Tech incorporations across region up 25%
The number of new technology companies incorporated in the West Midlands increased 25% in 2022, according to analysis of Companies House data by audit, tax and consulting firm RSM UK.
A total of 2,378 tech businesses were incorporated in the West Midlands last year, up from 1,901 the previous year.
Mark Taylor, regional managing partner, RSM West Midlands, said: “It is fantastic to see this continued strong growth in tech incorporations in the West Midlands – reinforcing the increasing significance of the technology sector in the local economy.
“Birmingham has really defined itself as an emerging centre for technology innovation in recent years, with great support from our thriving local university community and facilities such as the Innovation Birmingham Campus, which offers a superb space for an ever-increasing number of start-ups and scale-ups to collaborate and grow. Fintech and healthtech are key parts of the landscape, but it is also great to see future winners emerging in fields such as cyber security, VR and blockchain. The prominence and momentum of Birmingham Tech Week – now the largest regional tech festival and conference in the UK – is also a clear indicator of the city’s expanding role in driving this key part of the economy.”
Nationally, 46,474 tech businesses were incorporated in 2022, up from 38,240 in 2021. The total number of incorporations in 2022 is nearly double the 23,531 companies in 2020, demonstrating sustained growth in new tech incorporations year-on-year.
The data cements tech as an area of huge growth across the UK. All regions in the UK saw an increase compared to 2021, with London being home to the highest number of tech incorporations (24,783). Eight of the ten regions in the UK saw increases on or above 22%.
Ben Bilsland, partner and technology industry senior analyst at RSM UK, said: “Despite the obvious economic challenges, it’s been another strong year for the tech industry. Whilst it is no surprise to see London at the centre of new tech incorporations, growth across all regions outside the capital is further evidence of the UK’s thriving tech industry. There is clearly appetite from entrepreneurs to start up new, innovative businesses and become part of the UK’s booming tech industry.
“This crop of early-stage businesses will need support to scale. Access to funding will be crucial and the UK government will need to ensure that UK tech is an attractive place for both domestic and overseas investment. For many young innovative companies, R&D tax incentives are crucial cash inflows. For many, the recent changes to UK R&D schemes that reduced the amounts small companies can claim were not seen as a positive step towards supporting the early-stage ecosystem.
“Innovation requires a world-class talent pool and UK tech will look to both education and immigration to build their workforces. Support from our universities and schools to build skills in STEM subjects and emergent areas such as Artificial Intelligence will be essential. Clarity over immigration policy will be required to ensure a healthy inflow of tech talent to fuel growing companies.”
