London has placed above Madrid, Dublin, Paris, and Budapest for the growth potential, scale, and concentration of companies according to the latest studies.
In the past decade, there has been a 20% rise in the number of people employed in the London information and communications sector, reflecting a growing market. In addition, the proportion of people in London employed by this industry is 2 and a half times the EU average.
In addition, there has been approximately £4bn invested in London technology start-ups over the past two years. This shows that following the success of the Silicon Roundabout area London continues to be a market leader in this thriving industry.
In addition, with technology giants basing themselves in London including Facebook in Fitzrovia, Apple in Battersea, Google in Kings Cross, and – most recently – LinkedIn in Farringdon; London’s position seems assured in the short term.
However, it is important to note that London does face some pressure in its position as Europe’s technology leader with France enacting multiple reforms aimed at attracting large technology companies. As a result, Paris is attempting to position themselves as the leading technology hub within the European Union post Brexit. This is despite the depth and scale of the London technology sector which remains unrivalled in Europe, despite Brexit uncertainty.
Previous research has corroborated this, showing that London is also one of the leading hubs for technology and financial services.