Punching above its weight: Tech Nation report highlights strength of UK Tech on the global stage

On 14 May 2019, Tech Nation published its Annual Tech National Report, setting out the 'state of the nation on tech'. The report makes it clear that the UK is a 'critical hub' in the global technology ecosystem and a strong economic performer. In particular, the report provides a number of key statistics on the UK tech sector and offers a number of recommendations on how the UK can continue to operate as a global hub for tech entrepreneurs.

Tech Nation was launched in 2011 by then Prime Minister David Cameron. Its objective is to act as a network for tech entrepreneurs and to assist start-ups in bringing tech talent to the UK. It receives 80% of its funding from the Department for Digital, Culture, Media, and Sport and the rest from private sponsorship.

Launching the report in Kings Cross, the Secretary of State for Digital, Culture, Media, and Sport, Rt Hon Jeremy Wright MP, said "This report shows that our digital economy is leading the way in Europe too. This report is a worthwhile reminder of how far we have come. And it makes a number of interesting recommendation which we will study with interest."

In particular, the report highlights that:

• in 2018, total venture capital investment in UK tech topped £6bn, more than any other European country;
• the UK also remains a global hub for attracting the best tech talent. 5% of all high-growth tech workers globally are employed in the UK, which places the UK ahead of Japan, France, and India in this regard;
• 35% of Europe and Israel's tech unicorns, valued at £1bn, have been created in the UK;
• investment in artifical intelligence grew almost six-fold from 2016 to 2018;
• globally, SaaS scaleups received the highest levels of investment out of all tech areas in 2018 at just under £50bn; and
• the UK is a global leader in fintech, where investment in high-growth fintech firms was valued at £4.5bn between 2015 and 2018.

The report also offers a number of recommendations on how the UK can continue to operate as a global hub for tech. In particular, it states that "We have a responsibility to make the UK the best, and easiest place for global investors, companies and people to locate here, or plug into the vibrant ecosystem across our towns and cities." The report also recommends that the UK Government champion people working in digital companies and future tech leaders.

Writing the foreword for the report, the Prime Minister, Rt Hon Theresa May MP, said 'The UK is a global tech powerhouse. I am immensely proud of our country’s ambitious tech scaleups. These companies are delivering significant economic value to the nation through the investment they raise, the jobs they create and the innovative products and services they deliver. Not only does the digital tech sector make an essential contribution to the UK economy, it positions our nation as an innovative leader.'

Perhaps the elephant in the room, but the report makes no reference to Brexit or the specific challenges the tech industry may face if the UK were to leave the European Union. Unsurprisingly, the messaging from the report suggests the UK remains firmly "open for business" in respect of technology development and investment.