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POWERING THE DIGITAL ECONOMY 2015 FOREWORD BARONESS JOANNA SHIELDS GERARD GRECH CHAIR, TECH CITY UK CEO, TECH CITY UK In 2013, we created the Tech City UK Cluster Alliance to engage digital businesses across the From East London’s Tech City up to EdinBurgh and Beyond, digital Businesses increasingly choose purpose of using their collective expertise to to work near each other, creating dynamic tech accelerate digital growth. clusters up and down the country. THE RT. HON. DAVID CAMERON MP It Became clear that great digital companies Each cluster has its own unique DNA and assets. PRIME MINISTER spring from collaborative communities of Every digital company is on its own trajectory. But entrepreneurs, supported By established nearly everyone we spoke to during the Tech Nation Backing the industries of the future is a key part of our long-term businesses, universities and Government all project said they work Best when they’re near other economic plan to support business, create more jobs and build working toward common goals. This report like-minded Businesses: sharing resources, ideas a more resilient economy. The digital economy has become an showcases 21 digital clusters across the UK where and expertise. integral part of our country and the rapid growth of many digital talent and great ideas have come together to fuel The UK’s digital economy is thriving. Venture innovation and success. capital investment in London’s tech companies technology excellence. For the digital landscape is far greater than the Through Tech City UK, this Government has supported digital capital alone – 74% of the digital Businesses we entrepreneurs in London, creating one of the capital’s great success analysed are actually Based outside Inner London. growing digital tech economies. Now is the right stories. We also committed to supporting the growth of our digital Our aim is to Bring these success stories to life and time to shine the spotlight on this exciting network industry nationwide and Tech Nation shows the great innovation and show how digital clusters are working together to of digital clusters, and map out the prospects for thriving entrepreneurial spirit that is driving the sector forward create a ‘Tech Nation’. professionals and investors. across the country. What does this mean for the UK? The digital I would like to thank our research partners, sector is growing and creating joBs, economic DueDil, MTM, CrunchBase, CareerBuilder, down the country is a huge national achievement. The Government growth and national prestige. The UK has the AngelList, f6s, AdZuna and all 2000+ digital will do all it can to ensure digital growth for years to come. fastest growing economy in the G7 and the digital companies that participated in the research. industry is at the heart of our growth story. Tech City has Become one of the UK’s greatest The insights provided in this report are vital success stories. Now it’s time for Tech Nation. to inform policy making and ensure digital entrepreneurs, investors and policy makers work in partnership to make the UK the world leader in digital innovation. 2 TECH CITY UK | TECH NATION 2015 | WWW.TECHCITYUK.COM Image: Central Working, Whitechapel, London WWW.DUEDIL.COM/TECHNATION/2015 3 ACKNOWLEDGMENTS We’d like to extend our gratitude to the 2000+ Huw Sawyer, Emile Coleman, Ian Scott, Tony Hart, companies who completed our survey. Thanks to our Tim Newns, Sarah Kemp, Michael Hayes, Tony partners for their research assistance: Richard Ellis Quested, Tom Bridges, and Steve Wainwright who and James Key at MTM; Damian Kimmelman, Ahmed provided oversight and additional content along with Medhat, Naaman Tammuz, Matthew Rock at DueDil; our interviewees Phil Jones, Anna Lewis, Simon Andy Chung at AngelList; Mark Lennon at Jenner, Katie Judge, Dave Maclean, James Burkmar, Crunchbase; Andrew Hunter, Doug Monro at Adzuna; Matthew Desmier, Tom Quay, Mike Hawkyard, Sanja Licina and Stephen Klesel at CareerBuilder; Soraya Jones, Stewart McTavish, Professor William and Sean Kane at f6s. Thanks to Daniel Korski and Webb, John Connolly, Sarah Cinch, Dominic Gibbons, Chris Hopkins at No.10 Downing Street; Andrea Jon Moss, Olly Headey, Andy Murray, John Peebles, Young, Department for Business, Innovation and Nick Sturge, Simon Bond, Bonnie Dean, Paul Skills; Boris Johnson, the Mayor of London, and The McCafferty, Doug Ward, David Slater, James Hon. Ed Vaizey, MP, HM Minister for Culture, Layfield, Kevin McManus, James Duez, Paul Greyner, Communications and Creative Industries, for their Sean Clark, Steve Orr, David Dunn, Dave Fletcher, support for the Tech Nation project. Also thanks to Neil Cocker, Gareth Jones, Lee Strafford, Emma those who helped promote the survey and provided Cheshire, Leanne Buchan, James