The number of new tech companies set up in Scotland rose by 77 per cent in 2017, a report has found.

There were 440 software development and programming businesses incorporated in Scotland last year, a 77 per cent increase on the 249 companies set up in 2016.

Analysis by RSM found that UK-wide there were 10,016 technology businesses incorporated in 2017, with year-on-year rises recorded in every region.

Ross Stupart, partner at RSM in Edinburgh said: “These figures show very clearly that despite the fears of a post-referendum slowdown, Scotland’s tech sector is growing at a healthy rate.

“There are a number of reasons for this. Scottish universities are playing a key role in developing and nurturing exceptional talent and we continue to attract the world’s brightest and best. Organisations such as EIE, FutureX Innovation, Start-up dinners, Turing Festival and Entrepreneurial Scotland are also contributing significantly in creating a vibrant and supportive tech eco-system.

“Entrepreneurs are able to gain good access to finance, either through traditional sources of debt at relatively cheap rates, or from venture capitalists, angel networks and private equity funds.

“The UK’s tax regime is also proving to be an incredibly powerful tool in encouraging tech businesses, who take advantage of legitimate tax saving and incentive programmes. These include the Research & Development tax credits, video games tax relief and the Patent Box regime. The Enterprise Investment Scheme also provides valuable tax reliefs to investors which helps earlier stage tech businesses raise funding.”

READ MORE: Scotland’s video games industry ‘healthier than it has ever been’ </s> From a standing start two decades ago, Scotland's business organisations have shown themselves to be exceptionally adept at engaging with devolved politics - although a few individual business leaders still remain remarkably naïve about the democratic motive which drives political decisions.

Further, there can be different perspectives within business: for example, between those representing large firms and those speaking up for smaller outfits.

However, one thing tends to unite all sectors of the disparate business community. They would like our politicians to focus more upon economic growth. Less about the distribution of wealth and more about its creation in the first place.

Such was the clamour once more today as new GDP figures for Scotland were published. But there was also a revival of a controversy which seems set fair to be one of the defining characteristics of political discourse in coming years. Alongside, of course, the ever-present Brexit.

And those figures? Not disastrous by any means. A fourth consecutive quarter of economic growth, with the stats for the final phase of 2017 revealing an increase in GDP in Scotland of 0.3%.

Not bad, then. But by no means good, as business organisations and economic commentators have noted.

The Q4 figure for Scotland still lags slightly behind the figure for the UK as a whole. As does a comparison of the year as a whole, with the previous year. In that scenario, the Scottish economy grew by 0.8%, compared with 1.8% for the UK.

Looked at a different way, Q4 2017 compared with Q4 2016, the figure for Scotland is 1.1%. For the UK as a whole, it is 1.4%. However the sums are done, then, Scotland is lagging behind a UK performance which in itself is scarcely stellar.

Most observers note a particularly poor recent performance in the construction sector. As indicated earlier, all business organisations urge our politicians to co-operate and to concentrate upon policies and practices which enhance the economy.

Which brings us to that fundamental political discourse. The word today from the Tories, both in Holyrood opposition and in Westminster government, was "tax".

They argued, collectively and singly, that there are many remedies which could be essayed in an effort to improve Scotland's performance.

But they added that such efforts would only be hindered by the increase in the overall income tax burden which is about to kick in from the end of this week as a consequence of Scottish government decisions.

In response, Scottish ministers say that their tax decisions were moderate and responsible. That they were designed, further, to counter austerity - and thus stimulate the economy.

They outline measures they have put in place, including plans for a National Investment Bank. They cite the challenge of Brexit - countered by the Tories, who say Brexit will affect the whole UK. That it is up to Scotland as a whole to make the best of "opportunities" outside the EU.

In essence, there, you have the core contentions which will develop between the SNP and the Conservatives in the run-up to the next elections.

There are, of course, many other elements. There are counter offers from Labour, the Liberal Democrats and the Greens, with variations upon spending, tax and Brexit. But there remains one fundamental controversy. Given the wider economic context, Brexit and all, will those new tax plans help or hinder the Scottish economy? </s> Amazon has announced it will create more than 5,000 jobs in Britain by the end of the year.

The online retail giant, which already employs 19,000 people in the UK, unveiled the investment as it gears up to open a new head office in London.

The show of confidence in Britain’s thriving technology sector comes after Google, Apple and Facebook have all made their own commitments to the UK.

