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| Cambridge Technolpole: Cambridge Technopole explained |
| Written by News Desk | |
| Wednesday, 05 March 2008 | |
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The Cambridge Technopole is a geographic area of intense hi-technology innovation activity encompassing the city of Cambridge at its heart and the sub-regional Greater Cambridge hinterland of approximately 25 miles radius.
It sits in the wider region of the East of England, one of the fastest growing regions in the UK. Much of this growth has been fuelled by the dynamism of the Cambridge Technopole area. A critical role has been played in the growth of the Cambridge Technopole by those organisations whose function can be viewed as technology providers, the report says. These can be divided into three groups: Technology consultants; higher education research institutions and corporate R & D organisations (both Cambridge start-ups and ‘incomers’). These organisations typically do much more than just their ‘core’ research function. For example, the technology consultants now actively exploit the competence they have developed through their consulting work through the formation of new business ventures. The University of Cambridge has been the origin of over 300 new ventures based around University people and research, and this may be linked to access to the commercial world provided by the presence of embedded corporate R & D labs within the University. It is also interesting to note the emergence of new large scale academic-business collaborative initiatives within the technopole. One example is the Cambridge Knowledge Integration Centre which brings together research and commercialisation activities on molecular and macromolecular materials. What is the role of public support? In recent years there has been public funding provided for ‘soft’ infrastructure development within the Technopole. Examples include the funding for a range of specific programmes within the Technopole to assist early stage businesses. One of the most successful of these has been the ‘Enterprise Hubs’ programme, funded by the East of England Development Agency (EEDA). Enterprise Hubs are a series of linked initiatives that encourage the development of networking groups in the region’s key knowledge-based sectors and clusters; support the development of incubators, innovation centres and science parks; ensure the delivery of leading-edge innovation support; and support innovative businesses as they seek access to finance to accelerate growth. Within the Technopole area, Enterprise Hubs are run by St John’s Innovation Centre, Health Enterprise East and the Babraham Institute. Walter Herriot says: “It is recognised that more needs to be done to improve business support and financing if the Cambridge Technopole is to retain its resilience and achieve its potential. “For example: There is evidence that an additional type of funding mechanism is necessary to support technopole companies. Such funding is needed for early-stage companies whose potential markets are too niche to attract traditional equity investors as perceived returns are too small. “A mezzanine type product would assist such companies to grow rapidly and sustainably. The public sector, through procurement, could act as a ‘venturesome consumer’ of emerging technologies. “A key policy instrument used in the US. to support such activity is the Small Business Innovation Research (SBIR) Program. “The implementation of a similar programme in the UK could assist the growth of technopole businesses. “The development of the East Forum as a business incubator for the University of Cambridge – funded by both public (EEDA) and private (The Hermann Hauser-Pamela Raspe Foundation) sources – is an example of an exciting new entrepreneurship-related initiative and is due to open in 2009. “However, the University of Cambridge needs ongoing public support if it is to enhance and integrate its diverse range of commercialisation and entrepreneurship activities such as the business planning competitions, i-Teams programme, entrepreneurship training programmes, and the provision of general guidance to staff, graduates and undergraduates who are endeavouring to establish businesses. “Entrepreneurship needs to be encouraged throughout the technopole. “For example, there should be more interactions with schools, and the Anglia Ruskin University initiative to establish an undergraduate course on entrepreneurship should be fully supported. “But it is not only the soft ‘infrastructure’ that requires improvement. “Affordable housing is a real issue and the development of new town of Northstowe in the context of the technopole is an area where sympathetic planning and design will be required. “Major improvements to the A14 dual carriageway need to be started sooner rather than later if Cambridge is continue to be perceived nationally and internationally as a ‘good place to do business.” Development of Technopole a ‘bottom-up’ initiative The development of the Cambridge Technopole has been very much a ‘bottom-up’ initiative, according to the report authors. They say that in 1978 there were around 20 hi-tech companies in the area. One of the leading UK clearing banks – Barclays plc – recognised that these companies could form the heart of a ‘mini-cluster’, helped form the Cambridge Computer Group and made one of the bank’s employees available to assist start-ups with business advice and help in raising finance. By 1985 the number of hi-tech companies had increased to