Move over Tech City, 'Silicon Glen' is here - study

Scottish tech start-ups on the rise, new study finds

London's Silicon Roundabout is facing stiff competition from a new regional tech hub - Scotland's "Silicon Glen" - according to a new study.

Accountancy firm Nixon Williams, which analysed data from the Office of National Statistics, said the Scottish technology sector is rivalling London's Tech City when it comes to the growth rate for technology start-ups.

From 2009 to 2014, the number of IT businesses in London jumped 38.5 per cent to 34,750, but Scotland was hot on the capital's heels as its growth rate hit 32.3 per cent, taking its total number of tech start-ups over the period to 6,520.

Scotland was the second-fastest-growing region in the UK in terms of new tech firms, with Northern Ireland and the south west coming in third and fourth place respectively. Wales had the slowest growth in the number of tech start-ups over the five years.

Martin Brennan, practice manager at Nixon Williams, said: "The Scottish tech sector took a hammering after the dot-com bubble burst, but has since diversified away from electronics manufacturing.

"Software development and services now account for a much larger share of Silicon Glen's output, and are typically less capital intensive, meaning that start-ups can often get off the ground with minimal financing."

Brennan admitted that London was a popular choice for emerging companies but said Scotland has some unique benefits.

"The advantage London has is access to markets and a large pool of talent, but the cost of doing business in the capital is significantly higher than most other UK regions," he said.

"By contrast, the central belt of Scotland where Silicon Glen is situated has a lower cost base and is home to a large number of universities, which have a proven track record of spinning out tech start-ups."

Scotland is home to a number of channel firms, with the likes of Trustmarque and MTI having branches in the region. Reseller Softcat is also eyeing up a move to the region in the coming months.