And it throws further cold water on warnings from Remainers that global firms would shun the UK following its vote to leave the EU.

Google, which employs 4,000 people in the UK, has commissioned a new ten-storey building with 650,000 sq ft of floor space, equivalent to more than ten football pitches. And Apple is moving to the redeveloped Battersea power station.

Doug Gurr, UK country manager for Amazon, said the jobs would include test and software engineers as well as corporate managers

‘We are creating thousands of new UK jobs, including hundreds of apprenticeship opportunities, as we continue to innovate for our customers and provide them with even faster delivery, more selection and better value,’ he said.

Amazon has been ramping up the battle against traditional retailers by opening more warehouses, enabling it to offer one-hour delivery in places. The Seattle-based company has three opening later this year.

The investment in the UK comes as Amazon ramps up its footprint across Europe, where it plans to create 15,000 jobs by the end of the year. </s> According to the space agency, Scotland's Sutherland was selected for the vertical launch site to be developed by Highlands and Islands Enterprise.

"As a nation of innovators and entrepreneurs, we want Britain to be the first place in mainland Europe to launch satellites as part of our Industrial Strategy. The UK’s thriving space industry, research community and aerospace supply chain put the UK in a leading position to develop both vertical and horizontal launch sites," Greg Clark, the UK Space Agency business secretary, announced at the airshow, as cited by the agency's press release.

READ MORE: Farnborough Show: May to Vow to Retain UK's Leading Status in Aerospace Industry

In 2014, the agency's chief executive, David Parker, announced that the United Kingdom was planning to start building its own spaceport in 2018, with eight potential sites, most of the military airfields, to choose from. </s> "These new job opportunities are for people with all types of experience, education and skill levels, from software developers, engineers and technicians, to those seeking entry-level positions and on-the-job training," an Amazon statement said.

They will be at a new distribution centre in Boves in the northern Somme region, the company offices in Clichy-sous-Bois and new datacentres in the Paris suburbs.

"The turnover reached by French companies using Amazon.fr marketplace has exceeded 200 million euros in 2016," said Frédéric Duval, CEO for Amazon France.

But France is not the only country targeted by the US giant.

It plans to create 15,000 new posts across Europe in 2017.

And, in a show of confidence in the British economy ahead of Brexit, 5,000 of them will be in the UK, taking the company's total workforce there to over 24,000.

The company is also in the process of creating 100,000 new positions in the United States by the middle of next year. </s> US tech and retail giant Amazon on Monday said it would create 5,000 British jobs this year, in a show of confidence in the UK economy ahead of Brexit.

"Amazon UK today announced plans to create more than 5,000 full-time jobs this year, taking the company's total UK workforce to over 24,000," a statement said.

"These new job opportunities are for people with all types of experience, education and skill levels, from software developers, engineers and technicians, to those seeking entry-level positions and on-the-job training," it added.

Amazon separately said it was creating 1,500 positions in France under plans to have 15,000 new posts across Europe in 2017.

The company is meanwhile in the process of providing 100,000 new positions in the United States by the middle of next year. </s> Online retailer is set to create more than 5,000 jobs in this year, the company said on Monday, boosting its investment in the country once more even as it prepares to leave the European Union.



Amazon, along with other tech giants such as and Apple, has increased its commitment to in the last year, saying Britain’s referendum decision to leave the EU last June did not affect its investment plans. The plans to add over 5,000 jobs in 2017 is a record for in Britain, although at least 2,000 of the jobs had been previously announced. The moves would take its permanent workforce in the country to 24,000. Doug Gurr, UK country manager at Amazon, said the jobs would provide “even faster delivery, more selection and better value” for British customers. Amazon’s new head office in London will have capacity for more than 5,000 people by the end of the year, the firm said. </s> Brexit, data protection and electric vehicles will command the majority of headlines following the Queen’s Speech, delivered today to Parliament. However, it is what the Queen said about the space industry which will reassure many that there remains a focus for the UK to be at the forefront of innovation among all the Brexit talk.

In the speech delivered by Her Majesty the Queen to both houses of Parliament, a government plan to secure growth in the UK’s £13.7bn space industry was revealed. The idea behind the new bill being proposed is to make the UK a more attractive destination for commercial space. This will include, excitingly, potential launches from British soil.

