The Scottish technology sector is growing at a faster rate than the UK as a whole, with 687 new tech companies incorporated north of the border in the first quarter of 2026 — a 70% jump on the same period last year and a 37% increase on the previous quarter, according to fresh analysis from RSM UK.
The figures, released by RSM UK on 23 April 2026, suggest that Scotland’s tech ecosystem is continuing to attract founders and capital at pace despite a difficult global economic and geopolitical backdrop — and is outperforming the UK-wide growth rate by a significant margin.
The numbers behind the surge
RSM’s analysis paints a strong picture for Scotland in absolute and relative terms:
- 687 new tech incorporations in Q1 2026
- Up 70% from 405 in the same quarter of 2025
- Up 37% from 502 in Q4 2025
UK-wide, the picture is also positive but less dramatic. Across the UK, 16,887 new tech companies were incorporated in Q1 2026 — up 39% year-on-year and up 15% on the previous quarter. London accounted for the largest share with 8,236 new incorporations, but every UK region recorded year-on-year growth.
In other words, Scotland’s Q1 growth rate is nearly double the UK-wide rate. Of the twelve UK regions in RSM’s analysis, Scotland recorded the highest year-on-year increase — ahead of Northern Ireland (+51%), East Midlands (+49%), West Midlands (+40%) and London (+38%).
That positioning is a notable signal in an industry where new-company formation tends to track investor confidence, available talent and accessible support infrastructure.
The wider UK picture
Ben Bilsland, partner and head of technology industry at RSM UK, said the UK-wide figures sit within a broader trend of the tech sector showing resilience even as other industries pull back on investment.
“The UK’s tech industry continues to show promising growth despite current geopolitical uncertainty, while other sectors pull back on investment,” Bilsland said. “For tech entrepreneurs, the UK is viewed as a stable place to invest and grow, which is crucial in the current volatile environment. The UK’s proven track record in the tech space and thriving tech ecosystems, have helped to solidify its position as best in the world to do business.”
But Bilsland was clear that the trajectory is not guaranteed. He flagged three specific risks: slow planning regulation, skills shortages, and high energy costs — describing them as “barriers against transformational growth.” He also pointed to recent signals of US tech companies stalling on previously announced UK investment commitments.
“If this trend continues, a reduction of overseas capital into the tech industry will hinder growth,” Bilsland said. “With further headwinds looming, UK tech leaders need to closely monitor the broader economic environment, particularly if they’re exposed to supply chain disruptions and volatile energy costs. Tech companies that are best placed to ride the storm will be those with strong energy resilience, flexible supply networks and disciplined capital allocation.”
The Scottish political context
RSM’s Q1 figures land into a Scottish political environment that is freshly reshaped. The Scottish Parliament election on 7 May 2026 returned the SNP for an unprecedented fifth term in government, but without an overall majority. Scottish Labour’s pre-election manifesto pledged £15m of digital adoption funding for business and an expansion of the Techscaler programme, the network of innovation hubs first launched in 2022.
How those manifesto commitments translate into the new government’s tech-sector support strategy will shape whether the Q1 momentum holds through 2026.
What the data does — and does not — tell us
Q1 incorporation data is a leading indicator of ecosystem health, but it carries caveats. New incorporations capture company formations, not employment, revenue, or survival rates — meaning a high formation rate must eventually translate into scale-up activity to deliver durable economic contribution.
That said, the Q1 2026 data sits alongside other positive signals from the past month: continued growth-stage funding into Scottish firms including the £2.6m raise by Edinburgh’s Esk Film Services, and continued institutional confidence in the Scottish life-sciences pipeline as demonstrated by Strathclyde spinout Northern Light Microscopy’s £1m pre-seed round.
For now, Scotland’s tech sector is moving in the right direction at a faster pace than the rest of the UK. Whether that holds through the rest of 2026 will depend in part on what the new Scottish Government delivers in terms of digital skills, infrastructure investment, and access to growth capital — and on whether the wider UK risks Bilsland highlighted around planning, skills and energy costs can be mitigated.
