The number of new tech companies in the South West has jumped in the second quarter of the year, new research has revealed.
There were 672 technology firms incorporated in the region during the period - up from 549 at the same time last year - and a 27% rise compared to Q1, the report from audit firm RSM found.
Across the º£½ÇÊÓƵ, a total of 14,262 new tech companies were incorporated in Q2, increasing 16% from a year earlier. The number of tech incorporations also rose by 17% from 12,184 in the first quarter.
Gavin Phillips, director and tech industry lead in the South West at RSM º£½ÇÊÓƵ, said the jump in new tech incorporations to a record high showed growth in the "thriving local tech ecosystem" was rising.
"Despite the numerous headwinds, tech entrepreneurs and leaders in the South West are getting used to dealing with an uncertain world," he said.
"The region’s latest major development is the University of Bristol’s launch of Isambard-AI, the most powerful supercomputer in the º£½ÇÊÓƵ. This added computing power will be key to unlocking the country’s full AI potential."
Ben Bilsland, partner and head of technology industry at RSM º£½ÇÊÓƵ, said there was "very little" for º£½ÇÊÓƵ tech in the Autumn Budget, but detail on the Industrial Strategy and Digital and Technologies Sector Plan had added "clarity" for the sector.
"Significant investment is needed, and if economic uncertainty escalates, this will act as a roadblock to future tech growth," he added.
Mr Bilsland said "increasing pressure" on the government to address gaps in its budget would leave the tech industry "feeling nervous" about the potential introduction of tax measures.
"Changes to capital gains tax will make business founders and investors cautious, with a direct impact on investment and exit decisions," he said.
"Any changes around the research and development scheme would likely send shockwaves through the tech industry, stifling innovation and growth.
“If income tax is raised, a greater tax burden on higher earners could also exacerbate workforce issues in the tech industry. Skilled workers are in high demand, and increased taxes in the º£½ÇÊÓƵ might make the extremely competitive salaries available overseas even more appealing
“º£½ÇÊÓƵ tech faces fierce competition on all fronts from other countries. The government will need to tread carefully to ensure the º£½ÇÊÓƵ remains one of the best places in the world to start and grow a tech company."