Currently, rockets and other launch systems developed elsewhere are not able to operate out of the UK. The Bill however hopes to change this by “enabling [scientists] to launch from UK soil]”. The legislation, according to the government, would “offer the UK’s world-leading small satellite companies new options for low-cost, reliable access to space”.

However, many may be quick to state that these plans are a little ‘out-of-this-world’, excuse the pun, but in reality the legislation would bring many benefits extending past the UK having a greater share in the space economy.

“Critics may prefer the UK Government to look closer to home, but investments in space quickly return commercial applications,” said Neil Fraser, Head of Space and Comms at ViaSat

“By looking to the stars, we bring innovation, employment and business growth back to the UK economy. Indeed, space is one of the eight great technologies for UK. It is a dynamic, fast growing sector which employs some of the country’s top talent, as well as contributing to economic growth and other important national needs, such as Earth observation and satellite communications.”

If the plans materialise, the Bill could help increase the UK share of the global space economy to 10% by 2030. Currently the UK only boasts a meagre 6.5% share in the space market.

Currently, the UK is a member of the European Space Agency, which is largely funded by the EU. However, despite Brexit and the UK government’s plans to grab a share of the space economy via British soil, Mr Fraser argues the ESA will be key in the government achieving its ambitious targets.

“The UK is one of the largest contributors to the European Space Agency, which will be key towards meeting the objectives outlined in the Queen’s speech. To compete on a global scale, it takes a larger investment than any single European country has an appetite. With the combined investments from major European powers, ESA has the resources to do projects on a global scale. This drives further innovation and employment back into the British economy. Not to mention national heroes like Tim Peake.”

There are also benefits to what the launch technology can do when it leaves British Soil and is orbiting above us in space. For example, ViaSat launched the world’s highest capacity communications satellite earlier this month from French Guyana – providing high speed broadband from LA to Istanbul. Broadband is a key technology in enabling the digital future – in fact, broadband is a pivotal in enabling enterprise and growth, both of which are fundamental to the economy.

