[dcolkitt]

I don't know if any of those things are fundamental limitations.

Israel manages to run a thriving high-tech industry, despite not belonging to any currency or trading bloc. As a standalone economy, the Shekel has far less global standing and negotiation power than the Pound Sterling. Yet, Tel Aviv is probably the most successful tech center outside the US or China.

I think the biggest thing holding back the British tech sector is the country's harsh bankruptcy laws. The UK's creditor friendly laws discourages risk taking and startups, which are the necessary pre-conditions for tomorrows tech giants.