A World Without Borders A World Without Borders –– Innovation, Entrepreneurship Innovation, Entrepreneurship and Creative Financing in practice and Creative Financing in practice –– to sustain to sustain
Economic GrowthEconomic Growth
Professor AlanProfessor Alan Barrell Barrell –– Entrepreneur in Residence Entrepreneur in Residence –– Centre for Centre for Entrepreneurial Learning Judge Business School Cambridge, XiamenEntrepreneurial Learning Judge Business School Cambridge, Xiamen
University Fujian, ChinaUniversity Fujian, China and and LaureaLaurea University of Applied Sciences University of Applied Sciences Helsinki. Chairman NHS Innovation Council Helsinki. Chairman NHS Innovation Council –– East EnglandEast England
UECJB – Cambridge Academic Programme
May 2012
And the importance of Regions and And the importance of Regions and Regional impacts on National and Regional impacts on National and
World Economic Development with World Economic Development with reflections on Current Global Financial reflections on Current Global Financial
IssuesIssues
ChinaChina--UK UK –– WELCOME !!WELCOME !!
Connecting across Continents Connecting across Continents –– creating a World Without creating a World Without Borders Borders –– with ENTREPRENEURSHIPwith ENTREPRENEURSHIP
Happy New Year of the DRAGON !Happy New Year of the DRAGON !
My favourite University CampusMy favourite University Campus……..
After Cambridge After Cambridge –– Xiamen is a Xiamen is a ““second home|second home|””
Hero and great Hero and great BenefactorBenefactor
The World The World needs more needs more like him to like him to
face the face the challenges of challenges of
the future the future Mr Tan Mr Tan KahKah KeeKee
Kings College Kings College –– Trinity and Trinity and ““all thatall that”” –– A A medieval city. A great University. Cambridge my medieval city. A great University. Cambridge my
No. 1 !No. 1 !
A PreviewA Preview••Our World Today Our World Today –– Economic, Social and Economic, Social and
Business ContextBusiness Context
••What it means for UK and the West in GeneralWhat it means for UK and the West in General
••Looking ahead Looking ahead –– Exploiting the Future Exploiting the Future –– UK and UK and China China -- Globalisation Globalisation –– Innovation, Enterprise, Innovation, Enterprise,
Entrepreneurship Entrepreneurship
••Partnerships Partnerships vsvs Competition Competition –– and perhapsand perhaps
““CoCo--opetitionopetition””
International Finance, Currency International Finance, Currency –– Yuan, $ and Yuan, $ and EurozoneEurozone –– Financing GrowthFinancing Growth
Promoting beliefs in Promoting beliefs in ““Open InnovationOpen Innovation”” ““A World Without A World Without Borders and Education Without BordersBorders and Education Without Borders””
Emphasising the Emphasising the Entrepreneurial ImperativeEntrepreneurial Imperative
Meet RufusMeet Rufus His first day of His first day of life beyond life beyond
mothermother
My Family My Family before before RufusRufus……..
Rufus in this picture is hidden inside the Rufus in this picture is hidden inside the lady with the green toplady with the green top
A World of OPPORTUNITYA World of OPPORTUNITY
Can be A WORLD WITHOUT Can be A WORLD WITHOUT BORDERSBORDERS
Education Education Without Without BordersBorders
Business Business Without BordersWithout Borders
Does our Does our ““Eye on the WorldEye on the World”” see much see much change?....change?....Is our perception of this Is our perception of this changechange
driving enough innovation and change in preparing the next driving enough innovation and change in preparing the next generationgeneration……..?? What is changing between East and West ?..?? What is changing between East and West ?
Intermediaries – 4th DimensionThe way we view the World – Southern China seen from Cambridge
Cambridge seen from Southern China
Global Dynamics Global Dynamics –– Our World Today and Tomorrow Our World Today and Tomorrow –– Context Context for Our Future for Our Future –––– The bigger pictureThe bigger picture
•• Two fifths of the Worlds people live in Two fifths of the Worlds people live in the two fastest growing large the two fastest growing large economies economies –– China and India China and India
•• Education, Wealth Creation and New Education, Wealth Creation and New Knowledge are at the heart of Knowledge are at the heart of Economic Planning in AsiaEconomic Planning in Asia
•• Growth in Asia is far ahead of Growth in Asia is far ahead of Europe.Europe.
