The document provides information about the UK technology sector and why it is an attractive location for investment. It summarizes that the UK has many technology industry clusters located near universities, with major clusters in London, Manchester, Liverpool, Birmingham, Bristol, and Scotland. The UK offers a skilled workforce, transparent legal system, and government incentives for investment such as tax reductions. UKTI can provide support to foreign investors throughout the investment process.

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The UK as Investment Destination and the UK
Technology Sector
Terry Mankertz
Mike Bartley

3. Introduction to UKTI
UK Trade & Investment (UKTI) is the government department with a lead role for developing trade
overseas and inward investment in the UK. UKTI has a presence in over 100 overseas markets
working to support UK businesses and overseas investors.
UKTI has more
than 1,200
staff in over
100
overseas
markets
The Investment Services
Team (IST) delivers inward
investment support to
overseas entities. With HQ,
IST support the ‘UK First’
proposition: identifying
location opportunities across
the 39 LEPs, London,
Scotland, Northern Ireland
and Wales.
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4. UK Economy – Key Facts
• UK population is 62.3 million (Source: ONS, 2012)
• Seventh largest economy in the world. GDP of US$2,445 billion (Source: World Bank,
2012)
• The UK received the highest number of foreign direct investment (FDI) projects in
Europe in 2011 (Source: Ernst & Young, 2012)
• The UK is a member of the European Union, the world’s largest trading entity, with
nearly 500 million consumers and a GDP of approximately US$17,600 billion (Source:
IMF, 2012)
• The UK is one of the most competitive locations in Europe for business and personal
taxation.
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5. The UK is the number one European location for HQ Foreign Direct Investment (FDI)
projects between 2010 and 2012 with almost twice as many as the nearest European country,
Germany.
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Source: fDi Markets, a service from the Financial Times

6. Why Invest in the UK
• Easy to set up and operate... also to exit
• Transparent legal and regulatory environment
• World-class international transport links
• Rich, diverse and cosmopolitan UK market:
customers, product innovators, suppliers and
partners are easily accessible
• Equally accessible for nascent, emerging and
developed economies
• Entrepreneurial culture
• Well-educated, motivated and flexible
workforce
• UK labour regulations are among the most
business-friendly in Europe
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The UK has been a major part of our
global success, it has a good
business climate, an excellent talent
pool & is open to new technologies.
Stephen Yeo, Marketing Director for Panasonic
Computer Products Europe
We have always benefited from
the UK's dedicated and highly
skilled workforce.
Eric Le Corre, Managing Director, Michelin UK
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7. UK Government Measures for Attracting Inward Investment
• Cutting corporation tax to 20% by 2015
• Committed to remaining one of the most open
countries in the world for ease of doing
business
• Major investment in education and training to
create an more flexible and educated
workforce
• Introduction of the “Patent Box”: 10% tax rate
for profits attributable to patents. R&D tax
credits.
• Ongoing investment opportunities through the
Life Sciences Investment Organisation, Tech
City and other R&D ‘clusters’
• Visas for entrepreneurs and investors
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Plans for
£250bn
in infrastructure
investment
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8. Leading Wi-Fi Locations 2013
Source: Wi-Fi Alliance 2013
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Rank Country Wi-Fi Hotspots
1 South Korea 186,759
2 UK 182,634
3 USA 129,329
4 China 104,106
5 France 35,432
6 Taiwan 24,148
7 Russia 16,829
8 Japan 15,735
9 Germany 15,092
10 Sweden 9,546

9. Average monthly broadband subscription cost
• Source: World Economic Forum, 2012
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Country Cost (US$)
UK 24.55
Italy 24.58
France 26.00
Spain 27.68
Ireland 28.90
Netherlands 29.82
Germany 36.81

10. 10
Industry Clusters
Enterprise Clusters• Benefit from operating in
geographical clusters in close
proximity to research
establishments, special business
support functions and other
companies.
• The UK is home to a number of well
established ICT clusters. The
following maps highlight the
intensity of these clusters across the
UK.
Source: UKTI – Map for Investors

11. UK ICT Industry Clusters
Employment Clusters Student Clusters
Source: UKTI – Map for Investors

12. UK ICT Industry Clusters
• The most intense clusters of ICT
companies can be found in Greater
London and the South East of England.
• Scotland and the North West also
feature as leading destinations for
enterprise within the sector.
• Northern Ireland plays host to a large
number of ICT employees.
• Cities including London, Manchester,
Leeds, Birmingham and Glasgow host
universities that offer higher education in
ICT.
• There are many centres of excellence
across the UK, with notable clusters in
London and the South East.

13. UK ICT Industry Clusters
Manchester
• Europe’s second largest digital and
media hub, with sector clusters such as
Media City UK and Sharp Project
supporting the eco-system of anything
from Film & TV through to 3D Animation
and gaming.
• 153 different languages spoken.
• £60m invested in digital infrastructure,
allowing speeds of up to 100mbps.
• Central transport hub with multiple
frequent flights to Paris, Dusseldorf and
Montreal amongst others.
• In the last decade Manchester has seen
its population grow by 19%, more than
double the national average of 7.1%
(2011 Census).

