Tech Growth Throughout the UK

The tech sector is seeing rapid growth worldwide and isn’t expected to slow down anytime soon. As a smaller market, the UK was never a major power player in the tech field. Additionally, a lack of funding prevented many companies from conducting research and development. However, recent support for innovation has brought the UK to the top.

The UK’s meteoric rise in tech has now ranked it third in the world in AI research and development, behind global superpowers the US and China. Nationally, the increase in technology companies has boosted the economy.

Where did the UK’s technological growth come from? What makes it notable? These are some of the factors that have positioned the UK as a leader in technology over the past ten years.

• Investment: In recent years, venture capitalists have invested tens of billions of pounds in the technology sector. The government has also funded science and technology research and development.
• Research & Development: Government entities, such as UK Research and Innovation and Innovate UK, support for research and development financially and by helping startups grow as businesses.
• Increase in Startups: Over the past decade, the number of UK tech startups has significantly risen. Innovation hubs that provide workspaces, resources, and collaboration opportunities to new companies help ensure their success.

Investment benefits tech companies and the UK as a whole.

Private equity and government programs are essential to maintaining the progress made in the industry.

• Government Support: Many businesses qualify for tax incentives, grants and favourable government regulations. The UK’s Department for Science, Technology and Innovation committed £3.5 billion to science and technology in 2023, to be dispersed over the next ten years.
• Favourable Policies Attract Businesses: Incentives such as the one listed above also serve to attract companies to base their design and manufacturing in the UK. Large companies that establish themselves in the UK through offices and production sites contribute hundreds of millions of pounds to the economy. The UK’s policies regarding businesses benefit companies of all sizes, from small startups to global names.

Many new jobs result from business establishment and growth in the UK. Not only people with business and engineering degrees benefit from job creation. As tech development increases, so does domestic manufacturing.  Workers of all skill levels now have more jobs available to them as companies reshore their manufacturing or open local sites.

Companies must focus on technology research and development to continue growing the industry. In the UK, research and development is supported by the government, private equity, and collaboration. Innovation hubs, such as thebeyond, give startups tools for success.

• UK Research and Innovation: This department is the UK’s national agency for funding research in science and technology. SMEs in the UK qualify for research and development tax reliefs, and eligible companies can receive £27 from HMRC for every £100 spent on research and development.
• Benefits of Funding Research and Development: Funding research and development keeps the UK on the front edge of the tech industry. Now known for its advances in AI, the UK is also a leader in net zero, MedTech, quantum, and more.

When it comes to startups, the UK is fourth in the world in terms of the number of unicorns it has, which are startup businesses with valuations over $1 billion. The creation of startups alone is not enough to position a country as a leader in technology, but the success of startups is. Success leads to further investment by the government and private equity because they see that an investment in the field is worthwhile and could have significant results.

The Biggest Areas of Technological Growth in the UK

AI is the tech area seeing the most growth, with a 700% increase in Google searches from 2022 to 2023. However, many other sectors are also on the rise.

The UK has committed to reach net zero by 2050. The Net Zero Strategy plans for the UK to increase offshore wind production and implement a smart and flexible energy system. Having established itself as a leader in sustainability policy, with the rest of the planet trending that way as well, companies are investing more in renewable energy and energy-saving design.

In the wake of the COVID-19 pandemic, the MedTech industry is steadily growing each year. Wideblue, one of our Scotland-based companies, are experts in optical design, which they have applied to various MedTech devices for our partners.

In 2023, the UK government released its National Quantum Strategy, which creates a plan for making the UK a leader in quantum technologies over a 10-year period. The strategy’s mission intersects with MedTech, as it aims to improve outcomes for patients with chronic conditions and deliver the next generation of drugs. Quantum technology can also elevate sensors, climate modelling, magnetometers, and many other areas of technology.

Many more tech fields are on the rise in the UK thanks to the government’s commitment to science and technology and companies’ commitment to developing tech that aligns with government goals. The tech landscape is ever-changing, meaning there will always be a need to design and redesign new products. As long as private and public funding and support continue, there is no end in sight for the growth of the tech sector and tech development in the UK.

Breaking Through the Industry

Companies may also choose to work with a product development or manufacturing partner to get their product off the ground. Having a partner who knows the industry and already has systems in place to efficiently bring a product to market can be the difference between getting stuck in the planning stage and success.

Pivot UK is the European headquarters for Pivot International, Pivot A2E, and Wideblue. Our global teams of engineers work together to design and develop technology that brings our partners’ ideas to life. By utilising our manufacturing facilities throughout Europe, Asia, and North America, we provide our partners with scalable production at various locations to accommodate their budgets. To learn more, contact us today.