“Whilst the UK has made progress in fibre and terrestrial roll out to pass more homes over recent years, fibre and 4G/5G cannot affordable meet all the needs of the UK’s population at home or when mobile. Satellite broadband has a role to play in meeting these needs and it is hoped the Government can do more to encourage a hybrid technology and business approach to ensuring the Universal Service Obligation (USO) is both realistic, has growth for the future and can be delivered,” said Mr Fraser. </s> Scotland has been chosen to host UK's first spaceport After several years of study and consideration, the British government announced July 15 that it will start development of a new spaceport in northern Scotland, while an English airport signed a deal that could also lead to launches from its facility. In a statement issued in advance of the start of the Farnborough International Airshow, the agency said it selected the site “because Scotland is the best place in the U.K. to reach highly sought-after satellite orbits with vertically launched rockets.” The site supports rocket launches for spacecraft operating in sun-synchronous or other highly inclined orbits. It's official! Funding awarded to vertical launch spaceport in Sutherland, Scotland. Innovative horizontal launch IndustrialStrategy FIA18 LaunchUK 2CV35mDmfi — UK Space Agency (@spacegovuk) July 15, 2018 There was some mention of an announcement possibly being made at the Farnborough 2018 Airshow, but it was unconfirmed at the time. And while today's announcement gives very few details about the facility or what company or companies may be using it, we do know that launches are expected to begin in the early 2020s. “As a nation of innovators and entrepreneurs, we want Britain to be the first place in mainland Europe to launch satellites as part of our Industrial Strategy,” said Business Secretary Greg Clark “This will build on our global reputation for manufacturing small satellites and help the whole country capitalize on the huge potential of the commercial space age.” Charlotte Wright, the chief executive of Highlands and Islands Enterprise, on hearing the announcement said, “The decision to support the U.K.’s first spaceport in Sutherland is tremendous news for our region and for Scotland as a whole. The international space sector is growing and we want to ensure the region is ready to reap the economic benefits that will be generated from this fantastic opportunity.” We have officially boldly gone! We are thrilled to announce our partnership with Virgin_Orbit to offer horizontal launch services from Newquay_Airport by 2021. ToBoldlyGo Launch2021 MosYnHardh VirginOrbit CosmicGirl LauncherOne x5BFmmu8LY — Spaceport Cornwall (@SpaceCornwall) July 15, 2018 But, there is more to the story The British government has actually been looking at existing airports that could support flights of suborbital vehicles or air-launch systems. However, looking at new sites for vertical launches gave the government Scotland and possibly the Shetland Islands. But, besides the funding for the Scotland site, the British government will also offer 2 million pounds to support the development of horizontal launch sites “subject to business case.” One such site under consideration is Cornwall Airport Newquay in southwestern England. On July 15, officials at Cornwall Airport Newquay announced they were entering into a partnership with Virgin Orbit that will allow that company’s air-launched LauncherOne system to operate from the airport, dubbed Spaceport Cornwall. That agreement will be signed at Farnborough on Monday. “The announcement of a strategic partnership between Virgin Orbit and Cornwall Spaceport is great news for the region and the U.K.’s ambitions for regular, reliable and responsible access to space,” said U.K. Science Minister Sam Gyimah in a statement from Spaceport Cornwall. “This partnership could see Virgin Orbit’s innovative horizontal launch technology helping the U.K.’s small satellite industry access space from the convenience of a Spaceport in Cornwall.” Space agency chief executive Graham Turnock said this great news is all part of the "kickstart of an exciting new era for the U.K. space industry, and this is only the beginning of our LaunchUK campaign." And that all this is happening in concert with the Farnborough 2018 Airshow will certainly make the UK shine. The A'Mhoine Peninsula - a remote and boggy patch of land on the north coast of Scotland has been chosen as the most likely spot for the spaceport, reports the BBC. Highlands and Islands Enterprise , the Scottish Government's economic and community development agency will be given £2.5 million ($3.3 million) towards the development of the facility, the U.K. Space Agency announced.In a statement issued in advance of the start of the Farnborough International Airshow, the agency said it selected the site “because Scotland is the best place in the U.K. to reach highly sought-after satellite orbits with vertically launched rockets.” The site supports rocket launches for spacecraft operating in sun-synchronous or other highly inclined orbits.There was some mention of an announcement possibly being made at the Farnborough 2018 Airshow, but it was unconfirmed at the time. And while today's announcement gives very few details about the facility or what company or companies may be using it, we do know that launches are expected to begin in the early 2020s. More information is expected on July 16 at the airshow, that will include information on additional grants that will be available.“As a nation of innovators and entrepreneurs, we want Britain to be the first place in mainland Europe to launch satellites as part of our Industrial Strategy,” said Business Secretary Greg Clark in a statement. “The U.K.’s thriving space industry, research community and aerospace supply chain put the U.K. in a leading position to develop both vertical and horizontal launch sites.”“This will build on our global reputation for manufacturing small satellites and help the whole country capitalize on the huge potential of the commercial space age.”Charlotte Wright, the chief executive of Highlands and Islands Enterprise, on hearing the announcement said, “The decision to support the U.K.’s first spaceport in Sutherland is tremendous news for our region and for Scotland as a whole. The international space sector is growing and we want to ensure the region is ready to reap the economic benefits that will be generated from this fantastic opportunity.”The British government has actually been looking at existing airports that could support flights of suborbital vehicles or air-launch systems. However, looking at new sites for vertical launches gave the government Scotland and possibly the Shetland Islands.But, besides the funding for the Scotland site, the British government will also offer 2 million pounds to support the development of horizontal launch sites “subject to business case.” One such site under consideration is Cornwall Airport Newquay in southwestern England.On July 15, officials at Cornwall Airport Newquay announced they were entering into a partnership with Virgin Orbit that will allow that company’s air-launched LauncherOne system to operate from the airport, dubbed Spaceport Cornwall. That agreement will be signed at Farnborough on Monday.“The announcement of a strategic partnership between Virgin Orbit and Cornwall Spaceport is great news for the region and the U.K.’s ambitions for regular, reliable and responsible access to space,” said U.K. Science Minister Sam Gyimah in a statement from Spaceport Cornwall.“This partnership could see Virgin Orbit’s innovative horizontal launch technology helping the U.K.’s small satellite industry access space from the convenience of a Spaceport in Cornwall.”Space agency chief executive Graham Turnock said this great news is all part of the "kickstart of an exciting new era for the U.K. space industry, and this is only the beginning of our LaunchUK campaign." And that all this is happening in concert with the Farnborough 2018 Airshow will certainly make the UK shine.
A report reveals that 2017 saw over ten thousand new businesses in the technology sector throughout the United Kingdom, with all areas seeing growth over 2016. Scotland saw a 77% increase with 440 new firms.