14. UK ICT Industry Clusters
Liverpool
• Liverpool is home to more than 50,000
graduates, with 64% of university
students remaining in Liverpool after
graduation.
• Two international airports within 45
minute drive time of city centre.
• SCEE’s games testing HQ located in
Liverpool. Games studios by the lies of
SetGo and Magenta also located there.
• Home to 3,000 Creative and Digital
businesses, employing over 23,000
people.
• Vibrant, cosmopolitan region, home to
1.5m people.

15. UK ICT Industry Clusters
Birmingham
• City Centre Enterprise Zone.
• Birmingham has a multi cultural / lingual
working population of 1 million and is the
youngest city in Europe, with under 25’s
accounting for nearly 40% of its
population.
• 31 languages spoken includes 4,700
foreign nationals registered for work who
have multilingual capability and technical
IT skills.
• GVA amounts to over £2 billion for the
digital and creative sector
• Companies with a presence include:
IBM, BBC, CapGemini, Fujitsu, EDS,
Northrop Grumman, Sun Microsystems,
Oracle, QinetiQ, LogicaCMG, Serco,
Delcam, AT&T and Ricoh.

16. UK ICT Industry Clusters
Bristol
• City Centre Enterprise Zone.
• The creative industries in Bristol employ
around 9,000 people, making up 12% of
all businesses in the city.
• Bristol is home to 1,350 creative
businesses, including the multiple
Oscar-winning Aardman Animations,
Endemol West and many other
independent film and production
companies.
• Bristol is the world capital of the wildlife
and environmental film industry -
responsible for 25% of this sector's
global output. The BBC’s Natural History
Unit is based there.

17. UK ICT Industry Clusters
Brighton
• 16,000 people employed in Creative
Industries.
• The City hosts the annual Develop in
Brighton Conference, attracting more
than 1,500 games developers from more
than 20 countries around the world.
• Brighton’s businesses include
Relentless Software, iCrossing UK,
Plug-in Media, Epic Group plc
• The Brighton Fuse research project will
pilot new ways to support further growth
in the local and national Creative, Digital
and IT [CDIT] cluster.

18. UK ICT Industry Clusters
Newcastle-upon-Tyne
• The creative and digital industry in and
around Newcastle employs over 8,000
people in 1,755 businesses and has an
annual turnover of over £866m.
• Well connected digital infrastructure,
with Newcastle airport an international
hub to Europe, Middle East and Africa.
• ‘The Hub’, 2yrs rent free on 10yr lease/
12mths free on 5yr lease.
• With over 90,000 graduates per year
from the surrounding regions and 5
Universities, the Newcastle area is a
fantastic base to recruit new talent.
• Around half of all graduates in the region
choose to stay in the Newcastle area for
work

19. UK ICT Industry Clusters
Scotland
• The ICT industry in Scotland
encompasses a wide array of companies
operating across all disciplines including
financial services, life sciences, energy,
games, and public sector: offering
software solutions and services,
embedded software, business
consultancy, data storage, wireless
technologies, e-commerce and web
development.
• Global players such as Amazon, Cisco,
IBM, Oracle, Dell, BT, Agilent, Real Time
Worlds, Sword Group and JP Morgan
are located in Scotland The value of
Scotland’s software industry is
approximately £4 billion
• More than 1000 Scottish-based
companies work in the sector
• The industry employs more than 105,000
people in Scotland
• The sector has seen year-on-year sales
grow by 10-20 percent over the last 2
years

20. UK ICT Industry Clusters
Wales
• Wales has 40,000 people employed in the IT function with over 12,000
directly involved in the ICT industry.
• There are over 1,500 operations in Wales – among them Fujitsu Services,
BT, Mitel, Logica, Cassidian, General Dynamics UK, SAIC, Sony UK,
Logica and IBM, contributing around £1 billion to the Welsh economy
annually.
• From universities in Wales, there are over 1,000 graduates a year into
computer-related studies together with a further 2,500 a year in IT related
disciplines.

21. Supporting the UK Journey
• Early stage guidance and advice as soon as you start to
consider the UK
• UK Market and industry information
• Connections to key networks
• Assistance with all set-up needs and tasks
• Finding the right location in UK and the right business
accommodation
• People and Partner search
• Connectivity to Professional Services
• On-going support after the “Opening Ceremony”
• Support throughout the UK company life-cycle
• Light-touch or full relationship
1. Planning and
Strategy
2. Implementation &
Set-Up
3. Growth and
Development
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22. The To Do List
• Market research/fact finding/building a
business case
• Company incorporation
• Addressing tax and accounting
obligations/issues
• Set up a commercial (/personal) bank account
• Secure any Intellectual Property
• Adhere to UK employment law
• Address staff recruitment
• Address Immigration issues if applicable
• Source commercial property/negotiate lease
• Address fit out of property
• Obtain insurances
• Consider PR/build contact networks
• Build Sales Pipeline
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23. Questions?
?
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Contacts
• Terry Mankertz – Senior Sector
Lead: Software, Creative and
Media.
• Terry.mankertz@ukti-invest.com
• +44 (0) 7887 794223
• Dennis McGlynn – Investment
Adviser
• Dennis.mcglynn@ukti-invest.com
• +44 (0) 7557 490294
• Michael Dunn – Investment Adviser
• Michael.dunn@ukti-invest.com
• +44 (0) 7557 490307

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