•• Dynamic Growth in Manufacturing Dynamic Growth in Manufacturing BaseBase
•• CASH is in place in the Asian CASH is in place in the Asian economies economies –– as well as brainpoweras well as brainpower--China has US$ 3.2 Trillions of China has US$ 3.2 Trillions of reservesreserves
•• Labour and Material cost advantages Labour and Material cost advantages ++++++++++
•• Asia and The Americas Asia and The Americas –– power and power and influenceinfluence……..
•• Europe and the Europe and the EurozoneEurozone –– What What next ?........next ?........
The Changing Horizon
EnvironmentIssues
The death ofdeference
New employmentpatterns
Organisations
Globalisation
Technology
Sources of CompetitivenessSources of Competitiveness
Creativity Risk
Speed Reputation
Cost Values
Learning Information
4 billions new 4 billions new world citizens on world citizens on the way the way -- living living longer longer –– not all not all
healthierhealthier…….7 billion .7 billion of us alreadyof us already
3 millions of 3 millions of the babies the babies
born in UK in born in UK in 2010 will live 2010 will live 100 years or 100 years or
moremore
The Dilemma The Dilemma –– Living Longer Living Longer ––Health Care BudgetsHealth Care Budgets
28 Nations in 28 Nations in AfricaAfrica
Africa will be Africa will be the first the first
Continent to Continent to have 2 billions have 2 billions
populationpopulationThere are losers There are losers as well as as well as winnerswinners
Seismic Shifts in power from West to East Seismic Shifts in power from West to East ––North to South North to South –– implications for world Cultureimplications for world Culture
Poor old Europe Poor old Europe –– more than a bit deflated !more than a bit deflated !Uncertain times Uncertain times ……..??..??
Looking at Looking at todaystodays BIG WORLD BIG WORLD -- And the balance And the balance of trade and power in the world has changedof trade and power in the world has changed
Some Economic Indicators – How are key Countries doing?
• Can the trend continue?• What if China pulls out of US $ - moving its reserves?• Do the Trade Balance differences matter? – India and China?
- 679 + 3.5+ 3.9USA
+ 86+ 1.0+ 2.1Euro Area
- 49+ 0.1+ 2.9Britain
130- 25+ 8.0+ 8.6India
3.5 Trillion And growing!
+158+ 8.9+ 9.5China
Foreign ReservesUS $ Bn
Trade BalanceUS $ Bn
Ind. Prod. %GDP % Change
Serious thoughts Serious thoughts needed about needed about
ChinaChina
From Ancient From Ancient History and Past History and Past Greatness Greatness –– to to
TomorrowTomorrow’’ssWorldWorld
440 million people 440 million people lifted from poverty in lifted from poverty in
last two decadeslast two decades
““To get rich is To get rich is GLORIOUSGLORIOUS””
Deng Xiaoping 1978
Who said Capitalism was bad ? Not this manWho said Capitalism was bad ? Not this man
Not all he did is Not all he did is considered good by all considered good by all ––
but his impact on the but his impact on the Chinese Economy and Chinese Economy and
Society and the World has Society and the World has been profoundbeen profound
ChinaChina’’s Provinces s Provinces –– Prediction for 2020 Prediction for 2020 –– Provinces GDPs Provinces GDPs will equal many Nations will equal many Nations
The Phenomenon of Ancient China The Phenomenon of Ancient China –– Creativity and Inventiveness Creativity and Inventiveness –– somesome of of the Inventions. Is China entering a new the Inventions. Is China entering a new ““Age of Invention and InnovationAge of Invention and Innovation””??
