SCOTLAND’s “booming” digital technology sector is one of the strongest in the UK according to a study which found Glasgow and Edinburgh now have equal standing in what is seen as a key growth market.
The findings of the Tech Nation report underline the value of the digital economy to Scotland which is described as one of the jewels in the crown in the UK’s tech sector.
The study found businesses working in areas ranging from computer gaming to satellite production in Scotland generated £3.9 billion revenues in total last year- up around five per cent on 2016.
Read more: Scotland's cities face fierce competition for UK's technology crown
With the numbers employed in the sector increasing by eight per cent annually to 48,500, digital technology firms are playing a vital role in creating high value jobs in Scotland.
The study highlights the importance of Glasgow, Edinburgh and Dundee as tech hubs and the part played by the cities’ universities in stimulating activity.
Tech Nation said all three cities had seen sharp increases in business births.
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However, the report suggests Glasgow has been gaining ground on Edinburgh.
“Glasgow used to play second fiddle to Edinburgh, but no longer, Glasgow’s lower saturation and cost of living have now placed it firmly on the digital tech map,” it states.
The Tech Nation report will be studied with interest as the UK’s cities jockey for position in a sector that is growing rapidly as technology transforms the lives of consumers and the operations of businesses around the world.
The UK Government-backed Tech Nation identifies 30 clusters in the UK stretching from Dundee to Truro and Redruth in Cornwall.
Tech Nation chief executive Gerard Grech said: “Scotland is one of the jewels in the crown in the UK’s tech sector.”
He said the strength of the sector was reflected in the success of companies developed in the country such as the FanDuel fantasy sports business and Skyscanner flight search firm. Both achieved $1bn valuations.
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“It is great to see that Scotland’s strengths in Artificial Intelligence and in data science are helping to bring forward many new startups,” added Mr Grech.
The optimistic view was endorsed by investors in the tech sector and entrepreneurs in Scotland.
Sandy McKinnon of the Pentech Ventures investment business said Scotland’s technology sector is maturing fast with some great companies based in the country.
“As investors we think the talent here measures up to that which we are seeing throughout Europe,” he noted.
Cally Russell of Edinburgh-based shopping app firm Mallzee and Michael Hayes of Glagow co-working space RookieOven noted the depth of talent available in the cities.
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Tech Nation found Glasgow, Edinburgh and Dundee contributed £2.4bn, or three-fifths, of Scotland’s total digital tech turnover.
Glasgow and Edinburgh both contributed around £1.1bn. Dundee firms generated £0.2bn sales.
The report says Glasgow is awash with data science activity, startups continue to engage with, and solve, procurement challenges and space tech is taking off.
It describes the Codebase facility in Edinburgh as the UK’s largest tech incubator and notes the city’s universities are furthering its ambition to become the data capital of Europe.
Creativity and innovation thrive in Dundee with renowned computer science and gaming courses at the University of Dundee and Abertay University encouraging the development of technology firms.
Tech Nation was launched in April to help accelerate the growth of the digital tech sector across the UK. The organisation provides support and training for entrepreneurs and campaigns on behalf of the sector.
The organisation reckons the 2018 Tech Nation report is the most comprehensive guide to the UK's digital tech ecosystem to date. It draws on information gathered by the Office for National Statistics.
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