It took only a few weeks of research for Romanian entrepreneur Emi Gal to decide to base his digital media firm in London, and his choice confounds a fairly enduring set of stereotypes about Britain’s global appeal.

International experts agree there has been genuine progress in the country which a few decades ago was fast fading as a magnet for the science, health and technology brains and entrepreneurship that also drive the knowledge economy.

‘London is pretty much the centre of the world if you want to work in media and advertising,’ Mr Gal, 23, told Reuters.

As the Labour government campaigns for re-election this year in the face of headlines predicting an exodus of financial brains if bankers’ bonuses are more heavily taxed, voices like his may be heard with increasing frequency in some national media.

Besides Mr Gal, whose software allows media companies to make money from online videos by adding ‘hot spots’ to outlets for consumer products, other new businesses are increasingly choosing Britain as the place to be.

Another newcomer is Compound Photonics, which started in a laboratory in Phoenix, in the United States, and moved to Cambridge to develop extremely high-definition screens for next-generation cinema goers and television audiences. Co-founder Jonathan Sachs said it was attracted to Britain partly by a world-class photonics lab at Cambridge University.

In response to a set of policies put in place, data from the British government’s department for trade and investment show new businesses from countries such as the US, South Korea and Israel relocating to or setting up new headquarters in Britain.

The pace has accelerated from nine new foreign entrepreneurs in 2005/2006 to 58 in the first nine months of 2009/2010.

Mr Jean-Christophe Dumont, a migration expert at the Organisation for Economic Cooperation and Development, said Britain is now well placed in Europe on a number of indexes that measure factors such as taxes, red tape, the dynamics of internal markets and how they are connected on the world stage, as well as the ability to access a qualified work force.

Seeing Britain’s success, he added, countries like France and Japan have recently drawn up policies to attract foreign entrepreneurs or wealthy investors who might plough large sums into job-creating businesses and boost economies.

According to the Legatum Institute, an investment-led think-tank, Britain is second only to the US for entrepreneurship and innovation – ahead of Canada, Sweden and the Netherlands.

‘The best thing that Britain does at the moment is to provide an infrastructure for small and medium-sized businesses to grow and reach not just Britain, but Europe, the US and the rest of the world,’ said Mr Gal.

‘To reach a global audience from just one location is not something you can get from many cities in the world.’

The entrepreneurs say they are lured by a range of factors – from a common language, attractive geography and London’s status as a global hub, to less tangible assets such as cultural diversity, openness to foreigners and enthusiasm for new ideas.

Many also cite pools of highly qualified scientists seeping out from universities, and a sense that Britain offers a dynamic business environment.

The government initially set out policies to attract or poach entrepreneurs by offering advice and support on everything from drawing up business plans, recruiting high-calibre staff, to attracting investment and getting visas.

‘We couldn’t sell Britain on the language and location alone if the science base and the ecosystem were not also very supportive,’ said Mr Eric van der Kleij, a ‘senior dealmaker’ at the Global Entrepreneurs Programme. He and his company work to bring together entrepreneurs with experts who can guide and act as liaison with the authorities and potential investors.

Mr Arup Chatterjee, an Indian scientist who runs a nanotechnology business called I-Can Nano, said Britain had pipped even the US with less tangible extras.

‘People are very open-minded here,’ he said. ‘And if you want to start your business quickly in an innovative and new area of science, clearly you choose to turn to a friendly, warm and welcoming face.’