Digital and tech industries grow their stand in a global trade race

posted by 1 month ago in News
Digital and tech industries grow their stand in a global trade race

SMEs within the digital and tech sector have seen an international trade increase of more than 20% according to research conducted by the Department for Digital, Culture, Media and Sport (DCMS).

The figures which were released during the first week of June 2018 found that businesses amongst the UK digital and tech sector have exported over £39bn from their services during 2016, compared to £32bn in 2015. The growth of 21.8% highlights the level of opportunities the UK will receive within future trading which joins with new cutting-edge technology.

The businesses within the sector are exporting goods such as software, manufactured electronics and computers – the research revealed that these sales are up by 7.3% which are worth more than £15bn.

The latest Tech Nations 2018 report found that the tech sector is currently growing 2.6 times faster than the rest of the economy within the UK. The sector is worth almost £184bn which is up from £170bn in 2016.

Matt Hancock, the Digital Secretary emphasised just how much the UK tech sector is currently in demand from businesses to consumers across the globe, in fact exports are up by a fifth. “We are working hard to create the right environment for them to thrive and alongside the huge innovation of the private sector are determined to seize all the future opportunities technology will bring.”

The Tech Nation 2018 report also shared that they have seen a rise in ‘silicon suburbs’ and tech towns within the UK – where the digital sector is growing it is more likely found in urban areas and not likely to be associated with start-ups.

The UK government is supporting the digital and tech industry via the Digital and Industrial Strategies, in fact near enough £1bn worth of investment in artificial intelligence (AI), tax relief plus a spend of 2.4% of GDP on research and development.

Although, the Confederation of British Industry (CBI) have recently requested from the government that they invest 3% of GDP on R&D in preparation of economic struggles post-Brexit.

From the report;

“More and more, countries are increasing their focus on science and innovation and the balance of power is shifting east. At the same time, unless addressed, the UK’s exit from the EU could leave our businesses and universities unable to access the funding and collaborative networks of which they have been a leading recipient and contributor, damaging our influence overseas.”