Amazon’s vote of confidence for London’s Silicon Roundabout

In a few weeks time, when the London Olympics come to an end, the government hopes that part of the Olympic park will be converted into a creative hub for tech companies.
Prime Minister David Cameron, fearful that many of the buildings constructed for the Olympics might sit unused once the games are over, wants to convert the vast media centre in Stratford into a place where tech start-ups can grow together, swapping ideas and advancing the UK’s burgeoning tech industry.

The trouble is London already has a tech hub, a few miles away in Shoreditch. Dubbed Silicon Roundabout, the area houses many innovative start-ups that grew independently of any government help. These include music social network Last.fm, which US media firm CBS bought for £140m in 2007; popular Twitter app Tweetdeck, and online card maker Moo.com.

A recent report by think-tank The Centre for London estimated that Silicon Roundabout employs a total of 48,000 people, with 3,200 firms operating in the area. Creating a digital hub nearby would threaten this thriving tech community, the report argues, dispersing the creative types that have propelled the area into one of the world’s most important development areas.

Last week, online retail giant Amazon announced plans to open a huge base for design and development near the Barbican, a short walk from Silicon Roundabout. This is a significant move, as it represents a massive vote of confidence in the area, while potentially dealing a blow to Cameron’s plans for the media centre in Stratford.
Announcing the new 47,000 square foot hub, Amazon spokesman Paul Byrne said: “London is a hotbed of tech talent and testament to that fact is Amazon choosing the capital as the location for the new global digital media development centre.

“Innovation is part of the Amazon DNA and we are creating a British centre of excellence to design and develop the next generation of TV and film services for a wide range of digital devices.