A report launched today on the technology sector has revealed that turnover from digital tech businesses in Scotland is approaching £4 billion.
Tech Nation, a scale-up network for UK entrepreneurs, has examined the evolution of the ‘tech ecosystem’ and what underpins growth in the sector.
And, for the first time, the Tech Nation Report explores the wider international landscape for technology businesses.
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The report’s regional focus on Scotland said that turnover from digital tech businesses is currently £3.9 billion. It also found the number of digital tech businesses across the Scotland is 9,000, employment has reached 58,000 and productivity per worker is £68,000.
With cities in the UK competing for scale-up investment on the global stage, the report paired British cities with international peers that showed similar dynamics, or shared investment patterns. It matched Dundee with Buenos Aires and Boulder, Edinburgh with Herzliya and Strasbourg and Glasgow with Sofia and Montreuil.
Looking at the UK as a whole, the report found the tech sector performed well in investment last year. It attracted 5% of global high-tech scale-up investment, placing it fourth in the world, ahead of Germany, France and Sweden.
The UK’s strongest tech sub-sector, and where it currently ranks as number one in the world, is fintech, with investment in UK high-growth fintech firms achieving £4.5 bilion between 2015 and 2018, according to the report.
Commenting in the Tech Nation report Michael Carr, co-founder of GoRoadie in Dundee, an online start-up that matches learner drivers with instructors, said: “Dundee has a history of innovation.
“Today, there is a real buzz in this city which is now known as the heart of video games, medical research and technology innovation.”
Calum Forsyth, founder and CEO of Seed Haus investment company in Edinburgh, said he welcomed the effort establish the city as the "data capital of Europe".
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Michael Hayes, founder of Roookie Oven, a space for start-ups in Govan, and software development firm Add Jam, said Glasgow is creating innovation zones that will touch all aspects of tech, such as fintech and medtech.
Scottish Secretary David Mundell said the report shows Scottish expertise – backed by UK Government funding - provides the perfect environment for companies to flourish.
He added: “We are at the forefront in pushing the boundaries in areas such as artificial intelligence, big data, cyber security, fintech and gaming and the UK Government will continue to champion the digital tech sector and support its growth.”
