Yahoo Finance How do we secure London's future as a tech hub? It starts with our people
The London Mayoral Election drawing near presents an opportune moment to direct attention to the future of the capital’s tech ecosystem. London has proven resilient in its ability to weather global headwinds and economic uncertainties over recent years but, as it stands at the crest of a new wave of technological disruption, a renewed focus is needed on how the capital can stay ahead of the rapidly evolving and increasingly digital landscape.
London’s credentials as a tech leader remain very strong. The capital ranks joint second globally in terms of the best start-up ecosystems for tech companies, behind only Silicon Valley. It continues to lead as Europe’s number one tech hub, with London start-ups raising almost as much investment last year as the next three European cities (Paris, Stockholm, and Berlin) combined. In 2023, London companies collectively raised over £10.14b in VC investment, representing a triumphant return to pre-pandemic levels.
However, the advent of emerging technologies such as AI, Chips and Quantum has ignited a reassessment of regulatory frameworks, workforce skills, and ethical considerations, reshaping industries worldwide.
If London is to secure its future as an attractive destination for global players and local start-ups alike, a clear focus must be on reinforcing its strengths and addressing its shortcomings. From nurturing digital talent to improving sector inclusion and connectivity, the next Mayor must prioritise policies that foster innovation and maximise the capital’s tech potential.
Top of the list is revitalising London's digital talent. Investing in upskilling and reskilling programmes will equip the workforce with the necessary skills for the tech-driven economy of the future. Data from the World Economic Forum predicts that just under one quarter of global jobs will change as industries adapt to emerging technologies.
By placing digital literacy at the heart of education, particularly within London’s world-leading universities, the next generation will be prepped and ready to thrive in an environment dominated by the technologies of tomorrow like blockchain, robotics and machine learning. The government’s recent announcement of more than £1bn in funding for students to pursue PhDs in fields such as AI and quantum was a promising step and hopefully signals a longer-term commitment to nurturing the next generation of innovators.
Investing in the UK’s job pipeline will also boost inclusion and encourage diversity within the tech sector. Implementing recruitment programmes that support underrepresented groups, and prioritise organisations paving the way into the tech careers of the future - such as life sciences, artificial intelligence and quantum computing - is essential for the cultivation of a sustainable and adaptable workforce.
A key part of this strategy will also involve connecting London with other domestic and international tech hubs. Facilitating trade missions and exchange programmes will enhance engagement with world-leading ecosystems, enabling a fruitful sharing of best practices and collaboration on a global scale. Leveraging major tech events, such as London Tech Week and London Data Week, will strengthen these connections with investors and start-ups both within and outside of the UK.
To strengthen London’s status as a top listings destination, there should also be a focus on pro-business initiatives that encourage domestic ventures to list, scale, and grow here. This will not only support the UK’s entrepreneurs, allowing access to better funding opportunities and removing bureaucratic hurdles, but will elevate London’s allure as a vibrant and attractive hub for overseas early-stage businesses too.
It will also be important to strike a balance between encouraging innovation and implementing regulatory frameworks so that businesses can safely experiment with emerging technologies, particularly AI. In the process, collaboration with academic and other industry groups which drive research and development must be promoted to ensure London remains dynamic, agile and capable of reacting to the evolving tech landscape.
Ultimately, investing in London’s future means investing in its people. The next Mayor of London has the opportunity to harness the city’s entrepreneurial spirit and its rich local talent to create an unrivalled environment in which innovation can thrive. By nurturing London’s unique strengths and paving the way for future innovation, the next Mayor will ensure the capital retains its shining crown as a tech superpower, continuing to drive innovation and growth for years to come.
Gavin Poole is CEO of Here East. Russ Shaw is founder of Tech London Advocates
