Cementing the UK as a tech superpower

Khalid Talukder at DKK Partners argues that well thought out regulations, support for smaller businesses, and a strategy to attract talent will all be essential if the UK is to thrive as a technology superpower

 

The UK has its sights set on retaining its position as a tech superpower highlighted by The Prime Minister and Technology Secretary’s announcement, revealing a £370 million fund to boost investment in innovation and cement their position by 2030.

 

The plan hopes to strengthen the UK’s dominant position and become a world class breeding ground for emerging technologies. Currently, the UK has the largest tech sector in Europe, following in third place globally behind the US and China and their priorities are now geared towards building upon this.

 

Technology and innovation act as huge growth drivers which will be key in supporting the UK’s overall mission of growing the economy and achieving stability. There are many avenues for technology to grow, offering opportunities in the rapidly growing FinTech industry, developing AI and automation, enhancing cyber­-security protections as well as the vast amount of other growing forms of tech.

 

International trade and building relationships with other nations across the world will play an important part in cementing the strong position the UK holds. For this to be possible, the government must support growing businesses and SME’s who act as drivers of innovation and the backbone of our economy.

 

The UK should focus on becoming technologically appealing, showcasing itself as the place to be when developing new technologies, offering expert skill that can drive innovation while acting as an active and open marketplace to do trade.

 

Relationships and regulations

For the UK to retain its position as a technological superpower and strengthen the sector further, building upon relationships and collaborating with other nations will act as a key and vital step.

 

Ensuring the UK is seen as a desirable place to do business is essential and this means keeping pace with developments that are happening in other parts of the world, in all areas of technology.

 

For the FinTech industry, which provides huge opportunities to the UK as they remain a global financial hub, we need to see action towards accelerating the sector further. While the FinTech industry has taken off, we are seeing open finance advance in financial services across the rest of the world and the UK must now capitalise upon this opportunity.

 

We must see regulations put in place to support the development of technologies, allowing businesses to operate and innovate in a safe and secure manor to build, test and use new technologies.

 

Recently, we have seen the government re-introduced the Data Protection and Digital Information Bill after it was paused in September 2022 which will enable personal data processing, automated decision making and international transfers of data. These factors are key for open finance and highlights the progress the UK is making in this area.

 

Getting regulations right is a crucial step in becoming internationally appealing and providing these necessary guidelines will allow innovators and businesses to thrive while addressing risks, making the UK a desirable location to do business. 

 

Of course, this needs to be replicated across the whole technology industry, and it is promising to see white papers released such as the pro-innovation approach to AI regulation which has recently been announced, setting out a framework for the UK’s approach to regulating AI.

 

Supporting SMEs

While it is a priority that the government implements the correct regulations to ensure innovators can develop the technology in their field effectively, supporting start-ups and SMEs in the technology space will also play a crucial role in cementing the UK’s position.

 

SMEs are drivers of innovation being more adaptable and agile meaning they are able to react to market place changes at a quicker rate. Ideas can be more-free flowing and not held back by the rigid structures that often exist in large organisations.

 

Not only do they drive innovation but they support the economy, acting as a backbone, accounting for 99.9% of the business population. For a healthy and thriving economy to emerge that will encourage innovation and international trade, the SME landscape must be supported.

 

The government announced the SME’s action plan earlier this year which outlined how the government plans to support small and medium-sized businesses over the next three years and support towards tech start-ups and SME must be continued.

 

Attracting talent

The digital skills crisis is a phrase that we have heard too many times over the past few years, however, as technology develops further the UK must refocus its approach on attracting, training and retaining tech talent in order to secure its global position.

 

This includes support towards educational institutions, and in particular universities, who produce ideal candidates for both technical skills and potential tech entrepreneurs. In fact, top tech investors and policy makers are keen to financially support those leaving universities, venturing into the tech start up sector as private capital is being raised and injected in this area to support spin outs from these institutions.

 

While we may be home to the largest tech sector in Europe, without the manpower and expertise to develop technology further, the UK will face barriers when looking to innovate and build upon existing ideas. The skills crisis is a global problem, and the government must now do more to support education and training opportunities to become an even more attractive destination to those around the world.

 

For the FinTech industry, a relatively new and advancing sector, one of their biggest challenges it faces is a lack of necessary skill and without actions put in place to address this, the UK puts itself at risk of losing its global financial hub status.

 

The UK currently holds a strong global tech position. However this should not be taken for granted. The government must now work with businesses to ensure progress is being made, innovation is supported, and individuals are being given the opportunities and expertise to support the nation.

 

The government has implemented numerous measures since the beginning of the year, including updated regulations, SME support and an international strategy to pave the way to growth. Now, regulations must be tightened further to allow innovators to use the support provided to take the UK to the powerhouse status it is heading towards.

 

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Khalid Talukde is a co-founder of DKK Partners

 

Main image courtesy of iStockPhoto.com