The Press and Journal (Inverness, Highlands, and Islands)
Worldwide aim sees north-east digital firms go in One direction
Digital technology is the go-to sector for fast-growing, innovation-led businesses creating high-skill jobs.
The industry is forecast to grow twice as fast as the rest of the Scottish economy over the next decade.
Its significance is enormous because of its high-growth potential, investment in research and innovation, and ability to internationalise at pace with products serving global markets.
A thriving digital technology sector in the north and north-east is already making an impact and is vital to both regions’ future economies.
Alongside Edinburgh and Glasgow, the north-east is one of three significant Scottish tech clusters and well on its way to achieving its growth ambitions.
The 300-plus digital technology businesses in the region range from innovative start-ups to established companies ambitious to scale internationally. Each of these has average turnover approaching £2 million a year.
Growing the digital tech sector is a priority for private sector economic development driver Opportunity North East (One) as part of regional economic diversification.
One’s digital technology board, chaired by entrepreneur Grant Smith, reflects the breadth and depth of the sector.
Recent appointments include Intelligent Plant’s Steve Aitken, Stephen Coleman from CodeBase, Kevin Coll of Solab, Peterson’s Jaye Deighton and The Data Lab’s Brian Hills.
One chief executive Jennifer Craw said: “The sector ambition is to grow a vibrant digital economy in north-east Scotland – to be a global hub for industrial digital, with a high-growth company cluster – home to 10 to 20 businesses, with a turnover of £20m-plus and internationalising.
“In four years the region has gone from 7% of Scotland’s digital economy to over 11%.
“That’s 100 new businesses in the cluster – demonstrating the quality, growth potential and scalability of digital businesses and their products in markets spanning agritech and clean tech to energy tech and health tech. They already provide almost 4,500 high-skill jobs.”
Mrs Craw added: “Realising the sector’s full growth potential will be transformative for this region and its innovation economy.
“Most of the region’s tech businesses are in their start-up or growth phases. They are focused on product, market fit, customer acquisition, scale-up, moving beyond their initial markets and internationalising.
“There is a lot of potential for high growth. One is focusing its action and investment on making the most significant impact. We do this while curating an inclusive tech ecosystem, with One Tech Hub as its focal point.”
One Tech Hub, opened by One in Aberdeen city centre in 2019, is at the heart of the region’s digital technology ecosystem and home to an ambitious cluster of businesses. It is the place where One offers programmes for scaling tech businesses, entrepreneurs and founders, helping them to innovate, develop products, markets and talent, as well as achieve their growth ambitions.
The thriving facility also provides hot-desking, coworking, and office space.
There are 21 businesses and partners working out of the site on Schoolhill. Sector partners including The Data Lab and Barclays Eagle Labs are also based in One Tech Hub.
Meanwhile, it is also the Techscaler epicentre for up-and-coming tech businesses across the north-east. Delivered by CodeBase, Techscaler is a Scottish Governmentfunded programme to create, develop and scale tech start-ups.
One has evolved its support to the sector over the years.
Karen O’Hanlon, the organisation’s digital technology director, said: “We understand our customers – the entrepreneurs, founders and businesses – and their pains and gains.
“We add value by working with them in cohorts and individually to help them grow at pace.
“The hugely exciting thing about digital businesses is the speed at which they can grow.”
Alumni of the digital business growth programme One delivers
are a prime example. Participants in last year’s scheme have already made significant progress, entering new markets at home and abroad, and doubling staff numbers. Together, they have also grown their revenue by nearly 80% and doubled their customer base yearon-year.
Ms O’Hanlon added: “That’s 80 new, high-skills jobs and an additional £15m in revenue for a cohort of businesses we worked with intensively in the programme. It demonstrates the pace of growth achievable with impactful support.”
One’s digital tech team also knows that skills and developing a talent pipeline are critical to supporting the sector’s future in the region. Its graduates-into-business programme has supported tech companies to recruit 35 young people.
Steve Aitken, founder and chief executive of Aberdeen-based industrial app specialist Intelligent Plant, which expanded its team with three new graduates last year, said being part of One’s programme was “hugely valuable”.
He added: “We were able to become more attractive to graduates by offering additional opportunities. We saved time and resources, as One provided training programmes and support.”
Intelligent Plant engineer Paul McGowan said the One scheme workshops were “a great way to learn and develop new and existing skills”.
