London’s tech sector going from strength to strength

Post date: Feb 02, 2017 10:43:30 AM

London’s tech sector underwent significant growth over the past five years. In fact, individuals who have digital jobs now compose 3.5 per cent of the city’s workforce, the Evening Standard recently reported.

Rise to greatness

A study commissioned by London & Partners and conducted by Oxford Economics revealed the true scale of the growth. Since the Tech City Initiative was launched by London Mayor Boris Johnson and Prime Minister David Cameron five years ago, the capital’s tech sector has dramatically expanded by nearly half (46 per cent), according to the Financial Times. The media outlet noted that the future looks bright, with EY figures placing London at the forefront of international tech investment projects. More than 1,000 such initiatives were based in London between 2005 and 2014, making the city significantly more attractive than its closest rival, Paris, which clocked in at 381 projects, the news source reported.

The London & Partners report went on to reveal that the number of digital tech companies in the capital has risen by more than 12,000 over the past five years to reach an impressive 40,000 – and, what’s more, this uptick is set to continue. In fact, Oxford Economics predicted that more than 50,000 digital tech enterprises will call the city home by the middle of the next decade, which is great news for individuals interested in digital jobs in London.

Unpacking London’s success

These rosy projections prompted Mayor Johnson to declare London “the most important tech hub in Europe” during a speech to open London Technology Week, as quoted by the Financial Times. But what exactly is it that makes the capital so conducive to tech growth?

• • A startup culture: As we noted in a recent article, the fact London has a large concentration of acclaimed institutes of further education and is a hotbed of investment activity makes it the perfect place for startups to set up shop.

  • A startup cultureBig names: Companies like Inmarsat and Shazam, which the Financial Times described as “billion-dollar unicorns,” already have a presence in Tech City. Talk about a great precedent.

  • The appeal of being on the cutting edge: The tech sector is arguably more rife with innovation than any other industry. This makes the prospect of becoming a digital guru seem attractive to younger members of the workforce eager to make their mark, as well as out-of-the-box thinkers of all ages.

  • “With our unrivalled mix of investors, talent and creativity, it is hardly surprising that tech businesses and entrepreneurs are clamouring to be part of the incredible London tech story,” said Johnson in his speech. “This sector has flourished beyond recognition in the last five years, creating thousands of jobs and outpacing the rest of the economy.”

  • The story so far may be impressive, but if the predictions outlined above are anything to go by, there’s a lot left to write.