Slide 1 “The Cambridge Phenomenon” “The Power of Networking in Regional Economic...

“The Cambridge Phenomenon”

“The Power of Networking in Regional Economic Development”

28th Conference on Entrepreneurship and Innovation – Maribor March 27 2008

Professor Alan Barrell

Agenda and Context

• In the Beginning ( or close to it ! )• Chronology of Discovery - Greatness remembered• 1960 – The seeds of CHANGE….The Columbus Spirit• Inspired by Heroes – The Spirit of Enterprise and the

Evolution of Networking• Another Chronology – Another Culture• Diversity and Convergence – NOT a paradox….• Liberated Minds and “Worldthink”• Coherence and Support Structures – A World of

Networks• Sustaining Economic and Social Development – Beyond

Bureaucracy• Empowering the Next generation – Looking ahead

Cambridge and the East of England Region

Traditional Industries

•Agriculture and Food

•Fishing

•Leather goods - footwear

•Wool and Textiles

and the first known inhabitants were the Icini Tribe - Boadicia

Facts about the University

The University:• Formed by scholars who

settled in 1209• Has produced more Nobel

Laureates than any other university, more than 80.

• Has 16,500 full time students and 150,000 alumni worldwide

• Has 31 colleges, including 3 graduate colleges

• The Chancellor is HRH The Duke of Edinburgh, Vice Chancellor Professor Alison Richard

• Collegiate System – mixed populations of Colleges

Cambridge University – Great Scientific and Technological Advances

• 1600: Dr William Gilbert – Science of Navigation, map making

• 1687: Isaac Newton – “Principa Mathematica” – laws of gravity,

fundamentals of nuclear physics

• 1704: First Professor of Astronomy – Public Observatory

• 1812: Charles Babbage – first “calculating machine” – heralded

invention of modern computers

• 1857 – Charles Darwin “The Origin of Species”

• 1873: Charles Clark Maxwell – “Treatise- Electricity and Magnetism

• 1887 : J.J.Thompson – Cavendish Labs – the electron discovered –

heralding telephones, radio, television and computers

• 1915 : Lawrence and Bragg – X-Ray diffusion

• 1929: Frederick Gowland Hopkins – vitamins

• 1932: Cockcroft, Walton and Rutherford – Atom first split

Cambridge University – Great Scientific and Technological Advances

• 1933: Paul Dirac – Quantum Theory and Position Emission topography• 1934: Frank Whittle – jet propulsion leading to……• 1941: First jet aircraft flight• 1949: Maurice Wilkes – Electronic Delay Storage Automatic

Calculator (EDSAC) – First stored programme digital computer • 1953: Crick and Watson – discovered structure of DNA • 1958: Frederick Sanger – Insulin construction – diabetic care• 1960: Charles Oatley – First Scanning Electron Microscope• 1962: Max Peratz and John Kendrew – 3 dimensional structure of proteins• 1968: Anthony Hewish and Jocelyn Ball – “Pulsars” in Astrophysics

Cambridge University – And Discoveries and initiatives in more recent years

• 1974: Immuno-suppression in transplantation surgery–Roy Calne• 1982: Aaron Klug – molecular biology, viruses and RNA• 1985: Cesar Milstein – monoclonal antibodies• 1992: Richard Friend and team – Cavendish labs – light emitting

and conductive polymers – “Plastronics”• 1996: Human Genome Project at Sanger Centre – results of

decades of international research• 2006: Population Health Genetics Foundation ( PHG ) founded• 2007: Joint Venture – Cambridge University – China

Pharmaceutics

Research Centre –) Traditional Chinese Medicine (TCM

BUT….Cambridge in 1960

• Medieval City

• Great University and Seat of Learning

• Farmers

• Not much Industry

• Lots of Bicycles

• Entrepreneurs …..?

• Who wants CHANGE ??

But CHANGE is inevitable and its happening all the time ….was in 1960….

