Size & Growth rates:

  • IT, software and computer services is the largest of the creative economy classifications used by the Department of Culture, Media and Sport (DCMS) to measure the “creative economy”. The creative economy comprises the total number of jobs in creative industries as well as creative jobs outside those industries.
  • In terms of employment in 2014, IT, software and computer services, was almost double in size that of the next biggest classification (Advertising and marketing) in the creative industries. IT/software and computer services accounted for an estimated 31.5% of all UK jobs in the creative economy in 2013.
  • The number of jobs in IT, software and computer services within the wider creative economy grew by 16.4% year on year in 2013, with tech jobs within the creative industries specifically increasing by 19.4% during the same period.
  • The IT, software and computer services sector accounted for 43.5% of the Gross Value Added (GVA) of the creative industries in 2014.
  • Between 2008 and 2014, the sector’s GVA rose by an average 5.8%, which was above the average for the creative industries but a slower growth rate than experienced by design (9.7%) and music, the peforming and visual arts (6.5%).

Source:  Creative Industries Economic Estimates, DCMS, January, 2015

 

Northern tech powerhouse

  • The North of England include several tech clusters - Liverpool, Manchester, Sheffield/Rotherham, Leeds, Hull, Sunderland, and the Newcastle & Durham areas - which together produce an estimated £9.9bn of Gross Value Added, and employ approximately 283,500 people.
  • This area has been dubbed a potential 'Digital Powerhouse' if recommended improvements to public-private sector partnerships, procurement, investment and other areas are put in place. The proponents of the 'Powerhouse' idea believe the North's digital businesses could generate a further £5.7bn if tech worker productivity in the North increases in line with the national average.
  • The digital workforce of the North of England has grown by 28 per cent in the last five years and is projected to total 363,000 by 2020.
  • In the last five years, productivity in the North's digital sector has grown by 11.3 per cent (compared to 2.3 per cent in the non-digital sector of the Northern workforce).
  • Prominent sectors represented in the region's tech clusters include the Internet of Things and app development in Liverpool, EdTech and FinTech in Manchester, e-commerce and hardware development in Sheffield/Roterham, e-commerce and app development in Hull, telecommunications and networking and gaming in Sunderland, and social networks and data management in Newcastle/Durham.

Source: The Digital Powerhouse, May 2016.