UK Tech Sector Is More Attractive Despite Brexit

KPMG says the UK, and London, will continue to attract tech talent and funding

On the day that Prime Minister Theresa May confirmed she will pull the trigger for Article 50 on 29 March, a new report has suggested the UK remains attractive for the tech industry – even amid the uncertainty surrounding Brexit.

KPMG’s 2017 Global Technology Innovation report says the UK is now the fourth most promising tech market, up from seventh pre-Brexit, behind only the US, China and India

Executives at technology companies, venture capital firms and angel investors are encouraged by the development of Britain’s tech hubs, the products resulting from the industry, and the ability for these technologies to crack developed and emerging markets.

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“The research shows the UK’s technology sector drew more investment than that of any other European country in 2016 and that London is seen as a major hub for big data, fintech and a variety of digital technologies,” said Tudor Aw, head of technology sector at KPMG UK.

“Despite the uncertainty presented by Brexit and other economic factors, the UK and London has not lost its shine when it comes to its technology pedigree.”

London, the home of the UK’s tech sector, was also named as the fifth most promising hub outside of Silicon Valley – behind Shanghai, New York, Tokyo and Beijing. Berlin was rated seventh, meaning London is ahead of the city touted to snare any tech companies leaving the UK in the wake of it leaving the European Union.

KPMG suggests the government’s recent support for the sector, and in particular the funding promised on the Spring Budget, as one of the keys reasons for optimism. This is despite the overwhelming majority of tech firms’ opposition to Brexit in the first place.

“Technology underpins the competiveness and development of almost every sector,” added Aw. “It is a key battleground for most economies and the UK must ensure it is a leader in this field.  The Government’s £2 billion R&D fund for emerging tech, such as artificial intelligence and robotics, is therefore hugely encouraging and will make a real difference to the UK being seen as a tech destination of choice for scientists, entrepreneurs, investors and tech companies.”

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