Software, to borrow a phrase from venture capitalist Marc Andreessen, is eating the world. Last month Facebook announced its billionth active member. An Android-powered Google is worth more than Microsoft. Companies from Kickstarter to Khan Academy to Skype to Amazon to Etsy are transforming the retail, telecoms, education, manufacturing and financial services sectors, writes Andrew Keen.

East London’s Silicon Roundabout, a cluster of tech companies, has received support from the British government. Yet some people remain sceptical. Sir James Dyson, an inventor, has told the BBC that hardware manufacturers are a smarter investment than software companies.