North's tech sector | RBS Invoice Finance

North's tech sector could add £5.7bn to UK economy

Recent figures suggest that blossoming tech companies in the north of England have the potential to add around £5.7 billion to the UK economy every year if they increase their productivity.

A report produced by the Royal Society of Arts (RSA) at the request of Tech North predicted the £5.7 billion figure by extrapolating current data. In the report, the organisation showed that if north of England tech companies reached the national average for productivity, they would easily meet this figure.

The report went on to say that the key to increasing productivity lay in better collaboration between the tech companies of the north and the local industries and public service organisations. According to the study’s authors, there are large markets left untapped by burgeoning tech firms, including education, health, logistics, local government, manufacturing and retail.

Ben Dellot, a senior researcher for the RSA and the report’s lead author, said that healthcare startups based in Leeds should collaborate with the NHS services in the area, while companies working on Internet of Things (IoT) projects in Liverpool should be working alongside local authorities in the city to show the true value of digital technology.

What’s more, the report states that digital businesses in the North of England are creating new jobs at 10 times the rate of other companies in the region. In another boon for the area, the report said that the productivity of workers in the northern tech sector was 53 per cent higher than non-digital workers.

For more news, views and reviews on funding and support for the UK tech sector follow us on @RBSIF.

 

 

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