EnvironmentIssues

The death ofdeference

New employmentpatterns

Organisations

Globalisation

Technology

Technology – Changing Our Lives -Traffic in one day in 2003:

All international phone calls1971

All airline passengers1975

All mobile phones 1984

All emails 1992

All SMS1998

And all this talk about Competition??

Creativity Risk

Speed Reputation

Cost Values

Learning Information

The Competitive Threat“Today’s Peacock is tomorrow’s feather duster”

Lots of Knowledge – but knowledge alone is not enough !!

Why is Knowledge not enough ?....

“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”

Albert Einstein 1879 - 1955

The “Columbus Spirit” – Exploration, Risk and Adventure….

Not Forgetting….• Wisdom – “acknowledging what we don’t know – and

exercising judgement”• Having Vision• Innovation – Vision into Reality• Research put to USE – for mankind’s benefit• Exploiting and Protecting• Sharing, Synergy and Symbiosis• Liberating minds • Exploiting Cultures and Diversity• Power of People and “Worldthink”

Three Converging RevolutionsThree Pervasive Technology Platforms – in places like

Cambridge

BIO TECHPharmaceuticals

DiagnosticsResearch/Info

ToolsIndustrial

GenomicsBioinformatics

Proteomics

INFO TECHHardwareSoftware

Communications

NANO TECHElectricalStructural

BiomedicalEnergy & Environment

BiosensorsBiochipsBioelectronics

MicrofluidicsNanobiotechnology

Drug Delivery

NanodevicesNanosensors

Nanoelectronics

The Cambridge Phenomenon-Cultural and Ethnic Diversity

Population in Cambridgeshire – Facts and Estimates

02468

1012141618

% MinorityEthnicGroups

Note – “Greater Cambridge” ( 20 miles radius of City) believed higher.

The Cambridge Phenomenon – University Diversity

Cambridge University – Overseas Student Population

• Increase in total student population in period – 272%

• By 2003 overseas students - 17.3% of total

• By 2007 overseas students - 19.5% of total (estimated)

• Trend discernable in all areas – Arts, Sciences and Clinical.

0

500

1000

1500

2000

2500

3000

3500

Undergraduates Postgraduates Total Students

1980-1981

2002-2003

% Change

2007 (est)

Back to Imagination - One of the most imaginative thinkers – as a young man….

Who you may more often have seen when more mature – great traveller and networker….

“You look at things and ask - why?

but I dream of things that never

were and ask -

George Bernard Shaw

why not?”

Thinking out of the box…

Who ever heard of Albert-Szent-Gyorgyi ?

He, a Nobel Laureate said………

“Creativity is no more than looking at the same thing as everyone else and

thinking something different.”

Extending Creativity and Innovation – exploiting convergence and diversity….realisation dawning….

• CREATIVITY – The ability to develop new ideas and discover new ways of looking at problems and opportunities

• INNOVATION – The ability to apply creative solutions to problems and opportunities to enhance or enrich peoples lives

• Creativity is THINKING – Innovation is DOING• Both are enhanced by new encounters and connections

– knowledge exchange, diversity and convergence can impact through NETWORKING !

Building an Enterprise Society. Networking and Communities – Manageable Units – working where real PEOPLE can influence things

Building communities of enterprise,social inclusion and

common purpose

Sub-regional development

Regional economic development

National economy

And then there is Entrepreneurship…

“Entrepreneurs blow gales of creative destruction.”

Role of the entrepreneur in transforming economies by developing:

New products New methods of production New ways of organizing Untapped raw materials Enhanced competitive performance

Joseph Schumpeter - 1911

• Universities and centres of academic excellence• Advanced Science and technology Base• Entrepreneurs with marketable ideas and products

• Business angels and established seed funds

• Sources of early stage venture capital

• Core of successful large companies

• Quality management teams and talent

• Supportive infrastructure

• Affordable space for growing businesses

• Access to capital markets

• Attractive living environment and accommodation

source :- Gibbons - Stanford University 1998

Characteristics for Entrepreneurial Regions

Cambridge in 1960

• Medieval City• Great University and Seat of Learning• Farmers• Not much Industry• Lots of Bicycles• Entrepreneurs …..? • Traditions resisting change• Enter “The Columbus Spirit”• Ready for Culture Change

