The UK’s tech industry has seen sustained growth in new tech incorporations year-on-year, according to analysis of Companies House data by RSM UK, with the East of England region leading the charge. The data revealed that the number of new technology companies incorporated in the East of England increased 25% in 2022, with 2,881 tech businesses being incorporated in the region last year, up from 2,306 in 2021. The East of England has a reputation for attracting global talent, with its robust transport links between Cambridge and London, and it is home to some of the largest technology businesses in the country.
All regions in the UK saw an increase compared to 2021, with London being home to the highest number of tech incorporations (24,783). Eight of the ten regions in the UK saw increases on or above 22%. This is evidence of the UK’s thriving tech industry, and it shows that there is an appetite from entrepreneurs to start new, innovative businesses and become part of the UK’s booming tech industry.
R&D tax incentives and access to funding are crucial for young, innovative companies to scale, and the recent changes to UK R&D schemes that reduced the amounts small companies can claim were not seen as a positive step towards supporting the early-stage ecosystem. Innovation requires a world-class talent pool, and UK tech will look to both education and immigration to build their workforces. Support from universities and schools to build skills in STEM subjects and emergent areas such as Artificial Intelligence will be essential. Clarity over immigration policy will be required to ensure a healthy inflow of tech talent to fuel growing companies.
The East of England is an excellent place for technology businesses to start up, with its thriving research parks, incubators, and leading universities. Other locations like Ipswich, Colchester, and Norwich are also excellent tech ecosystems in their own right. Many of the businesses in the region have international appeal, particularly with a large number of HealthTech and DeepTech businesses. It is clear that the region will continue to play a fundamental role in driving the growth and development of the UK tech industry and contribute to the continued success of the UK on the global tech stage.
The East of England’s increase in technology incorporations is a testament to the region’s appeal and robust tech ecosystem. It shows that the UK tech industry is thriving, and there is an appetite for innovative businesses. The government must ensure that UK tech is an attractive place for both domestic and overseas investment, and access to funding and R&D tax incentives are crucial for young companies to scale. The UK must also focus on building a world-class talent pool, with support from universities and schools to build skills in STEM subjects and emergent areas such as Artificial Intelligence. Clarity over immigration policy will be required to ensure a healthy inflow of tech talent to fuel growing companies.
Overall, the East of England’s increase in technology incorporations is an excellent sign for the UK tech industry, and it shows that the country’s tech ecosystem is robust and thriving. The UK must continue to focus on supporting young, innovative companies and building a world-class talent pool to ensure continued success on the global tech stage.
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