UK failing to develop digital economy

The UK will "walking off the edge of a precipice" if it does not address the lack of young people moving into the IT sector and fails to take advantage of the opportunities the digital economy offers to the nation.

This was the message from e-Skills UK chief executive Karen Price, who urged all those involved in the industry to consider new ways of developing talent.

"We need to become more flexible to meet the needs of the knowledge economy. When you talk to people you discover there are very narrow horizons about what IT jobs are on offer for children," she said at a Westminster eForum event in London today.

"We need to fundamentally review the IT teaching curriculum in schools, and replace it with a robust academic offering. IT companies could look at providing apprenticeships or allowing part-time higher education courses, for example."

Price explained that these changes are vital to take advantage of the potential of the IT sector, which currently contributes nine per cent of the UK's gross value added wealth. The internet alone generates £100bn a year, she said.

"If we got all businesses exploiting technology to reach more customers and make efficiency savings we could add another £50bn to the UK's gross value added wealth, and if we get everyone online by solving the digital divide that's another £22bn," she said.

"We need more skilled people to provide this, but things are falling at the moment. Our global competitors are training hundreds of thousands of people while those taking the computing A-level have fallen by 60 per cent since 2003. "

Price urged the government to get more fully involved in this issue, and to work alongside the industry if the strategic importance of the digital economy is to be exploited.

The sentiments echoed similar messages from other education and industry leaders that the UK has failed to capitalise on its head start in the digital market, and is now under threat from nations such as Korea and China.