Deputy PM launches new tech hub for the North

THE deputy prime minister has launched TechNorth – bringing the pockets of excellence in tech industries from across the North together to form an internationally renowned virtual hub.

Today, Nick Clegg will visit a tech hub in Sheffield to announce the creation of TechNorth, which will be an agency set up to co-ordinate the existing digital technology expertise of Manchester, Leeds, Sheffield, Liverpool and Newcastle.

It aims to do what TechCity has done for East London – put TechNorth on the international map. 

Clegg said: “We’ve listened to local business leaders and there is a clear need for us to seize an opportunity to capitalise on existing tech talent by creating a Northern Tech Hub to rival Berlin, New York, or Shanghai.

“My ambition, over time, is to double the number of tech jobs in the North, creating a stronger economy. To put this in context – it is estimated there are about 200,000 ICT jobs in the region currently.

“Time is of the essence, so I’m in Sheffield today to bring creative minds from across the North together so that we can grow this from an idea into reality.

“As a first step, I am announcing the creation of TechNorth, an agency tasked with promoting a world-class tech cluster spanning five cities in the North.”

TechNorth aims to help to attract tech inward investors to the North and support existing tech businesses to grow by pooling ideas and resources, across local boundaries.

Plans will involve up-skilling and inspiring a tech-savvy workforce and working with start-ups to help them access the funding capital they need.

It is estimated that collectively, Manchester, Leeds, Sheffield, Liverpool and Newcastle have more than 20,000 businesses in the tech, media, and telecoms industries.

Leeds has an estimated 6,000 businesses employing more than 35,000 people in digital and creative industries. The city is strong in software development, electronic publishing and computer games, with Rockstar Leeds developing the best-selling Grand Theft Auto series.

In Sheffield, digital industries are responsible for an estimated two-fifths of employment in the city. Companies such as Sumo Digital, which is an independent game development studio, currently employs more than 170 development staff.

Clegg said that there’s a growing body of evidence which suggests that, to compete with San Francisco, Shanghai, Bangalore, Berlin and London, a cluster needs to get to a point of critical mass; internationally renowned.

“We could get to this critical mass by attracting large inward investors which would have a magnetising effect to attract spin off businesses and support supply chains,” he said.

In its survey of US CEOs, KPMG estimates that the UK should be third in terms of tech revenue growth for next year, after US and China.

The announcement is part of Clegg’s Northern Futures project, which was launched in July. The aim is to facilitate a more open and innovative approach to economic policy making in the North of England by inviting experts and other members of the public to share their ideas on challenges and solutions.

Clegg said: “So the question for my Northern Futures consultation is…how do we make sure all this opportunity to flex our tech muscle doesn’t just go to London, or worse – across the pond to American firms?

“Today I’m proposing we press ahead with an idea that’s been submitted to Northern Futures – to create a world-class tech cluster in the North.

“As a first step, I can confirm Government will be investing in an organisation that promotes TechNorth internationally to encourage global businesses to invest here.

“Alongside this, TechNorth will look at the case for investment in digital skills to ensure these companies have a local pool of talented people and have access to the finance they need to grow.”

The problems the TechHub aims to solve include:

 – Identity crisis: The growth of many tech clusters in the North, each fighting for attention on the global stage, individually not adding up to much but collectively strong.

– Brain drain: More than half the tech graduates from Yorkshire and the Humber leave the North. More opportunities for highly-skilled tech jobs in the North should help create a virtuous circle of retaining more talent which then could attract more firms to the region and so on.