolution of fast-changing industries. There is an SIC-based business surveys. We obtained Bristol & Bath promotes them together. In Cardiff digital tech sub-sectors based on Tech SIC code for Hunting, but not one for Animation. the APS via the DCMS.5 and Swansea, relative proximity means that Nation 2015. We allocated each business In this report, we have worked with • The Business Structure Database (BSD)6: the digital communities work closely together. to the digital tech sub-sector where it had GrowthIntel to build a more timely and detailed An administrative dataset including SIC, In Bournemouth and Poole, MeetDraw, the the highest aggregated score (based on the picture of digital tech than official data sources location, employment and turnover data largest community group, the local council and sum of the scores for the tags in each of allow. We have used a “big data” method to for all UK businesses registered for PAYE/ university all oversee both areas together and the tech sub-sectors). create a “core business dataset” based on a VAT. The BSD and ABS micro-data required the companies in each tend to associate with • In three cases, we used combinations of sector classification scheme developed by for the project was accessed by Frontier each other. GrowthIntel sectors and business tags GrowthIntel which is independent from SIC Economics, one of our data partners, in the to classify businesses into tech sub- codes. This dataset is built using machine fall of 2014.7 THE CORE BUSINESS DATASET sectors: businesses with at least one learning techniques on data scraped from • The Annual Business Survey8: A business digital tag and the GrowthIntel sectors company websites. The core business dataset contains information survey with 2007 SIC, location and detailed Education, Finance, or Pharmaceuticals- Notwithstanding our use of big data sources about UK digital businesses, and was created financial data allowing the estimation of Biotech were respectively classified into and methods, we have also made substantial by GrowthIntel (GI) using two complementary approximate GVA figures. use of official data sources to estimate economic classification approaches: “Edtech”,”Fintech” and “Healthtech.” statistics about the Digital Tech Economy and • A supervised training approach where We queried these datasets with a list of digital The core business dataset also includes industries. This is based on the most rigorous around 10% (32,000) of the businesses in SOC and SIC codes adopted from techUK/ information about whether a company is selection of ‘digital’ SIC and SOC codes available, the initial dataset were manually assigned Nesta’s Dynamic Mapping of the Information involved in E-commerce or an App Store, based FROM TECH CITY UK IN PARTNERSHIP WITH NESTA as developed in Nesta’s previous ‘dynamic into one of 44 “GrowthIntel Sectors” defined Economy. This report follows a rigorous on the content and technologies in the company mapping’ research for Tech UK. by GrowthIntel. The outcomes of this methodology to identify digital occupations in website. We have used some of this information We have combined this business and Industry manual labelling exercise were then used the SOC codes, and then calculates a digital to analyse the adoption of digital technologies data with other data sources that capture the to model the probability that non-labelled intensity measure at the SIC level to identify by companies in different sectors (pages capabilities, resources and infrastructures of tech businesses belong to a GrowthIntel sector, digital tech SICs.9 Digital intensity corresponds 104-113). clusters across the UK, as well as an online survey using as predictors features extracted from to the the share of digital workers working in an TECH NATION 2016 / 1 @NESTA / @TECHCITYUK of 1800 digital tech businesses, and qualitative the text in their websites. industry (SIC). Tables 1 and 2 overleaf contain the interviews with 42 stakeholders. SOCs and SICs we have used in our analysis: \ 116 \ 117 TABLE 1: As a consequence of this, it is not possible to • Local industry networking (Meetup): We Interviews lasted around 30 minutes and DIGITAL SOC CODES produce digital tech GVA per worker (i,.e. labour have scraped data about tech meetup aimed to generate a deeper understanding productivity) measures at the local level (the ratio groups and tech meetup members/ of the characteristics of digital clusters and 1136 IT and telecommunications directors of digital GVA to local digital employment would attendees from Meetup’s open API, communities and how they operate. 2133 IT specialist managers simply return regional digital GVA per worker). focusing on public groups.13 We have used We explored digital businesses’ relationships 2134 IT project and programme managers We have instead used turnover per worker from an unsupervised clustering analysis of in and outside their cluster, how they find talent, 2135 IT business analysts, architects & BSD as a proxy for local labour productivity in group’s topics to classify them into areas where they get new ideas from, the benefits

