The UK economy is finally showing signs of recovery, with growth reported across many areas. Whilst some industries, such as manufacturing, are still in a state of decline, financial services, recruitment and marketing are all showing signs of improvement. One of the biggest domestic growth areas is the technology industry,with an estimated 8% of the UK’s GDP coming from digital sources.
This significant proportion is a key factor in the economic upturn of the last couple of years.
A Growth Industry
The relationship between economic recovery and the technology industry is a complex one. In times of recession, investment in new technology and computing systems is naturally not a priority for many firms. However, implementing new systems and investing in innovative technology can actually prove to be extremely beneficial, streamlining processes and directly affecting financial performance. As the UK economy shows signs of recovery, firms are more willing to make the necessary investment not only to grow their business, but to allow them to succeed in an increasingly competitive marketplace and meet their customers’ high expectations. Companies that can provide these services to others are among those experiencing the highest levels of growth. As countries move towards more client-focused industries that maximise convenience for consumers, those innovative firms with life-enhancing digital solutions will be in the strongest position to aid recovery.
UKs Answer to Silicon Valley
Much of the new business generation is due to the UKs increasing global presence as a technology hub. No longer the preserve of Californias Silicon Valley, some of the most exciting technological innovations are being developed in the UK, with London at the forefront of this. In fact, there are so many new technology start-ups that the Old Street roundabout has been nicknamed Londons very own Silicon Roundabout. It is estimated that last year saw around 15,000 new businesses launched in Tech City, demonstrating East Londons favourability as a location for digital commercial ventures. From taxi-booking service Hailo to data-analytics provider Geckoboard, there is a wealth of new companies with fresh ideas that have the potential to transform how we work, shop and live.
East London Regeneration
This part of London is an area that has seen massive change in the last few decades. Whilst central London may still be the location of choice for banking and legal firms, in part due to this areas rich history and ancient traditions, other industries are seeking new strongholds. Digital and media firms are among those who have embraced the regeneration of Londons East End and seen it as an area of opportunity with much to offer. The London 2012 Olympics have creating a lasting legacy, not just in terms of sporting facilities, but also for entrepreneurs who view this as a vibrant up-and-coming area. Good transport links and plenty of amenities make this part of the capital an attractive proposition. Consequently, when it comes to office space EC3 is a very popular choice, as businesses view here and the surrounding area as ideal locations.
The UK recovery has been boosted by the wealth of new technology companies that have started up in Londons Tech City. With the capital fast gaining a global reputation as a hub for innovation, it is hoped this trend will continue.