Birmingham

By

Emma J

Last Updated: 11, September 2024

Birmingham

  Number of Digital Jobs
  Digital GVA
  High Growth Firms
  Startup Births
  Average Advertised Digital Salary
  Tech Sector Growth Potential

What’s there

Long the centre of the UK’s automotive industry, today’s Birmingham has a skilled workforce, to support the emergence of new technologies such as drones and intelligent buildings.

The arrival of big banks, professional services firms and the planned HS2 rail link, have all accelerated this transformation.

The cluster is bolstered by 18 universities, all within an hour’s drive of the city. Increasingly, graduates are also staying to put down roots, attracted by the affordable quality of life, opportunities and a thriving digital tech ecosystem.

Local networks, such as Silicon Canal and Innovation Birmingham, are instrumental to the cluster’s strength. Support from Finance Birmingham, who provide loan funding and equity finance of between £250,000 and £2 million, continues to drive growth.

What’s new

Last year, 6,016 people moved to Birmingham from London, more than to any other UK city. Part of the city’s attraction is an increasing supply of jobs: Advanced Computer Software Group, for example, announced the creation of 400 more last year.

New workspaces for digital and creative businesses are opening. Such as, Assay Studios which opened in 2016 and is home to Deliveroo, and John Lewis’s new Tech Hub for Innovation.

What’s up next

Alpha Works, a collaborative space aimed at startups, will open its doors later this year.

Meanwhile, HM Revenue & Customs plans to open a regional hub in the city, creating 3,000 more jobs in 2019. Another 1,200 jobs are predicted to come from the return of HSBC’s head office to Birmingham.

  • Richard Westman

    Managing Director, Kaido

    What we do

    Kaido Group Ltd is a pioneering digital tech, health business. We combine artificial intelligence with the actual intelligence of health professionals to turn health data into actionable insights that are useful at both the clinician and patient level.

    Why Birmingham?

    Birmingham’s diverse population, newly established QE Hospital, and world leading health research capabilities make it an attractive life sciences region.

  • John Shermer

    Managing Director, LightwaveRF

    What we do

    LightwaveRF is one of the UK’s fastest growing smart home technology manufacturers, pioneering affordable retrofit lighting, power, energy monitoring and heating solutions. Each of our devices is quick and easy to fit, uses standard connections, and can be controlled via smartphone from anywhere.

    Why Birmingham?

    We benefit from good national and international transport links (we have have a lot of international staff) and being centrally located really helps as we frequently have business in London and installations across the UK. Proximity to the NEC is useful as we attend lots of exhibitions. We have also had close ties with Warwick University in the past.

Economic stats

36,802 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)

0.78 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)

£1.4 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) .

11.40% 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).

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

33% Turnover Growth
43,718 Average Advertised Digital Salary Average Advertised Digital Salary – Digital tech economy average salary (2016) in each cluster (source: Burning Glass)

Standard of living

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

£183,665 Average House Price Average House Price – Semi Detached Average House Price (Land Registry, Dec 2016)

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

Cost of doing business

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

JLL Property Data – Birmingham

What local startups say is good

80% Overall Quality of Life
67% Tech Sector Growth Potential
62% Cost of Living

What local startups say is a challenge

61% Lack of Supply of Highly Skilled Workers
56% Limited Opportunities to Access Finance
43% Low Level Awareness of a Local Digital Industry
Download more details on survey responses for this cluster