1. The Cambridge Phenomenon St John’s Innovation Centre David Gill Estonian Trade Delegation 5 th November 2014

2. The Cambridge Cluster Today 14 x $1bn companies 2 x $10bn companies 1,500+ tech based firms Employing 57,000 people 26% of workforce in knowledge sectors (vs 12% UK average) Generating £13bn total revenues

3. Shanghai Jiao Tong Ranking 2014

4. 2006 2010 Sunplus MM Michael Barkway Acquired by Motorola Merged with Continuum Photonics Nujira Tim Haynes Neul James Collier Glenn Collinson Robert Young William Webb CMR Fuel Cells Michael Priestnall Michael Evans Michael Evans Michael Priestnall Cambridge Carbon Capture Green-Tide Turbines Acquired by CSR Cognovo Tony Milbourn Gordon Aspin Charles Sturman, Mark Collins Richard Fry Ronny Jonckheere Pascal Herczog Acquired by Broadcom Argon Design Steve Barlow Renamed as Sagentia Pronostics (merged with FingerPrint Diagnostics) DFJ Esprit Meridica Ian J. Smith John Poley David Edwards Jeremy Crisp Imogen Gill Bruce Macmichael John Conway Acquired by Pfizer TurfTrax Adam Mills Omnisense Andy Thurman Adam Mills AltraNova Rob Morland Ian Hosking Martin Frost Intrasonics Acquired by Dainippon Screen Camitri Tony Milbourn Gordon Aspin Mark Collins Richard Fry Qasara William Harrold Pascal Herczog ADI Acquired by Mediatek Octymo Richard Walker Syrris Mark Gilligan Richard Gray Cambridg e Design Partnershi p Mike Beadman Mike Cane Well Cow 42 Technology Howard Biddle John Wilks Team Consultin g Andy Fry Array Logic (Plasmon) Rob Morland Plarion Bob Longman Aegate Ian Rhodes PlaqueTec Steve Blatcher EXACSYS Michael Noble Semblant Frank Ferdinandi

5. But……

6. Opportunity of a Crisis 1845: Cambridge station, 2 miles from Centre 1950: Holford planning guidelines – Cambridge to remain small medieval market town Mid-1960s: IBM refused EU research HQ – Even Cambridge had to rethink 1969: Mott Report – Smoke-stack vs science-based industries 1970: Cambridge Science Park – Land owned since 1546, poor condition – Vision of Sir John Bradfield, uncertain beginnings – No public funding, 61.5 hectares, 145,540m 2

7. Cambridge Cluster - Evolution 1209: Nominal foundation date - University 1534: University Press as first spin-out 1869: Cavendish Laboratory founded 1960: Cambridge Consultants formed ‘put brains of Cambridge at disposal of the problems of industry’ 1970: Cambridge Science Park 1970, first in UK Relaxation of planning laws for new industries 1985: The Cambridge Phenomenon, SQW report 350 high-tech firms, emerging cluster 1987: St John’s Innovation Centre 1987 First technology incubator in Europe

8. How……

9. World-class Consultancies

10. People & Culture High-trust, low-touch, ‘collegiate’ culture Now many serial entrepreneurs/angels Recent ‘Godfathers’: – Sir John Bradfield, Dr Chris Johnson, Lord Broers, Dr Hermann Hauser, Lord Sainsbury, Walter Herriott, Matthew Bullock ‘Superordinate goals’ Cambridge News

11. General Time: Cambridge cluster now 50 years old Scale: 350 high-tech firms in 1985, 1,525 today Supportive infrastructure: advisers, premises, networks Culture: entrepreneurship welcomed, many role models Reputation: brand/name assists international outreach University People: graduates most effective tech-transfer Research: blue-sky led to MRI, gene sequencing, LEDs… Values: light-touch, high-trust, bottom-up model Gravitational pull: Microsoft, Philips, Nokia, Rolls Royce… “A Safe Place to Do Risky Things”

12. But……

13. The Brilliant 14 Global Successes? Mkt Cap £bn t/o £mEmployees ARM14.147151996LSE Autonomy6.2bought by HP227Bought Cambridge Silicon Radio1.55bought by Qualcomm2474Bought Domino Printing0.93352400LSE Aveva1.36n/a1600LSE Cambridge Antibody Technology0.702bought by AZ300Bought Marshall Group?>10004500Private VirataGlobespanand thenConexantMerged Cambridge Semiconductorprivate??Uni spin-out Ionica>1.0-1200Crashed SolexaAbsorbedbyIlluminaBought ChiroscienceBoughtby Celltechthen UCBBought Acambis0.276Bought bySanofi-AventisBought Abcam0.988122>650LSE

14. “Large Enough, But Still Intimate” Some Cambridge ‘big’ firms no longer UK-owned Cambridge not capable of hosting largest companies? – Infrastructure, housing and transport limitations – City Deal: 25-30% expansion 2011-31 Much of Cambridge tech innovation is B2B: – Not faster internet/games/app B2C setors – Deep science/technology does not grow fast? Cambridge companies need >10 years to mature

15. The Next Generation

16. Questions?

17. St John’s Innovation Centre

18. SJIC History & Purpose Established by St John’s College in 1987 to provide flexible accommodation and business support services to early-stage, knowledge-based companies A commercial business, with income paid over to St John’s College, University of Cambridge

20. St John’s Innovation Park – in the DMZ

21. Innovation Centre Accommodation 53,000 sq ft of lettable space (= 4,924 m 2 ; gross 6,100m 2 ) Units range from 100-3,500 sq ft in size (= 9.3 – 325 m 2 ) Tenants can grow by taking on more units – or moving to larger ones Renewable leases (typically 2 years) – with only 1 month’s notice of termination for small units, – 3 months’ notice for large ones Rates are negotiated individually ‘Easy in, easy out’ leases Flexibility of lease is one of the success factors of the Centre

22. Typical Tenants Entry ±18 months after start-up Exploiting innovation commercially Some older knowledge-based companies: 10% Service companies: – provide training, marketing, networking, public relations: 20% limit Average size: 5-10 people Average stay: 4.25 years Around 80-90 tenants at any time 25% Cambridge graduates ±370 virtual tenants

23. Some Examples – Ex-tenants Autonomy Corporation plc, founded 1996: – Unstructured information search – 2nd largest pure software company in Europe, offices worldwide – Sold to HP October 2011 @ $10.2bn RedGate: software tools for database administrators/developers (1999) Jagex: online computer games, including RuneScape and FunOrb (2001) Owlstone: button-sized programmable chemical sensor (2004) Breathing Buildings: low-energy natural building ventilation (2006) Amantys: intelligent power electronics – switches, drives, controls (2010)

24. Formal Business Development GrowthAccelerator – SME coaching programme Aimed at firms able/willing to grow 20%+ year on year Coaching for team (< 7 days) Some workshop training (< 3 days) Specialist tracks for access to finance, innovation “The vital 6%” Previous programme – 30 months: 950 trained/advised, ±£20m raised, 120 jobs

25. Questions?