InnovationInnovation andand TheThe CambridgeCambridge PhenomenonPhenomenon

Globalising Regional Performance through the Development of A Science Based Cluster – with other examples….

Visit of CNRS to Philips Medical Research Cambridge March 18th 2010

Alan Barrell – Entrepreneur in Residence Centre for Entrepreneurial Learning University of Cambridge A Preview….

ƒ Changing Dynamics of Globalisation ƒ The World, Nations, Regions and Sub- Regions ƒ Cambridge and other Regional Case Studies ƒ Science and Technology + People Power – powerful combinations ƒ Mindset and Culture ƒ Creativity, Innovation and Entrepreneurship ƒ Looking ahead….what next ? Starting at the Beginning -Does our “Eye on the World” see much change?....change?.... IS the World in Crisis during this period of Changes ? And what’s the BIGGEST CRISIS ?

ƒ The Financial Crisis?…..TheThe CREDITCREDIT CRUNCHCRUNCH

ƒ The Climate Crisis ?...... TheThe CARBONCARBON CRUNCHCRUNCH

ƒ The Energy Crisis ?...... TheThe OILOIL CRUNCHCRUNCH And I haven’t mentioned FOOD or WATER………

The Changing Horizon – the DynamismDynamism and VelocityVelocity of Change….

Organisations Environment Issues

Technology The death of deference

Globalisation New employment patterns Are we focused on Sources of Competitiveness – or the means to success through Partnership and Progress ?

Learning Information

Creativity Risk

Speed Reputation

Cost Values Global Dynamics – where is a lot of the positive change happening ? – somewhere EAST of here!

ƒ Two fifths of the Worlds people live in the two fastest growing large economies – China and India ƒ Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia ƒ Growth in Asia is far ahead of Europe. ƒ Dynamic Growth in Manufacturing Base ƒ CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves ƒ Labour and Material cost advantages +++++ ƒ Asia and The Americas – power and influence…. CRISIS????? or OPPORTUNITY!!!!! 危机

MINDSETMINDSET cancan makemake THETHE DIFFERENCEDIFFERENCE –– betweenbetween GOODGOOD TIMESTIMES ANDAND BADBAD TIMESTIMES Changes in Industrial Structure - UK % of Total Employment - UK Government Foresight Report 2001

100 90 80

70 Manufacturing 60 50 All Services 40 30 20 10 0 1971 1981 1991 2001 2011 Changes in Industrial Structure - Europe % of Total Employment

100 90 80 70 60 Manufacturing

50 All Services 40 30 20 10 0 1971 1981 1991 2001 2011

Manufacturing has MigratedMigrated !! The West’s Competition ??

Courtesy of Asia Pacific Foundation Sticking to those old ideas of Competition and Protection – “Today’s Proudest Peacock could be Tomorrow’s Feather Duster” “Challenges ahead for a world’s divideddivided economy. But the Borders areare opening up....”

Source : The Economist TheThe WorldWorld becamebecame FlatFlat ...... Thomas Friedman Is it moving to be a World Without Borders ?

60 trillion EU - U.S $

EU

EU - U.S – Asia - BRIC Market Value - Value Market GDP

1900 2000 year

0.5 bi 1 bi 2 bi customers The Changing World Economy - Regions are lining up. Concept of “The Globalised Region”- lets explore....

? Some Questions about Optimising Regional Performance – in Science Based Regions ƒ Are their necessary pre-conditions for Science Based Cluster development ? ƒ Is the an Optimum Size / Scale ? ƒ How strong an influence is National Government Policy? ƒ Can we find Common Success Factors in Established Science Based Cluster Regions ? ƒ Is Global Presence and Success Common in our Exemplars ? ƒ Let’s look at one example…. CambridgeCambridge andand thethe EasternEastern RegionRegion –– aa TransformationTransformation

Traditional Industries •Agriculture and Food •Fishing •Leather goods - Footwear •Wool and Textiles •7.5 million people now •Now One of UKs fastest growing •Traditional Industries dead, dying or gone away…. At the Heart of Cambridge– Its Greatest Local Asset - A Great University 800 Years YoungYoung The University: ƒ Formed by scholars who settled in 1209 ƒ Has produced more Nobel Laureates than any other university, 86 in total ƒ Has 16,500 full time students and 150,000 alumni worldwide ƒ Has 31 colleges, including 3 graduate colleges ƒ Outstanding Science and Technology Record And we have Anglia Ruskin and ƒ Global Reach and nine other Excellent Universities Connections in the Region – more great assets!

Cambridge always had great Science and Scientists and Engineers….

