Networking from a Cambridge perspective.

Bill WicksteedInstitute for Manufacturing and SQW Consulting

September 2009

Bill Wicksteed

• Economist with an interest in knowledge transfer and the role ofUniversities in innovation systems.

• But also involved with physical developments – new towns/science parks/innovation centres.

• Work on the Cambridge Phenomenon - 1985 and 2000

• Involved with a number of Moreforskning projects since 1991(?)

• On the advisory panel for Singapore’s “one north” project including Biopolis (since 2001)

Cambridge and surrounds

Chapter 3

Start-Ups and Spin-OutsChapters 4 & 12

Large firms

In-/Out-Movers

Ch. 5 Ch. 6

Firms and sectors

Success

Chapters 10 & 11

Chapter 7

Intellectual Capital

• Cambridge University

• Research institutions• Strategic alliances• Informed networks

Money and external business expertise

• Banks / Angels• Venture capital• Accountants• Lawyers• Marketing experts

People

• Education• Training• Entrepreneurship• Culture• Trust

Land, property and infrastructure• Location• Flexibility• Cost• Congestion• Environment

Chapters 8 & 16

Chapters 8 & 15 Chapters 8,13 & 14

Sustainability?

• Quality of life• Job satisfaction• Local politics• Housing• Travel to work

Chapter 9

Intellectual property

In-Migration

Knowledge transfer

Science Parks, etc.

Choice or Frustration

© SQW Ltd 2000; wwicksteed@sqw.co.uk

The Cambridge High Tech ClusterPlanned Systems Individual choices

What the diagram misses

• Networking– Broers’ foreword (June 2000): “In earlier years one of the city’s

great strengths was its local networking and this remains important. What we see today is an equally vital and complementary enthusiasm for international links. I am sure thatthe years ahead will see us collaborating – and competing successfully with the other centres of excellence around the world”.

• Scale– Cambridge has about 110,000 people with another 200,000 in

the surrounding area. Growth of around 30% is planned by 2026. It is argued that lack of housing is constraining growth potential.

Some characteristics of Cambridge growth

• Concentration of excellent research/ specialised labour market

• Strong professional service firms and technology consultancies

• Roughly 10% p.a. compound job growth mainly internal dynamic

• But in-movers also important:– Personal connections 25%– Location 22%– Image 18%

• Tourism – both professional (conferences) and leisure maintains international awareness of the city and cluster.

Cambridge University – 800 this year!!

• The University is in the international top 10• With a breadth of excellence across subjects• And strong international connections• It did (and still does) spin off good new firms – though

shortages of Venture Capital make this a less common route to research commercialisation

• But the business sector has its own dynamic and when businesses close they quite often lead to new start up companies with serious ambitions

• Firms and University benefit each other – the Microsoft Laboratory and Nokia (Norsk Hydro did NOT come)

Spin-outs are still important – but there are questions

• 25% with a university member as one of the founders• 75% with one of the founders from a local company• Some from companies that have closed/moved away• People move here to start firms• Toshiba’s first spin out (Teraview)• “Low risk place to do a high risk thing”• Not many grow large – but is this inevitable?• Can small places grow really large companies?• Or is it because few Cambridge companies go into

manufacturing directly?

Networking

• Vital to sustain networking as scale increases• University participates in organisations and individual

academics play key roles – but no institutional lead. • Cambridge Network – open membership organisation• ERBI – regional membership network for life sciences

firms and research bodies – founded from Cambridge• Cambridge Energy Forum• Cambridge Wireless – hub for a national community • Library House – venture to connect to money (failed!)• Link internally to connect externally.

Networking used to be a small firm phenomenon – but that’s changing• SQW evaluation of the Cambridge Science Park and

SJIC showed that networking was important for small/young companies; but faded as they grew/aged

• But in the Cambridge area (and Silicon Valley) movement of people between firms mean they may network inadvertently – facet of a cluster labour market!

