The British economy has had its fair share of problems, and each of them has been used as a learning curve for the country to prosper and strive towards its betterment and consistent promotion. In its course, many success stories have also cropped up in the country’s economy. The recent one that has been doing the rounds is the technology industry of the United Kingdom which only a few years ago, was nothing to boast off notably and yet today it all seems very bright. The USA has always been leading the tech market, but there was a time when the UK could only manage to look enviously at their prosperity and hope for some resurgence in their markets. The scenario has changed drastically since then although the USA still leads the tech market; the UK has emerged as one of the most robust tech industry globally with their new generation of entrepreneurs striving to build a promising technology industry that is fully home-grown.
What particularly has changed?
Nobody can deny that the UK had the technological expertise all along and yet they failed to gain a stronghold in the tech markets. That is sole because they failed to apply and develop the technology optimally, be it the banking sector or retail the scenario has been the same. But now the situation has somewhat changed, the standalone businesses make full use of the US created infrastructure and strategically implement them to put their products for sale which is a sign of sharp adaptability leading to the industry’s growth. We do not need to reinvent the wheel to fetch money, all we need to do is implement it in something innovative and useful, that is exactly what the budding industrialists of the country is doing at the moment.
The last decade has been subject to many foreign investments regarding the tech projects that have developed over the time. Investments from Madrid, Dublin, Paris, and Amsterdam have been instrumental in the promotion of the tech industry in the past few years.
How was London instrumental?
Quite remarkably, London played a crucial and instrumental role in the rebirth of UK’s tech industry. Since the last decade, the number of operating company in the digital sector of London has increased by 46%. With almost 200,000 people employed in this area, it has also increased overall employment by 7.8%. In fact, among all the jobs in London, the digital sector accounts up to 3.5 percent of it with the number of digital firms in the city rising to 40,000. These are impressive numbers as per the growth suggests.
The infrastructure supporting the tech industry in London is also well versed. Venture capitalists have grown in number and have been helping tech startups massively. Even outside London such as Cambridge tech startups are gradually increasing which indicates the positive trend in the country. A staggering calculation by GP Bullhound has revealed that in the past year around eight tech businesses in the country has reached the $1 bn valuation mark among which seven are based out of London. These super tech firms are now commonly known as the Unicorn in Europe and among the 40 unicorns currently operating in Europe 17 come from the United Kingdom which includes names such as TransferWise, market, AO, and Rightmove. It must be acknowledged that not all unicorns manage to maintain the status they obtain for a long period. Many fall faster than they rise. Considering that the UK has done well in the tech sector has so many unicorns based in the country. Their performance is commendable.
Having said that complacency is the main reason why many unicorns have faltered from their positions and are now not even considered in their cheap limelight. In case of the unicorns of Britain, they manage to avoid complacency by remaining small and tidy, smaller than Silicon Valley’s third tier firms and way smaller than big tech giants such as Apple. Operating in the USA is still easier than in the UK, but the gap is comprehensively narrowing which has resulted in the success of the country’s tech market.
What about competition?
The US tech market is still way ahead of that of Britain yet one can be assured that it is one of the largest tech industries in Europe. Germany and France do put up real competition in the market, but the fact that winners always cooperate has resulted in the overall progress of the entire tech market of Europe rather than the growth of a singular entity and the downfall of the rest.