Blair: I am keen to strengthen the ties between Silicon Valley and London

Posted on Fri, Jul. 28, 2006 Blair visit to strengthen ties between Silicon Valley, U.K. By Tony Blair Quote:> I am told that I am the first serving British prime minister to visit California. If that really is the case, it seems an astonishing oversight and one that I am glad to be putting right. The links between California and the United Kingdom are very strong. There are thousands of Brits -- the famous and the not-so-famous -- who have made their home here, while many of you are working in Britain. So there are strong personal and family connections. There are also strong economic links. California is, of course, one of the biggest economies in the world. So it is no surprise that there are some 500 U.K. companies operating here, creating something like 120,000 jobs. Our trade and investment ties are significant and in balance. We import over $5 billion of products from California and we export a similar value in goods and services the other way. But the economic connections go well beyond statistics, impressive as they are. Our economies are both increasingly based on knowledge-based industries which put such a premium on a highly educated workforce, on ideas and innovation whether it is in the media or cultural fields or, for example, in biotechnology. This is, of course, the key to future economic success and prosperity. As the pace and challenge of global business increase, we know, above all, that you have to innovate to stay ahead. Innovation is fueled by brilliant minds and by capital. Silicon Valley remains the pre-eminent example of both of these assets and deserves its place at the very top of the global league in technological innovation. But innovation is also about looking beyond geographical borders to seek partners in innovation. I am delighted that so many Silicon Valley companies, as well as others across the United States, are exploiting the talent within our universities and our workforce. Google is a recent example of a company that has significantly expanded investment in the United Kingdom. In the BioPharma sector, Gilead Sciences has relocated its European HQ from Paris to London. Similarly, many U.K. companies are undertaking collaborative R&D here in the Bay Area, including Vodafone, which has a partnership with University of California-Berkeley in wireless mobility research. In view of the depth of talent available, it is no surprise to me that Silicon Valley companies consistently attract over a third of all U.S. venture capital investment. And interestingly, U.K. companies consistently attract a third of venture capital investment in the European IT sector, making it the largest in Europe. Given that access to capital is one of the fuels of innovation, I am keen to strengthen the ties between Silicon Valley and London, the world's global financial center. The United Kingdom has the second largest concentration of venture capital funds in the world. Every major bank and financial institution in the world has a presence in London. That includes a recent investment by Silicon Valley Bank. London, in fact, is home to more American banks than New York. At the heart of this confluence of capital and innovation is the ability to safeguard and profit from our commitment to innovation. So we must ensure that our intellectual property (IP) framework evolves to support the needs of our knowledge-based economies. Covering everything from biotech and pharmaceuticals to entertainment and the information technology industry, the development and protection of IP are fundamental to the success of our economies. To succeed as partners in innovation and enterprise and to meet the challenges of globalization, the United States and United Kingdom must lead a new wave of thinking about IP, with frameworks to balance critical, often contradictory, issues. The challenge, which is not easy but to which I am committed, is to establish a system that rewards innovation while promoting competition. So we have a great deal in common and a great deal to talk about over the next few days. I am looking forward to discussing these and many other issues with the leaders of some of the most exciting and innovative companies in the world. I intend to listen and learn just as I hope to be able to tell you what's happening back in the United Kingdom. I am also certain that while I may be the first prime minister to come to California on an official visit, I won't be the last. >TONY BLAIR, the British prime minister, begins a Bay Area visit today. He wrote this article for the Mercury News. >