E4604 SP Cluster Report Main Report P12.Indd
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THE EVOLUTIONOF THE HIGH PERFORMANCE TECHNOLOGYAND MOTORSPORT CLUSTER MAY 2016 FINAL REPORT 3 THE EVOLUTIONOF THE HIGH PERFORMANCE TECHNOLOGYAND MOTORSPORT CLUSTER AUTHORS: Chris Green Christine Doel Robert Willis WWW.SQW.CO.UK ©Copyright 2016 MEPC The evolution of the High Performance Technology and Motorsport Cluster Final Report Contents Foreword Chris Taylor Executive Summary .................................................................................................................. i 1. Introduction .......................................................................................................................... 1 2. The origins and growth of the HPTM cluster .................................................................... 7 3. The wider spatial and economic context: adding to the HPTM “mix” ......................... 18 4. Measuring the HPTM cluster ............................................................................................. 28 5. Understanding cluster dynamics: knowledge “in the air”............................................. 33 6. Understanding cluster dynamics: innovation and adaptation ...................................... 42 7. Understanding cluster dynamics: financing, networks and growth ............................ 56 8. Understanding cluster dynamics: relationships between local and global ................. 63 Chief Executive Officer, Hermes Real Estate 9.and Future Head opportunities of Private Markets and challenges for the HPTM cluster .......................................... 70 Hermes Investment Management Profound demographic and lifestyle changes are occurring today, and these changes, alongside the longer term trends towards greater urbanisation and globalisation, rapid rates of technological advancement and increased awareness of sustainability risks, are having a major effect on how individuals and corporate occupiers assess their real estate needs. Ultimately, in an increasingly competitive world, global capital will gravitate to where best talent resides, so the opportunity to promote Silverstone Park as a globally recognised centre of excellence in the high-performance technology and motorsport industry makes abundant sense, as it is surrounded by a unique clustering of ‘HPTM’ talent. In a similar manner, at Hermes, we have witnessed the benefits from the ‘clustering’ of a deep pool of talent at Milton Park in Oxfordshire which is managed by our partner MEPC. The park’s links to the globally leading life science centre of excellence at nearby Oxford University, and this clustering of talent acts as a magnet for global capital looking for expertise within the sector. These economic drivers are vitally important for long term investors such as Hermes, as ultimately real estate returns rely upon sustainable growth in the real economy and its resultant occupational demand. We are excited about the role which MEPC can play at Silverstone Park in continuing Disclaimerto attract leading talent and global capital to the HPTM cluster of closely related businesses and in so doing support the sustainable growth of the economy in the local area. Whereas every effort has been made to ensure that the information in this document is accurate, neither SQW nor SQW Group accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Contact: Christine Doel Tel: 01223 209400 email: [email protected] Approved by: Chris Green Date: May 2016 Director www.sqw.co.uk The evolution of the High Performance Technology and Motorsport Cluster Final Report Foreword JamesRoger QuinceDipple FoundingChief Executive Partner, Officer Segal Quince Wicksteed NoMEPCn-Executive Director, SQW Group WhenChair, MEPC West purchasedSuffolk NHS Silverstone Foundation Park in Trust 2013 its notable assets were its global brand Thisname report and the is informative central location and challenging.in the country. Despite With overthe international 2m sq ft of planning profile of consent Formula and One andmore the than strong sixty association companies betweenalready on Silverst site undertakingone and motorsport, a variety ofit is advanced nonetheless engi surprisingneering to findactivities that there it was are clear so thatmany there interesting was an companies,opportunity withto grow outstanding the park andby attracting varied technological further expertise,similar companies. in the area around Silverstone. The HPTM cluster is not really ‘on the map’ like, for example, the high tech clusters around Cambridge and Oxford. But this report demonstrates Based on our market research with occupiers and potential occupiers we identified anecdotal evidencethat it is a ofgenuine a cluster cluster, where and local with companies real potential seemed for growth attracted – largely to the locationbecause due of the to thequality and wider relevance of the technologies being developed and applied by many of the firms, beneficial interactions between the businesses over time, and when we talked with a number ofbut our also stakeholders because the about cluster this is they located agreed in one that of a the research fastest project growing to andreview dynamic the economic parts of the UK. activity across county boundaries and based on local business activity would be both useful Oneand interesting.of the real opportunities is to make the most of the overlaps between different spheres Weof influence were therefore of specialist very happyexpertise: to lead for example,the project, bet supportedween the byengineering the three districtexcellence councils, in Northamptonshire, the growing IT strengths in Milton Keynes and Buckinghamshire, and the the two county councils, the three LEPs, the Motorsport Industry Association, Barclays and expertise in areas such as low energy systems in Oxfordshire. PwC and we are really excited by the results and the early positive response to the findings. TheWe thereforechallenge look is how forward to realise to continuing the growth to workpotential with of our the partners cluster. and The the report local clearly business identifies somecommunity issues to to take be addressed,forward the includingactions coming access out to finance,of this report, and developing supporting managementthe evolution and marketingand growth expertise of the HPTM to match cluster. the undoubted technical capabilities of many firms. These issues are typical of many clusters in their relatively early stages: they are, for example, reminiscent of Cambridge in the 1980s and 1990s. This report, and the commitment of its sponsors, should certainly help raise the profile of the HPTM cluster and thereby improve its growth potential. The evolution of the High Performance Technology and Motorsport Cluster Final Report JonChris Hilton Taylor ChiefCo-Founder Executive of Flybrid Officer, Hermes Real Estate andNon -HeadExecutive of Private Deputy Markets Chairman, Torotrak Group IHermes have spent Investment my career workingManagement within high performance technology and motorsport, with Cosworth, then with TWR Arrows F1 and subsequently with the Renault Formula One Profound demographic and lifestyle changes are occurring today, and these changes, team in Oxfordshire. All of my different jobs have been in the area around Silverstone alongside the longer term trends towards greater urbanisation and globalisation, rapid rates and so, when Doug Cross and I set up Flybrid in 2007, it was the place for us to be. of technological advancement and increased awareness of sustainability risks, are having Wea major both effect lived onlocally, how butindividuals more than and that, corporate it was whereoccupiers our asseprofessionalss their realnetworks estate of needs. friends, collaborators,Ultimately, in an colleagues increasingly (past competitive and present) world, and global competitors capital alsowill gravitatelived and to worked. where bestIn growingtalent resides, Flybrid, so we the benefitted opportunity from to workingpromote closelySilverstone with otherPark aslocal a globally firms that recognised we knew centrewell ofand excellence trusted completely. in the high -Sometimesperformance we technology recruited staffand motorsportfrom them, industryand sometimes makes abundantthey sense,recruited as from it is surroundedus. But the bynetwork a unique of people clustering with of deep ‘HPTM’ professional talent. relationships, sometimes forged over many decades, has been really important in the growth of our company. In a similar manner, at Hermes, we have witnessed the benefits from the ‘clustering’ of a deepThis report pool of charts talent a at story Milton surrounding Park in Oxfordshire the growth which and character is managed of the by ourcluster. partner It is MEPC. a story Thethat Ipark’s recognise links fullyto the – globallyand it is leadinggood to lifesee science it written centre down. of Inexcellence fact, reading at nearby through Oxford it has promptedUniversity, me and to this pick clustering up the phone of talent to o actsne of as the a othermagnet business for global owners capital and looking to start for the expertise ball rollingwithin theon somethingsector. completely new. TheThese high economic performance drivers technology are vitally andimportant motorsport for long cluster term continues investors tosuch be asa very Hermes, exciting adventure.as ultimately We real are estate all committed returns rely to uponwinning sustainable