1. Slide 1 “The Cambridge Phenomenon” “The Power of Networking in Regional Economic Development” 28 th Conference on Entrepreneurship and Innovation – Maribor March 27 2008 Professor Alan Barrell

2. Slide 2 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

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4. Slide 4 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

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6. Slide 6 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

7. Slide 7 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

8. Slide 8 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

9. Slide 9 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

10. Slide 10 BUT….Cambridge in 1960 Medieval City Great University and Seat of Learning Farmers Not much Industry Lots of Bicycles Entrepreneurs …..? Who wants CHANGE ??

11. Slide 11 But CHANGE is inevitable and its happening all the time ….was in 1960…. Environment Issues The death of deference New employment patterns Organisations Globalisation Technology

12. Slide 12 Technology – Changing Our Lives - Traffic in one day in 2003: All international phone calls 1971 All airline passengers 1975 All mobile phones 1984 All emails 1992 All SMS 1998

13. Slide 13 And all this talk about Competition?? Creativity Risk Speed Reputation Cost Values Learning Information

14. Slide 14 The Competitive Threat “Today’s Peacock is tomorrow’s feather duster”

15. Slide 15 Lots of Knowledge – but knowledge alone is not enough !!

16. Slide 16 Why is Knowledge not enough ?.... “Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world” Albert Einstein 1879 - 1955

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19. Slide 19 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”

20. Slide 20 Three Converging Revolutions Three Pervasive Technology Platforms – in places like Cambridge BIO TECH Pharmaceuticals Diagnostics Research/Info Tools Industrial Genomics Bioinformatics Proteomics INFO TECH Hardware Software Communications NANO TECH Electrical Structural Biomedical Energy & Environment Biosensors Biochips Bioelectronics Microfluidics Nanobiotechnology Drug Delivery Nanodevices Nanosensors Nanoelectronics

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22. Slide 22 The Cambridge Phenomenon-Cultural and Ethnic Diversity Population in Cambridgeshire – Facts and Estimates Note – “Greater Cambridge” ( 20 miles radius of City) believed higher.

23. Slide 23 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.

24. Slide 24 Back to Imagination - One of the most imaginative thinkers – as a young man….

25. Slide 25 Who you may more often have seen when more mature – great traveller and networker….

26. Slide 26 “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…

28. Slide 28 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.”

29. Slide 29 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 !

30. Slide 30 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

31. Slide 31 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

32. Slide 32 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

33. Slide 33 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

34. Slide 34 Beyond University and City – The Greater Cambridge Partnership Area Population: 635,000 Jobs: 359,000 GVA: £12.2bn

35. Slide 35 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

36. Slide 36 Birth of a world-class cluster - Industrial Ink Jet, Cambridge – 70% of World Industrial Ink Jet Industry originated in Cambridge Elmjet Ltd 1986 Linx Printing Technologies 1986 Support to Imaje (France) formed 1979 Xaar Printing Technologies 1990 Cambridge Consultants Ltd spin-out 1960 Cambridge University Domino Printing Sciences 1978 Willett International Ltd 1983 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 ++++

37. Slide 37 The emergence of high-technology clusters in Greater Cambridge – convergence + diversity 50,000

38. Slide 38 Three Converging Revolutions Three Pervasive Technology Platforms BIO TECH Pharmaceuticals Diagnostics Research/Info Tools Industrial Genomics Bioinformatics Proteomics INFO TECH Hardware Software Communications NANO TECH Electrical Structural Biomedical Energy & Environment Biosensors Biochips Bioelectronics Microfluidics Nanobiotechnology Drug Delivery Nanodevices Nanosensors Nanoelectronics

39. Slide 39 Overlapping Technologies support Overlapping Business Clusters HEALTH KNOWLEDGE CREATION INFORMATION and COMMUNICATIONS TECHNOLOGY Basic Research Sound & vision Bio-pharmaceuticals Computing Publishing Medical services Bio-informatics Medical devices and scientific instruments University/ Research Institutes Inkjet printing Wireless Telecoms Networking Technology ConsultingMedical research Education

40. Slide 40 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 CRILGenericsPrelude 3i ICT Life Sciences Avlar FNI Venture Capital Merlin Amadeus Prime Technology Ventures Pall Mall Ventures Alta Berkeley ET Capital Siemens VC Abingworth Create Ventures Cambridge Gateway TTP Ventures

41. Slide 41 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

42. Slide 42 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

43. Slide 43 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: 2 nd and 3 rd Cambridge Phenomenon Reports 2007: Vibrant technology and Biotech Clusters – 2,000 Innovative Tech companies – 3,500 “All Tech” – 50,000 jobs

44. Slide 44 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) Ltd Hitachi Pfizer Napp Pharmaceuticals Genzyme Therapeutics Ltd Astra Zeneca GlaxoSmithKline Takeda…

45. Slide 45 Knowledge and Knowledge SHARING – key concepts put into practice

46. Slide 46 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”

47. Hermann Hauser Amadeus Capital Partners Visiting Entrepreneurs Karan Bilimoria Cobra Beer Richard 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 nCipher Phil O’ Donovan CSR Alan Barrell Library House Entrepreneurs in Residence Who’s Who - CfEL Entrepreneurs Walter de Brouwer Founder of Starlab René Carayol Business Guru

48. Dr. Shai Vyakarnam CfEL Director Katharine 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

49. Slide 49 Entrepreneurial Support Structure – Centre for Entrepreneurial Learning

50. Slide 50 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! 8 th -14 July 2007 Cambridge

51. Slide 51 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 )

52. Slide 52 Many Sectors of Employment are doing 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”

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54. Slide 54 Cambridge source: Cambridge 2020 report - 1998 Silicon Valley and the Eastern Region

55. Slide 55 Building an Enterprise Society Building socially inclusive communities of enterprise and common purpose Sub-regional development Regional economic development National economy

56. Slide 56 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

57. Slide 57 Converging Interests and Influences Innovating in the Overlap and Adding Value EDUCATION & RESEARCH including Universities INDUSTRY & BUSINESS GOVERNMENT National & Local

58. Slide 58 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

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60. Slide 60 “Brainpower and Brain Circulation”- The circulation happens through Networking.

61. Slide 61 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

62. Slide 62 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”

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64. Slide 64 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 ….

65. Slide 65 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 Sub-regional development Regional economic development National economy

66. Slide 66 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!

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69. Slide 69 In of Excellence ! In Pursuit 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

70. Slide 70 Let’s build more Powerful Networks! For more information…… www.alanbarrell.com alan@alanbarrell.com