Post on 28-Dec-2015
Dr Yazid A. Abubakar
Kingston Business School
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Innovation EcosystemsInnovation Ecosystems
Agenda
We will explore the following:
• Part 1: Regional innovation systems
– Silicon Valley, US– Cambridge Silicon-Fen, UK
• Part 2: Regional VC/Angel Funding
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PART 1:
• WHAT ARE INNOVATION SYSTEMS?
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• To understand where the idea of system of innovation comes from, let us first look at the linear model of innovation.
Source: Strath.ac.uk
Innovation System: Origin of the Idea (1)
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Science / Technology – Push model (first generation - mid 1950s – mid 1960s):
Basic Science
Design & Engineerin
g
Manufactur-ing
Marketing
Sales
Source: Deakins & Freel, 2006
Linear Model of Innovation
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OutdatedOutdated
Innovation Networks: The Apple I-Pod
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Systems of innovationSeeing the innovation process as a system underlies the appreciation
that:
– Innovations no longer depend on one organisation’s own effort
– Successful innovations result from interaction and collaboration between organisations
– A region’s success in innovation relies on the strength of its system that is capable of generating and exploiting new knowledge
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Why are Regional Innovation Systems Relevant?
• Important processes driving innovation occur locally, especially for small and medium enterprises (SMEs);
• SMEs have spatially restricted search patterns for collaborative partnerships or technological inputs;
• Strong local differences in innovation performance
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Regional differences in concentration of innovative firms
What is Regional Innovation System?
• Regional innovation system consists of interacting knowledge generation and exploitation sub-systems for commercializing new knowledge (Cooke, 2004 p.3)
• E.g. Silicon Valley (US), Cambridge Cluster (UK), Bangalore cluster (India), Baden Wurttemberg (Germany) etc.
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Sub-systems of RIS1. Knowledge Generation:
• Universities & Colleges for scientific & technical training• Public & private research laboratories
2. Knowledge Exploitation:
• Entrepreneurs• Innovative Firms• Venture capitalists & Business Angels• Lawyers• Technology transfer offices (TTOs) & Incubators• Accelerators
1. Culture:• Positive attitude towards entrepreneurship, innovation and networks
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Adapted from: Cooke et. al., (2003); Trippl & Toedtling (2008)
SILICON VALLEY INNOVATION SYSTEM, US
A History of Innovation
Silicon Valley has thrived over successive waves of technology invention and innovation
1950
Personal Computer
1960 1970 1980 1990 2000
Val
ue
Ad
ded
Defense
Integrated Circuit
Internet
1950 1960 1970 1980 1990 2000 2008
Clean Tech
Elon Musk (Tesla, Solar City)
Marc Andreesen (Netscape)
Steve Jobs (Apple)Funds:–Mike Markkula/Sequoai Capital
Gordon Moore (Intel)Funds: Arthur Rock
Hewlett & Packard(HP)Fred Terman
Knowledge Generation Knowledge Exploitation
Higher Education Institutions•Stanford University
Innovative Firms/Spin-outs•HP•Intel•Apple•Yahoo•Google•Linkedin•39,900 companies ($2.7trillion)
Finance•SV Angel•Kleiner Perkins•Sequoia Capital
•$31 Billion (since 2009)
Incubation/Science Park•Stanford Industrial Park
Silicon Valley Innovation System H
Some Silicon Valley companies
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PART 2:
• Regional VC and Angel Funding
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www.wordstream.com
Source: Florida (2013)
VC locations in United States (US)
Source: www.geog.cam.ac.uk/
UKGermany
VC locations in UK & Germany
The Most Innovative Regions in the World (by Start-ups)
Source: Telefonica (2012)
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CAMBRIDGE INNOVATION SYSTEM, UK
Knowledge Generation Knowledge Exploitation
Higher Education Institutions•University of Cambridge
•Anglia Ruskin University
•Open University (OU)
Technology Transfer •Cambridge Consultants Limited (CCL) – Tim Eiloart (1960)
Innovative Firms/Spin-outs•ARM•Cambridge Silicon Radio•Autonomy (Acquired by HP)•Plastic Logic•Over 1,584 companies (£13Billion)
Finance•Amadeus Capital Partners (VC)•Cambridge Angels
Incubation/Science Park•Cambridge Science Park (1970)•Babraham bio-incubator (1998)
Cambridge Innovation System H
CCL 1960
Until 1985
1986-1990
1991-1995
1996-2000
2001-2002
PA1970
Gordon Edge
Collin SmithersPlextek
Scientific Generics
Gordon Edge, Bob Pettigrew
Pivotal Resources
Absolute Sensors
Sensopad Technologies
ImergeSphere Medical
3D Molecular Sciences
IonicaQuantumBEAM
Gordon Edge, Bob Pettigrew, Alan Green
Adaptive ScreeningFlying Null
Diomed Tony Raven
Sentec
Ubinetics
Andrew Dames
Andrew Dames
Acquired by Synaptics
Smartbead Technologies
PolatisHolotag
Caroline Garey
Andrew Dames
PreludeRobert Hook
Xaar
David PatonMike WillisSteve Temple
Mike Willis
Aphamosaic
Cambridge Silicon Radio
Cyan Technology
Pelikon
Roundpoint
INCA Digital Printers
ELMJET
Domino
DCS Cambridge Mass
Spectrometry
Bill BaxterWill EvePaul AnsonMike Payne
Graham MartinColin GrayWill Eve
Acquired by Videojet
Technologies
Graeme MintoDavid Paton
Xennia TechnologiesAlan Hudd
Transversal
David YipDavid McKay
Barrie GriffithsSteve Mullock Kore
Technology
Yuno Ltd
Steve BarlowRobert SwannPhil O’ Donovan
James CollierGlenn Collinson
Chris Davies
Acquired by Elumin founded by Dr. Hans Wagner
David Bending
Symbionics
Ali Pourtaheri
Dennis Fielder
Acquired by Cadence
Tality
Fen Technology
TTP
Gerald Avison
Adrian Lucas
Mark HowardRichard Doyle
Stuart Hendry Gavin Troughton
Elizabeth HillMark Tracy
Nigel Playford
WavedriverAcquired by PowerGen
TTP Ventures
TTP LabTechCreativity
Partnership
Acumen Bioscience
ip.access
Myriad
Acquired by Mettler-Toledo
Automation Partnership
Demerged from TTP Group
TTPCom
Chris FryerChris
Barnardo
Mike Storey
Cambridge Physical Sciences
Roger Millar
Signal Process Ltd
Robin Smith-Saville
VividStephen Eason
Acquired by Vetura
Radiant Networks
Mike Crossfield
Tony Milbourn
Tim Eiloart
Ross Green, Mike Kellaway
Richard Archer
John Cassells
Richard PhilpottJohn Cassells
David Cornell
Anne Miller
Figure 2 – The hi-tech start-ups spawned from the Cambridge ConsultantsTin Bustin, Ciaran McAleer