Technology clusters are expected to outperform all other sectors in terms of job creation in the UK by 2020. The internet industry alone in the country is forecast to grow by 12.4%, and will contribute some £225bn to the overall economy.
Impressed? The UK’s digital economy is being aided by communities of tech start-ups that are rolling out creative products, driving employment and contributing to industry growth. More generally known as ‘tech clusters’, they have the ability to create prosperity on a wider scale and to serve as templates to the international community.
A ‘tech cluster’ is a concept that has emerged as technology industries across the world have grown. In general, they’re groups of digital start-ups and businesses that are in close proximity to each other – typically in the sense of their regions.
Tech clusters in the UK and industry growth
According to government-backed report TechNation, there are around 21 tech clusters spread across the UK, covering an estimated 47,200 businesses. The country’s largest tech cluster is Inner London, which currently employs 251, 590 people.
In the same report, the five fastest growing tech clusters outside of London have been identified as Bournemouth, Liverpool, Brighton, South Wales and Bristol and Bath. This shows that not just London is succeeding when it comes to technology and enterprise.
Combined, though, these clusters are reinventing the UK’s technology industry, with it expected to outperform all other sectors in terms of job creation by 2020.
1.46 million people – 7.5% of the country’s workforce – are already employed in digital industries. And last year alone, there were than a million digital tech jobs listed in the UK.
Tech City, the organisation behind the TechNation tech cluster report, is one of the main organisations supporting these clusters. It’s aimed at supporting the UK technology industry’s need for skills, infrasture and investment and giving businesses and entrepreneurs a voice. It does this by holding industry events and meet-ups, Pitch 10 being one of its latest.
The event recognises ten of the UK’s most promising technology businesses yearly and has them to pitch to the prime minister at 10 Downing Street. It took place last in February, and two of the ten chosen businesses represented the South Wales tech cluster: Schoop, a family engagement app, and Veeqo, an inventory management platform for e-commerce businesses.
Veeqo’s track record is particularly impressive, having raised over £300,000 in crowdfunding since launching in 2013. As a result, the start-up has been able to expand from a one-man operation to a highly talented team of over ten. Plus, it has plans to set up an operation in the United States. It’s UK office is currently based in co-working space TechHub Swansea.
Making sure tech clusters continue to flourish
Ensuring that these tech clusters continue to flourish into the future is a matter of continued support and encouragement. Organisations like TechCity UK and TechHub are already doing this, but the general consensus is that more needs to be done to improve the infrastructure of clusters in more rural area.
In Wales, for example, there is a lack of high-speed internet and concrete transport links. The Superfast Cymru project, in partnership with the Welsh Government, aims to roll out fibre optic broadband to 96% of Welsh homes and businesses by 2016, but the UK Government’s ambitious HS2 project won’t benefit Wales at all, in terms of improved transport links.
Images from Shutterstock & Tech Nation