• The first lamps• Magnetic Compass• The Camera• Gunpowder• Paper for writing• Printing• Iron and Steel Smelting• Copper and Bronze ware• Oil Drilling and Production• Coal Mining• Pottery and Porcelain• Wine making and tea and tea culture• Early Astronomy• Sericulture – gave us Silk• Seismography• Traditional Medicine and Anaesthetics• Acupunture• Vaccination against Smallpox• The Hot Air Balloon• The Soushi Calendar• Decimal and Binary Mathematics
1919thth Century Entrepreneur Century Entrepreneur –– Zhang Zhang ZhidongZhidong
China never China never ““sleptslept”” ““Adhere to our Chinese Adhere to our Chinese principals of philosophy principals of philosophy and life and life –– but learn from but learn from the Westthe West””
The great Chinese Navigator and ExplorerThe great Chinese Navigator and Explorer
Lets put MODERN CHINA into our picture and context….Some of China’s Achievements
• Compound growth of GDP at 9% since 1995, 2nd largest economy in the world
• One of top 10 trading nations • The most popular FDI destination• The largest mobile phone market • The second largest PC market • The third largest advertising market• An “opportunity market” for Western Goods – in 2010 – 20%
of all the World’s growth occurred in China• But uses 50% of the Worlds coal• Cash Reserves – US$ 3.65 Trillions
Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report 2001
0102030405060708090
100
1971 1981 1991 2001 2011
Manufacturing
All Services
And And –– trends in Europe and the Westtrends in Europe and the West……..
Changes in Industrial Structure - Europe% of Total Employment
0102030405060708090
100
1971 1981 1991 2001 2011
Manufacturing
All Services
Manufacturing has Manufacturing has Migrated !Migrated !
The WestThe West’’s Competition ??s Competition ??
Courtesy of Asia Pacific Foundation
“Today’s peacock is tomorrow’s feather duster”Message for Western industry – and some Economies
Considering all thisConsidering all this…….For the West, including UK do .For the West, including UK do we see we see
Crisis?....Crisis?....oror
危机We have choicesWe have choices…….the world will be .the world will be what we make itwhat we make it…….Opportunities to .Opportunities to grow international businessesgrow international businesses……..
Opportunity !!
Show Me the Money $$$$!Show Me the Money $$$$!
Financing Growth Financing Growth –– and New Business and New Business GenerationGeneration
Booms and Busts Booms and Busts –– Venture Capital Venture Capital Adventures Adventures
The Challenges of Currency The Challenges of Currency Management and Dangers of the Management and Dangers of the
EurozoneEurozone
Managing Economies and Enterprises in Uncertain Times
Are recent financial crises something new ?Who said these words and When
“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”
Thomas Jefferson, 1778
And what about these…
“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”
Marcus Tullius Cicero, 55 BC
When a market “BOOMS” - Venture Capital Investments in E-Commerce (U.S.A.) “When Greed overcame Fear”
0
100
200
300
400
500
600
94 95 96 97 98 99
Num
ber
of C
ompa
nies
Number of Companies Total Invested
Source: Venture Economics
Netscape IPONetscape IPO33rdrd largest inlargest inNasdaqNasdaq HistoryHistory
Amazon.com IPOAmazon.com IPO
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Tota
l Inv
este
d ($
mill
ion)
1990 1995 2000 1990 1995 2000 2005 2010 2005 2010
ExpectationsExpectations
WWW InventedWWW Invented
NetscapeNetscape
Amazon.comAmazon.com
Christmas 1999Christmas 1999
Christmas 1998Christmas 1998
EE--tailerstailers shakeout beginsshakeout begins
Internet inInternet inevery businessevery business
Investor disillusionmentInvestor disillusionment
Business disappointmentBusiness disappointment
Robust eRobust e--businessesbusinessessurvive & thrivesurvive & thrive
PioneerPioneer investorsinvestors
LateLateInvestorsInvestors
Early investorsEarly investors
But….Boom can lead to BUST- valuation implications?“Return of Fear….” “Down Rounds”
....Discuss….
R&DR&D MarketingMarketing ProfitabilityProfitability Cash FlowCash Flow
Peak ofPeak ofIrrationalIrrational
ExpectationsExpectations
Bygrave; GartnerGroup, 11/99
IPO FeverIPO Fever
RationalRationalExpectationsExpectations
A Search for Fair Value – see any Science here?