“The networking aspect allowed me to make connections in the digital tech community and build a solid support network,” he added.
Meanwhile, the EnergyTech Bridge programme, now in its third year, is another example of targeted action supporting growth.
Delivered through a partnership of One, Barclays Eagle Labs and CodeBase, it brings together start-ups, small scale-ups and established energy businesses to focus on accelerating the transition to cleaner, greener energy through digital technology innovation.
To date, 15 tech businesses have completed the programme, innovating alongside corporate participants including Equinor, Petrofac, Proserv, Serica Energy, Wood and Worley.
Ms O’Hanlon said: “North-east Scotland has one of the largest clusters of energy tech businesses in Europe.
“They increasingly provide tech products and solutions beyond the oil and gas market, and respond to opportunities in emerging high-growth sectors such as clean tech, climate tech and renewables.
“This diversification is essential to the continued growth of the tech cluster here, and its deep energy sector knowledge differentiates it from other centres in the UK.”
The pace of development and continuing growth opportunity in the region’s digital sector have attracted national attention and government backing.
Digital technology is at the heart of plans for the north-east investment zone, a 10-year, £160m project launched by the UK and Scottish governments in June last year. The zone will embrace targeted projects and investments, tax reliefs and other incentives to support the region’s chosen priority digital tech and green energy sectors.
One Tech Hub in Aberdeen is fast becoming the location of choice for ambitious technology entrepreneurs at businesses across the north-east.
Its tenants include Chorus Training, which provides regulatory technology software and skills support for hazardous industries worldwide.
Chorus co-founder Iain Taylor was attracted to One Tech Hub by the combination of dedicated support, connections and being part of an ambitious tech community.
He told The Press and Journal that being part of One Tech Hub and the north-east’s fast-growing digital technology community had “allowed us to network, build our professional connections and given us opportunities to accelerate business growth”.
Mr Taylor added: “Working with the team at One – economic development partnership Opportunity North East – has supported our understanding of starting a new tech business and challenged our ambitions.
“We have world-leading expertise in north-east Scotland, in areas like energy transition, and should be thinking about scaling globally. One is helping Chorus do just that.”
Fennex, founded in 2016, is the largest tenant at One Tech Hub.
The company specialises in developing artificial intelligencedriven software solutions to accelerate digital transformation in the offshore energy sector.
Last year the company committed £1.2 million to accelerate its transition from oil and gas work to renewables.
Fennex started working with One in 2021, when co-founders Adrian and Nassima Menasria Brown participated in programmes covering start-up fundamentals and next steps.
They rapidly progressed on to the One business growth and graduate-intobusiness programmes.
They also secured innovation funding to launch a new product to market and gained further financial support through the One Enterprise Fund, which provides interestfree loans to businesses at critical points in their growth.
Fennex has hired seven graduates to support new customers and contract wins.
The company has also taken on additional office space to accommodate its growing team.
Mrs Brown said: “One remains a valuable partner in Fennex’s ongoing growth.
“Our location within the One Tech Hub ensures that we remain at the heart of digital technology excellence in Aberdeen.”
She added: “The expertise and support One provides enrich our entrepreneurship toolkit and provide invaluable resources for progress.”
One digital technology director Karen O’Hanlon said One Tech Hub was continuing to evolve as a home for the north-east’s flourishing digital tech sector, creating an ideal environment for people to “learn, innovate and grow together”.
Ms O’Hanlon continued: “Tenants join a supportive, dynamic and fast-growing community of like-minded founders, established businesses, and innovative start-ups.
“We now run at an 80% occupancy rate across our offices and co-working spaces.”
One Tech Hub is the home of One digital programmes including EnergyTech, Business Growth and Graduatesinto-Business.
Ms O’Hanlon said: “It is rapidly becoming the preferred venue for meetings and events within the digital tech community.
“The hub is buzzing with activity, with Code the City, Start-up Grind, and Women in Tech being regular dates in the diary and attracting a diverse audience.
“Over the past year we’ve witnessed a 30% increase in events and meetings.”
Growth in the number of such events is eclipsed by a 50% increase in participants.
Ms O’Hanlon said this underscores the “growing prominence of One Tech Hub as a vibrant community hub and premier destination for collaborative activities.
“There is a real sense of momentum in the sector,” she added.