Digital Economy

For more information or to get in touch to find out how you can support the Digital Economy cluster please email planforgrowth@wmca.org.uk.

The Digital Economy cluster represents the transition to the fourth industrial revolution, where digital innovations like AI, IoT and future technologies play a crucial role in propelling the digital economy forward.

Composed of businesses ranging from startups to scaleups, the Digital Economy cluster encompasses entities that harness digital technology or have undergone digital transformation.

These businesses leverage cutting-edge technologies to disrupt traditional markets across various sectors, giving rise to new segments such as fintech, proptech, insur-tech, legaltech, crea-tech.

Opportunity

The Tech sector in our region is thriving, contributing significantly to our economy and job market. With a worth of £15.3 billion and 144,000 people working in tech roles across 2,400 businesses, the West Midlands is already demonstrating its digital prowess.

We lead in digital connectivity,with the best 5G connectivity among Combined Authority regions.

Our region's digital sector is valued at £5 billion, with 25% of the workforce working from home, enabled by digital technologies. With the second largest Tech sector outside of London, our region is attracting businesses in key sectors like advanced manufacturing, healthtech, medtech, and fintech.

Digital adoption is a crucial driver, with the region ranking 22nd in that area according to Tech UK’s Local Capital Index. AI and DeepTech adoption are also gaining importance, supported by accelerators, investors and higher education institutions in our region.

We have a vast opportunity to leverage our business support provision to assist firms at different stages of their growth journeys and help them access market opportunities. Our region boasts world-class universities, innovative start-ups and established businesses, attracting skilled individuals globally.

Our unique strengths, including a history of manufacturing excellence and cutting-edge digital infrastructure like 5G networks, position us as leaders in digital innovation. This connectivity enhances business capabilities, improves public services and enriches the lives of our citizens.

Key developments enhancing this sector include a number of initiatives that centre on TechWM’s model of Connect/Amplify/ Transform strategy.

Tech Connect - An initiative partly funded by WMCA to connect the ecosystem and provide support to tech businesses - from inception to IPO

TechConnect Hub: A hub located at iCentrum (part of the Innovation Quarter which has just been given Investment Zone Status) that will provide a place for tech businesses to get the help they need to scale.
TechConnect Support: A team of people providing relevant support to tech businesses around the 4 core pillars: Skills, Investment, Support, Global.
TechConnect Platform: An intelligent platform connecting tech businesses with real time opportunities and relevant support.
TechConnect Live: Events and workshops to enable tech businesses to acquire new knowledge, forge connections and get insight into new technology and innovation.

Amplify - Designed to ensure the region’s tech sector and businesses get the recognition they deserve

This consists of the following key components:

Narrative & Proposition Development: An exciting, inspiring and ambitious narrative and proposition for the WM tech sector.
Showcase Events: In order to promote the tech sector to a national and international audience we will continue to put on our two key events:
Birmingham Tech Week: The UK’s largest regional tech festival attracts 7,500 people, including investors, delegations from over 25 countries, ministers, public figures and execs from the likes of Microsoft, Google and Amazon.
West Midlands Tech Review: The annual tech review, brings together partners, collaborators and stakeholders from across the region so everyone is aligned around shared strategic initiatives and goals. It takes a look at the previous year and looks at the year ahead. 300+ senior tech leaders will be in attendance.
Region’s Promotion: Promoting the WM tech sector through a purpose built website and amplifying through PR, social media, advertising, email comms and partner engagement.

Transform - will take a deep dive into the ecosystem and understand what’s working, what’s not and what’s missing

Where needed, policy recommendations will be made and investment cases will be formed so interventions can be made addressing 4 key growth drivers:

Business Support: To ensure businesses have access to high quality, local, diverse and digitally enabled talent. A workforce that is reflective of the needs of companies both now and in the future.
Investment & Funding: To ensure Startups and Scaleups can get access to investment and funding opportunities at every stage of their growth.
Digital Skills & Talent: To ensure businesses have access to high quality, local, diverse and digitally enabled talent. A workforce that is reflective of the needs of companies both now and in the future.
Globalisation: To enable tech businesses to go global by providing them with access to international partners and support mechanisms.

All investments and initiatives are co-supported by WMCA through a variety of funding sources including core funding, shared prosperity fund and the Innovation Accelerator funded West Midlands Innovation Programme.

Regional Competitive Advantage

The West Midlands Digital Sector currently faces a £1.3 billion Gross Value Added output gap compared to the national average. To bridge this gap and enhance regional competitiveness:

All SMEs and micro-businesses will be encouraged to adopt basic digital technologies to increase output and productivity.
Firms across various sectors in the region will be encouraged to adopt advanced digital technologies such as AI, blockchain, VR/AR, 5G, and IoT to drive innovation and competitiveness.
Tech and digital firms seeking to scale up can access tailored support and financing opportunities within the region.