BOURNEMOUTH and Poole have been handed a huge opportunity for self-promotion after a report identified the area as the fastest-growing digital economy in the country.

The Tech Nation report found that the number of digital start-ups in the area had increased 212 per cent between 2010 and 2013.

Advertising and marketing, e-commerce and game development and products were the top three sectors in the industry.

Matthew Desmier, of Wise Old Uncle, lobbied the body behind the report, Tech City, for the Bournemouth and Poole to be included in its research.

“The Prime Minister has written the introduction to this report. This is a weighty, well put together, lengthy report and we need to make the most of it because we’ve come out on top. This could be the tipping point if we manage it properly,” he said.

The digital economy locally was booming, with 450 Dorset businesses on his database.

A shortage of employees with longer experience was one of the few brakes on growth, he said.

He added: “The thing that would enable this sector to grow more would be a better, stronger support mechanism. Some facilitated training, some special growth training for agencies, and a membership network. “ Mr Desmier organises the annual Silicon Beach festival for digital businesses. He pointed to some of the local companies doing world-class work.

Communications agency Crowd is doing well in the Middle East and recently opened an office in San Francisco. County Gates-based developer 3 Sided Cube produced a hurricane notification app that became the most downloaded in the world. Amuzo produces Lego’s online games.

David Ford, chairman of Silicon South – the non-profit group that promotes job growth in Dorset in the digital and creative sector – said the Tech Nation report “proves that the Silicon South is the place to be for cutting edge digital innovation of all scales and sizes”. “Bournemouth’s universities produce some of the best creative and digital talent in the world and retaining this talent in the region will only further drive the industry, create jobs and showcase Dorset as the place to be for entrepreneurs and big business,” he added.

The latest announcement of money for Dorset from the government’s Growth Deal includes cash for a ‘business incubation centre’ to make the most of talent at Bournemouth’s two universities.

But Bournemouth West MP Conor Burns said the boom in Bournemouth was happening ‘organically’, without ‘massive’ government investment at the outset.

“The money is following the talent, which is not the case in [London’s] Tech City or indeed Manchester and Salford, with funding for mass relocation of 40 per cent of the BBC production. The money is following the emergence of talent,” he said.

Professor John Fletcher, pro-vice-chancellor for research and innovation at Bournemouth University, said the role of the university was vital. It has contributed to the digital economy through its courses in computer animation, business, science and technology, tourism and health – and it has a ‘centre for entrepreneurship’ across the university.

“The area is a plus because it’s a nice place to live – it’s much better than living in London. We are now actively pursuing the retention of our best graduates,” he added.

He said the business incubator unit idea – unveiled ahead of a recent visit by deputy prime minister Nick Clegg – was part of an increasing focus on supporting graduates in the local economy.

“The university is committed to supporting economic growth in the region. We are engaged more and more with businesses in the region,” he said.

Serial entrepreneur Stephen Homer chose Poole as the base for Postsnap, his digital business which turns people’s phone photos into greetings cards.

He said the flow of skills from the two universities helped make the business viable locally.

“There’s good connectivity because we’ve got a great train service into London, the connectivity is good to Southampton for the airport, and then in Poole itself we’ve got great connectivity in terms of broadband and 4G,” he said. “You can run a tech business as easily from Poole and Bournemouth as you can from London.”

But is there a danger that such a rapid growth might be unsustainable?

Professor Fletcher said: “The propensity of start-ups to fail within the first two to three years is quite high, as everybody knows.

“What’s also known about is that start-ups that are associated with universities have a 40 per cent greater chance of surviving because of the support they get from the universities.”

Liz Willingham, owner of Sandbanks-based agency Liz Lean PR, said the difficulty of finding enough of the right skills was the biggest challenge to the sector.

But she added: “I feel reassured that everyone’s hard work is coming to fruition and it’s being noticed at a national level.”

She pointed out that Manchester still had the biggest digital economy in the country in terms of turnover.

“That’s where we need to aspire. It’s great having all these start-ups that are putting Bournemouth on the map in terms of the creative and digital sector but let’s push that turnover now,” she said. She believed the buzz around the sector – together with other factors such as the success of the TV drama Broadchurch – was making Dorset fashionable.

“There’s a feeling that Dorset as a brand is starting to raise its game and raise its game on a national level and we’re starting to attract some really interesting activity,” she said.

 

Top three sectors
Advertising and marketing.
E-commerce.
Game development and products.
Top five capabilities:
UI (user interface) and UX (user experience) designs.
Mobile and tablet development.
Visual and audio design.
Content and media production.
Digital marketing.

  • Total employees; 7,272.
  • 83 per cent of businesses felt there was a strong network of entrepreneurs to share ideas and expertise.

Source: Tech Nation report by Tech City