Methodology
Data analysis
Technology has often been referred to as the application of scientific knowledge to practical aims and objectives. Because this definition is inherently innovative, it means that defining and measuring the digital tech sector is especially challenging, not least because technology can be applied in many sectors.
To mitigate this uncertainty, we have collected data from a wide variety of sources, both quantitative and qualitative, and triangulated the findings from an array of perspectives. In terms of quantitative analysis there were two main stages. The first was a regional data analysis using a broad definition of the sector to develop a high-level perspective on the sector in the North East. The second stage was a fine-grained analysis of sector level data focusing on specific subsectors and their presence in the North East LEP. The results from these two stages complement each other by providing both a top-down and bottom-up view on the regional digital tech ecosystem.
For the regional data analysis, we used the Department of Digital Culture Media and Sport’s (DCMS) definition of the digital sector, which is widely used by the Government and other sector bodies. This definition has two parts, covering:
The Digital tech sector – This is used to measure identify firms who operate in the sector, but employees in these firms are not necessarily working in digital tech roles
Digital tech occupations – This is used to measure those who work in roles related to digital tech but do not necessarily work in the sector itself
The definitions use the standard industrial classification codes (SIC codes) and standard occupational codes (SOC codes), with different levels of precision for different datasets. The full SIC and SOC definitions are available on request.
We recognise however, that these definitions have limitations. Therefore, we used the innovative Data City platform to provide firm level sector data too. The Data City classifies firms according to their website text rather than their SIC code to provide an alternative typology (the methodology is discussed in greater detail below). This complements the findings from the regional data analysis with firm level intelligence on the specific sector strengths in the North East.
Finally, to ensure that we did not overlook existing insight, we also conducted a literature review of existing research reports and policy papers, consolidating the findings in the literature review section of this evidence base.
It should be noted that this evidence base does not cover the broader concept of digital skills beyond those who work in digital tech occupations, as it has been designed for the purposes of developing a sector focused tech strategy.
Data City methodology
There are limitations to the publicly available data sources when analysing emerging and fast paced sectors such as digital tech. To help mitigate some of these limitations we have supplemented our analysis with data from the Data City platform. This platform links companies house data to companies’ websites and uses the website text and machine learning to classify firms into Real Time Industrial Classification Codes.