METHODOLOGY system designers the Digital Tech Industry. of activity (i.e. tech specialisation), and and drawbacks of the area as a location for 2136 Programmers & software development their location to allocate them into TTWAs. digital businesses and their views and ideas professionals We have also used location data about on what could be done to better support 2137 Web design & development professionals OTHER DATA Meetup users to generate counts of unique digital businesses. 2139 IT & telecommunications professionals • Online job ad data (Burning Glass): The residents in an area interested or involved not elsewhere classified Burning Glass dataset we have accessed in tech topics. 3131 IT operations technicians contains detailed information about job 3132 IT user support technicians ads posted online in the UK between 2012 5242 Telecommunications engineers and 2015, including location (using TTWA SURVEY DATA 5245 IT engineers 2001 codes), role, occupation (coded as The Tech Nation 2016 Survey was conducted SOC codes and using Burning Glass’s between 15 September 2015 and 11 October 1 The dataset to train the model was a combination of the text data delivered by secondary data partners TABLE 2: more detailed occupational classification), 2015. The survey received 1797 complete (CrunchBase, AngelList, DealRoom.co, Invest NI, and 10 industry of advertiser (only available for responses. We use postcode data to identify the Leeds Data City) and GrowthIntel’s own data pulled from DIGITAL TECH SIC CODES business websites. The total corpus size was just over around half of job ads in the 2015 period), TTWA of respondents in 1705 cases. 26.20 Manufacture of computers and 40,000 documents. and salary. We have defined digital job ads 2 Many of the topics captured the geographical area peripheral equipment where a company operates, as those that are either in a digital SOC 58.21 Publishing of computer games QUALITATIVE INTERVIEWS 3 GrowthIntel sectors played a complementary role in this (see Table 1), or not in a digital SOC, but in process, and were also used in the analysis of digital 58.29 Other software publishing We undertook 42 in-depth telephone interviews intensity/disruption in non digital sectors. a Burning Glass occupational code that has 61.10 Wired telecommunications activities with digital businesses (mainly founders/CEOs) 4 We obtained the APS via the DCMS. https://discover. more than 60% of its digital job ads in a ukdataservice.ac.uk/series/?sn=200002 61.20 Wireless telecommunications activities and organisations supporting digital businesses, 5 http://www.brightonfuse.com/wp-content/ digital SOC.12 61.30 Satellite telecommunications activities such as networks, membership organisations, uploads/2015/01/brighton_fuse2_online.pdf • Online software development activity 6 The BSD and ABS micro-data required for the project 61.90 Other telecommunications activities incubators and inward investment agencies. was accessed by Frontier Economics, one of our data (GitHub): We have scraped GitHub’s open 62.01 Computer programming activities We carried out the interviews in two waves. partners, in the fall of 2014. API to access data about recently active 7 https://discover.ukdataservice.ac.uk/catalogue?sn=6697 62.02 Computer consultancy activities In the first wave, we drew our sample from 8 https://discover.ukdataservice.ac.uk/catalogue?sn=6697 (January 2014-June 2015) 18,280 UK- 62.03 Computer facilities management activities Tech City UK’s contacts and aimed to complete 9 Digital intensity corresponds to the the share of digital based developers. Our dataset contains workers working in an industry (SIC). 62.09 Other IT & computer service activities at least one interview in all the clusters identified 10 It should be noted that the SIC code 63.12 (Web information about their location (in ~30% 63.11 Data processing, hosting & in the first Tech Nation report. In the second Portals) was not included in the techUK/Nesta report. of cases), the repos (projects) they are The reason for this is that there were not enough related activities wave, we focused on five areas that represent a companies with that SIC code in the APS sample to involved with and key metrics about 63.12 Web portals spread across the UK and included clusters with estimate the digital intensity of the sector. those repos, including their number of 11 Government Office Regions do not perfectly overlap 95.11 Repair of computers & peripheral different characteristics (Belfast, Bristol and Bath, TTWAs – for example, the London TTWA is larger than collaborators, and their programming equipment Cardiff, Edinburgh and Liverpool). Within these, the London GOR because it captures a commuter belt languages. We have used those metrics beyond London’s administrative boundaries. We have we selected a sample of digital businesses addressed this issue by allocating each TTWA to the to quantify levels of online collaboration Where possible, we have used these from among respondents to the Tech Nation GOR where it has a majority of postcodes, based on the in clusters, and to allocate developers to NSPL (National Statistics Postcode Lookup) dataset. datasets to produce estimates of employment, Survey. Respondents were stratified by area and 12 The reason for doing this is to include in our analysis their “dominant” programming language turnover, and digital tech GVA at the national company size (micro, small, medium and large), job ads in digital occupations as defined by Burning (based on the distribution of lines of Glass which might not be captured in the SOC’s coarser and local levels. One barrier to doing this and then a random selection of respondents occupational classification. code they have contributed to repos with with digital tech GVA is that ABS data is not was chosen to approach for interview. 13 http://www.meetup.com/meetup_api/ different programming languages). We then available at the TTWA level. We address this by combined the local and national distribution estimating digital GVA per worker at the regional of developers specialising in different level, and scaling this up, for the areas (TTWAs) programming languages to generate inside a region, by their digital employment