Ramsey Chatteris Littleport

Mildenhall

Bury St Edmunds

Haverhill

Saffron WaldenRoyston

St Neots

Huntingdon

HUNTINGDONSHIRE

SOUTH CAMBRIDGESHIRE

CAMBRIDGE

NORTH HERTFORDSHIRE(PART)

ST EDMUNDSBURY(PART)

FOREST HEATH(PART)

EAST CAMBRIDGESHIRE

FENLAND(PART)A

1(M)

A14

M1

1A14

A10

A14

A11

A11

A10

UTTLESFORD(PART)

A10

A1

Beyond University and City – The Greater Cambridge Partnership Area

Population: 635,000Jobs: 359,000GVA: £12.2bn

• Combined headcount of technology providers currently exceeds 2,200 in UK

• PA Technology employs 3,500 Worldwide

• Combined revenues estimated at £300 millions – UK Worldwide ??

• PA technology – Revenues $750millions

• Some players have seed funds

• 65 identified spin-outs - highly successful incubator models

Birth of a cluster of world-class technology providers – agents of change….1960 – year of destiny

The TechnologyPartnership

Scientific G enerics Sym bionics Team C onsulting P lextek

P .A. Technology

C am bridge C onsultants Ltd(1960)

C am bridge U niversity

Birth of a world-class cluster - Industrial Ink Jet, Cambridge – 70% of World Industrial Ink Jet Industry originated in Cambridge

Elmjet Ltd

1986

LinxPrinting

Technologies1986

Support to Imaje (France) formed 1979

XaarPrinting

Technologies1990

Cambridge Consultants Ltdspin-out 1960

Cambridge University

Domino Printing Sciences

1978

WillettInternational

Ltd1983

INCA Ltd

2000

• Total current revenues £1 billion +

• Total headcount 3,000+

• Major market share participation worldwide

• Diaspora populates Ink Jet Industries in international locations

• Ink Jet Cluster has enabled “Plastronics” Cluster – Power of

Networking ++++

The emergence of high-technology clusters in Greater Cambridge – convergence + diversity

1971 1981 1991 2001 The future?

ScientificInstruments

Nanomaterials

Drugs delivery

Sensors/actuators

Informatics

Instrumentation

Medical engineering

LEPs

Drug modelling

Bluetooth

Sentient computing

Telecoms

Industrial inkjet

Biosciences

Computing

Software


Wirelesscommunications

Telecoms

Industrial inkjet

Computing

Biosciences

Software


Hi-tech 20,200 25,100 34,900 46,200jobs:

Computing

Software


Industrial inkjet

1971 1981 1991 2001 The future?


Nanomaterials

Drugs delivery

Sensors/actuators

Informatics

Instrumentation

Medical engineering

LEPs

Drug modelling

Bluetooth

Sentient computing

Telecoms

Industrial inkjet

Biosciences

Computing

Software


Telecoms

Industrial inkjet

Biosciences

Computing

Software



Telecoms

Industrial inkjet

Computing

Biosciences

Software



Telecoms

Industrial inkjet

Computing

Biosciences

Software


Hi-tech 20,200 25,100 34,900 46,200jobs:

Computing

Software


Industrial inkjet

Computing

Software


Industrial inkjet

50,000

Three Converging RevolutionsThree Pervasive Technology Platforms

BIO TECHPharmaceuticals

DiagnosticsResearch/Info

ToolsIndustrial

GenomicsBioinformatics

Proteomics

INFO TECHHardwareSoftware

Communications

NANO TECHElectricalStructural

BiomedicalEnergy & Environment

BiosensorsBiochipsBioelectronics

MicrofluidicsNanobiotechnology

Drug Delivery

NanodevicesNanosensors

Nanoelectronics

Overlapping Technologies support Overlapping Business Clusters

HEALTH

KNOWLEDGE CREATION

INFORMATION and COMMUNICATIONS

TECHNOLOGY

Basic Research

Sound & vision

Bio-pharmaceuticalsComputing

Publishing

Medicalservices

Bio-informatics

Medical devices and scientific instruments

University/ Research Institutes

Inkjet printing

Wireless

Telecoms

Networking

Technology ConsultingMedicalresearch

Education

Cambridge Venture Capital Scene – Estimated total value of funds: in excess of £1.5 billions and Business Angels Groups are active

