New research reveals that Scotland’s technology sector — dubbed Silicon Glen — is almost rivalling London for growth in the number of start-ups.
A report by accountancy group Nixon Williams found that, since the start of the decade, Scotland has outpaced other key UK tech hubs such as the East of England (an area often described as Silicon Fen) and the M4 corridor.
Nixon Williams, which used data obtained from the Office for National Statistics, said that the number of IT
businesses in London rose by almost 39% since 2009, from 25,085 to 34,750, while Scotland saw growth of 32.3%, going from 4,930 to 6,520 high-tech enterprises since 2009.
Wales and the East Midlands saw growth rates of just 7.3% and 8.8% respectively.
According to Nixon Williams, the Scottish electronics manufacturing industry “contracted sharply after the dot-com bubble burst in 2000”.
However, “Silicon Glen has since diversified towards software development and services and is regaining its status as one of the UK’s most dynamic technology hubs.”
Martin Brennan, practice manager with Nixon Williams, said: “The Scottish tech sector took a hammering after the burst of the dot-com bubble in 2000, but it has since diversified away from electronics manufacturing.
“Software development and services now account for a much larger share of Silicon Glen’s output, and they are typically less capital-intensive, so start-ups can often get off the ground with minimal financing.
“Much of the focus in recent years has been on London — specifically the so-called Silicon Roundabout area near Old Street, which has emerged as a centre for digital start-ups — but regions like Scotland are now rivalling London in terms of growth.”