Southampton

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Last Updated: 4, June 2024

Southampton

  Number of Digital Jobs
  Digital GVA
  Startup Births
  Digital Concentration
  Average Advertised Digital Salary
  Overall Quality of Life

Notable Universities

Notable Companies

Notable Investors

Notable Workspaces

Notable Accelerators

Notable Start-ups

What’s there

(Sometimes) sunny Southampton attracts both tourists and startups.

The cluster is supported by two universities – the University of Southampton and Southampton Solent.

The University of Southampton has 100 companies on campus, and has produced 27 spinouts since 2000. The university supports these businesses through the Future Worlds incubator, the Catalyst programme and the Science Park. The university is also one of the founding members of the SETsquared partnership, and in 2013 launched the Web Science Institute. The institute brings together world-leading experts to tackle the biggest challenges facing the World Wide Web and society.

The city also has excellent international connections – a 2015 FedEx report singled out Southampton as an “export epicentre” with one of the highest export rates of any city: 81 per cent of small businesses in the area trade overseas.

What’s new

The pilot phase of ‘Z21 Innovation Fund’ has has been launched by the Solent LEP and the University of Southampton. Aiming to find and fuel research with real world applications, it will be a useful addition to the local angel network in the area, Angels 5K, which has 60 active investors.

In March, the region’s innovators, entrepreneurs and investors came together at Venturefest South to showcase the latest technology and explore new ideas.

What’s up next

The decommissioned Fawley Power Station will be given a boost, with plans in motion to transform it into a technology, business and residential hub.

  • Tom Barnett

    Co-Founder, Switch Concepts

    What we do

    Switch is an innovator in digital advertising technology. It automates the placing of advertisements in digital magazines, streamlining the process. But, unlike many companies in this field, Switch’s toolkit facilitates a truly ‘parallel’ auction system that allows advertisers to bid for the best positions, while enabling publishers to maximise their advertising revenues. Essentially, Switch is set to revolutionise digital publishing, and this success has been driven by local Southampton talent.

    Why Southampton?

    The resources and talent available in Southampton for technology startups are simply outstanding. I’ve lived in the city for most of my life, but feared that on launching Switch Concepts I might have to relocate to London. I couldn’t have been more wrong. What’s more, Switch has forged an invaluable relationship with Southampton University, a hotbed of digital tech skills and insight, that has proved useful in building our crack tech team. Quite simply, I can’t imagine launching a digital tech business anywhere else.

Economic stats

22,737 Number of Digital Jobs Number of digital jobs – An estimation of employment in the digital tech industries and the digital tech economy. The APS has allowed us to capture digital embeddedness, that is digital experts working in non-digital industries. It also coves freelancers and self-employed workers. (Source: ONS Annual Population Survey)

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1.57 Digital Concentration Digital concentration / Location quotient (LQ) – Indicates the geographic concentration of digital business turnover relative to the UK. A value of one indicates average digital concentration, while a value of greater than one indicates a higher concentration. (Source: BSD)

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£1.1 billion Digital GVA GVA (Gross Value Added) – Average digital GVA between 2013-2015. GVA measures the contribution of each economic unit by estimating the value of an output (goods or services) less the value of inputs used in that output’s production process. (Source: ABS/BSD) .

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10% High Growth Firms High growth businesses – Proportion of digital tech businesses classified as high growth. Refers to businesses with 10 or more employees that are in the top 10% of all companies in terms of growth. (Source BSD, 2015).

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270 Startup Births Startup births – Average number of startup births 2011 – 2015 (Source: BSD)

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33% Turnover Growth
45,633 Average Advertised Digital Salary Average Advertised Digital Salary – Digital tech economy average salary (2016) in each cluster (source: Burning Glass)

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Standard of living

7.61 Life Satisfaction Life satisfaction – Life satisfaction (10 pt scale, ONS data)

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£242,224 Average House Price Average House Price – Semi Detached Average House Price (Land Registry, Dec 2016)

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5.3 Housing Affordability Ratio Housing affordability ratio – House price to salary ratio

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Cost of doing business

21.5 Commercial Rent Per Annum (£ sq/ft) Commercial Rent Per Annum (£ sq/ft) – Prime office rents (JLL< 2016)

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What local startups say is good

61% Overall Quality of Life
48% Tech Sector Growth Potential
44% Talent Supply

What local startups say is a challenge

57% Limited Opportunities to Access Finance
35% Lack of Supply of Highly Skilled Workers
35% Poor Transport Infrastructure
Download more details on survey responses for this cluster