The UK’s digital tech sector is growing more than two-and-a-half times faster than the rest of the economy, according to findings in the fourth Tech Nation report.
Matt Hancock, Secretary of State for Culture, Media and Sport, spoke at the launch of the new report, which also marked the amalgamation of Tech City UK and Tech North into Tech Nation – a rebrand, he said, that shows the “commitment to being the sort of dynamic organisation that we’ve got used to round here in east London, but also spreading the benefits right across the country as a whole.”
According to the report, between the years of 2016 and 2017, the digital tech sector grew 2.6 times quicker than the rest of the economy, and is now worth £184 billion.
The digital sector also outstripped its non-digital counterpart for the fourth year in a row, and the findings revealed turnover of digital tech companies increased by 4.5% between 2016-17.
Employment opportunities are on the rise in the sector too; this is no surprise given recent information about the surge in job growth and demand in the Artificial Intelligence (AI) sector.
This is reflected in the job opportunities arising in the digital tech sector; according to the figures, tech employment is growing five times faster than the rest of the economy, and last year was also a fruitful one for funding in the sector too, given that British digital tech companies raised almost double in venture capital investment than in the previous year.
And at the launch of the report, Mr Hancock outlined the work Tech Nation is doing for AI, and the government’s ambitions for the future in the industry.
“This year’s report confirms we are well placed to achieve our goal of making the UK the best place in the world to start and grow a digital business.
“It has also been helpful in identifying where our strengths lie. One of those important strengths is in Fintech and AI. We and Tech Nation are doing a huge amount to cultivate AI.”