The UK has been ranked the third most promising market for innovation, disruption and technology breakthroughs that have global impact, behind the US and China, according to KPMG’s 2018 Global Technology Innovation Report.
Around a fifth (19 per cent) of nearly 800 technology industry leaders surveyed globally named the UK as the third most promising market for tech breakthroughs behind China at 26 per cent, and the US at 39 per cent, which was ranked number one for the second year in a row.
The report found that the UK tech sector had another strong year in 2017, with businesses posting robust earnings growth and strong cash flows that have seen continued investment in R&D and acquisitions. The UK sector saw a record level of Venture Capital investment of $4 billion, almost twice the level seen in 2016 and more than the combined investment seen in Germany, France, Spain and Ireland.
“The UK tech sector continues to go from strength to strength, with robust performance by mature tech companies and spectacular investment by VCs in emerging UK tech firms. Innovation from the UK technology industries continue to drive economic value and this year’s survey underscores that point,” said Tudor Aw, head of technology at KPMG in the UK.
Key factors behind the record level of investment in UK tech firms include availability of talent, London’s finance and services industry, multiculturalism, favourable time zone, language, stable legal system, fiscal/tax incentives, a mature ecosystem of advisors and first-class universities (UK institutions taking the top three places in Europe and seven out of the top ten).
Geographically, respondents from the US (38 per cent), China and the UK (37 per cent each), identified revenue growth as the top indicator to measure the value of innovation. Market share and return on investment were second and third.