1. Jack Lang Serial Entrepreneur Entrepreneur in Residence University of Cambridge Creating the Climate for Innovation

2. ISBN: 0273656155

3. Number of high tech firms in Cambridge 1960 1970 1980 1990 2000 1600 800 300 8% of EU VC

4. Cambridge Cluster l About 1500 companies – Employing about 50,000 – Technion ~30 l Largest European cluster l $20 billion value created by Cambridge Alumni – Stanford $1000 billion? l Billion $ market cap companies – ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody l Cambridge Angels Source: Cambridge Technopole Report

5. Driven by People.... l Local heros – Small core group of “seeds” Structural and relational social capital – Network – know each other Serial entrepreneurs Experience, contacts Trusted by external investors – Willing to give time to new ventures Mentoring – Observable Articles, talks, dinners “If he can do it, so can I!”

6. Until 1985 1986-1990 1991-1995 1996-2000 2001-2002 C ambridge University Acorn Hermann Hauser Acquired by Olivetti Olivetti Research Lab Andy Hopper Adaptive Broadband Cambridge Broadband Acquired by American Microwave Acquired by Western Multiplex Corp Andy Hopper Peter Warton IPV (Telemedia Systems) Andy Hopper Virata(ATML) Hermann Hauser Andy Hopper Merged with Globespan Acquired by AT &T RealVNC Virtual Network Computing Level5Network Andy Hopper ANT Alex Van Someren Niko nCipher Alex Van Someren Netchannel Hermann Hauser Jack Lang Acquired by NTL ARM Robin Saxby Element 14 Stan Boland Acquired by Broadcom Amadeus Capital Partners Hermann Hauser IQ Bio Hermann Hauser, Chris Keightley Part of DAKO Diagnostics DakoCytomation - Merged with Cytomation Inc CDT Richard Friend Plastic Logic Analysys David Cleevely Cambridge Network David Cleevely Hermann Hauser Alec Broers Cambridge 3G David Cleevely Virtual Business Network David Cleevely SimonElliot CPS Peter Duffett-Smith Teraview Michael Pepper Don Arnone Polight Technologies Stephen Elliott Pavel Krecmer ART Daniel Hall Pilgrim Beart ActiveRF Pilgrim Beart Antenova Zeus Technology Adam Twiss David Reeves Cambridge Semiconductor Gehan Amaratunga Florin Udrea Muscat John Snyder Dr. Martin Porter Enterprise Accelerator John Snyder Webtop Smartlogik Acquired by Dialog Small World Richard Green Authur Chance CAD Shape Data Charles Lang Acquired by GE Tensails Richard Green VBN online TerraPrise Ubisense Andy Hopper Steve Pope Andy Hopper Andy Ward Pete Steggles Simon Elliot Electronic Share Information Acquired by E* Trade Hermann Hauser Jack Lang Top express Jack Lang Splashpower Lily Cheng James Hay Saviso Group Adam Twiss Bryan Amesbury Innovia Collin Ager Garraint Davies Cambridge Interactive Systems

7. Hermann Hauser Graham O'Keeffe Richard Youell Andrew Dames Ray Anderson Andy Hopper Mike Muller Duncan Stewart Chris Wade David Cleevely Gerald Avison Stephen Ives Richard Friend Bob Pettigrew Peter Wynn Alex Van Someren Robert Hook Robin Saxby Jamie Urquhart Laurence Garrett Pilgrim Beart Jack Lang Phil O'Donovan Robert Swann Stephen Elliott John Paul Auton Gordon Edge Dr. Peter J. Duffett-Smith Nigel Berry Charles Cotton Simon Segars Sir Alec Broers Michael Ledzion Richard King Cambridge Cluster Common Directorships/Investments Source: Yupar Myint and Shai Vyarkarnam Judge Business School

8. Hierarchy of Needs Abraham Maslow 1943 A Theory of Human Motivation Physiological Safety Social Esteem Actualisation Growth Self- Realisation Self Esteem Recognition Peer esteem Belong, be accepted Give and receive friendship Protection from danger Economic Security Warmth Food Drink Air PAY is not a specific need, only a means

9. Safety and Security l Thriving local economy – Easy to get a job if it goes wrong l Conventional jobs not so secure – Academic competition – Large corporates down-sizing l Try before you buy: – Sabbaticals, part time appointments – Spin outs, in-house incubators, “intrepreneurs”

10. Social & Esteem l Compatible with Lifestyle choices – Working hours – Dress, meetings, schools etc l Social acceptance – Better to try and fail, than not try – OK to be an entrepreneur

11. Complexity l Understanding the process – Company formation – IPR – Tax l Finding advisors – Mentors – Professional services Lawyers, accountants, PR etc Banks, investors Incubators

12. Advantages l Personal Growth l Better toys l Own boss l Prospect of personal wealth – Tax, IPR licence

13. ACCTO l Criteria for customer acceptance – Everett Rogers “The Diffusion of Innovation” Simon & Schuster International; ISBN: 0743222091 l A - relative Advantage – Loose IPR regime l C - Complexity – Can I understand what I need to do? l C –Compatibility – Part-time posts l T -Trialability – Can I test it without risk first? Sabbticals l O - Observability – Can others see the benefits? Local heroes

14. Role of Universities l What Universities should do: – Teach skills Money Legals Project Planning Market research – Mentor Contacts, exemplars Friendly infrastructure Banks, lawyers, patent agents, accountants etc – Encourage Business Plan competitions Sabbaticals/part time Publicity Network l What Universities should NOT do: – Run incubators – Run Seed funds – Run Venture Capital funds – Grab IPR No UK University has made money on IPR licensing – Patent anything

15. Role of Government l What Government should do: – Positive tax regime EIS Soft Loans Export credits Secondary Share market Informal Investment – Simplify regulation Reporting Employment Skills – Encourage Heroes Network Outsource l What Government should NOT do: – Give Grants People compete for the grant, not the market – Run incubators Leave it to commercial market – Run Seed funds Leave it to the professionals – Run Venture Capital funds Leave it to the professionals – Grab IPR Don’t kill the goose No European University has made money on IPR licensing

16. Cambridge Cluster l About 1500 companies – Employing about 50,000 – Technion ~30 l Largest European cluster l $20 billion value created by Cambridge Alumni – Stanford $1000 billion? l Billion $ market cap companies – ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody l Cambridge Angels Source: Cambridge Technopole Report University IPR Policy changed

17. Wildflower Meadow model SUN (finance) Rain (expertise) Market provides fertile ground Entrepreneur (Seed) Market too small - Stunted growth - Eventually dies Seeds form new colonies (spinouts) Colonise neighbouring patch Outgrows strength = Runs out of cash - Dies Harvested by larger entity Passes through entity