Tech industry booming in Britain

The technology sector in Britain has grown 10 times faster than manufacturing, retail and construction since 2010, according to research carried out by KPMG and Markit.

It found that Britain has created 45,000 technology companies over the past five years, more than double the overall rate.

However, such fast growth has had a negative impact on profits; increased competition has driven prices down and for the first time in two-and-a-half-years profits fell during the last three months.

While London has the largest numbers of tech companies, 63 local authorities have reported an increase of more than 10%.

The research has also revealed companies in particular fields clustering together in certain areas.

For example, the West Midlands has a focus on manufacturing electronic equipment for motor vehicles

Tudor Aw, head of technology at KPMG, said, ‘Since the end of the financial crisis, we have seen a UK tech sector that has delivered six years of continuous growth and created jobs at a faster and higher rate than the rest of the UK economy.

‘Incentives for research and development and patents are critical in terms of attracting and encouraging people to work in the sector.

‘But there is also an enthusiasm for entrepreneurship and leveraging technology that we have not seen before.’