Entrepreneur Sir James Dyson has urged the government to stop its "fixation with Silicon Roundabout" and instead focus on "tangible technology" that Britain can export.
The inventor of the bagless vacuum cleaner warned that ministers are getting distracted by the glamour of "web fads and video gaming".
Tangible technology represents a better investment than Tech City, also known as 'Silicon roundabout', in London's Old Street area, which is home to various web and video games companies, he said.
In an interview with the Radio Times, he also warned of a shortfall of 60,000 engineering graduates this year.
"The government must do more to attract the brightest and best into engineering and science so that we can compete internationally," he said.
"26% of engineering graduates do not go into engineering or technical professions. More worrying is that 85% of all engineering and science postgraduates in our universities come from outside the UK. Yet nine in 10 leave the UK after they finish their studies. British knowledge is simply taken abroad."