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Government's Tech City start-up strategy criticised | Government's Tech City start-up strategy criticised |
(39 minutes later) | |
By Dave Lee Technology reporter, BBC News | By Dave Lee Technology reporter, BBC News |
The government's strategy to support technology start-up companies in London has been criticised in a report due to be published next week. | The government's strategy to support technology start-up companies in London has been criticised in a report due to be published next week. |
Think tank Centre for London said entrepreneurs in the Tech City area had been left "frustrated" by some policies that had been put in place. | Think tank Centre for London said entrepreneurs in the Tech City area had been left "frustrated" by some policies that had been put in place. |
Plans to encourage businesses to move to the Olympic Park area were said to be "potentially counterproductive". | Plans to encourage businesses to move to the Olympic Park area were said to be "potentially counterproductive". |
In response, Tech City said the report had "misconceptions" about their work. | In response, Tech City said the report had "misconceptions" about their work. |
"We are not trying to create or even follow a formula," a spokesman for the Tech City Investment Organisation (TCIO) said in a statement on Friday. | "We are not trying to create or even follow a formula," a spokesman for the Tech City Investment Organisation (TCIO) said in a statement on Friday. |
"The cluster of tech, digital and creative companies was growing organically in east London and will continue to do so, regardless of government intervention. | "The cluster of tech, digital and creative companies was growing organically in east London and will continue to do so, regardless of government intervention. |
"Our role is to provide help and support where we can to help ensure long-term, sustainable growth — whether that's through policy initiatives from central government or through business support delivered by TCIO. | "Our role is to provide help and support where we can to help ensure long-term, sustainable growth — whether that's through policy initiatives from central government or through business support delivered by TCIO. |
"We focus on helping businesses set up in the area that's right for them - whether that's in Shoreditch, Greenwich or Stratford." | "We focus on helping businesses set up in the area that's right for them - whether that's in Shoreditch, Greenwich or Stratford." |
Technology hub | Technology hub |
The Tech City initiative was launched in 2010 as a way to help grow London's emerging technology start-up industry. | The Tech City initiative was launched in 2010 as a way to help grow London's emerging technology start-up industry. |
Due to rental rates lower than other areas of the capital, the Old Street area of east London gained a reputation as being the hub of this activity, earning the nickname "Silicon Roundabout". | Due to rental rates lower than other areas of the capital, the Old Street area of east London gained a reputation as being the hub of this activity, earning the nickname "Silicon Roundabout". |
TCIO, headed by British entrepreneur Eric Van Der Kleij, aims to help this area grow by encouraging investment in its fledgling companies. It has a yearly budget of £1.7m. | TCIO, headed by British entrepreneur Eric Van Der Kleij, aims to help this area grow by encouraging investment in its fledgling companies. It has a yearly budget of £1.7m. |
The organisation also seeks to extend the hub to locations in and around the Olympic Park - a policy with which the think tank report expressed concern. | The organisation also seeks to extend the hub to locations in and around the Olympic Park - a policy with which the think tank report expressed concern. |
"There [are] fears that by concentrating its energy on the Olympic Park sites, which many see as the main reason for the Government's continued attention, [TCIO] risks diminishing the energy of what is still a young cluster," the report read. | "There [are] fears that by concentrating its energy on the Olympic Park sites, which many see as the main reason for the Government's continued attention, [TCIO] risks diminishing the energy of what is still a young cluster," the report read. |
While tech companies in the area broadly support government policies to support them, the report said "most of them knew little of their detailed nature". | While tech companies in the area broadly support government policies to support them, the report said "most of them knew little of their detailed nature". |
It also said entreprenuers in the area perhaps lacked the business know how to carry out the TCIO's ultimate aim of creating "the next Facebook". | It also said entreprenuers in the area perhaps lacked the business know how to carry out the TCIO's ultimate aim of creating "the next Facebook". |
"Although there were many success stories, we found surprisingly little appetite for developing firms into global players," the report said. | "Although there were many success stories, we found surprisingly little appetite for developing firms into global players," the report said. |
"For more world-beating firms to emerge, more of them will need help and support from experienced managers adept at expanding businesses," the report suggested. | "For more world-beating firms to emerge, more of them will need help and support from experienced managers adept at expanding businesses," the report suggested. |
'Wider mix' | |
Bryce Keane, who is part of a team which organises a weekly Silicon Drinkabout networking event for local entrepreneurs, said the Tech City initiative was regarded as a key part of the community's future. | Bryce Keane, who is part of a team which organises a weekly Silicon Drinkabout networking event for local entrepreneurs, said the Tech City initiative was regarded as a key part of the community's future. |
"I firmly believe Tech City has an important role to play in that wider mix," he told the BBC. | "I firmly believe Tech City has an important role to play in that wider mix," he told the BBC. |
"What I think is often forgotten is that right now we have a government that wants to listen, wants to enact change and - most importantly of all - is raising the profile of the area internationally in a way that few single stakeholders can, and that's an important thing." | "What I think is often forgotten is that right now we have a government that wants to listen, wants to enact change and - most importantly of all - is raising the profile of the area internationally in a way that few single stakeholders can, and that's an important thing." |
Other concerns raised by the report included: | Other concerns raised by the report included: |
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The full report will be made public on Monday following an event at Old Street's Google Campus building. | The full report will be made public on Monday following an event at Old Street's Google Campus building. |