The ICT sector is the fastest growing area of the European economy and will create 1.5 million new jobs over the next four years, according to a study released today.

Analyst firm IDC found that 60 per cent of the created jobs will be software-related and a third will use the Microsoft platform. 

IDC said that the growth will help generate £95.7bn in new tax revenues over the next four years.

The research, carried out on behalf of Microsoft and announced at the company's SME Innovation Day in Brussels, also found that small and medium sized enterprises had a big part to play in future growth. 

Figures showed that there are 22 million SMEs in Europe, employing close to 120 million people and producing 57 per cent of Europe's GDP.

"The SME sector is the engine of the economy and that is where we all need to invest in order to drive growth and benefit everyone," said Jean-Philippe Courtois, president of Microsoft International.

The IDC report added: "If SMEs can be stimulated into adopting new technologies more rapidly, and creating innovative products more competitively, Europe's position as a leading player in the global economy can be assured."