A London investment agency opened shop in San Francisco on Tuesday to tout the British capital as a preferred spot for technology firms expanding into Europe.In the past 18 months, Think London has worked with Internet search powerhouse Google and with the world's largest software company, Microsoft, to open offices in the British capital.Other Internet companies expanding into London include MySpace, MobiTV, Bebo, and Sling Box maker Sling Media, David Riches of Think London said as he commemorated the new office's opening at a gathering in downtown San Francisco."About half our business comes from the United Kingdom, so there is every reason for us to be there," said Peter van Pruissen of Piczo, a San Francisco start-up billed as a safe online teen networking alternative to MySpace."We think it's a perfect springboard to manage and launch our efforts into other countries in Europe. It is a perfect location for us to operate from."A trend of increasing convergence, companies forming alliances to take advantage of each other's strengths, has made San Francisco and London preferred locales for business, according to a study sponsored by accounting group BDO International.The study conducted in January and February of this year surveyed 112 senior executives at information and communication technology companies based in the United States or London.More than 80 percent of the executives felt that convergence was driving innovation and strategy in the industry and 92 percent said they wanted all the necessary components in one place.Components were listed as a fertile mix of related businesses and access to financing, talented staff, markets, and technological infrastructure such as wireless networks and high-capacity data connections.San Francisco and London were named as preferred cities by 51 percent of the executives surveyed."San Francisco we know as being a global leader in convergence," Riches said. "London is coming on as well."A comparatively favorable tax structure for businesses has been part of London's appeal, but could be on the verge of changing, said Don Williams, head of BDO's technology, media and telecom division.Britain's courts have proven to be more understanding to, and understandable for, technology firms, said lawyer Rafi Azim-Khan of Wragge and Co.Legal rulings against Google in Belgium and iPod-maker Apple in France have made major technology firms leery of European countries without common law court systems based on evolving case precedent, according to Azim-Khan."Global brands born in California, such as Apple and Google, have established international operations in London because the core components of convergence come together there," said Think London chief executive Michael Charlton.
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