Earlier this year, Mayor Boris Johnson outlined a bold vision: To make London the technological capital of the world. What will London need to reach that goal? The Bloomberg Technology Summit was established in 2012, to bring together a small, select group of senior business, technology, government, and community leaders for intensive off-the-record conversations, about the growth and development of digital cities and potential areas of collaboration for new initiatives. The Summit works to identify the best practices of cities like New York and London, and to develop lessons that other cities may follow as they seek to grow their technology sectors.
To explore the strengths of the London tech sector and what it will take to reach the next level, the London Tech Week panel examined new research conducted by the Boston Consulting Group and South Mountain Economics into the London tech sector at Bloomberg’s UK Headquarters on the 18th June. The technology sector has launched hundreds of new companies, rejuvenated neighbourhoods, created thousands of jobs: Since 2009, the expanded tech/info sector has accounted for 30 percent of London’s total job gains.
London + surrounding regions tech/info job growth outpacing California (hosted by London Tech Week at Bloomberg)
– Paul Zwillenberg, partner in The Boston Consulting Group’s Technology, Media & Telecommunications practice.
– Michael Mandel, PhD, President, South Mountain Economics
– James Layfield, CEO, Central Working, EO Entrepreneur of the Year 2012
– Sherry Coutu, Entrepreneur, Non-Exec Director, Investor and Advisor to Companies, Universities and Charities
-Moderated by Anna Edwards, Bloomberg TV.
London Technology Week found that London’s technology and information sector — which includes traditional tech companies as well as related media and information companies — employs 382,000 workers, an increase of 11 percent since 2009.
“Tech companies not only create jobs and revenue, they also help other industries stay competitive in the 21st century economy. For global cities like New York and London, a growing economy requires a growing tech industry – and that’s why we worked so hard in New York to attract tech companies and help start-ups put down roots and grow,” said Michael R. Bloomberg. “Having started a tech company before personal computers became popular, and having a major company presence here in London, I’m glad to be working with Boris to support entrepreneurs and add momentum to London’s growth as one of the world’s elite digital cities” — Michael R. Bloomberg.
The economic analysis was performed by Dr. Michael Mandel of South Mountain Economics, LLC and Dr. Jonathan Liebenau of the London School of Economics.
Key findings of the report include:
- The growth of London’s tech/info sector from 2009 to 2013 was more than triple the previous four years.
- London’s share of the combined US-UK tech/info sector has been rising over time, from 5.8 percent in 2000 to 6.8 percent in 2013, driven by conditions outlined below.
- Taken together, London, New York City, and San Francisco accounted for 41 percent of the job growth in the combined US-UK tech info sector between 2009 and 2013.
- London is a major hub for big data. There are an estimated 54,000 big data workers within 25 miles of London, compared to 57,000 for New York City and 98,000 for San Francisco-Silicon Valley.
- London is the world leader in financial technology (fintech). There are an estimated 44,000 fintech workers within 25 miles of London, compared to 43,000 for New York and only 11,000 for San Francisco-Silicon Valley.
- London’s expanded tech/info sector—a broader measure that includes tech, information, professional, and scientific industries—has increased by 15 percent since 2009, compared to an increase of only 8 percent for the rest of the London economy.
- Overall, the expanded tech/info sector has accounted for 30 percent of total London job gains since 2009.
“A technological zeitgeist is sweeping London, and we see every reason for this success to continue. Helping the sector to flourish will be the nub of discussions at the Bloomberg Technology Summit, and I look forward to taking part in what promises to be an absorbing session. The summit takes place at the start of the first ever London Technology Week which is set to illustrate why the capital is now well and truly a world leading digital city,” — said Boris Johnson, the Mayor of London.
London tech sector studies from South Mountain Economics and the Boston Consulting Group are available online here.