Tech hubs across the UK are undergoing a major shake-up as a “new breed” of tech cities leapfrog older, more established digital hotspots.
According to research by economic index Evaluate|Locate, regional cities are giving London a run for its money like never before in the race to become the UK’s biggest tech hub.
Comparing the number of tech firms in each hotspot in May 2022 compared to May 2012, it is clear to see where the new major pools of tech talent are heading.
Leeds (pictured) has emerged as one of the biggest movers up the league table, making it the UK’s third tech city after London and Birmingham. Now home to 1,706 tech firms, it has leapfrogged Edinburgh and almost rivals Birmingham for the second spot. Both Leeds and Edinburgh have seen growth over the past decade but the former’s 48% leap is double that of the latter’s 24%.
Another big mover is Leicester, which has overtaken Bristol to nab fifth place on the league with 1,520 tech firms.
London still boasts a strong lead and growth, with 46,188 tech companies active in the capital – up by 58% in a decade. But more than two-thirds (71%) of the UK’s tech companies are now based outside the capital.
Adam Kirby, head of data & insights at Evaluate|Locate, said: “Tech cities seem to both benefit and suffer from the same mystique and rumour of tech companies themselves – with the best-known not always the most innovative and the up-and-coming often remaining under the radar for a surprising length of time.
“Leeds, Leicester and Glasgow are accelerating up these rankings by beating even the rapid growth of tech companies in other key cities. That’s an impressive feat given the speed of the pack.
“Tech cities in this leaderboard tend to see higher overall earnings for their workforce and residents, suffer lower unemployment and are home to a higher-than-average ratio of working-age people. Some of these factors are likely ‘pull factors’ that cause tech firms to gravitate to a city, while others are more clearly linked to the positive benefits of hosting tech jobs and associated spending in the wider local economy.
“Leicester is something of an especially exciting exception as a rising tech hub. The East Midlands city doesn’t have the same co-dominance of media or finance firms that we see in other tech cities – nor does it yet have wages that far surpass its region. This could bode well if Leicester is able to keep up momentum, retain its tech talent and further funnel its technology-leader status into broader economic growth in a difficult climate.”
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