£ - - - -£130 million
Feb 2000Just2clicks
£52 million£212 million
June 2000Orchestream
£54 million£571 million
March 2000
Lastminute.Com.
£231 million
£1.2 billionApril 2000Bookham
1 Year OnValue atissue
Issue date
The Early Stage Business Balance The Early Stage Business Balance –– what do what do investors look for and see? When investors look for and see? When ““valuingvaluing”” ??
The role of Chairman and NXDs
Inspired Leadership
Enthusiasm
BullshitCourage
OptimismVision
Creativity
Management
Research & Analysis
Caution
Process
Financial Control
Market Knowledge
Sources Of Business FinanceSources Of Business Finance
Maturity
Ris
k
“Our Money”“Our Money”
Family and FriendsFamily and Friends
Business AngelsBusiness Angels
Early Stage VCEarly Stage VC
Expansion CapitalExpansion Capital
BANK
FINANCE
??
Seed FundsSeed Funds
Pre-IPOPre-IPO
China and other Eastern Nations growing role in China and other Eastern Nations growing role in International Finance and support for Economic Growth International Finance and support for Economic Growth
at homeat home
Time to think about CurrencyTime to think about Currency…….Is there a .Is there a ““currency currency warwar”” ? or do we see a natural evolution and transition ?? or do we see a natural evolution and transition ?
And in EuropeAnd in Europe…….Life or Death of the Euro ?.Life or Death of the Euro ?
Profound implications for the World Economy and Profound implications for the World Economy and Banking Systems Banking Systems –– an age of uncertaintyan age of uncertainty
Will Greece leave the Will Greece leave the EurozoneEurozone??
What will be the impact of Greece defaulting on debts ?What will be the impact of Greece defaulting on debts ?
And Spain may be the next in line for And Spain may be the next in line for major major ““EurotraumaEurotrauma””
Can Can ““meltdownmeltdown”” be avoided ?be avoided ?
UK not in UK not in EurozoneEurozone –– but but ££ Sterling and UK Sterling and UK Economy under threat from Economy under threat from EurozoneEurozone collapsecollapse
Will the Euro and the Will the Euro and the EurozoneEurozone survive?survive?
Some are predicting Some are predicting ““The United States of EuropeThe United States of Europe”” as as the answerthe answer
The US $ still the WorldThe US $ still the World’’s benchmark s benchmark currencycurrency
But for how much longer ?...........But for how much longer ?...........
Will the Will the RenminbiRenminbi be the be the New Dollar ?New Dollar ?
The importance of Chinese Monetary Policy and the The importance of Chinese Monetary Policy and the Global Currency Reserve SystemGlobal Currency Reserve System
No question about the importance of the No question about the importance of the RenminbiRenminbi
What about Banks and Banking?What about Banks and Banking?Another high risk areaAnother high risk area
Debt Crisis Debt Crisis –– Bad Bad debtsdebts…………..
Property bubbles Property bubbles and mortgage and mortgage
problemsproblems…….Banking .Banking in disarray.in disarray.
Greed and Fear Greed and Fear factorsfactors……..
Looking at Looking at positivepositive factorsfactors
危机Inspiration from Entrepreneurs and Inspiration from Entrepreneurs and those who have changed the World those who have changed the World
for the better.for the better.
Opportunity !!notnot
Crisis
Where does the West need to focus Where does the West need to focus –– to maintain a changing to maintain a changing but competitive position in the World Economy ?but competitive position in the World Economy ? Advice from Advice from
a great mana great man……..
IMAGINATION !IMAGINATION !
Einstein on IMAGINATIONEinstein on IMAGINATION……..
““Imagination is more important than Imagination is more important than knowledge. Knowledge is limited. knowledge. Knowledge is limited. Imagination encircles the worldImagination encircles the world””
Albert Einstein 1879 Albert Einstein 1879 –– 19551955
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
7
Breaking the old moulds Breaking the old moulds ––Entrepreneurial thinking, Entrepreneurial thinking, Innovation and actionInnovation and action……..
