London is European tech capital, employs 200,000
(Above: East London is home to many of London's promising tech start-ups. Image credit: London & Partners).
It is forecast that the capital's tech organisations, which are focused in east London, will boost the UK's economy by £18bn in 2015, and employ 200,000 people.
The research was released to mark the launch of London Technology Week, a series of events to celebrate the city's technology sector.
One report by Oxford Economics estimates that the number of companies in London’s digital technology sector has grown by 46 per cent since the launch of the Tech City programme in 2010, with employment rising by 17 per cent more during that period.
Other research from the professional services firm, EY, found more than 1,000 international tech investment projects were located in London between 2005–2014, significantly more than the next most attractive European city, Paris (381) or the whole of France (853).
Separate figures from GP Bullhound show that in the last year eight companies worth more than onebillion dollars – known as ‘unicorns’ – have been created in the UK. Seven of those are in London.
To continue the city's growth, an online hub has been created to collate information and resources from across the digital economy. Sponsored by IBM, and created by Gust, the ‘Tech.London’ website includes all the latest information and resources including London’s latest startups, investors, events, jobs, classes, blogs, videos, workspaces, accelerators, incubators, and other tech or startup resources.
The Mayor of London, Boris Johnson MP said: “With our unrivalled mix of investors, talent and creativity, it is hardly surprising that tech businesses and entrepreneurs are clamouring to be part of the London tech story.
"London Technology Week is rightly a celebration of that success. Now we need to continue our work to boost connectivity across the capital and arm the tech stars of the future with the skills they will need to drive forward this valuable industry for years to come.”
Gordon Innes, Chief Executive of London & Partners, the Mayor’s promotional company for London, said: “Over the last decade more international tech investment projects have come to London than Paris, Dublin, Madrid, Amsterdam and Munich combined. It’s testament to London’s visionary tech entrepreneurs and international investors who have made London the most exciting place in the world for tech.”
Mark Gregory, UK Chief Economist at EY, said: “In the eyes of international investors, London is a truly world-class magnet for technology investment. Fostering innovation and the capital’s growing reputation for R&D investment appears to reflect the electrifying impact of the fast-growing tech sector. There is now a growing belief that next global tech giant will come from London.”
London’s tech sector is also one of the world’s most diverse according to research from Wayra, Telefónica’s digital start-up accelerator. It shows that in London women are three times more likely to be working in the startup community than in Silicon Valley.
The internet giant Google is leading a drive to create a more diverse and inclusive tech ecosystem by today launching a pilot programme for entrepreneurs over the age of 50.
The ‘foundersover50’ programme, which will be run at Google Campus in London, follows on from the successful programme google has run for new mums and will aim to support older entrepreneurs grow their ideas for new businesses.
Another giant of the tech world, Amazon, has announced that it has completed the move of its corporate HQ operations to London including moving more than 2,000 jobs to the capital.
London Technology Week, which is organised by UBM live in association with London & Partners and Tech London Advocates and ExCeL London, will run from 15-21 June. Hundreds of international companies and tens of thousands of visitors will come to London to take part in more than 200 events organised as part of London Technology Week.
Featuring major global brands, including Bloomberg, Accenture, Stack Overflow and Goldman Sachs, as well as home grown London-based tech companies such as Funding Circle and Blippar, London Technology Week will showcase the city’s role as the digital hub of Europe.