The Digital Tech economy

Key findings of the 2016 Tech Nation report show that access to great talent is the biggest potential risk to the UK's digital economy.


Digital technology companies are driving growth and transforming the employment landscape in the UK.   Tech City UK, in collaboration with Nesta, has published a comprehensive report on the nature and health of the UK’s tech industries.

The digital tech sector ranges from app and software development (accounting for 16% of the entire sector), through telecoms and networking (8%) to gaming (1.8%) and healthtech (less than 1%).  The development of regional clusters of expertise is helping drive growth, giving companies access to local networks, talent pools and potential collaborators and partners.

Key findings

  • There are 58,000 active digital tech companies in the UK – 75% based outside of London
  • There are 1.56 million jobs in the digital tech economy
  • 41% of these are with traditional industries
  • Digital tech jobs are growing 2.8 faster than other roles
  • 80% of these roles are based outside of London
  • Digital role salaries are on average 35% higher than other roles
  • 43% of digital entrepreneurs say that problems finding talent is the major challenge to continued growth
  • While 39% say access to finance is their major barrier to growth

The full Tech Nation report can be downloaded here.