The UK tech ecosystem is supercharging the next wave of digital leaders

With a renowned global reputation and a clear vision for the future, the UK’s digital and technology sector is enticing the next generation of businesses to an ecosystem that prides itself on excellence, dynamism, and agility.

The most recent wave of digital and tech transformation, characterised by development including 5G, AI, and autonomous technology, has been no less radical than the rise of smartphones in the 2010s or the personal computer in the 1980s. The UK is rising to the opportunity of this modern innovation, with UK expertise and excellence—across tech and digital—recognised, respected, and applied worldwide.

As Europe’s most advanced digital economy, and the third country in the world to have a tech ecosystem valued above $1 trillion, the UK is well-placed to harness the opportunities arising from digital and tech innovation. This ecosystem is powered by brilliant ideas generated from a world-class research base and world-leading universities (the UK boasts four of the world’s top ten).

Government commitments to long-term R&D funding, regulatory innovation, and investment in fast-emerging technologies, like engineering biology and quantum, are underpinning the UK tech growth story. It continues to support fast-growing small businesses, attracting the highest levels of VC investment in Europe.

The UK’s success in quantum demonstrates the value of this long-term support for digital and tech businesses—with the UK being second globally in the number of companies and levels of private investment in the last decade.

Now, the UK government wants to go even further, maximising the potential of this world-class sector to support a new generation of digital and technology businesses. In spring 2025, the UK will launch its new 10-year Industrial Strategy—designed to make it simpler for companies to invest and scale in Britain. As part of this plan, which is built to offer long-term certainty, the government has identified digital and technologies as one of the eight growth-driving sectors to be spotlighted.

The strategy, alongside broader government initiatives, will support and nurture businesses formed in the UK but also those that are considering the UK as their home for the next decade of digital and tech transformation.

The experience of Kyndryl, the world’s largest IT infrastructure services provider, is a prime example of the UK’s draw for international professional and business services as well as tech and digital enterprises.

Kyndryl designs, builds, manages and modernises the complex, mission-critical information systems that the world depends on. Aligned with its Growth Strategy, the company has made notable investment in the UK, announcing an intention to expand their national footprint in regions outside of London.

“The UK’s tech ecosystem is rightly renowned for its innovation and growth potential, as well as being considered the scale-up capital of Europe,” says John Chambers, Kyndryl UK and Ireland President. “It is home to numerous leading tech companies as well as being a thriving startup hub with innovative startups emerging each year.”

In 2025, Kyndryl doubled down on their commitment to the UK with its participation in the £14bn AI Infrastructure Investment, which was announced as part of the AI Opportunities Action Plan. Central to this promise was a major new Liverpool City Technology Hub, which will bring up to 1,000 new jobs to the region over the next three years.

Kyndryl’s arrival in Liverpool is a positive sign for the region’s Plan for Prosperity, which aims to supercharge its digital economy. With a focus on infrastructure, talent and research, Liverpool has been designated as a Life Sciences Innovation Zone, creating 8,000 new jobs and attracting up to £800m investment over the next 10 years.

Chambers cites this assistance as vital to the success of Kyndryl’s UK expansion. From the outset Kyndryl collaborated closely with central government departments, such as the UK’s Department for Business and Trade, and local government agencies to create the ideal conditions for growth.

“The support we’ve received in helping us navigate the regional ecosystem, particularly around real estate, skills development, and innovation, has been invaluable,” Chambers explains.

Kyndryl’s story is just one example of why the UK government has placed businesses—encompassing technology, digital enterprises, and professional and business services—at the core of its upcoming modern Industrial Strategy.

Launching at the end of spring in 2025, the strategy will be a credible, 10-year plan designed to create the certainty and stability that businesses need to invest and scale. Focusing on driving business growth, it will support both advanced sectors and industries where the UK already excels. It will aim to reach even greater heights in the coming decade, identifying how the UK will lead on the future technologies that will shape our world.

“Not only does the UK have more unicorns than France and Germany combined, but our country continues to be a prime destination for tech businesses from across the world, like Kyndryl, to come and succeed,” says Jonathan Reynolds, Secretary of State for Business and Trade.

“With tech being identified as a key growth sector in our upcoming Industrial Strategy, we’re not only helping attract and secure investment,” he continues. “We’re delivering long-term, stable growth that supports skilled jobs and raises living standards across the UK.”

By taking a place-based approach, to ensure that city regions and industrial clusters across the UK are represented in the national growth drive, the strategy will tackle barriers to investment, simplify regulatory pathways, and drive innovation.

The UK is open for business, standing ready to supercharge digital transformation, and create new investment opportunities for future industry leaders.

Find out more about the opportunities the UK offers here.