Amazon Sets Up In London's Tech City

US web giant Amazon is opening a new research centre in East London's Tech City - Britain's answer to Silicon Valley.

The digital media development centre will employ hundreds of people and focus on ways to transform how we watch TV.

The multi-billion dollar company joins a growing number of technology firms in the East End , as digital industries become an increasingly large part of the UK economy.
The sector generates £86bn every year, around 11% of Britain's GDP.

For the managing director of the Amazon centre, Paula Byrne, London was seen as an attractive place to invest.

"The talent pool that we have around here is terrific," she said.
"In the UK we've had multi-platform TV with satellite, cable, terrestrial for such a long time.
"And so when I was looking around for where those skillsets were, the UK was just an obvious place to go to."

This growing digital economy is not just confined to East London.
For 25 years Dundee has made its mark in the game developing world, creating hits such as Lemmings and Grand Theft Auto.

David Hamilton, co-founder of Digital Goldfish, has seen the industry become an important of the local economy.

"It's a great buzz and it's a great atmosphere to be in.
"We get a lot of attention being such a small place like Dundee with the amount of success and history that's behind it.

"We just need to keep on growing that.  We are continuing the success."
Ed Vaizey, the minister for the creative industries, says he recognises Britain must stay ahead of global competition.

"Every country would like to be a digital hub and have companies come here.
"So it's a globally competitive market place but at the same time that's a huge opportunity because it means that companies starting here can sell into a global market."

Amazon’s investment is a sign that the digital industries are fast becoming another British success story.
But for a country in recession, it can only ever be relied upon to be part of the economic recovery.