North East tech sector growing fast, research shows
The North East has one of the fastest growing tech sectors in England, according to research from accountancy firm Nixon Williams.
The report found that the number of technology businesses in the North East increased from 9,695 to 10,285 from 2014 to 2015 – a growth of 9.2 per cent. This makes the region’s tech growth second only to London, which saw an increase of 11.7 per cent.
According to Nixon Williams, this growth has resulted in a jobs boom in Newcastle, which is the centre of the region’s tech scene.
Contributing factors include the large number of graduates from the region’s universities, the cheaper cost of living in the region, and business support groups in the area.
A number of initiatives have been set up to support businesses in the North East’s tech sector, including TechNorth and Dynamo, which are both supported by Newcastle-based software company Sage.
Nixon Williams Practice Manager Victoria Kelly said: “The North East has a much lower cost base than London, which makes it a perfect location for a start-up.
“Most start-ups have limited funds but those based in the North East would be able to allocate more cash to product development than an equivalent business in London, which would have to contend with much higher property and staffing costs in the capital.”