Le Silicon Roundabout (document en anglais)

High Tech City’s Cluster

In 2008, Matt Biddulph was designing a google map of high technologies start-ups in the area of Old Street and Shoreditch. Then as a reference to the Silicon Valley, he named the area, the ‘Silicon Roundabout’. These start-ups are mainly specialised in digital and media technologies and are producing virtual creation such as mobile application and websites. In 2011, the area has seen the number of start-ups increased to 340 (Tab. 1). With the emergence of this cluster, David Cameron decides in November 2010 to make this area a high technology cluster which aim is to attract the major high technologies companies in Europe. He called it the High Tech City. The project is covering the areas of Old Street, Shoreditch to Stratford Park. These companies are mainly dealing with the Internet and then do not need to localise in any special place. Moreover, in a global context, it seems surprising that these companies decide to gather in the same place. Why the Digital Media industries decide to be local in a global context? Moreover, why companies decide to settle in East London? Firstly we will see the special features of East London that incite the digital media to settle in this area. Second we will see that clustering arises more innovation through a competition and network process.

I. The special features of East London:

High tech companies give two main reasons for their settlement in the area of Shoreditch. First, East London is at the heart of a global city and still offers cheap rents. Second, East London is at the centre of a creative hub that attracts entrepreneurs and creative people.

Indeed, as Pratt (2010, p.5) argues, London is a global city; it is at the centre of an international network. It is a multi-functional economic hub, and site of political and cultural power. Geography theorist explains that companies cluster in cities because they can benefit from the urban economies (Scott, 1992). Companies need the hard infrastructure that a global city offers in order to have an international network and to welcome international clients. This is one of the main arguments given by the companies settle in the roundabout. High tech industries are global and are working in an international environment. Therefore, the place were they settle must be close to airport but also must offer an efficient transport network. London enables this international network. Moreover, cheap rents are one of the major reasons for settling in East London. High technologic do not need much to work, a laptop, a desk and an office that they can rent for a few hours an office when they are meeting clients. East London was allowing all this; the rents are low and entrepreneurs could rent offices per hour.

Secondly, as Florida (2002, p.118) explains, people are willing to settle in a place where they can also have a life and not only a job; a place that can inspire their creativity. Many digital companies explain that they decide to settle around Silicon Roundabout because of the neighbourhood. They value the proximity to creative people such as music, fashion, retail and rather artistic business. Moreover, East London offers an enjoyable entertaining life. There are many cafés, bars and nightclub. This explains partly why high technologies industries decide to settle in East London. Moreover, it is important to say that the digital media field deal mainly with innovative people; they need inspiration to find new ideas and new project. A creative environment is essential for this kind of business and Shoreditch enables High Technologies companies to have inspiration.

II. Clustering rise more innovation:

Clustering arises more innovation. First, thanks to the network of firms from the same industry gathered in the same place. Second, by the competition environment

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