So for some time I’ve been looking into the whole East London Tech City hype. I’ve been living part-time in Hackney and commuting into Soho where I work for a technology company and wondering whether it would make more sense for me to look for something in the East End. So when this story broke about David Cameron launching a new initiative to get the Shoreditch area of East London to become the UK equivalent of Silicon Valley I immediately started collecting information and following the stories in the news.
PM announces East London ‘tech city’
On Thursday November 10th 2010, David Cameron announced that “We’re not just going to back the big businesses of today, we’re going to back the big businesses of tomorrow…Our ambition is to bring together the creativity and energy of Shoreditch and the incredible possibilities of the Olympic Park to help make East London one of the world’s great technology centres…we have had dozens of meetings with technology companies and venture capital investors from across the world…[to build] a hub that stretches from Shoreditch and Old Street to the Olympic Park.” Wow I thought, that sounds innovative and forward thinking, bearing in mind that the UK is a service economy which depends on innovation to ensure a consistent and steady growth. So what’s happened in the past 6 months?
East London marked to rival Silicon Valley
The FT reported on January 28th 2011 that “Two years ago, 'Silicon Roundabout’ was nothing more than an in-joke used by those working in the cluster of tech start-ups that had sprung up around London’s Old Street landmark.” Now it is back at the forefront of the news after Cameron’s remarks regarding the formation of the East London Tech City initiative.
However, rejuvenating the East End between Shoreditch and Stratford will be an uphill task. It contains some of the poorest residents of London in Tower Hamlets. The following graph shows the number of working age people claiming benefits comparing 2002 to 2009. (You can click on the link to access the research).
So to encourage companies to invest in this area of London you have to encourage the workforce to move into the area. Although it may sound like a difficult task, technology is after all a high income profession, I predict that it won’t be much of a problem. Shoreditch, Hoxton and Bethnal Green have always attracted the innovators, whether in technology, fashion, music, or art. People who want to be seen want to be seen in the East End. Brick Lane is 15 minute walk from Old Street roundabout. The City is a 10 minute walk and there are now good transport links with the reinstatement of the London Overground network which serves the East End and the main line stations of Stratford and Liverpool Street. Then of course Shoreditch has a number of the coolest bars and hotels in London.
Cisco promises half a billion dollars for Cameron's BIG idea
A further development took place on February 1st, 2011 when Cisco backed Cameron’s venture with a cool half a billion dollars. Cisco has pledged to help the Olympic Park survive the Tsunami of athleticism and to provide additional employment for the area post the Olympics in 2012. Cisco believes that the UK is moving from an "information economy [to a] networked economy." Why has Cisco done this? Altruism, or an overwhelming need to be seen as the white knight riding in to slaughter the big white elephant which many believe the Olympic Park will become post 2012? No of course not. With the investment into the East End Tech City concept they see a ready made companies who will all required networks, VOIP and other such business tools to help them expand and grow. Mi casa es tu casa, just make sure you come to me for the wiring.
Whatever you may think, the East End Tech City is becoming reality. On May 9th, 2011 the CBR reported that Kevin Eyres, the former MD of LinkedIn in Europe has accepted the position of Mentor for the formation and growth of the East End Tech City concept. He’s quoted by the CBR website as saying "We have a real opportunity to help make Tech City the digital capital of Europe. The basic assets are already in place and the momentum is growing. Now we need to foster this in every way we can to ensure it reaches its full potential. One of the main ways to do this is through delivering and developing talent". So it seems that the Government is keen to get this off the ground and obtain support from some of the tech industry giants. To that end, Google, Facebook, Vodafone and Intel have all registered interest in the concept and what David Cameron’s government can provide. It is yet to be seen if this concept will become more than a sketch on a napkin at the terrace bar in Westminster Palace but I’m keeping my fingers crossed. I quite like the idea of developing cool software products during the day and then dropping by Bar Kick for a game of table football and a beer in the evening.
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