The number of new technology companies incorporated in both the East and West Midlands surged during 2022, according to analysis of Companies House data by RSM UK.
A total of 2,378 tech businesses were incorporated in the West Midlands last year, up from 1,901 the previous year, representing an increase of 25 per cent.
Mark Taylor, regional managing partner for the West Midlands, said: “It is fantastic to see this continued strong growth in tech incorporations in the West Midlands – reinforcing the increasing significance of the technology sector in the local economy.
“Birmingham has really defined itself as an emerging centre for technology innovation in recent years, with great support from our thriving local university community and facilities such as the Innovation Birmingham Campus, which offers a superb space for an ever-increasing number of start-ups and scale-ups to collaborate and grow.
“Fintech and healthtech are key parts of the landscape, but it is also great to see future winners emerging in fields such as cyber security, VR and blockchain.”
Meanwhile, 1,390 tech businesses were incorporated in the East Midlands, a jump of 38 per cent from 1,009.
Sheetal Sanghvi, partner and head of innovation reliefs in the Central region, added: “It is great to see East Midlands at the top of the table with the biggest increase year-on-year.
“The region has always benefitted from a thriving technology sector, particularly in fintech and medtech. This is largely due to the quality of the local incubator hubs, universities and the scale of global businesses from which experienced individuals go on to build their own businesses.
“Like many regional cities, the cost of workspaces in the East Midlands is more competitive than the capital. For start-ups and small businesses tight on cash, this has been a huge factor when setting up their headquarters and is reflected in the numbers published. New businesses also tend to attract younger demographics and the region has a generous pool of young talent to hand.
“In addition, with many workers moving away from the bigger cities during the pandemic and post-pandemic, triggered by the rise in remote working, regions with lower costs have become an appealing option for tech workers. This is another key driver in the decision-making process for businesses when deciding where to locate their new business.”
