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Dundee tech cluster worth £205 million to economy

External affairs secretary Fiona Hyslop is shown the latest game under design at Outplay Entertainment in Dundee. Above: tech entrepr
External affairs secretary Fiona Hyslop is shown the latest game under design at Outplay Entertainment in Dundee. Above: tech entrepr

The value of Dundee’s internationally renowned digital technology cluster topped £200 million last year.

The annual TechNation report found the cluster in the city supported a total of 2,660 digital tech jobs in 2017.

Total digital tech business turnover in the city was put at £181.1 million for the year – a spike from the £146.4m of 2016 – while the total gross value added attributed to the industry locally was £205m.

Of the city tech start-ups which responded to the survey, the proximity and support available through Abertay and Dundee universities was recognised as the greatest strength of the sector.

Firms also praised the helpful tech community and the diverse talent pool.

The biggest challenges faced related to talent recruitment and retention, access to growth funding and a lack of collaboration.

The report points to Water’s Edge – a new co-working space at Dundee’s City Quay being developed by 4J Studios entrepreneurs’ Chris van der Kuyl and Paddy Burns – four Scottish Cities Alliance smart tech projects and a scholarship agreement between Abertay and city games studio Ninja Kiwi as among key developments in the sector locally.

It also named Dundee pharma-focused AI intellegence firm Exscientia and games studio Serious Parody in a list of UK high growth digital tech firms.

“Creativity and innovation thrive in this city,” the report states.

“The talent stemming from renowned computer science and gaming courses, including those at the University of Dundee and Abertay University, has enabled companies to stay ahead of the pack in games development, mobile apps and much more.”

The full report shows the UK digital sector expanded at 2.6 times the rate of the wider economy last year and was worth nearly £184bn to the economy.

“The UK’s digital economy has seen astonishing growth over recent years,” said Gerard Grech and Eileen Burbidge, respectively chief executive and chair of TechNation.

business@thecourier.co.uk