To be honest, we were a bit surprised yesterday when we heard that Google has signed a ten-year lease on a building in London’s Tech City. An Internet giant settles in the focal point for start-ups?
We have been following the growing buzz about the Silicon Roundabout as a hub of creativity, technology and digital innovation for a while (see Lauren’s post). So thinking about it, Google’s move actually makes perfect sense.
Google sees the move as the first step in its commitment to support the Tech City start-up community. It will open the seven-storey office block to technology start-ups in the region and also plans to host its own events and training workshops.
But why? Well, Google must have realised that it needs to be where the talent and the creativity is. East London is already home to hundreds of innovative start-ups – a lot of them web and app developers – and has huge potential for economic growth. It’s a great source for new business collaborations, but also an opportunity to find new talent.
By sponsoring Tech Hub, a flexible work-space for start-ups near the roundabout, Google must have realised the value of being engaged with companies in the area. It might also allow Google to get an ‘early look’ at some of the businesses, if it is on the lookout for acquisition targets.
Importantly, the move will also benefit the local businesses themselves. Google’s technology, platforms and resources will be much easier to access – an exciting prospect for the developer community. As the ‘war’ with Apple heats up Google needs to further increase the number of stand-out Android applications, which could offer a great business opportunity for East London start-ups.
In any way, Google’s decision should boost the confidence of the Silicon Roundabout business community, for whom the news is particularly welcome following this week’s announcement that Twitter will open a major office in Dublin instead of East London to save taxes.
As the Roundabout’s US counterpart demonstrates, having a reputation as an area where ideas (and venture capital) abound is a key part of becoming an internally-recognised centre for technology.