The Tech City Investment Organisation (TCIO) supports firms based near the Silicon Roundabout area of east London. Ms Shields will replace current head Eric Van Der Kleij in January 2013.
"Joanna's experience will be hugely valuable in supporting Tech City as it goes from strength to strength," Prime Minister David Cameron said.
"The success of Tech City shows just what can happen when we back some of our most innovative and aspiring companies to grow, helping the UK compete and thrive in the global race."
Ms Shields has been Facebook's vice-president and managing director of Europe, Middle East and Africa since 2010. Prior to that she worked at Google and teenage-focused social network Bebo.
Source: BBC News
