Bath has been highlighted as having an internationally significant hi-tech sector.
Along with Bristol the city was singled out in an influential new report.
The region's hi-tech, creative and digital media cluster is showcased in a new report, Centre for Cities, which recommends more Government investment in key clusters to stimulate growth in the UK economy.
Stand-out strengths of Bristol and Bath's cluster are its diverse mixture of industries and strong networks.
Professor Joe McGeehan, chair of investment agency Invest Bristol and Bath, said: "It is this diversity of connected sectors, skilled workforce, world leading academic research and brilliant quality of life that make Bristol and Bath so distinctive and attractive."
Specialist hubs such as Bristol and Bath Science Park, Watershed and the Engine Shed are also highlighted as vital in the report, along with networks which connect talent, companies, universities and investors across sectors.
Bonnie Dean, chief executive of Bristol and Bath Science Park, said: "It is the collaborative approach of Bristol and Bath's technologists, business leaders and academics, combined with its rich network of interlinked, complimentary sectors that make the tech cluster here particularly successful.
"The region has excelled in creating a lively ecosystem of enterprise, where knowledge, expertise and ideas are shared, innovative thinking is stimulated and business success is accelerated."
The report also highlighted the barriers facing businesses, such as securing recognition on a global stage.
Bristol and Bath's tech industry is producing the latest breakthroughs in analysing 'big data' and the world's smallest drones.
