An overview of the strengths of the UK's Tech Sector and the business opportunities for Austrian companies.

1. Techtrends & UK Business
Opportunities
Andrew Elwick
Head of Technologies at DIT

2. UK Tech Headlines
▪ In 2017 UK digital tech investment reached £6.8billion, that’s 50% higher than any other
European country
▪ On networking: in 2017 London hosted 22,000 tech related Meetup events- nearly three times
as many as Berlin, Amsterdam or Paris.
▪ The turnover of UK digital tech businesses reached £170 billion, an increase of £30billion in
just five years
▪ There are now 1.64 million digital tech jobs in the UK, and the digital sector is creating jobs 2X
faster than the non digital sector
▪ Nearly 70% of total UK digital tech investment in 2017
was in regional clusters beyond London. Tech
businesses in these clusters raised more than £4.6 bn
in funding.
UK is a significant market opportunity
for inward investors

3. UK Tech Headlines
▪ UK is Europe’s leading market for software & IT services - est. value £58bn/yr
▪ More than 22m home broadband connections in the UK; and more than 77% of adults have fixed
or mobile broadband.
▪ UK is the biggest e- and m-commerce market in Europe
▪ UK consumers are early adopters, moving from online to mobile, driven by use of cloud
computing, big data analytics and artificial intelligence
▪ Highest number of IPOs & more unicorns created
than anywhere else in Europe
UK is a significant market opportunity
for inward investors

4. UK Tech Strengths
Data Analytics
Artificial Intelligence
Cloud Computing
Data Centres
IoT
Smart Cities
Sensors
Semiconductors
Electronics
Communications
Cyber Security
Fashion Tech
Social Media
Digital Advertising
Digital Marketing
Mobile Content
Film
Games
Animation
AR/VR
FinTech
Blockchain
E-Commerce
M-Commerce
Digital Health
Robotics
Industry 4.0

5. Data Analytics
▪ Estimated that data analytics market will benefit UK economy by £216bn
▪ Well developed Cloud, Data Centre & HPC infrastructure to support Data
analytics
▪ Strong universities: Edinburgh, Warwick, Oxford…R&D supported by all 7
research councils… Open Data Institute… Turing Institute…
▪ UK is location of choice for Data analytics facilities Hitachi (Manchester), Reed-
Elsevier (UCL), Huawei (Imperial), Experian…

6. Cloud Computing
▪ The UK has amazing strengths in every part of the cloud ecosystem. From chip design to world
leading capabilities in artificial intelligence. London’s data centre capacity is globally significant
and is second only in size to North Virginia.
▪ The UK cloud market is estimated to be worth £18.3bn by the end of 2018
▪ The number of UK businesses with a 'cloud-first‘ policy is set to double by 2019
▪ Over four in five (84%) businesses use cloud & UK Govt has a ‘cloud first’ policy

7. Artificial Intelligence (AI)
▪ AI will add £654 billion to UK's economy by 2035 Accenture
▪ UK is one of world’s most prolific sources of successful AI
start-ups: more than 220 AI start-ups & SMEs
▪ Internationally recognised universities (Cambridge, Oxford,
Edinburgh, London…) lie at the heart of key UK AI clusters
▪ £950m AI Sector Deal announced
7

8. Internet of Things (IoT)
▪ More than 30bn devices will be wirelessly connected to IoT by 2020 ABI Research
▪ Global value of IoT sector will exceed £255bn a year by 2020 Arup
▪ UK is well positioned to provide hardware & software with many technology
leading companies (Arm, Neul….)
▪ IoT UK - National programme to accelerate the UK’s IoT capability (part of
Government £40m investment)
▪ Dedicated accelerators & networks - Start-up bootcamp, Cambridge Wireless

9. Sensors
▪ The global market for sensors is increasing with demand being driven through new
applications, in particular IoT
▪ Application areas such as semiconductors, smart healthcare, autonomous vehicles, drones,
smart cities are particularly relevant for the UK…
▪ Allocated c.£30 million of grant funding to sensor research relating to areas such as robotics,
manufacturing technologies, infrastructure/urban systems and clinical technologies
▪ A number of small and larger sensor related companies have achieved successful exits in the
last few years

10. Cyber
▪ Largest, most concentrated and accessible cyber-security market
in Europe
▪ Worth almost £22bn (2015) - up from £17bn in 2014
▪ Government investment £1.9bn over next 5 years: New £13.5m
Cyber Innovation Centre in London
▪ New National Cyber Security Centre
▪ Cyber Exchange Map profiles UK cyber businesses
▪ 13 University Centres of R&D Excellence in Cyber Security:
Royal Holloway, Belfast, Oxford, Bristol, UCL

11. Communications
▪ Mobile subscriptions increased to 91.5 million – of which 39.5 million were 4G.
▪ Total UK telecoms revenue increased by £0.2bn to £37.5bn in 2016
▪ A quarter (26%) watch paid-for VoD services each week – up from 18% of in 2014
▪ £70m 5G Innovation Centre (5GIC) at the University of Surrey
▪ Vibrant clusters in London, Cambridge, Thames Valley, Cardiff, Bristol and
Southampton

12. E-Commerce & Retail Tech
▪ The most international retail market in Europe, with the highest adoption of ecommerce
▪ UK ranks 3rd globally as the biggest e-commerce market place, generating revenues of £150bn
plus
▪ Mobile commerce accrued £28bn worth of sales in 2016
▪ The UK has an established retail technology market making it an ideal eco-system for
companies to pilot & expand innovative new technologies before rolling them other markets

13. AR/VR
• The VR & AR market is expected to grow exponentially over the next four years to a projected
$108Bn by 2021.
▪ UK content producers, advertising agencies and brand communications companies are now
leading VR content innovation, generating huge amounts of IP
▪ The crossover generated by VR / AR technology and creative approaches to traditional
industries and enterprise is a key UK opportunity
▪ A national network of VR hubs across the UK established by Digital Catapult, including
Brighton, Bristol, Manchester and Newcastle.

