Government's efforts to boost tech industry will drive growth outside London

The Tech Nation interactive data report said the highest rates of digital employment exist in inner London, Bristol and Bath, Reading and Greater Manchester, emphasising that 74% of digital companies in the UK operate outside London.

The fastest-growing tech clusters in terms of new digital companies since 2010 include Liverpool, inner London, Belfast, Greater Manchester, Bournemouth, Brighton and Hove, South Wales and Bristol and Bath.

It found that clusters with the highest density of digital companies as a proportion of overall companies are Brighton and Hove, inner London, Berkshire, Edinburgh and Cambridge, while clusters with the highest average company turnover are Greater Manchester, Belfast, Sheffield, inner London and South Wales.

Digital job growth is predicted to outperform all other occupation categories by 2020. Some 1.45 million people, or 7.5% of the entire UK workforce, are employed in the digital industries.

Ecommerce businesses account for 6% of technology companies in the UK, with clusters in Bournemouth, Greater Manchester, inner London, Sheffield and South Wales.  

The study reported that 71% of the ecommerce firms surveyed had a revenue increase last year, while 55% had revenue grow by more than 25%.

Prime Minister David Cameron said backing the industries of the future is a key part of its long-term economic plan to support business, create jobs and build a more resilient economy.

“The digital economy has become an integral part of our country and the rapid growth of many digital businesses has confirmed Britain’s position as a global hub of technology excellence. We are committed to supporting the growth of our digital industry nationwide and Tech Nation shows the great innovation and thriving entrepreneurial spirit that is driving the sector forward across the country.”