New research released by Barclays Eagle Labs highlights Edinburgh, Manchester, and Bristol as leading clusters for high-growth companies outside of London. This study, part of the Tech in the UK 2024 report, explores how these regions contribute to their local economies through the Gross Value Added (GVA) metric. The report indicates that areas with over 100 high-growth companies boast a significantly higher average GVA per business compared to areas with fewer such companies.
Manchester demonstrates a notable impact, with its high-growth businesses contributing £30 billion to the local economy in 2022. Edinburgh hosts over 450 high-growth tech companies, with Scottish Enterprise facilitating the commercialisation of research. In Bristol, collaborative efforts among universities have led to increased investments, notably in the deeptech cluster known as "Silicon Gorge."
While higher numbers of businesses do not always equate to more significant economic impact, as exemplified by Cambridge and Leeds, continued investments in diverse economic hubs, especially in the North, remain a focus. Cambridge's businesses show substantial economic impacts per expenditure, and investments in the region last year exceeded half a billion pounds. By contrast, Leeds contributed higher economic impact due to its broader industrial base, despite receiving less investment.
The research underscores the necessity for high-growth companies to have access to finance, with 68% of these companies aware of the relevant financial options. Barclays has committed £22 billion through its Business Prosperity Fund, providing tailored financial solutions and support beyond capital.
Hannah Bernard, Head of Business Banking at Barclays, emphasized the economic potential these tech companies hold, stating, “Investing in and growing tech businesses has masses of economic potential for the UK...” Meanwhile, Technology Minister Baroness Jones highlighted the role of regional tech hubs, noting, “As this research shows our world-class universities and pioneering entrepreneurs are driving this progress..."