Why the UK’s tech hub should not be in London
Friday, October 31st, 2008Mike Butcher of TechCrunch UK has recently been blogging about the idea of a ‘TechHub’ in London. It’s an idea that he has personally championed:
So I am hereby serving notice that TechCrunch UK is going to start campaigning for a Digital Hub for the UK.
The working title for this concept is “The TechHub”.
…
Unfortunately this is going to sound boringly London-centric. But I think it ought to be in London. Why? Simple really. Money, access and the networks inside London.
I’m not sure that this idea holds much water. London has a number of major problems, mostly related to cost, which are major obstacles for small companies. London’s major claim to a role in the software eco-system comes from the fact that the financial services sector employs a lot of very able people developing and maintaining their software infrastructures (one of my favourite developer-bloggers, Kirk Wylie, is one of these). But the London financial services sector is in deep trouble right now. Moreover, office space is very costly in London compared to pretty much anywhere else in Europe, never mind the rest of the UK. The ‘London premium’ on salaries required just to get people to work there is an unavoiable fact. What’s unique about Silicon Valley is that its whole identity is bundled up in the idea of innovation, technology and entrepreneurship - the technology and software industries dominate there. London, on the other hand, is a centre of culture, tourism, history, government, finance and countless other things. The software industry will only ever be a small part of what London does and these other industries all compete for valuable space, resources and labour.
I’d like to argue against the idea of a single Tech Hub. Britain (or, more to the point, England) is a small country and there really isn’t much need to focus all of our attention on one area, particularly one that is already over-crowded. Travel between London and Manchester is doable in under two hours by train and this could be cut further if plans for a high speed rail link are approved. This would allow for startups to take advantage of the much lower costs of locating in, say, Manchester without losing touch with London and vice versa.
But if we do need a Tech Hub as Mike Butcher insists, where would I place it? Perhaps unsurprisingly, I’d vote for Manchester.
Why? The North West of England already has a number of advantages. The number one advantage as far as I’m concerned is the growing strength of the local developer community. There are a number of grass-roots groups in existence for networking between people working in the digital/tech sector - these are not top-down imposed groups funded by some quango or other, but private community initiatives to promote the North West tech community’s growth. The umbrella group for these, North West Digital Communities helps to ensure cross-fertilisation of ideas amongst the groups. The GeekUp community already holds regular meetings in Manchester, Liverpool, Sheffield, Leeds, Chester and Preston. Web development is well represented with groups for Ruby, Drupal, .NET and PHP. The PHP group in particular has grown extraordinarily in a short space of time and will, later this month, be holding the PHPNW08 Conference. Jeremy Coates deserves huge acclaim for driving this forward.
In addition, AgileNorth plays a role in promoting agile development practices and the Northern User Experience group is a growing forum for discussion of usability issues. The startup company sector is represented by NW Startup 2.0, which brings together innovators, venture capitalists and local tech companies for regular meetings and workshops. The notion that it’s all grim up north isn’t borne out by the facts.
If there’s anything that the North does badly, it’s probably self-promotion. Years of industrial decline as the manufacturing industry of the 20th century has withered away have left their mark and a lot of people don’t yet feel ready to shout about the good things that are happening. But what’s happening here is an organic, grass-roots growth of clusters of talented, passionate people who are interested in innovation. You can’t create that by coming up with clever branding ideas, blog memes or ‘campaigns’; nor can you create it merely by throwing money at it. It requires passion, inventiveness and talent, combined with the right environment to enable the expression of these attributes. The North of England does a lot better on these scores than many people would think.