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA local indices of programming language levels based on BSD data.11 We advise caution in specialisation. the interpretation of this experimental statistic. TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 118 \ 119 Public finance/funding – finance available Internet of things/connected devices from Government/local Government – network of physical objects or “things” funding mechanisms embedded with electronics, software, sensors, and network connectivity, enabling them Private finance – finance available from private to collect and exchange data individuals or companies such as friends and family, angel investors, institutional venture capital Cyber security – the body of technologies, funds or corporate venture capital funds processes and practices designed to protect networks, computers, programmes and data Scale-up – company that is growing from attack, damage or unauthorized access exponentially, and normally has received a GLOSSARY number of funding rounds to support its growth E-commerce & marketplace – also known as Core capability – an area of expertise or Digital tech business – Company that provides electronic commerce, E-commerce is trading in Sector – a sub-division of the Digital Tech products or services online. This can also occur skill. Sectors will often feature key capabilities a digital technical service/product (including Industries. i.e. skills that are critical to delivering success hardware and platforms) as its primary revenue through an online marketplace platform collating e.g. payments infrastructure skills play a large source OR Provides a product/service that Standard Industrial Classification (SIC) products and services from various sources part in Fintech companies is reliant on digital technology as its primary industries/codes – a set of internationally for the consumer to select from revenue source. Also refers to the 58,000 agreed codes used to classify businesses Digital tech cluster – a critical mass of Edtech – abbreviated form of Educational businesses in the GrowthIntel dataset. (Source: into industries Technology – the design, creation and application digital technology businesses within an urban GrowthIntel) location, which interact formally (e.g. by trading Smart cities – a vendor/city term commonly of technology for learning. or forming partnerships) and informally (e.g. Digital tech jobs – jobs classified as ‘information used to refer to the creation of knowledge Fintech – abbreviated form of fnancial networking, socialising). In Tech Nation, Digital economy occupations’ in Nesta/Tech UK (2015) infrastructure. ‘Smart City’, in everyday use, technology. Includes both facilitators (those tech clusters have been identified based on (Source: ONS’s Annual Population Survey) is inclusive of terms such as ‘digital city’ supporting the technology infrastructure within quantitative indicators such as the density of or ‘connected cities’ GVA (Gross Value Added) – GVA measures the fnancial institutions) and disrupters (those digital tech businesses within an area (Source: challenging current systems with new innovative GrowthIntel), economic performance and growth contribution of each economic unit by estimating Startup – company with a minimum viable the value of an output (goods or services) product, working towards establishing a methods). Fintech covers the application of rates (Source: ONS and other data sources), technology across all elements of finance level of community activity (Meetup), as well less the value of inputs used in that output’s repeatable and scalable business model as qualitative insight such as the existence of production process. It is used in the estimation of Games – covers both development and GDP (Source: ABS/BSD) TTWA (Travel to Work Area) – a standardised networks and supporting organisations engaged unit of UK geography (Source: ONS) publishing; creation of video games and with local tech businesses, presence of a startup/ Density – proportion of digital tech businesses (see methodology) applications, for a variety of platforms, entrepreneurial community, and participation in as a proportion of total businesses (GrowthIntel) including consoles, PCs, mobile and tablets the Tech Nation research Turnover – the amount of money taken Formal training – Skills training through by a business in a particular period Hardware & devices/open source hardware Digital job ads – Online job advertisements an academic or educational institution, – the development (design, build and testing) of for digital occupations (see methodology) or accredited body the physical aspect of devices – e.g. computers, (Source: Burning Glass) SECTORS telecommunications, semi-conductors In-formal training – Individual skills training Digital salary premium – Average annual using online platforms or mentoring sessions App & software development – the Healthtech – design, creation and application yearly salary for digital roles compared with development (design, building and testing) of software driven technology within the the annual yearly salary in all roles In-house training – Skills training provided by of applications/software and frameworks healthcare industry to improve efficiency, (Source: Burning Glass) digital tech businesses for their employees involved in a software product across devices assist in diagnosis and treatment, and enable and platforms better customer care within healthcare services. Digital productivity – nationally based on gva Local economy/regional economy – Regional Also covers applications developed for per worker, and locally based on turnover per economy refers to high level official geographies Data management & analytics – data personal use worker (Source: ONS Annual Business Survey/ (government office regions in England, and management is the development, execution ONS Business Structures Database) Scotland, Wales and Northern Ireland). Local and supervision of plans, policies, programmes Online gambling – platforms providing a range economy refers to a higher-resolution geography and practices that control, protect, deliver of gambling options including sports and horse Digital Salary Growth – % change of average which, in Tech Nation 2016, is based on a and enhance the value of data and race betting, poker, casinos, bingo, lotteries yearly salary in digital job ads between January- modified version of ONS 2001 Travel to Work information asset and gaming-based gambling September 2012 and January-September 2015 Areas (2001) (Source: Burning Glass) Digital advertising & marketing – promotion Social networks – platforms enabling Location Quotient – A location quotient and brand building of products and services users to communicate, share information Digital Tech Economy – Jobs in the digital tech measures the specialisation of an area in via digital platforms and channels and media and in certain cases engage industries plus digital jobs in non-tech industries an activity (e.g. sector) compared to a larger in multiplayer games (Source: ONS Annual Population Survey) geographical area (e.g. UK). It is calculated by Digital entertainment – digital disruption of comparing the importance of the sector the creation and design of digital print media, Telecommunications & networking – Digital tech employment/workforce – all television production, radio broadcasting, music infrastructure networks for data and digital and non-digital jobs in digital industries (e.g. % of all businesses) in the area with its importance nationally. A score above 1 indicates recording and production. In particular it covers voice communications. (see methodology) (Source: ONS Annual online and mobile platforms Population Survey) relative specialisation in the sector in the location. A score below 1 indicates relative lack of Enterprise software & cloud computing – Digital tech industries – Businesses operating specialisation in the sector in the location any major software application created and/or in 4-digit Standard Industrial Classification (SIC) provided to major organisations and businesses.

