Why are digital and technology companies locating in Newcastle upon Tyne
Traditional industry in the North East focussed around coal mining, shipbuilding, steelworks, engineering, and chemical plants.
Today the North East of England is home to numerous thriving software and technology companies, often with headquarters in the region, and businesses that are operating out of London, Europe, United States of America, and the rest of the world.
Sage was established in the Newcastle upon Tyne and continue to have a significant presence in the region, employing over 1,000 highly skilled people. Sage is now an international IT business that provides accountancy and finance software.
Atom Bank is a digital bank which has its headquarters in Durham.
VisualSoft, from Stockton-on-Tees, is a successful eCommerce developer providing solutions for retail businesses online.
Investors such as IBM, Hewlett-Packard, and Accenture have taken advantage of the business opportunities within the North East.
Many of these businesses have grown into world-class enterprises. The region possesses a highly skilled workforce and robust technology capabilities. And a substantial number of local digital and technology companies have experienced rapid turnover growth.
Emerging specialities in these sectors include software development, cloud computing, digital communications, cybersecurity, data analytics, virtual reality, network and systems design, building information modelling, games design, digital marketing and SEO agencies in Newcastle.
Newcastle's digital economy
Newcastle upon Tyne is now the top city in the UK, outside of London, for securing more digital business and attracting some of the best talents. Currently, over half of all digital jobs in the North East are in the area North of the Tyne.
Newcastle’s vibrant digital economy is the second fastest-growing region in the UK for digital and tech jobs, according to the Tech Nation 2017 Report. The region’s software and technology industries are worth around £2 billion.
Politicians recently agreed to invest £10 million in the North of Tyne’s digital economy. This funding will likely attract a further £25 million of private sector investment.
video courtesy of www.northoftyne-ca.gov.uk
These funds will be invested between 2020 and 2023 in small to medium-sized businesses, training hundreds of people in digital skills in this growing sector and potentially generating up to 500 new jobs.
Councillor Forbes, leader of Newcastle City Council, said: “Big data, cloud computing and 5G give us new opportunities to create jobs and grow our economy, that’s why we are looking to make this major investment now.”
Reasons for digital agencies and technology businesses to locate in North East England
The region is home to the fastest-growing technology cluster in the Kingdom, outside of London.
North East England can provide a fantastic range of technical support for new and growing businesses, together with some prime locations to set us businesses.
The Innovation SuperNetwork, the first UK network of its kind, has been created to boost innovation, bring people together, form new industry collaborations and look to new market opportunities.
To accelerate business growth, numerous other networks and support groups are present across the region to provide support, training, networking and investor relations. These include Dynamo North East, the Newcastle Cloud Innovation Centre, Digital Union, Sunderland Software City, the Digital Catapult North East and Tees Valley.
There is a large pool of professionals primed with the specialised skills needed in the technology and digital sectors. Currently, there are over 30,000 skilled workers in these sectors and a further 15,000 in the associated creative industries.
The area possesses outstanding facilities that provide companies and organisations with a dynamic and supportive environment to drive the growth, both nationally and globally.
Transport links, comprising major road, rail and metro networks and international airports, are the key ingredients to success. The North East possesses them all.
Compared to London, the area offers a good quality of life and a lower cost of living. These benefits should enable companies to attract and retain some of the best talents in the digital and technology sectors.
There are five universities in the region, with the main focus being science, technology, engineering and mathematics.
The National Innovation Centre for Data (NICD), based in the Newcastle Helix, Newcastle upon Tyne, is looking for ways to boost the digital economy in the UK.
The NICD believe if we could create a UK version of Google or Facebook, it could provide a boost to the economy to the tune of £40 billion a year.
To achieve this, the NICD plans to link up the best academic talent from universities with private industry and the public sector to solve real-world problems using data following recent advances in IT and digital industry.
The future is looking bright for digital in Newcastle upon Tyne and North East England.