Making it digital in Great Britain

Ask most people to describe manufacturing and they will conjure up images of large factories with assembly lines and steaming chimneys. Britain is still one of the largest manufacturing countries in the world, but the rise of the digital economy is changing the nature of British manufacturing. We still have some large, world-beating manufacturing companies, but they are increasingly being joined by small, innovative companies working at the frontiers of new technology. Operating in small, often distributed premises in urban areas, they build smart web-based solutions that they export around the world at the click of a mouse. I met one such company, one of the hundreds that Microsoft works with and supports, which has created an application enabling teachers to locate and engage each other, anywhere in the world, using Skype. I joined Make it in Great Britain as an industry champion to help highlight the work of digital economy companies like these. At Microsoft, we commissioned research last autumn, which estimates that 35,000 new companies like these will be set up over the next five years creating 79,000 new jobs. All the companies I speak to in the digital sector have a common issue: the need to recruit more young people with skills in science, technology, engineering and maths (STEM). They need more young people to be encouraged to choose these subjects at school and to continue them on at university. The rewards are there in terms of good jobs and wages, but if we can't educate enough young people in these disciplines, then I fear that these companies and jobs – which are highly mobile – will be lost overseas. As well as recruiting graduates, these companies are training their own staff, with Microsoft's support, through our apprenticeship scheme. Getting more young talent with STEM skills will take concerted effort over a number of years by government, universities and employers. Make it in Great Britain provides a great mechanism for people to come together and tackle this challenge. Together we can help young people get the skills they need for sustainable employment, and at the same time support the creation and expansion of world-beating digital economy businesses.