FROM TECH CITY UK IN PARTNERSHIP WITH NESTA Meetup – Meetup.com is an online social codes in Nesta/techUK (2015) (see methodology). Cloud computing is the provision of B2B or B2C (Source: ONS Business Structures Database) networking portal that facilitates offline group meetings in various localities around the world. services that do not require the installation of Meetup group refers to the meetings that client-side software/applications, but makes use take place of a network of remote servers hosted on the Internet to store, manage, and process data Non-digital industries – those 4-digit SIC industries not classed as digital tech industries TECH NATION 2016 / in Nesta/techUK (2015) @NESTA / @TECHCITYUK \ 120 \ 121 We believe the UK is the best place to start and grow a digital business. Through dedicated programmes, we support the digital technology sector’s need for skills, infrastructure, and investment. We gather and share vital information, which informs policymakers. Tech City UK is a hybrid organisation sitting between the tech community and government.We give digital entrepreneurs a national and local voice. Our work accelerates the growth of digital businesses, in London and across the UK, at all stages of their development. You can see our work in action with Future Fifty, Digital Business Academy, Tech Nation, Upscale, the Tech City UK, Cluster Alliance and HQ-UK; and Northern Stars, developed & launched by our sister team, Tech North.

PROGRAMME OVERVIEW

Digital Business Academy: A concierge service for growth Accelerating growth of digital An online academy to help stage businesses facilitating businesses in the North of you start, grow or join access to UK government England through championing a digital business. and private sector expertise. the sector.

An annual report outlining An outline of UK’s holistic A network of founders scaling the depth and breadth of tech offer for international fast, scaling together coached the UK’s digital ecosystem. businesses looking to move by world-class Scale Coaches to the UK. FROM TECH CITY UK IN PARTNERSHIP WITH NESTA

A network of startup Tech Nation Visa Scheme: TECH NATION 2016 / community leaders from A dedicated Visa Scheme @NESTA / @TECHCITYUK cities across the UK. to attract digital expertise

\ 122 from all around the world. \ 123 IN PARTNERSHIP WITH

NESTA is the UK’s innovation foundation. We help people and FRONTIER ECONOMICS is Europe’s leading economic THE DATA CITY is a not-for-profit membership organisation, organisations bring great ideas to life. We do this by providing investments consultancy, and with offices in Brussels, Cologne, Dublin, designed to enable organisations and individuals to use and grants and mobilising research, networks and skills. We are an London and Madrid, it is one of the largest. We advise technology for the benefit of cities. Conceived by an every independent charity and our work is enabled by an endowment from the clients on matters of competition, public policy, regulation, growing coalition of the willing across the public and private National Lottery. Nesta is a registered charity in England and Wales and strategy, across the range of economic activities in sector, the Data City represents a ‘new way’ for cities to be 1144091 and Scotland SC042833. the public and private sectors, including energy, financial smart in how they adopt technology ensuring mutual benefit www.nesta.org.uk services, healthcare, media, retail, technology, telecoms and for citizens, suppliers and the local companies. transportation, among others. www. datacity.org www.frontier-economics.com SUPPORTED BY CORE PROJECT PARTNERS