++++

A Financial Cluster follows The Technology Cluster

- UK and Europe

- Cambridge Region only- UK only

Less than £1.0 million

More than £3.0 million

INVESTMENT SIZE

CRIL Generics Prelude 3i

ICT

Life Sciences Avlar

FNIVenture Capital

Merlin

Amadeus

PrimeTechnologyVentures

Pall MallVentures

Alta Berkeley

ETCapital

SiemensVC

Abingworth

CreateVentures

CambridgeGateway

TTPVentures

Another Chronology – Another Culture –“Reaching out and….Networking”

• 1584: Cambridge University Press – first “spin-out.” Alive and well 2008• 1818: Horace Darwin – Scientific Instruments Co- evolution of Pye Company Group (now Phillips owned)• 1960: Cambridge Consultants – birth of a “Technology Family• 1970: Cambridge Science Park ( Trinity College)• 1978: Barclays Bank initiative – promoting and financing Hi-Tech Companies:-

+ Sinclair Electronics + Acorn Computers

• 1980: “Clusters” emerge – Electronics / Instrumentation• 1985: First “Cambridge Phenomenon Report” – 350 Hi-Tech companies

Reaching out and Networking – it goes on….

• 1987: St John’s College Innovation Centre ( since then 200 companies – 150 survived, 30 University spin outs)• 1989: First Organised Business Angels Network• 1990: And ongoing – proliferation of Science Parks• 1994: Judge Business School opened – MBA etc• 1995: Emergence of Venture Capital Cluster – including Cambridge University Challenge Fund• 1998: Cambridge Network Ltd formed – still thriving• 1999: CU won bid for $5m of Govt. funding – to start

Entrepreneurship Centre• 1999: Developing Technology Transfer Unit

And on…..the momentum and power of Networking

• 1999: “Cambridge Massachussett’s Institute” (CMI) “The two Cambridges” – JV with MIT - $150m funding.

• 2001: Cambridge Centre for Entrepreneurial Learning ( CfEL ) – major advances in Entrepreneur Education

and support – Entrepreneur Summer school. • 2001: “CUE” – Cambridge University Entrepreneurs Student Business Plan and Business Creation

activities – a number of companies successfully formed some became international• 2002: Cambridge Angels and Cambridge Capital Group High net worth Angel investor groups• 2002: Library House Ltd – Innovation Research and linking investors and companies – ongoing activity• 2002: 2nd and 3rd Cambridge Phenomenon Reports• 2007: Vibrant technology and Biotech Clusters – 2,000 Innovative Tech companies – 3,500 “All Tech” – 50,000 jobs

Greater Cambridge - More science parks than in any other UK location – and they Network !

• Babraham Bio-Incubator• Cambridge Research Park• Cambridge Science Park• Granta Park• Great Chesterford Research Park• Melbourn Science Park• St John’s Innovation Centre• Peterhouse Science Park• South Fenlands Innovation Centre• Biopark Welwyn

Tenants include:

Kodak European Research Toshiba Research Europe Epson (UK) LtdHitachiPfizer Napp PharmaceuticalsGenzyme Therapeutics Ltd Astra ZenecaGlaxoSmithKlineTakeda…

Knowledge and Knowledge SHARING – key concepts put into practice

The Cambridge Phenomenon – University at the heart of Networking now….

• Many spin offs from University research groups – Cambridge Enterprise – Business Creation

• University people and ideas are at the core of many of the new technology ventures

• University organisations have helped develop the infrastructure of the ‘cluster’ (eg, Trinity College and the Science Park; St John’s College and the Innovation Centre, Babraham Research Inst.)