14. FinTech
▪ The industry is now worth around £7 billion to the economy and employs over 60,000 people
across the country.
▪ Exciting startups, major banks accelerators,network groups, Investment firms and global
technology companies are working to make the UK a leader in FinTech.
▪ Customer uptake of FinTech services is faster in the UK than other markets with a 42% adoption
rate.
▪ The UK has a network of FinTech clusters in all major cities across the country, including
Edinburgh, Manchester, Leeds and Liverpool.
14

15. Blockchain
▪ Along with the US, the UK leads the way for blockchain ecosystems off the back of their
experience of funding and supporting start-up technology hubs. This makes the UK an attractive
environment for early-stage adopters of Blockchain, as well as companies involved in its supply
chain
• Innovate UK have a current programme where businesses can apply for a share of £15 million to
develop technologies to stimulate future products, services and industries
• The UCL Centre for Blockchain Technologies(CBT) is committed to becoming the leading
global research hub with an industry focus on both the impact of Blockchain technologies on
our socio-technical systems and the promotion of a safe and organic development and adoption
of Blockchain-based platforms

16. Austrian Tech Companies in the UK
250+ Austrian companies operating in the UK = approx. 37.000 employees
Examples of Austrian Companies active in the UK Tech Sector:

17. Academic Centres of
Excellence &
Research
Dedicated
accelerators
Innovative
Start-ups & SMEs
Technology funding
opportunities
Wide range of tax
measures &
incentives to support
innovation
Ease of doing
business
Well developed skills
Market opportunities
across many sectors
UK Tech Strengths
Strong communities
(AI, ML, Cyber, IoT,
AR/VR…) and
networks

18. UK is GREAT for Tech
More than 1000 workspaces across UK;
more than 300 in London alone
30 individual digital clusters
– Manchester (media…)
– Bristol (smart cities…)
– Cambridge (artificial intelligence…)
– Edinburgh (data analytics…)
– ….
More than 200 incubators and
160 accelerator programmes
www.technation.io/report2018

19. PM Reaffirms Commitment to UK's World-class Tech Sector
▪ Doubling to 2,000 the number of visas available to the brightest and best talent from
around the world, including in digital technology
▪ An investment of £21 million to expand Tech City UK and Tech North into a nationwide
network – Tech Nation – to accelerate the growth of the digital tech sector across the
country
▪ A new £20 million fund to help public services take advantage of UK expertise in
innovative technologies like Artificial Intelligence
▪ The launch of a £20 million training programme which will challenge thousands of
young people aged between 14 and 18 to test their skills against simulated online cyber
threats

20. DIT Services

21. 21
DIT Offer
Client
Business environment
UK set up
Immigration
Employment law
Bank Account
Sector/Location
Sector/Market overview
Location analysis/ benchmarking
Financial modelling
Sector regulation
Office space
Connections to
Government
Info/Intro Local Partner /
Specialists
Selling to Gov. NHS
Looking to Export
Business Development
Key players or Competitors
Trade associations
Events / Networks
Commercial Partners
Funding/
Incentives
Private funding info
Government Grants
Tax reliefs

22. DIT UK Wide Network
▪ DIT: Over 1200 staff throughout the UK
▪ Supported by local expertise and commercial partnerships:
▪ 38 Local Enterprise Partnerships in England (LEPs)
▪ Scottish and Welsh devolved adminstration support
▪ Access to trusted commercial partners for recruitment,
legal & tax advice, business development activities etc.

23. Case Studies
Company A
• Portuguese company, medium sized, with small UK footprint.
• Developed software solutions for mobile comms companies and had small contract with
Vodafoneth Vodafone. Only one client, needed to diversify client base.
• DIT supported with identifying Universities for mobile comms engineering to source talent to
drive innovation and help business grow.
• Scope broadened; connected with local CC and Uni’s, helped local networking and bus dev
opportunities.
• Skills funding identified and apprenticeships schemes developed.
• Intro’s to 5G (innovation centre in Surrey) ecosystem through tech specialist. Introduction to
Portuguese/Spanish focused bank. Business grew by 40 people due to connections made and
business won.
• Post kept plugging UK market opportunities at senior board level to keep relationship moving.

24. Case Studies
Company B
• Spanish investor/entrepreneur, public sector/health sector solutions provider.
• Wanted to grow into other markets and private sector.
• Market intelligence report request for imaging and radiology market and opportunity in the UK
along with Public sector procurement opps.
• Identified office space, house, school for kids.
• Flagging opportunities for innovate UK, focused networking, NHS, public sector contracts.
• Convinced to attend London Tech Week, introduced to commercial partners who helped
business set up
• Small operation set up; £250,000 investment 4 new jobs
Made a lot of requests but made decisions quickly so we were happy to help

25. Key Contacts
Alex Basker | Investment Attaché | DIT Austria
Tel: +43 (0) 1 716 13 6161
E-mail: alex.basker@mobile.trade.gov.uk
Jan Bruckner | Senior Investment Advisor | DIT Austria
Mobile: +43 (0) 676 569 4089
E-mail: jan.bruckner@mobile.trade.gov.uk
Andrew Elwick | Head of Sector: IT, Electronics &
Communication and Creative | DIT UK
E-mail: andrew.elwick@invest-trade.uk