• Moreover come really big firms are looking to change their culture towards “open innovation”

• So they need to learn to network – though not necessarily in a local cluster

• Dr Tim Minshall at the Institute for Manufacturing is leading action research with a group of major firms

Open innovation

What is it?• Start-ups and larger firms

working together• Investment into new firms• Licensing IP from other firms

and individuals• Collaborating with universities• ...

Many challenges• IP management / trust• Skills• Organisational culture• Measuring success

So how is IfM helping? - Community of Practice• Initially Unilever-funded, now 30 organisations• Identifies areas of common interest / opportunity

So how is IfM helping? – Collaborative research• Technology intelligence networks: The contribution of

intermediaries• Managing partnerships between start-ups and large

firms• Value capture and measurement in corporate venturing• Developing skills for open innovation

So how is IfM helping? – Training events

• Managing partnerships between start-ups & large firms

IfM and open innovation – a marketing plug!

• Open innovation presents many opportunities– But is very challenging to implement

• IfM is supporting the implementation of open innovation through:– Community of practice– Collaborative research– Training events and more– We welcome further opportunities for collaboration– http://www.ifm.eng.cam.ac.uk/ctm/teg/openinnovation.html

What the opposition are doing – a warning from Singapore

Achieving innovation though new development – “one north” in Singapore – on a 200 ha former military camp –developed by JTC with comprehensive backing of all arms of government (nearly all the time!)

“We need intellectually stimulating and vibrant physical environments where a critical mass of talents, entrepreneurs, scientists and researchers can congregate, exchange ideas and interact.”

SPEECH BY DR TONY TAN, FORMER DEPUTY PM AND MINISTER FOR DEFENCE, AT THE LAUNCH OF one-north ON 4 DEC 2001

one-north

one-north Objective

BiomedicalScienceBiomedicalScience

BusinessSupport

Lifestyle Support

Learning /Education

LifestyleEntertainment

Infocomm Technology & Digital Media

Infocomm Technology & Digital Media

EnvironmentalScience &

EngineeringEnvironmental

Science &Engineering

one-north

Mixed of Industries

Xchanges - Centres of Excellence• Vista XchangeBusiness, retail & lifestyle

• Life XchangeBiopolis - Biomedical sciences

• Central XchangeFusionopolis - Infocomm + Science & Engineering

• Wessex EstateCreative and Arts

• Media XchangeMediapolis - Media Ecosystem

• Future XchangesFuture centres of excellence

one-north

Xchanges

Vista Xchange

Wessex Estate

Life XchangeCentral Xchange

Media Xchange

Future Xchanges

Xchanges - Centres of Excellence

one-north

Dynamic Planning

• Allow sufficient space for single-industry growth to achieve critical mass

• Allow proximity to promote dynamic interaction

• Anticipate and induce direction of growth

• Importance of interlinkages for value creation

Vista Xchange

Wessex Estate

Life XchangeCentral Xchange

Media Xchange

Future Xchanges

Biopolis Phase 4

Hospitality Suites & Residences

Medical School

one-north Research Hospital

Biopolis Phase 3

Biopolis Phase 5

one-north | Life Xchange

Biopolis Development

one-north | Wessex Estate

FeaturesWalk-Up Apartment Semi-Detached HouseWork Loft @ Wessex

• Comprises 26 blocks of black-and-white walk-up apartments and 58 semi-detached houses• 4 blocks of walk-up apartments converted to Work Lofts for the creative industry• Adaptive reuse of black-and-white houses for home-office and commercial usage, includingartist’s studio, art gallery, design studio, cooking studio and performing arts school

To sum up

• There are challenges in the spheres of both “hard” and “soft” infrastructure

• The innovation and networking challenge can be tackled in new and (800 year) old places.

• Imaginative new physical developments can play a role but they need across the board institutional commitment to bring them to life

• Networking is now important for big as well as small firms and for universities and research institutes

• Universities can provide a forum, expert tools and facilitation skills to develop networking competences.