Clark, Fredi additional oversight and content for the report: the Nonyelu, Mark Lumley, and Jim Sims. Thanks to Tech City UK Cluster Alliance, Jon Bradford, Eileen Seven Hills for support in the production of this ABOUT US Burbidge, Louize Clarke, Fiona Lettice, John Fagan, report. TECH CITY UK CLUSTER ALLIANCE PARTNERS We started life in 2010, with a mission to support the emerging Silicon Roundabout digital cluster in East London. Anchored in growth of digital businesses at all stages of their development, in London and cities across the UK. Examples of our programmes include Future Fifty, Digital Business Academy, the Internet of Things Launchpad, Tech Nation and HQUK. A puBlicly funded organisation with a private sector mentality, we advocate for the digital entrepreneur. We inform policy-makers on how to foster the right conditions to start, grow and scale a digital Business in the UK. We aim to make life Better for digital entrepreneurs. We work in collaboration with various community partners across all our projects and it is in this spirit we have created Tech Nation. www.techcityuk.com [email protected] @TechCityUK CORE PROJECT PARTNERS 4 TECH CITY UK | TECH NATION 2015 | WWW.TECHCITYUK.COM WWW.DUEDIL.COM/TECHNATION/2015 5 INTRODUCTION DIGITAL CLUSTERS ARE ECONOMIC PHENOMENA THAT OCCUR WHEN A CRITICAL MASS OF DIGITAL COMPANIES FORM IN A SPECIFIC REGION Digital technology companies* are pivotal to data-driven and complement existing research in Tech Nation provides the level of insight into CONTENTS the UK economy. The diverse digital industries this space (e.g. BVCA’s Tech Country, Silicon Cities the individual clusters, their strengths, and the that make up our nationwide technological DNA by Policy Exchange, Tech Britain and various reports opportunities for growth to make this a reality. FOREWORD 02 by Nesta) to help inform future deBate and policy With 74% of digital companies Based outside of a challenging economic climate. They are implementation across the UK. London, Tech Nation uncovers a national success ABOUT US 04 disrupting traditional industries, forging new Tech Nation seeks to decipher the UK’s digital story; from the highest concentrations in London innovative sectors and creating new ways of DNA using the following methods: and the Southeast, to the fast growing cities of INTRODUCTION 06 doing business. These developments are now • Quantitative and innovative Big Data IN NUMBERS 08 inextricably bound to our national economic techniques (with DueDil, Crunchbase, at estaBlished clusters such as Bristol & Bath, story and global competitiveness, interwoven so AngelList, f6s, Adzuna and CareerBuilder) CamBridge and EdinBurgh, and emerging clusters closely that we can no longer view sectors and like Bournemouth and Liverpool. The report reveals: CLUSTER AND SECTOR • Survey of 2,000+ digital businesses from industries in strict isolation. SUMMARIES 10 across the UK in sector and capability of this scale in the UK. It has three Broad oBjectives: • One-to-one interviews with 40+ KEY FINDINGS 12 • Digital technology companies are thriving • To understand the geographical spread, and tech community right across the nation FUELLING GROWTH 24 There are many smaller communities operating • The digital sector is growing in terms • To assess the technology capabilities, sector across the country, which are not included in this of revenue, number of companies and PROFILING THE report. We have highlighted clusters Based on their employment UK CLUSTERS 28 digital technology clusters siZe and the response from the community during This is the Beginning of an evolving project, • To inform policy, investment, and our research; our aim is that more clusters will which we hope to improve through continued PROFILING DIGITAL participate in future iterated versions. collaboration with the digital Business community SECTORS 67 Clusters develop organically and are across the UK. The aim is to make it a live data coverage of the aBove. The digital economy is, quite entrepreneur-led. But the evidence we present project in perpetual Beta form. METHODOLOGY 80 simply, evolving too rapidly. Indeed we came across a here shows that support from local and national Welcome to Tech Nation! numBer of challenges, from the complex to the very stakeholders can accelerate the growth of GLOSSARY 84 technology clusters. If more estaBlished clusters (see Methodology on page 80 for more information) generate their own momentum, smaller clusters Best regards, COMMUNITY PARTNERS 86 to analysing Government data. Our aim is to Be need to Be nurtured with tailored growth strategies. Tech City UK team *Referred to as digital company in this report for brevity Image: Engine Shed, Bristol 6 TECH CITY UK | TECH NATION 2015 | WWW.TECHCITYUK.COM
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