According to premier Cameron: "Firms including Google and Facebook are to invest in the East London Tech City. He hopes the area, which includes Olympic Park, will challenge California's Silicon Valley as a global hub for technology.
"Right now, Silicon Valley is the leading place in the world for hi-tech growth and innovation.But there's no reason why it has to be so predominant."
Mr Cameron claims the response from international technology firms and venture capitalists to the government's proposals has been "overwhelming"; and that the his administration is committed to ensuring that the UK can become "the most attractive place in the world" for innovative firms to start-up.
Following the 2012 London Olympic Games, The Olympic Park Legacy Company will provide office space in the Olympic Park to house other companies who have already expressed interest in investing in the area - among them Cisco, Intel and British Telecom.
The initiative reflects the new prime minister's plan to create private sector jobs to compensate for the massive public sector redundancies brought about by his government's draconian public sector spending cuts.