Northern England must unite to become a global tech powerhouse

Greater collaboration between the regions could be the key to transforming Northern England’s burgeoning tech sector into a global tech powerhouse: that was the united message from business leaders, investors and policymakers from across Northern England who took part in the Northern Tech Summit.

The call to action was made in response to a new report unveiled at the summit by Dealroom that revealed the North of England is a hotbed of tech talent, with the region’s tech ecosystem estimated to be worth nearly $73 billion (approximately £54.2 billion), more than the entire output of both Italy and Norway.

The report revealed that the North of England is leading the way when it comes to commercialising the pioneering work delivered by its universities, with 503 spin-out companies launched during the past 12 months – surpassing both Oxford and Cambridge.

Twenty-five per cent of UK tech startup businesses in advanced manufacturing and engineering were founded in the North during the last 12 months, whilst the region is also bucking the national trend when it comes to investing in deep tech - cutting-edge technologies rooted in scientific research – with the sector recording a 10% growth, compared with an overall decline of 23% across the UK.

Between 2020-26, 91 businesses working in deep tech successfully secured investment, compared with 47 in Scotland and 10 in Wales.

Yet despite the strength of the innovative work being developed by northern entrepreneurs, the report also highlighted a disparity when it came to securing the vital investment needed to scale and grow.

Venture capital invested in northern tech businesses accounted for just 3.7% of investments made across the UK, compared with 71% in London and 12% in Cambridge. Sixty-one per cent of investments made in northern tech businesses came from UK investors, compared with 32% across the UK.

Organised by TECH SY and hosted at Sheffield’s Crucible Theatre, the Northern Tech Summit showcased some of the pioneering work being delivered by northern tech businesses, whilst panel discussions explored some of the barriers holding the region back, particularly when competing internationally.

Collectively, leaders from Yorkshire, the North East and North West, speaking at the conference, called for more action when it came to breaking down investment barriers, the need to work more collaboratively between the regions and an end to the postcode lottery when it comes to unlocking barriers to growth.

During the two-day conference, delegates heard from Oliver Coppard, mayor of South Yorkshire, with keynote speeches delivered by Tom Adeyoola, Innovate UK, Yoram Wijngaarde, co-founder of Dealroom, and Ana Avaliani, the Royal Academy of Engineering, whilst business founders from Yorkshire, the North East and North West shared insights from their experiences of building and scaling businesses in the North.

Tom Adeyoola, Innovate UK, said:

“It’s no coincidence that the North of England was the birthplace of the industrial revolution. Today, the truly innovative and pioneering work being delivered by tech start-ups in Yorkshire, the North East and North West, coupled with the groundbreaking research being delivered in our great northern universities, has the potential to be at the forefront of shaping industries such as advanced manufacturing, robotics and life sciences. Yet all too often this work is hindered by a lack of access to opportunities.

There is less distance between Liverpool and Sheffield than the length of the Elizabeth Line in the South East. Yet all too often regions are forced to compete against each other when it comes to securing access to funding, rather than working collaboratively to break down the barriers that are preventing business ideas developed in the North from achieving their full potential, particularly when it comes to trading globally."

Yoram Wijngaarde, Co-founder, Dealroom, said:

"The report we have published today illustrates the strength, depth and immense opportunity for the northern tech sector. The region as a whole is proving that it can compete effectively on the global stage. Yet the report also indicates that collectively, businesses based in the region often struggle to secure the vital investment needed to start up, scale and break into international markets, with access to funding and venture capital being a major barrier to unlocking those ambitions.

A startup founded in London is five times more likely to secure investment than one based in the North. The data also reveals that at every stage of a company's investment and funding journey, businesses in the North tend to receive smaller amounts of money than those based in London and Cambridge. The value of investment received by businesses in the North is at a level that was seen 11 years ago in London and 5 years ago. Yet what those statistics in our latest report don't show is the truly pioneering and innovative work being undertaken in the region. The North is successfully bucking the UK trend when it comes to investment in deep tech, whilst the pioneering work being delivered in sectors such as advanced manufacturing, life sciences and fintech sectors are creating opportunities within the region. Breaking down barriers to securing investment will place the North at the forefront of the next generation of technological innovation, both nationally and internationally.”

Ana Avaliana, the Royal Society of Engineering, said:

"Let's be clear, the North is not waiting to be rescued. It is home to world-class research that is transforming our relationships with technology. The North lacks connectivity, and events like the Northern Tech Summit illustrate that when we all work collaboratively, it's not just the region that benefits but the whole of the UK economy. All too often deals are viewed on an individual basis, rather than understanding the broader picture, and we need to follow the example set in the US that brings together shared networks, shared intelligence and adopting best practice to build an ecosystem in the North of England that is capable of competing more effectively on the global stage."

Tracey Johnson, Project Director at TECH SY, said:

"The messages delivered by entrepreneurs, investors and those working to support the northern tech infrastructure were clear: if the region is to successfully compete on the global stage, we need to collaborate and build an ecosystem that brings together the wealth of talent and expertise from across the North.

No single city can realise the North's full potential in isolation. Greater collaboration, a stronger collective voice and a shared commitment to championing the innovation taking place across the North will be critical to securing its place on the global technology stage, and I hope that the Northern Tech Summit will mark the beginning of that journey.”