Tech: The Motor for GDP Growth There is an ever-widening gap in the indexed growth rates of the tech (software) and non- The implication of this sustained difference in growth rates is starkly visible when looking at indexed growth of the tech parts of the European economy. Over the past 15 years, tech (software) has grown to tech (software) and non-tech parts of the European economy. Over the past 15 years, tech (software) has grown to hit 194% of its relative value in 2002. hit 194% of its relative value in Chain linked volumes of tech and non-tech 200 194 GVA (indexed 2002-2016) 188 ) 6 1 173 0 2 175 LEGEND - 2 163 0 0 Tech 2 155 d e x 146 Non-tech e d 150 141 141 n i ( 136 136 s 133 130 129 133 me 126 128 u 125 l 124 123 o 121 v 125 118 d e 112 k n i 107 l n i 100 100 a h C 100 75 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: 2016 is the most recent year for which full NACE breakdowns of Source: Eurostat European GVA are available. Tech refers to the European Eurostat software industry, or NACE J62-63. Non-tech is everything else. Europe’s software industry growth dramatically ECONOMIC GROWTH outpaces the rest of the European economy Latest figures show Europe’s software industry Gross Value Added 5x is growing 5x faster than the rest of the European economy Eurostat While the long-term historical trend in relative growth rates has been impressive, more While the long-term historical trend in relative growth rates has been impressive, more recently the speed of recently the speed of growth between tech and non-tech has diverged even further. Today, growth between tech and non-tech has diverged even further. Today, the European tech (software) industry is now the European tech (software) industry is now growing 5x faster than the rest of the economy growing 5x faster than the rest of the economy % Growth YoY of tech and non-tech contribution to European economy by GVA 3.1% (2016 versus 2015) 3.0 LEGEND YoY growth (%) ) % ( 2.0 h wt o r g Y o Y 1.0 0.6% 0.0 Tech* Non-tech Note: *Tech refers to the European software industry, or NACE J62- Source: Eurostat 63 Eurostat & 17 In Partnership with www.thestateofeuropeantech.com
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