• Cambridge has become a magnet for hi-tech and biotech companies – Silicon Fen

• Centre for Entrepreneurial Learning “An Exemplar”

Hermann Hauser Amadeus Capital Partners

Visiting EntrepreneursVisiting Entrepreneurs

Karan Bilimoria Cobra BeerRichard Green

Ubisense

Jack Lang Serial Entrepreneur

Ann Cotton Camfed International

Dan Roach Avlar Bioventures

John Snyder Cambridge Accelerator

Jamie Urquhart Pond Ventures

Alex van Someren nCipherPhil O’

Donovan CSRAlan Barrell

Library House

Entrepreneursin Residence

Who’s Who - CfEL Entrepreneurs

Walter de Brouwer Founder

of Starlab

René Carayol

Business Guru

Dr. Shai Vyakarnam

CfEL DirectorKatharine

Price

Yupar Myint

Dr. Jo Mills

Stew McTavish

How Do We Work?• Curriculum development by CfEL• Leverage external expertise to deliver – over 200

entrepreneurs and practitioners• Highly customer focus • Constant assessment on quality of programmes • Build on reputation for excellence to create further growth

and expansion

Who’s Who - CfEL Team

Frances Bycroft

Orsi Ihasz

Peter Hiscocks(ACHIEVE)Arun Muthirulan

Entrepreneurial Support Structure – Centre for Entrepreneurial Learning

Senior Managers’Programme

How to develop and grow companies

Summer School‘Fast Tracking

Innovation to Commercial Success’

I’m a Corporate Intrapreneur or Entrepreneurial Manager

I’m a Solo Entrepreneur with a technology idea

Summer Forum

I’m an entrepreneur or an entrepreneurial academic

EnterprisersI’m a student

Enterprise Tuesday(Term 2)


I’m a student or member of staff or local entrepreneurial individual

Undergraduate and Postgraduate Assessed Programmes

I’m a CU student and want Entrepreneurship as part of my degree

How to teach entrepreneurship

How to survive and grow in the early stages

How to get my idea started

Some new knowledge and skills in business planning

What entrepreneurship is all about

I want to learn...

Senior Managers’Programme

How to develop and grow companies

Summer School‘Fast Tracking

Innovation to Commercial Success’

I’m a Corporate Intrapreneur or Entrepreneurial Manager

I’m a Solo Entrepreneur with a technology idea

Summer Forum

I’m an entrepreneur or an entrepreneurial academic

EnterprisersI’m a student



I’m a student or member of staff or local entrepreneurial individual

Undergraduate and Postgraduate Assessed Programmes

I’m a CU student and want Entrepreneurship as part of my degree

How to teach entrepreneurship

How to survive and grow in the early stages

How to get my idea started

Some new knowledge and skills in business planning

What entrepreneurship is all about

I want to learn...

• Intensive one-week course for students, solo entrepreneurs and corporate innovators with technology/ knowledge ideas

• Focuses on developing a strategy for each participant’s new venture

• Tailored support to individual project needs through investment readiness, technical and market due diligence, mentoring and expert clinics

• Access to a network of valuable contacts and sources of investment - 100 contributors involved in delivering each programme

• Opportunity to pitch idea to a panel of investors, entrepreneurs and corporate venture heads

• Successful nine year track record!88thth -14 July 2007 -14 July 2007

Cambridge Cambridge

The Cambridge Phenomenon – Fulfilling the Potential – from 2003 Report

“Greater Cambridge is one of the most dynamic sub-regions within the UK Economy”

GDP growth 6.5% p.a. ( UK 3.4%, USA 3.8%) Employment Growth 5,000 p.a.(160,000 1971 – 2001) 3,500 High Technology businesses 50,000 High Technology jobs 80% Job Growth ( UK 16 % ) 360,000 jobs in total UK Exchequer tax take £5.5 billion Export value - £2.8 billion Gross Value Added - £12.2 billion ( 2001 )

