Google is to open a new London office in East London's Tech City, from where it will provide incubator business services for IT start-ups.
The government launched the Tech City last year, capitalising on the presence of a number of start-up firms in the Old Street and Shoreditch area, romantically known as 'Silicon Roundabout'.
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However, our sister magazine ComputerWeekly.com has raised questions over how effective David Cameron's strategy has been after Twitter announced it would locate its European base in Ireland.
The new Google facility will provide amenities catering to start-ups, including training workshops and product demos.
David Singleton, engineering director at Google UK, said: "East London is already home to hundreds of innovative British start-ups, and has huge potential for economic growth and new jobs over the coming years."
"Google plans to open up the space to other organisations that support technology entrepreneurs, working together to provide a launchpad for new London-based start-ups and developers," Google said in a statement.
Google's main London headquarters will remain in Victoria.