14th July 2005 The UK is positioned to become a leading nation in the technology sector providing it capitalises on emerging technologies and nurtures its talent, according to a report by business advisory firm Deloitte.
The paper, based on research carried out with over 50 leading figures in the UK’s technology industry, calls for the establishment of more UK-headquartered technology companies to compete with the emerging economies of China and India.
“It is in the country’s interest to have more nationally-domiciled, profitable technology companies delivering intellectual property (IP) based revenues, in addition to creating employment and generating tax receipts,” commented William Touche, technology partner at Deloitte.
“This is particularly important given the on-going reduction in the UK’s manufacturing sector,” he added.
Respondents to the survey felt that there is ‘a degree of mistrust’ between the financial and technology sectors, and that following the dot com crash UK investment in technology companies has been muted. Even with the technology sector, the report claims, a lack of communication is hampering chances of success.
Lord Sainsbury, the UK’s Under Secretary of State for Science and Innovation, said “I would strongly support the recommendation for better collaboration with the sector, improved relationships with the financial sector and the emphasis placed on the important proactive role the government will play in making this happen.”
The report also calls for a more commercial focus of technology education in the UK, and greater funding of research from regional development authorities.
The UK is the fifth largest technology exporter among countries in the Organisation for Economic Co-operation and Development (OECD), and has the highest proportion of employment in the technology sector of any developed country. However, few technology companies based in the UK feature on the London Stock Exchange, and the stock valuation of UK technology companies has fallen 75% from its all time high.