Many Sectors of Employment aredoing well in Greater Cambridge

• Total jobs 360,000• Retail & Leisure 95,000• High Technology 46,000• University R&D 5,000• Education & Healthcare 25,000• Other Knowledge-based 69,000• Manufacturing 35,000 (stable)• Business Services 45,000• Utilities 39,000• Public Services 25,000

“The conventional sector accounts for 2/3 of jobs in G.C. economy. Manufacturing and other sectors still KEY”

Cambridge

source: Cambridge 2020 report - 1998

Silicon Valley and the Eastern Region

Building an Enterprise Society

Building socially inclusive communities of enterprise and

common purpose



National economy

• Supported by the

University –

Businesses, Local

Government and

The Community

• Many thousands of

companies now

belong – from many

countries

• Special interest

groups on many

issues

• Self financing now –

after initial foundation

member pump priming

• One single web

address for

Cambridge

connections

• International linkages

– including Shanghai

and Munich Networks

Converging Interests and InfluencesInnovating in the Overlap and Adding Value

EDUCATION&

RESEARCHincluding Universities

INDUSTRY&

BUSINESS

GOVERNMENTNational & Local

Building an Enterprise Society. Networking and Communities – Manageable Units – working where real PEOPLE can influence things

Building communities of enterprise,social inclusion and

common purpose



National economy

“Brainpower and Brain Circulation”- The circulation happens through Networking.

• The O2C ARC initiative is jointly supported by SEEDA, EEDA and EMDA.

• The initiative is designed to facilitate the development of the knowledge based economy in their respective regions.

• The ARC vision is demanding, “to create one of the most successful knowledge based economy in Europe, with world leading aspirations”. Networking Outwards – Oxford to Cambridge

• The ARC is an investment in UK success.

• This success needs to be sustained and secured as UK Plc operates in an increasingly international and competitive economic environment.

Networking outwards – The Oxford to Cambridge

ARC

The Arc Initiative is a Crucial Part of the GOLDEN TRIANGLE

The South contains the UK’s ‘Golden Triangle’

A Golden opportunity to “combine and compete” with the larger innovative regions of the USA and partner with the large technology regions and clusters emerging in China and India.

“Superclusters” need “Supernetworks”

The South contains the UK’s ‘Golden Triangle’

A Golden opportunity to “combine and compete” with the larger innovative regions of the USA and partner with the large technology regions and clusters emerging in China and India.

“Superclusters” need “Supernetworks”

The Changing Face of Globalisation – Opportunities for “Partnership Networking” and “Co-opetition”

• Two fifths of the Worlds people live in the two fastest growing large economies – China and India – FACT

• Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia. R&D spending ++++

• Growth in Asia is far ahead of Europe.

• CASH is in place in the Asian economies – as well as brainpower.

• Co-opetition and Partnership – opportunities for European Regions

• And North and South America are still key markets ….

Building an Enterprise Society. Networking and Communities – Manageable Units – working where real PEOPLE can influence

things

Building communities of enterprise,social inclusion and common purpose – practical,

powerful Networks



National economy

Some Personal Conclusions

• There IS a “Cambridge Phenomenon – Proof positive of the Power of Networking

• The Phenomenon is people and supported by hard work and role models

• CULTURE and MINDSET are the greater issues than science, technology and engineering.

• Creativity and Innovation can be cultivated• Entrepreneurship can be encouraged and support structures are

essential• Experience and Knowledge Transfer are key• Open architectures and transparency – the removal of fear and

threats have been key factors.• COMMUNITIES grow and flourish through NETWORKING !• International thinking and connections are crucial for sustained

success.• Networks support the most important generation – The NEXT

Generation!

In In Pursuit of Excellence ! of Excellence !

“Excellence can be achieved, if we:Care more than others think is wise,Risk more than others think is safe,

Dream more than others think is practical,Expect more than others think is possible.”

Deborah Johnson-Ross

Let’s build more Powerful Networks!

For more information……

www.alanbarrell.com

[email protected]

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