And more good advice from And more good advice from AlbertAlbert……..
Good for the East as Good for the East as well as the West !well as the West !
Confucius and “imagining the middle way”….
The West can learn a lot from ChinaThe West can learn a lot from China……..
“You look at things and ask - why?
but I dream of things that never were and
ask -
George Bernard Shaw
why not?”
So – what IS it about Entrepreneurs?
LetLet’’s look at some great s look at some great examplesexamples……..
Bringing light to the World Bringing light to the World –– changing lives changing lives and creating Wealthand creating Wealth
Vision, Imagination and Invention become BIG Reality – only with perseverance and
converging knowledge and talents. Birth of the Electric Light Bulb 1929
Lewis Latimer Lewis Latimer –– the forgotten inventor of the filament the forgotten inventor of the filament –– key componentkey component
If at first you donIf at first you don’’t succeedt succeed……..trying again is the story ..trying again is the story of great inventions. Failure can be learning.of great inventions. Failure can be learning.
Jim Watson Jim Watson with with
Francis Francis Crick and Crick and
the Double the Double Helix ModelHelix Model
At The At The Cavendish Cavendish
LaboratoriesLaboratories
DNA Sequencing DNA Sequencing –– Discovery changed the WorldDiscovery changed the World
““Stay HungryStay Hungry” ““Stay FoolishStay Foolish””
An Entrepreneur who changed the world An Entrepreneur who changed the world –– in his lifetime and in his lifetime and changed our liveschanged our lives
Personal Personal ComputersComputers
Mobile phones/ Mobile phones/ smart phonessmart phones
Animation in Animation in filmsfilms
Digital PublishingDigital Publishing
Delivery of MusicDelivery of Music
Tablet ComputingTablet Computing
70
More Heroes who changed the World quite recently More Heroes who changed the World quite recently –– would you would you invest in this team ?invest in this team ?
YesYes-- appearances can be deceptiveappearances can be deceptive…….those who risked investing in them .those who risked investing in them made a lot of $$$$$$. And their ideas changed the World ! made a lot of $$$$$$. And their ideas changed the World ! Their time had Their time had
come !....Youth Brilliance at work in 1978come !....Youth Brilliance at work in 1978
Microsoft Corporation, 1978
And today we have all that And today we have all that TechnologyTechnology – and the Pace of Development –
Traffic in ONE Day in 2003 ….All international phone calls1971
All airline passengers1975
All mobile phones 1984
All emails1992
All SMS1998Source: Analysys, World Bank and ITU
The Internet has REVOLUTIONISED Product Development The Internet has REVOLUTIONISED Product Development and Innovation and changed ALL our lives in many ways. and Innovation and changed ALL our lives in many ways. Using Digital Technology to enhance business Using Digital Technology to enhance business praticespratices
11stst was was Mechanisation Mechanisation ––
weaving and weaving and textiles.textiles.
22ndnd –– Mass Mass Production and Production and
AutomationAutomation
Now the 3Now the 3rdrd ––The Digital The Digital
Manufacturing Manufacturing Revolution Revolution
3D Printing and 3D Printing and CustomizationCustomization
Research Development Commercialisation
Core Market Focus
Crossing Company Crossing Company BoundariesBoundaries
Products inProducts in--sourced sourced (e.g. Co(e.g. Co--branding)branding)
IP inIP in--licensinglicensing
IP outIP out--licensinglicensing
Technology Technology SpinSpin--outsouts
Ideas & Ideas & TechnologiesTechnologies
Docherty, M. (006), Primer on ‘Open Innovation’: Principles and Practice, pdma (Product Development and Management Association) Vision (April 006), pp.13‐17.
Chesbrough, H. (003), Open Innovation: The New Imperative for Creating and Profiting From Technology, Boston: Harvard Business School Press.
A model of A model of ‘‘open innovationopen innovation’’ –– making the most of making the most of TechnologyTechnology
Open Innovation: What do I think it is ? And Why is it a positive ?
