Tech City – digital deluge greeted with cautious optimism

Shoreditch: at the intersection of creative talents. Photograph: Tech City

The opening of Google’s Campus building in Shoreditch last month is the latest example of big technology firms moving into the area under the Tech City banner.

Tech City is the government’s attempt to promote the area between Old Street and the Olympic Park as a British version of California’s Silicon Valley, and David Cameron has given the initiative his personal backing.

But what exactly does it mean for Hackney to be part of Tech City? And will the increased presence of huge tech corporations in east London be at the expense of the small, creative firms that built the area’s reputation for technology talent in the first place?

Hopefully not, says Eric Van Der Kleij, head of the Tech City Investment Organisation and the government’s ‘entrepreneur in residence.’

He sees his mission as fourfold: to persuade large companies to invest in the area certainly, but also to promote the area as a hub for start-ups, to introduce local companies to venture capital backers and, crucially, to attract talented technologists to live and work in east London.

“If we do all of those other three things, and not the fourth, we will have failed,” he says.

Eric is enthusiastic about what Hackney, already brimming with artists and designers, can offer the technology industry, and vice versa.

“It’s at the intersection of creative talent and technology talent where innovation happens,” he claims.

Hackney entrepreneurs have for the most part welcomed the attention that Tech City has focused on the borough, with some reservations.

Matt Hill is a project manager for Hackney Hear, the new immersive audio iPhone app from the makers of the Hackney Podcast, and he thinks the promised influx of investment needs to be managed carefully.

“Hackney is one of the places where the creativity has always been here and the technology part is new, and we need to make sure that the two groups are comfortable working together,” he says.

At a Silicon Hackney networking event at Space Studios last month, one tech entrepreneur said the Tech City concept was a little cheesy, but potentially useful. Several people suggested the entire project was mainly about rebranding the area for outside investors.

Douglas Thackway, operations director at Space, has advised the Tech City team on how best to engage with local artists. He believes that if tech companies are attracted to the area because of its creativity, then the creative community should also benefit from the increased investment.

“It’s not just about bringing in some big companies and plonking them in East London,” he says. “If Tech City’s about anything it’s about innovation. We strongly believe that the cornerstone of innovation is creativity. Artists are great innovators and we think putting them within Tech City can be a very positive thing.

“We’re not necessarily expecting companies to sign up artists to develop products but we think the government and business should recognise the importance of creatives and artists being alongside these companies.”

However, he also warns that the increased investment promised by Tech City has the potential to alter the area’s unique character.

“The problem with any sort of regeneration is it’s a double-edged sword,” he says.

“It has the prospect of pushing up property prices which is a typical response to regeneration. There’s a danger that those creatives are going to be forced out and suddenly you have a hollowed-out neighbourhood filled with big companies where all the creatives have moved on.”

It’s a fear shared by Christian Ahlert who, as founder of the start-up networking event MiniBar, has been closely involved in the east London tech scene for years.

“We moved to this area eight or nine years ago because it was cheaper than anywhere else and a bit more fun,” he explains. “It has a unique vibe and for that reason young people want to be here and it’s young people who start technology companies.

“It’s a bit strange to see No. 10, David Cameron, all the advisers and ministers saying this area is cool. It’s a bit like…thanks, glad you like it!”

Christian thinks the arrival of large tech companies is already pushing up rents and driving start-ups away from Shoreditch into Dalston and Hackney Wick.

“I think that’s more for the council to watch out for,” he says. “Because if Hackney is going to look like Notting Hill in five years’ time then I think we’ve lost something.”

Responding to these concerns, Cllr Guy Nicholson, Hackney Council Cabinet Member for Regeneration and the Olympics, agreed that a balance had to be struck between making the borough attractive to investors and keeping it affordable for small businesses.

“The supply of affordable workspace is a vital element within a thriving, creative and innovative economy such as those found in Shoreditch, Dalston, Hackney Central and Hackney Wick,” he said.

“Through the planning system the council works with developers and investors to ensure affordable workspace for creative industries can be delivered alongside the commercial rented sector.

“Our challenge is to ensure that as investment comes forward from around the world into the creative sector it doesn’t pass by the wider local community.”

The council is also backing Tech City for another reason: the potential benefits in training and employment for the borough’s young people. It has already invested £28,000 in an apprenticeship and work placement scheme that will connect Hackney school leavers with Tech City firms.

This September sees the opening of Hackney University Technical College, a new specialist school in Shoreditch that will focus on technical and vocational skills in digital technology.

“The motivation behind the UTC is to enable young people to benefit from the growth in opportunities in the digital sector,” says head teacher Annie Blackmore.

Tech City companies have helped develop the UTC curriculum to make sure pupils learn the skills that employers are looking for.

“A lot of young people in schools have got very creative ideas with IT but when it comes to designing a program or developing an app they don’t have those technical skills,” she explains.

In return, Ms Blackmore hopes that tech companies arriving in the borough will recognise its homegrown talent. The college is launching a Tech City Challenge, which encourages every Tech City company to hire at least one local young person as an apprentice.

Overall, people who have come into contact with the Tech City project are cautiously optimistic about its potential impact on Hackney. The extra visibility for the borough’s creative entrepreneurs and the increased job opportunities are clearly to be welcomed, even if the arrival of more companies like Google poses other challenges.

Much like the Olympics, the true importance of Tech City may lie in the long-term effects it has on the borough.

Either way, as Matt Hill from Hackney Hear suggests, all the talk needs to be followed up with something concrete before the importance of Tech City can really be judged.

“There’s a fantasy that it will be like the gaming revolution in the 80s with everyone coding in their bedrooms and becoming millionaires overnight,” he says.

“But things have changed since then. It takes concerted investment to grow a business and whether Tech City remains just a branding exercise or becomes something more worthwhile depends on that investment coming in.”