Ideas that Changed the World – but not historically to the great benefit of Cambridge, the Region or the Nation Things have changed - Greater Cambridge Partnership Area today– one of Europe’s fastest growing…. A Transformation into a Leading Region through Science based Cluster Development 2002 GC Estimates Population: 750,000

FENLAND Jobs: 359,000

A (PART) 1

( M 0 GVA: £12.2bn

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A Chatteris Littleport Ramsey

EAST FOREST HEATHA11 HUNTINGDONSHIRE CAMBRIDGESHIRE (PART) Mildenhall Huntingdon A10

A1 A14 1 4

A Bury St Edmunds St Neots CAMBRIDGE A14 ST EDMUNDSBURY (PART) A11 SOUTH CAMBRIDGESHIRE Haverhill

0 1 A UTTLESFORD (PART)

Royston M

1 Saffron Walden

1 NORTH HERTFORDSHIRE (PART) The Greater Cambridge Partnership - GCP Super Sub-region – post 1960 Global Reach One of Europe’s Innovation Capitals

• University of Cambridge ranked No. 1 in Europe, No.4 in the world • 25% of UK R&D investment – only 10% of population • International hub linked to finance and global markets • £12 billion+ economy; 750,000 people • 1,500+ hi-tech companies; 250 biotech companies • 30% of workforce employed in knowledge-based industries • European Union certified centre of excellence for innovation and hi-tech business • Where Entrepreneurship has driven positive development • Where the Science based Cluster has brought GLOBAL success The Cambridge Phenomenon – Fulfilling the Potential – 2005/6 Report to Government “Greater Cambridge is one of the most dynamic sub- regions within the UK Economy”

¾ GDP growth 6.5% p.a. ( UK 3.4%, USA 3.8%) ¾ Employment Growth 5,000 p.a.(160,000 1971 – 2001) ¾ 3,500 High Technology businesses ¾ 50,000 High Technology jobs ¾ 80% Job Growth ( UK 16 % ) ¾ 360,000 jobs in total ¾ UK Exchequer tax take £5.5 billion ¾ Export value - £2.8 billion ¾ Gross Value Added - £12.2 billion ( 2001 ) The East of England Region “Silicon Fen”

Cambridge

source: Cambridge 2020 report - 1998 Trinity – The First Cambridge Science Park Science and Innovation Parks – Assets for participating in a World Without Borders – Cambridge has made progress – Platform for Global Growth and Wealth Creation.

More science parks than in any other UK location

• Babraham Bio-Incubator Tenants include: • Cambridge Research Park Kodak European Research • Cambridge Science Park Toshiba Research Europe • Granta Park Epson (UK) Ltd Pfizer • Great Chesterford Research Park Amgen Biosciences • Melbourn Science Park Napp Pharmaceuticals • St John’s Innovation Centre Genzyme Therapeutics Ltd • Peterhouse Science Park Astra Zeneca GlaxoSmithKline And more are planned – Takeda Hauser Forum will open Hitachi 2010 – and more. Microsoft Research Nokia Global Companies emerged from the Cambridge Science Based Cluster….bridging Customer Needs and unexploited Technology

Customer Technology need

Innovative technology & service company Completing the Jigsaw – Design and Service Delivery Innovation

Creativity Customer Technology and need Innovation

Creating a New Paradigm ….a New World Leader…. Global from Day One – Heping create a Region of Global Significance

Going Global… reaching $US 500K or exceeding $US 1 billion Key Components of Entrepreneurial Eco-system – Local start-ups and inward migration

