01 Jul The Brexit movement and the technology market.
The Brexit movement and the technology market.
The results of the referendum on the United Kingdom's membership of the European Union (EU) brought several questions to the fore last Friday morning (24/06).
The British voted and decided to leave the United Kingdom from the European Union, in a movement called “BREXIT”.
With various economic, ideological and internal pressures, the separation draws a country with divided voters and without a clear path for the future of the United Kingdom.
The British and world macro scenario is surrounded by great uncertainties, but what is the impact of BREXIT on the technology sector?
When talking about technology in the European Union, we can highlight some positive changes over the years. The bloc prioritized broadband availability for 100% in its territory (currently 24 countries) in addition to strongly regulating its data protection policy and recognizing the importance of countries working together on cybersecurity and other technologies.
The EU is also working on creating a “digital single market”, a seamless online marketplace where digital services will have a better chance of thriving. Such a move towards digitization would directly benefit the industrial sector, jobs, technology and the economy of the bloc's members.
Policies of this kind helped popularize the EU, not only with consumers, but also with investors who believed that remaining a member of the European Union would be good for business in the short, medium and long term.
The British tech industry, which has around 20% of its revenues coming from outside the UK, was largely in favor of the European Union and the open market format within the bloc.
A tech industry survey by Juniper Research reveals that 65% of respondents believe BREXIT will have a negative impact on global tech industries.
Roberto Lima, Director of International Operations at MPL based in London, commented on the reaction and impact of this change in the Technology market: “The approval of the exit from the EU was a big surprise for the market and its impacts are still not very clear. Several analysts point out that the economy should suffer a retraction in the coming years and, at times like this, the IT market is always one of the most affected”.
The UK is currently the leader in the Technology segment in Europe, with 18 out of 47 private companies rated at more than $1 BI. “The EU invests massively in innovation projects and new technologies in the UK. With the approval of Brexit, these investments in research and development should migrate to other countries in the bloc, mainly Germany”, added Lima.
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