Edinburgh among UK leaders for tech pay as sector outstrips economy

Tech Nation 2016 found the digital tech economy has a strong impact on employment nationwide and is creating highly paid job opportunities, accounting for 1.56 million jobs.

The average salary for one of the sector’s workers in the capital last year has estimated at more than £51,000 - behind only London and Reading and Bracknell.

The city also saw the fifth highest growth in digital jobs across the UK’s tech clusters between 2010 and 2014.

More than 21,300 people are now estimated to work in digital tech in the capital.

The overall estimate for tech jobs in Scotland is almost 101,400.

Across the UK, jobs in the digital tech economy grew by 11.2 per cent (2011-2014), almost three times faster than the rest of the economy, according to the study, which gathered data from more than 2,000 respondents from digital businesses across the country.

Researchers also found that the effects of digital tech are being felt well beyond digital companies, with 41 per cent of digital tech jobs (including support jobs) now existing outside sector, within traditionally non-digital industries such as the public sector and financial services.

Productivity in the digital economy is outperforming other parts of the economy, the study showed, with employees within digital tech industries found to be 90 per cent more productive than workers in the economy overall, based on Gross Value Added (GVA) per worker.

The UK’s digital tech industries now have a combined annual turnover of £161 billion.

Tech Nation 2016 estimated digital GVA (Gross Value Added) in Edinburgh last year at £378m - a rise of 58 per cent between 2010 and 2014.

The Tech Nation 2016 report, produced jointly with Nesta, said that Edinburgh’s strengths in academia and software, along with excellent local networks, had “created a stimulating environment” for start-ups to grow.

The city is already home to two billion-dollar tech companies, Skyscanner and Fanduel, as well as leading UK incubator Codebase.

However, the report warned that Edinburgh’s rapid digital growth had led to skills shortages, despite the capital having access to top universities and colleges.

Glasgow, meanwhile, was estimated to have 26,350 tech economy jobs, with an average digital salary of more than £46,850. Its digital GVA was estimated at £480m - a rise of 45 per cent between 2010 and 2014.

Tech Nation said the city had benefited from strong local networks that had created a “talent pipeline” for companies.

The report also found that Dundee - birthplace of iconic games Lemmings and Grand Theft Auto - continued to “punch above its weight”.

At 129 per cent, it had the third highest growth in turnover in the UK between 2010 and 2014, while GVA grew by 42 per cent to £61.4m.

The study found that the strength of the cluster was underpinned by education, with the University of Abertay - the UK’s first centre of excellence for computer games education - and Duncan of Jordanstone College of Art & Design.

The report said: “With a thriving community, great talent, and continued growth, Edinburgh leads as Scotland’s digital tech centre.

“Glasgow’s growing pool of software developers continues to draw major corporates, while Dundee has consolidated its position as a leader in the UK’s games sector.”