•• What: What: –– Shift from soShift from so--called closed innovation processes towards open way of called closed innovation processes towards open way of
innovating innovating ((ChesbroughChesbrough: Open Innovation:The New Imperative for Creating & : Open Innovation:The New Imperative for Creating & Profiting from Technology)Profiting from Technology)
–– i.e. Creating innovative products and service through open collai.e. Creating innovative products and service through open collaborationboration–– Collaboration in sharing content, data, ownership for joint innCollaboration in sharing content, data, ownership for joint innovationovation–– Diverse teams: professionals, consumers, clients, communities, Diverse teams: professionals, consumers, clients, communities,
disciplines..disciplines..•• Why:Why:
–– Increased mobility of specialists Increased mobility of specialists -- knowledge now outside large research knowledge now outside large research labslabs
–– New knowledge flows between companiesNew knowledge flows between companies–– New opportunities for spinNew opportunities for spin--offs / new licensing agreementsoffs / new licensing agreements–– New and diverse innovation and supply chainNew and diverse innovation and supply chain–– Shift towards shorter research / production cycles in media induShift towards shorter research / production cycles in media industriesstries–– Rise of theRise of the consumer as co-creator (PPP)
Open Innovation: Benefits and Issues•• BenefitsBenefits
–– Far greater scale, frequency, innovation potential than closed pFar greater scale, frequency, innovation potential than closed processrocess–– Transcends and transforms fixed patterns and structures Transcends and transforms fixed patterns and structures –– Stimulates transfer of people, capital, goods, services, ideas, Stimulates transfer of people, capital, goods, services, ideas, knowledgeknowledge–– End product closer to user base End product closer to user base -- consumer as coconsumer as co--creatorcreator–– Move to develop new forms of shared Intellectual PropertyMove to develop new forms of shared Intellectual Property
•• IssuesIssues–– Need to identify trusted and dependable peers and partnersNeed to identify trusted and dependable peers and partners–– Need to transcend and transform fixed patterns and structureNeed to transcend and transform fixed patterns and structure–– Need to integrate different methodologiesNeed to integrate different methodologies–– Need to maintain own identity with Need to maintain own identity with shared ownershipshared ownership–– Need to maintain privacy and securityNeed to maintain privacy and security–– Need for practical examplesNeed for practical examples
Basic Science+Technology Applications
SustainabilityThe lifecycle of products:
waste / recyclingLand Use: economic &
environmental sustainabilityEnergy Futures: new sources and Mitigating Climate Change
HealthGene therapyProteomics (protein functions)Regenerative medicine (stem cells))Brain science: protective strategies
Untreatable infections drug culturesStratified Medicine – PersonalisedMedicine
ICTIntelligent Search Engines:
large data setsSelf regulating intelligent systemsPervasive computingCyber Trust: integrity & privacyKnowledge exploitation:
speeding innovationCreative Leisure:
interactive technology
Basic ScienceMaterials Sciences
Genetics /BiosciencesNanotechnology
Computing / InformationCross cutting technologies
ComponentsPolymers – light / conductivityPrint technologySustainable materials Housing / transport
DTI Government Foresight Report DTI Government Foresight Report --““Investing for InnovationInvesting for Innovation””
HiHi--techtech…… BioBio--techtech…… What next? Looking AheadWhat next? Looking Ahead
Quality of Life
Know
ledg
e ce
nter
s
Entrepreneurs
Role Models
Money
Capital Markets
InfrastructureClus
ter P
olic
y
International Cies
Networks
Government
““Cluster of Creativity for GrowthCluster of Creativity for Growth”” -- Open Innovation is at the heart of Open Innovation is at the heart of the growth of Technology Based Clusters the growth of Technology Based Clusters –– where we find Common where we find Common
Characteristics....Characteristics....
