The importance of the Bristol and Bath area’s tech sector to the local economy has been underlined by a major new report which puts it among the country’s most successful and fastest growing.
While the strength of the industry has been highlighted in previous studies, this week’s Tech Nation 2017 report reveals that it includes a bigger proportion of high-growth businesses than any other part of the UK, including London. 
It also shows that the area’s tech workers are the most productive in the country, generating on average £269,000 every year.
The value of the sector to the Bristol and Bath area is put at £8.1bn – third in the UK behind London and Reading and accounting for one in 20 of all jobs the sector across the country.
Its total contribution to the economy is estimated at £1.7bn in the Tech Nation report, produced by Tech City UK and regarded as the most comprehensive analysis of the UK’s digital economy, with turnover growth up 87% over the past five years – placing it in fourth place in the rankings behind Dundee, London and Sunderland.
The sector employs nearly 35,000 people across Bath and Bristol – placing it in fifth place behind London, Manchester, Reading and Birmingham.
Other findings of the research show that on average 225 new tech firms are launched in the region every year and the average salary in the sector is £47,063. However, that is lower than many other cities or regions in the survey, lagging even Northern cities such as Newcastle and Leeds.
But despite this, workers in Bath and Bristol’s tech sector are happy, according to the report. Some 92% rate their quality of life as good, with 88% saying optimistic about growth in the sector.
The report has been welcomed in the region as confirming -and endorsing - what many already knew.
Invest Bristol and Bath head of inward investment Matt Cross said: “Tech Nation 2017 shows that digital tech businesses are helping power the economic growth of Bristol and Bath, all of which are contributing to the cluster’s global reputation for technological excellence.
“As digitisation of the industry is becoming pervasive across all industry our tech cluster’s reputation continues to expand. Adoption by a diverse range of traditionally non-digital industries such as banking, aerospace and city infrastructure – Smart Cities – will ensure the continued success and growth of this cluster for years to come. The exciting nature of the technologies and applications involved will help inspire a new generation of talent from our leading universities, colleges and schools.”
Nick Sturge, director of Bristol innovation hub Engine Shed added: “We’ve known for some time that the Bristol and Bath region is a growing international hot spot for the tech sector and these stats prove the case.
“We’ve seen a significant upswing of successful start-ups and scale-ups, such as YellowDog, Neighbourly, 5AI and Graphcore as well as established businesses taking root in the area, such as Strava, alongside continued investment and commitment by our four universities.
“The decision by Oracle to base its UK start-up accelerator programme here in Bristol is another strong indicator of the region’s tech strength which we do not see abating but continuing to grow over the next few years. Engine Shed is working with other actors in the local ecosystem to ensure that this growth works for everyone in the Bristol and Bath city-region.”
The main findings from the Tech Nation report will be explored at an event in Bristol next week as part of a Tech City UK nationwide roadshow, which is visiting the country’s tech hubs.
The Bristol gathering takes place at the Watershed media centre on Tuesday from 6pm.