Cambridge University MRC Sinclair Laboratory Radionics Cambridge of Molecular 1960 Interactive Biology CCL System CAD Sinclair Research Ltd Centre Barclays Bank 1970 Glaxo Analysys Cambridge PA Eicon Nickerson Science Park Technology Research Ltd Biotech Olivetti Research Laboratory Laboratory Acorn Hitachi BP (acquired by Cambridge AT&T in 1999) 1980 Institute of Laboratory Seiko Epson Judge Business Biotechnolog The Wellcome Research St. John School Scientific y Trust Sanger Lab Innovation Generics Cantab Cambridge Centre TTP Ventures Toshiba Pharmaceuticals Gateway CHASE The Technology Cambridge Cambridge Research and Glaxo Institute Partnership Research ET Capital Innovation Ltd (CRIL) of Applied TTP Laboratory ERBI Pharmacology Unilever Cambridge 1990 GEIF Amadeus Capital Cambridge Centre for Molecular Cambridge Avlar Cambridge Partners Capital Group Informatics Network Institute of Enterprise Library Granta Park CUE, Biology CfEL (previously Manufacturing CMI House Cambridge in Business CEC) Microsoft Research Angels (previously Entropic Cambridge 3i Create 2000 Research) Research Babraham EPSON Kodak Partners Park Bioincubator Enterprise Link Figure 1 - The hi-tech start-ups associated with the Cambridge University – Many Global Connections RealVNC Andy HopperVirtual Network Merged with Level5Network Andy Hopper Steve Pope Computing Globespan Ubisense Andy Hopper Peter Warton Andy Hopper Cambridge Andy Hopper Andy Ward Broadband Acquired by IPV (Telemedia Hermann Hauser Acquired by American Pete Acquired by AT &T Western Systems) Virata(ATML)Andy Hopper Microwave Steggles Adaptive Multiplex Simon Elliott Broadband Hermann Hauser Corp David Cleevely TerraPrise Amadeus Capital Partners VBN Olivetti Hermann Hauser online Tensails nCipher Research Lab Mike Muller Splashpower Richard Green Alex van Someren Andy Hopper Tudor Brown Acquired by Acquired by Nicko van Someren ARM Broadcom Lily Chang GE Jamie Urquhart ANT Element 14 Icera James Hay Richard Green Small Acquired by Alex van Someren Authur Chance World Olivetti Nicko van Someren Stan Boland Stan Boland Dick NewellCambridge Interactive Systems Part of DAKOSimon Knowles Simon Knowles John Snyder DakoCytomation - Dick Newell, Tom Sancha Diagnostics Webtop Acorn Merged with Charles Lang Hermann Hauser, Chris Keightley Shape Data Hermann IQ Bio Cytomation Inc Peter Duffett-Smith Smartlogik CAD Hauser Netchannel CPS Hermann Hauser Acquired by Acquired by Dialog Hermann Hauser Top Jack Lang NTL Cambridge Jack Lang Electronic Share Jack Lang express University Information Acquired by Muscat Laser-Scan Analysys CDT E* Trade John Snyder R. O. Frisch Enterprise David Cleevely Richard Friend Martin Porter Until 1985 Accelerator John Snyder Cambridge Richard Friend Adam Twiss 1986-1990 Semiconductor Zeus Plastic Logic David Reeves Gehan Amaratunga Technology Pilgrim Beart Florin Udrea David Cleevely ActiveRF ART 1991-1995 Cambridge Hermann Hauser Network Daniel Hall Collin Ager Alec Broers Antenova Garraint Davies Saviso Group Innovia Pilgrim Beart Polight Cambridge Adam Twiss Technologies 1996-2000 3G Bryan Amesbury Stephen Elliott David Cleevely Pavel Krecmer M-Spatial version (Sept 2005) – not to be used or copied without permission 2001-2002 Adrian Cuthbert Copyright – Y.M.Myint - [email protected], Dr. Shailendra Vyakarnam - Jon Billing [email protected] Judge Business School

Home of The Centre for Entrepreneurial Learning – CfEL – Key Support Structure. Now delivering to Global Markets The Cambridge Cluster -An example of “Bottom Up” – not “Top Down” Growth and Development….lessons here….

National Economy – World Economy

Regional economic development

Sub-regional development

Building communities of enterprise,social inclusion and common purpose. With International Mindset

Regions – Sub Regions we have compared – and to which we also applied those questions about characteristics. Cambridge is not unique…. ƒ Cambridge ƒ Eindhoven South Brabent ƒ Leuven and surrounds ƒ Aachen ƒ Stuttgart ƒ Ottawa ƒ Sophia Antipolis ƒ Silicon Valley Lets look for common features…. SiliconSilicon ValleyValley –– stillstill the exemplar Global Global .and .and … … Populations 0.5 Populations 0.5 – – Size Size Mindset Mindset 1 million common 1 million common – – without Borders – – – Knowledge Centers Entrepreneurs & Role Models Money Markets Capital Infrastructure Cluster Policy Presence of International Companies Networks Government Quality of Life ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ Scale Scale Minds Minds *

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N Charactersitics of Regions Charactersitics Charactersitics of Regions Charactersitics Leaders in Sustainable Scie Leaders in Sustainable Scie Three Converging Revolutions Three Pervasive Technology Platforms

BIO TECH Pharmaceuticals Genomics INFO TECH Diagnostics Bioinformatics Hardware Research/Info Proteomics Software Tools Communications Industrial Biosensors Biochips Bioelectronics Nanodevices Microfluidics Nanosensors Nanobiotechnology Nanoelectronics Drug Delivery NANO TECH Electrical Structural Biomedical Energy & Environment

Proximity of Learning, Research and Practical Application “The Innovation Campus”(example from Adlershof – Berlin)

