Scots vie with London over IT start-up growth
A technology cluster in Scotland is hot on the heels of London’s digital centre in terms of growth in the number of IT start-ups, says an accountant who’s totted up official figures.
According to Nixon Williams, the volume of IT firms north of the border in ‘Silicon Glen’ has risen over the last five years by 32% (from 4,930 to 6,520), mainly due to diversification.
Meanwhile in London, the accountant says the volume of IT firms in ‘Silicon Roundabout’ is up over the same period by not much more, 38%, albeit from a much bigger base (25,085).
A large pool of talent, funding from government and access to markets were cited as the main pull factors of the UK capital, which since 2009 has become home to almost 35,000 IT firms.
But these London-based start-ups must absorb high costs, whereas “the central belt of Scotland where Silicon Glen is situated has a lower cost base” as one of its major draws.
It also has a host of universities with a solid track record in creating IT start-ups, added Nixon Williams, despite the cluster generally going without the funds or attention that London gets.
“The Scottish electronics manufacturing industry contracted sharply following the collapse of the tech economy in 2000,” the accountant reflected. “However, Silicon Glen has since diversified towards software development and services, and is regaining its status as one of the UK’s most dynamic tech hubs.”
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