London's fringe theatre has never been this good

We could start with several arguments. First, about what actually constitutes "fringe". Second, about the economics of producing work there. And third, about the importance of theatre beyond the M25. But can we temporarily put them aside and say this? London's fringe theatre is the strongest it has been for years.

Last week, the Off West End awards – or Offies, as they're affectionately known – announced their final shortlist and it is overwhelmingly dominated by fringe theatre. That might sound not merely obvious, but outright tautological. However, the list of around 80 eligible venues includes some of the capital's most historic, heavily subsidised, not-strictly-West-End-but-not-far-off venues. Though six major theatres have taken themselves out of contention, some after winning Offies last year, there are still some giants amid the minnows.

Offwestend founder Sofie Mason explains: "I would rather Davids and Goliaths were compared, in all their vastly varying glory, to see how many shows on a shoestring actually outdid those with bigger budgets." That leaves the Almeida up against the Arcola, the Bush in competition with the Rosemary Branch and the Young Vic squaring up to the Union.

All of these theatres received nominations from Offwestend.com's team of 40 assessors, but, at the shortlisting phase, overseen by a panel of professional critics, more than three-quarters of finalists were indisputably fringe productions. The Finborough has seven nominations, the Landor six, and there are three apiece for the Union, Southwark Playhouse and Rosemary Branch. Contrastingly, the Almeida has four, with the Lyric Hammersmith and Bush receiving two each. Even allowing for the possibility of some well-intentioned positive discrimination – the awards are, after all, designed to champion London theatre's underdogs – it's a considerable achievement that clearly demonstrates London's fringe is in the rudest of health.

One reason for this blossoming is, I think, the recession. Even at the best of times, the theatre industry has many more potential employees than jobs. And it's noticeable that established talent is now working on the fringe: the Print Room, for instance, has recently enticed Michael Pennington, Iain Glen and Penny Downey, while the Union frequently hosts West End regulars, as does east London's Arcola.

More than this, however, the fringe has currently got real purpose and, with it, a sense of identity. Individual fringe theatres are genuinely beginning to have definite characteristics and mission statements, in a way that they have sometimes lacked. The Union and the Landor specialise in micro-musicals, the Finborough in feisty new writing and forgotten classics. Theatre503 are exploding the commissioning process, while Rachel Briscoe and Rebecca Atkinson-Lord have restored some order to Ovalhouse with bold, experimental programming. Even those theatres that embrace variety, such as the Arcola or Southwark Playhouse, are regularly selecting work with real brio and panache.

The London fringe might not be as radical it once was – or as nostalgia perceives it to have been – but its as robust and vibrant as I've known it. And surely that's worth celebrating.