R&D Education

Applications

Where open innovation, symbiosis, synergy and new companies can thrive As we get momentummomentum - Overlapping Technologies support Overlapping Business Clusters

HEALTH INFORMATION and COMMUNICATIONS TECHNOLOGY Medical Bio-informatics Telecoms services Medical devices and Networking scientific instruments Computing Bio-pharmaceuticals University/ Research Institutes Wireless

Inkjet printing

Sound & Medical Technology Consulting vision research

Publishing

Basic Research

KNOWLEDGE CREATION Education Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose – Essential Collaborations

EDUCATION & INDUSTRY RESEARCH & including Universities BUSINESS

GOVERNMENT National & Local ’

’ EuropeanEuropean ’ KnowledgeKnowledge ’ EconomyEconomy ’ RegionsRegions –– andand ’ ’ ScienceScience basedbased ’ ClustersClusters ’’ ? ’ ’ ’ ’ ’ KnowledgeKnowledge ’ ’ ’ residesresides andand ’ developesdevelopes inin ’ ’ ’ ’ RegionsRegions ’ ’ ** Knowledge and Science based Economy Regions Asia has them too

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„ China Calling – Who said Capitalism was bad?

““ToTo getget richrich isis GLORIOUSGLORIOUS””

Deng Xiaoping 1982

Western Regions with Science and Technology strength make the preferred partners for China and Chinese Regions – Global Opportunity ! THE EINDHOVEN -LEUVEN - AACHEN TRIANGLE

A European “Super” – Region Three Science Cluster Centres – Multiplying Global Influence

Lam RESEARCH

STMicroelectronics IMECIMEC

ImecImecin in LeuvenLeuven ––Flanders Flanders RegionRegion andand thethe WorldWorld’s’s LargestLargest IndustryIndustry CommitmentCommitment toto SemiconductorSemiconductor ResearchResearch inin PartnershipPartnership The “Mindset Factors” - ImaginationImagination Einstein on IMAGINATION….

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

Albert Einstein 1879 - 1955 The Entrepreneurial Mindset….

“You look at things and ask - why? but I dream of things that never were and ask - why not?”

George Bernard Shaw Europe’s Entrepreneurial Imperative – Josef Schumpeter - 1911 “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 Science Cluster Centres bring Positive Change Today – we have examples of Enterprise Societies at a Sub- Regional level born of the Power of Entrepreneurship, Innovation and Networking – but it took time….

National Economy – World Economy

Regional economic development

Sub-regional development

Building communities of enterprise,social inclusion and common purpose.With International Mindset. And for the future….

ƒ Studying the “Next generation of Science Parks – a Multi Centre Study ƒ Focussing on one of the world’s “Crisis” areas – Climate Change ƒ Considering the “Climate Change Campus” – The “Clean-Tech Science Park” ƒ Regional Excellence aiming at Global Impact ƒ Regional and Cross-Border linkages – to multiply the positives In “Hi-Tech / Hi-Growth” Regions we have the Model….for a “Next Generation of Science Clusters the Climate Change Campuses….Imagine….The GLOBAL potential

ƒ A Central “Institute for Climate Change ƒ Conference and Community Facilities ƒ Research Units – from larger Corporations ƒ Specialized Technology Teams ƒ Spin-Outs and Start Ups ƒ On site support for Management Development, Intellectual Property Management etc ƒ “A Community of Open Innovation, Enterprise and Common Purpose” ƒ Hotels nearby and Visitor Centre ƒ Available Entrepreneurial Finance Our “Climate Change Campus” could have – in addition to a Central Institute for Climate Change

ƒ Leading Edge Scientific research linked to Climate Change and industrial production ƒ Wind, Wave, Plantbioscience,Agronomy, Modelling,Fuel Cells etc.,etc- Converging Technologies ƒ Light industrial production closely associated with on-site or university research ƒ Ancillary activities (e.g. Venture Capital companies, Patent & IPR law firms etc) ƒ Central Library and Resource Facilities and Meeting places ƒ The CLEANTECH CENTRE ƒ A NEW GLOBALIZED CLUSTER

ThinkingThinking AboutAbout AboutAbout CreatingCreating aa WorldWorld WithoutWithout BordersBorders……....

It can be much more than a Dream….Regions – with Global Reach – will play a major part – and will prosper….

Thank you…. Alan Barrell – Entrepreneur in Residence - CfEL InIn Pursuit ofof ExcellenceExcellence !!

““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

Maybe Entrepreneurs think this way?.... If Academics and Public Policy makers do too….we have a powerful combination….which impacts upon Society and the whole Economy. Thank you for your attention….

More on my website –

www.alanbarrell.com

E-mail – [email protected]