MULTIPLE helps technology entrepreneurs and organisations MEETUP is the world’s largest network of local groups. scale through purpose, people and platforms. We enable Meetup makes it easy for anyone to organize a local group or them to build reputations, influence and value; discover new find one of the thousands already meeting up face-to-face. models, products and revenue streams; and develop their More than 9,000 groups get together in local communities culture, capability and talent. www.wearemultiple.com GROWTHINTEL powers B2B trade by turning primary CRUNCHBASE is the leading platform to discover innovative each day, each one with the goal of improving themselves or source unstructured data into predictive go-to-market companies and the people behind them. Founded in 2007 their communities. www.meetup.com intelligence. Its platform uses NLP, data science and machine by Mike Arrington, it began as a simple database to track learning to build a personalised recommendation engine that startups covered on TechCrunch. Today, CrunchBase delivers the most sophisticated available overview of your delivers market insights to millions of users and businesses addressable market: thousands of brand new prospects, around the world. The CrunchBase dataset is constantly each with a known likelihood of conversion. They were expanding through contributions from its community of recently chosen to join Upscale, Tech City UK’s six-month users, investment firms, and network of global partners. SEVEN HILLS is Britain’s leading campaigning company. programme to support the next generation of UK scale-up CrunchBase accelerates innovation by bringing together Launched in 2010 by Michael Hayman MBE and Nick Giles, digital businesses. www.growthintel.com data on companies and the people behind them. GITHUB is where more than 12 million people build software the firm was founded to generate momentum for Britain’s together. Developers can discover, use, and contribute www.crunchbase.com explosive growth companies, entrepreneurs and mission- to over 31 million projects using a powerful collaborative based businesses. It is recognised as one of the UK’s development workflow.www.github.com fastest-growing communications businesses and was named Global Corporate Agency of the Year by communications industry monitor The Holmes Report. The founders are also co-authors of the Penguin bestseller: Mission – How The Best In Business Break Through. www.wearesevenhills.com ANGELLIST is a platform for startups to raise money and find talent. In 2015, AngelList helped 498 startups raise DEALROOM is a data-driven marketplace for venture over $160m. Additionally, 16,000 companies and 250,000 capital, connecting founders with investment professionals candidates used AngelList Talent to hire or look for startup while enabling better and faster investment decisions. jobs. www.angellist.com We use algorithms, machine learning, web crawling and INVEST NI is the regional business development agency natural language processing to track over 500K companies designed to grow the local Northern Ireland economy. We and 4K investors in Europe and beyond. The aggregated do this by helping new and existing businesses to compete data is augmented by 6,000+ contributors: founders, VCs, internationally, and by attracting new investment to Northern accelerators, governments and tech journalists. Ireland. Invest NI offers the Northern Ireland business FROM TECH CITY UK IN PARTNERSHIP WITH NESTA community a single organisation providing high-quality www.dealroom.co services, programmes, support and expert advice. www.investni.com BURNING GLASS Technologies delivers job market analytics that enable evidence-based policy decisions. Burning Glass’ artificial intelligence technology analyses hundreds of millions of job postings and real-life career transitions to provide TECH NATION 2016 / insight into labour market patterns. This real-time strategic @NESTA / @TECHCITYUK intelligence can reveal which jobs or specific skills are most in demand, and the career directions that offer the highest

\ 124 potential. www.burning-glass.com \ 125 COMMUNITY PARTNERS We would like to thank all of our community partners across the UK who helped support the creation, development and promotion of the Tech Nation project.

Global Innovation Partners INSIGHT + INNOVATION + COLLABORATION Live and work in Scotland FROM TECH CITY UK IN PARTNERSHIP WITH NESTA TECH NATION 2016 / @TECHCITYUK / @NESTA / @TECHCITYUK \ 126 \ 127 NOTES FROM TECH CITY UK IN PARTNERSHIP WITH NESTA TECH NATION 2016 / \ 128 “GREAT DISCOVERIES AND IMPROVEMENTS INVARIABLY INVOLVE THE COOPERATION OF MANY MINDS.” ALEXANDER GRAHAM BELL

techcityuk.com/technation nesta.org.uk @TechCityUK @nesta_uk