around 360 when the significance of what was happening in Cambridge was identified by the publication of the much-cited ‘Cambridge Phenomenon’ report, which gave an overview of the evolution of the hi-tech industry in Cambridge. Since then, the Cambridge Technopole has grown significantly and is now home to over 1,400 high technology ventures employing around 43,000 people. That’s some growth in just 30 years. The collapse of the Internet-fuelled speculative bubble in 2000 slowed the growth of the technopole but the period 2004-2007 saw a recovery in the number and size of investments into Cambridge companies. According to the report authors, this has been driven by increased investor confidence resulting from factors including the number of IPOs (including CSR, Bango, AbCam and Amino Technologies), coupled with increased high value M &A activity. Pharma giant AstraZeneca swooped for Cambridge duo KuDOS Pharmaceuticals and CAT in swift succession for a combined £763 million while Sosei took Arakis (£107m) and GSK paid £230m for Domantis. On the pure technology front, rather than biotech, Cambridge Display Technology was acquired by Sumitomo Chemical for £142m. Significant equity investments captured by the report included Light Blue Optics raising $26m, Cachelogic $20m and Plastic Logic raising $100m to move to volume production of its polymer electronics. In the cases of Arakis and CAT, primarily, being under new ownership has brought major expansion at their Cambridgeshire research hubs. And if any more evidence was required as to the importance of hosting Europe’s leading biotechnology cluster, the developers of Chesterford Research Park, are investing more millions in new facilities. Global heavyweights Pfizer and Illumina have each taken major space at Chesterford and the developers are keeping the momentum going. Two new buildings will be known as the Downing Building and Robinson Laboratory, with the former designed to provide approximately 20,250 sq ft of R & D and office accommodation on ground and one upper floor and the latter, to offer some 60,000 sq ft. Built in two separate wings, linked by a central, two-storey atrium which will house a number of meeting rooms and reception area, the Robinson Laboratory represents the ultimate in flexible design. Plans for a 36,000 sq ft Science Village building are also being developed, as are further bespoke buildings from 15,000 sq ft. (See page VI). Cambridge already boasts Europe’s leading wireless cluster, which is also in the world’s top six, and is now developing huge capability in both the renewable energy and medtech segments. In this latter, the development of the BioMedical Campus at the Addenbrooke’s Hospital site will be another European, and possibly world, leader. Cambridge scientists have been frequently honoured for their breakthrough discoveries and achievements. Cambridge has produced over 25 Nobel Prize winners – 22 prize winners in medicine alone. Cambridge is one of the most comprehensive biomedical research locations in Europe, with tremendous cross-disciplinary research potential. In the last five years, Cambridge has become a leading centre for cancer research in the UK, recognised both nationally and internationally. The new Biomedical Campus at Addenbrooke’s will have 62 acres dedicated to medical research activities. Up to 35 acres of employment land will provide biomedical and biotech R & D and related support activities. There are already plans to extend it further. Cambridge is also in pole position to win lucrative new trade through relocations and Joint Ventures involving the world’s two fastest-growing emerging economies – China and India. There are already plans by the UK India Business Council to establish a Cambridge base – possibly in the St John’s Innovation Centre – to optimise some of these opportunities. Having helped secure the first Traditional Chinese Medicines company for Cambridge, inward investment body East of England International is confident of securing more of the same. EEI is also receiving interest in areas as diverse as food & drink, aerospace & engineering, logistics, finance and both biotech and hi-tech from major companies who see Cambridge as an ideal European research nexus. New EEI chief executive, David Riches, is determined to push the ‘Ideas Region’ brand through a focused international strategy and if he needs to use Cambridge & Oxford, or Cambridge & London to leverage investment, is prepared to portray the bigger picture. Riches says Cambridge and the wider East of England region cannot divorce itself from the reality that foreign investors take an holistic view of certain growth corridors. “North America remains a huge source of investment for us and we are getting terrific interest from India, Japan and China. But Europe is also a major market. France and Germany each figure in the top five investors into our region. “Also, the growth of services across Europe to and from Stansted and the opening of the new St Pancras rail hub have given this region unprecedented access to potential investors from continental Europe. “There is already evidence that a lot of French firms will use access through St Pancras as a rationale to look east from London towards this region, rather than south, to set up operations.” Riches also believes that the expertise contained in the Cambridge wireless cluster and the expertise of its many digital displays companies could derive huge revenues from the first ‘digital Olympics’ in London in 2012.
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