New Report Released at Bloomberg Technology Summit Shows London is a Booming Digital City

LONDON, June 16, 2014 /PRNewswire-USNewswire/ -- A new study published today at the start of 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.

The report, "London: Digital City on the Rise," was released today in conjunction with the London session of the Bloomberg Technology Summit, which will be jointly hosted by Michael R. Bloomberg and London Mayor Boris Johnson, today in London. The event will bring together more than 30 leaders in technology and business, including: Joanna Shields from Tech City UK, Baroness Martha Lane Fox from Founders Forum, Sir Tim Berners-Lee from MIT, Sarah Wood from Unruly, Azmat Yusuf from CityMapper, Professor Sir Rick Trainor from Kings College London, Herman Hauser from Amadeus Capital, and Clare Sutcliffe from Code Club.

Results of the report show that there are more people working in the technology and information (tech/info) sector in London and the surrounding regions than in all of California. Even accounting for the rapid growth of San Francisco, London and Southeast England now support approximately 744,000 tech/info jobs compared to 692,000 in California. 

"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."

"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.

The economic analysis was performed by Dr. Michael Mandel of South Mountain Economics, LLC and Dr. Jonathan Liebenau of the London School of Economics. Other 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.

London's Tech Boom Fueled by Five Key Elements:
This growth was fueled by five key conditions according to a companion study prepared by Boston Consulting Group (BCG) which conducted interviews with more than 30 leaders from London's technology, government, business, and education sectors. BCG found that London has been able to grow its tech sector through developing five key conditions: growing a strong talent pipeline, supporting a vibrant tech community, leveraging local early stage capital, expanding tech infrastructure and office space, and coordinating government support.

One example of the collaboration and support driving the industry's growth is the Tech City UK initiative, jointly launched in 2010 by London Mayor Boris Johnson and Prime Minister Cameron, which has boosted the profile of London's East End tech cluster and provided startups with vital training, funding, and logistical support. Similarly, projects like the Here East facility at the former Olympic Park and the expansion of apprenticeship programs have contributed to making London the leading digital city in Europe.

"It has been a remarkable experience to watch London's tech sector grow and transform over the past decade. In the years since we launched Unruly, London has become a global magnet for tech and a hub for new startups from the UK, Europe, and around the world," said Sarah Wood, Co-founder and COO of Unruly.

The London tech sector studies from South Mountain Economics and the Boston Consulting Group are available online here: http://mikebloomberg.com/files/London-Digital-City-On-The-Rise.PDF and http://mikebloomberg.com/files/Building-Digital-City-London.PDF

About the Bloomberg Technology Summit
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. Previous sessions of the Summit have been held in New York City in October 2012 and September 2013.

Contact
Meghan Womack 1-212-205-0176, [email protected]

SOURCE Bloomberg Technology Summit