A major rift in the Scottish tech sector has been highlighted by techUK in their newly published Local Digital Capital Index 2022. 

Despite overall growth, the research suggests that Scotland is a prime example of an overarching rural vs. urban divide seen throughout the UK. 

The Index quantified various aspects of adoption within the tech industry, via different regions through six key metrics : Skills, Digital Adoptions, Infrastructure, Finance and Investment, Research and Development, and Trade. 

TechUK’s report aims to provide guidance to public and private sectors alike, in a bid to guide investment and priorities for digital growth and transformation throughout the UK.

Scotland ranked sixth overall out of 12, coming in third for Digital Adoption, second for Trade, and sixth for Skills. Regionally, however, Scotland’s tech sector appeared disjointed.

Highlands and Islands and Southern Scotland ranked consistently low across the different categories, with the former coming in last across the whole of the UK. 

Southern Scotland struggled more in Finance and Investment, as well as  Research and Development, coming in last for both categories.

Infrastructure was a major low point for many rural regions throughout the UK, with the Highlands and Islands again finishing in last place. 

This was starkly contrasted by the relatively high scores of the Eastern and West Central regions’ infrastructure ratings, the latter coming in 6th place. 

Eastern and North Eastern Scotland both ranked well across the board, particularly in Skills, Digital Adoption, and Trade. The North East did struggle, however, with regards to its Digital Infrastructure, ranking 31st. 

This urban vs. rural divide was not just common to Scotland, but emerged as a recurring theme throughout techUK’s findings, informing its subsequent guidance.

The report’s suggestions included an overall expansion of digital infrastructure, including continued roll out of Project Gigabit, especially targeting rural areas to improve access to data coverage which would help bolster the rest of their digital ecosystem. 

Broadband connectivity is already a priority in Scotland, as in early October, plans to provide 900,00 homes in North Lanarkshire with full-fibre broadband were set.

Connectivity is still a concerningly fragile proposition, however, as we’ve seen through the recent internet and phone signal drop in Shetland, Orkney, and Faroe Islands due to a damaged underwater cable. 

Further, the report recommended that ‘Levelling Up’ bids should also be explored to overcome issues of regional exclusion – focusing on improving infastrue and digital skills in local authorities. 

This tied in with the assessment’s recommendation that local councils and mayors get more involved in government schemes to improve digital skills and access.

Prior to the Index’s publication, the Highlands Council approved their Information and Communications Technology and Digital Strategies earlier this month, with an effort to update their organisation for the digital age – tracking the development of initiatives like these was also an important factor the Index noted was largely missing from their data. 

A need for data on digital skills was also highlighted, strengthened by the findings of a recent study showing that the tech sector accounted for over 10% of all job vacancies in Scotland. Identifying gaps in digital skills across different regions, universities, and demographics will prove important to maintain a robust workforce for the sector. 

Overall, Scotland’s tech sector is growing, but this major gap may stop it from developing further. TechUK CEO Julian David warned that this “stark divide” between the various tech sectors “can’t be allowed to continue,” if we want the UK to continue growing. 

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“The technology sector has been growing exponentially and has the potential to add an extra £41.5 billion to the UK economy,” David stated, “however, for that to happen it needs to be strong across the whole of the UK.” 

A major focus of the Index was therefore to, as David said, “strongly encourage Government to work with the tech industry to ensure we achieve the levelling up, boost local communities and the overall economy.”

While Scotland’s tech industry is certainly growing, the Index highlights the major regional gap in the progress, and points to strengthening private and public sector ties to better secure Scotland’s tech future. 

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