• Knowledge Centers• Entrepreneurs & Role Models• Money• Capital Markets• Infrastructure• Cluster Policy• Presence of International
Companies• Networks• Government• Quality of Life
MindsMinds without Borders – Global Global MindsetMindset…….and.and
Scale Scale –– Size Size –– Populations 0.5 Populations 0.5 –– 1 1 million commonmillion common
Today and The Future Today and The Future -- Three Converging Three Converging RevolutionsRevolutions
Three Pervasive Technology PlatformsThree Pervasive Technology Platforms
BIO TECHPharmaceuticals
DiagnosticsResearch/Info
ToolsIndustrial
GenomicsBioinformatics
Proteomics
INFO TECHHardwareSoftware
Communications
NANO TECHElectricalStructural
BiomedicalEnergy & Environment
BiosensorsBiochipsBioelectronics
MicrofluidicsNanobiotechnology
Drug Delivery
NanodevicesNanosensors
NanoelectronicsOpen Innovation Open Innovation
enablesenables……..Transfer of Transfer of
tacit tacit knowledgeknowledge
Proximity of Learning, Research and Practical Proximity of Learning, Research and Practical ApplicationApplication
““The Innovation CampusThe Innovation Campus””
R&D Education
Applications
Where open innovation, symbiosis, synergy, knowledge transfer, and new companies can thrive
Importance of intermingling
Silicon Valley Example....Most successful HiSilicon Valley Example....Most successful Hi--Tech Growth Tech Growth ClusterCluster
Frederick Frederick TermanTerman –– a forefather of Silicon Valley. Back to the a forefather of Silicon Valley. Back to the ““people factorpeople factor””. Encouragers and Enablers. Encouragers and Enablers
1938 1938 –– The birth of Hewlett PackardThe birth of Hewlett Packard
Cambridge and the Eastern Region Cambridge and the Eastern Region –– a a Transformation Transformation –– Regional ExampleRegional Example
Traditional IndustriesTraditional Industries
••Agriculture and FoodAgriculture and Food
••FishingFishing
••Leather goods Leather goods -- FootwearFootwear
••Wool and TextilesWool and Textiles
••6.5 million people 6.5 million people nownow
••Now Now One of One of UKsUKs fastest growing fastest growing regionsregions
••Traditional Industries dead, dying or Traditional Industries dead, dying or
gone awaygone away……..
Cambridge Ideas have changed the WorldCambridge Ideas have changed the World…….but regional economic .but regional economic development did not followdevelopment did not follow…….for centuries.for centuries
Ideas that Changed the World Ideas that Changed the World ––not not historically to the great benefit historically to the great benefit
of Cambridge, the Region or the of Cambridge, the Region or the NationNation……..
R&D alone doesnR&D alone doesn’’t create t create wealth or social good. wealth or social good. R&D is R&D is
NOT innovationNOT innovation
Ramsey Chatteris Littleport
Mildenhall
Bury St Edmunds
Haverhill
Saffron WaldenRoyston
St Neots
Huntingdon
HUNTINGDONSHIRE
SOUTH CAMBRIDGESHIRE
CAMBRIDGE
NORTH HERTFORDSHIRE(PART)
ST EDMUNDSBURY(PART)
FOREST HEATH(PART)
EAST CAMBRIDGESHIRE
FENLAND(PART)A1(M
)
A14
M11
A14
A10
A14
A11
A11
A10
UTTLESFORD(PART)
A10
A1
Things have changed Things have changed -- Greater Cambridge Partnership Area todayGreater Cambridge Partnership Area today––one of Europeone of Europe’’s fastest growing sub regionss fastest growing sub regions……..A Transformation into a Leading Region through Science based CluA Transformation into a Leading Region through Science based Cluster Start Upsster Start Ups
Population: 750,000Population: 750,000Jobs: 359,000Jobs: 359,000GVA: GVA: ££12.2bn12.2bn
The Greater Cambridge East of England Region NowSuper Sub-region – post 1960
Global ReachOne of Europe’s Innovation Capitals
Cambridge - the heart of Regional Growth
• University of Cambridge ranked No. 1 in Europe, No.4 in the world and Worldwide No 1 for R&D.
• International hub linked to finance and global markets• Region has 25% of ALL UK R&D – and only 10% of population• 50,000 Hi-Tech Jobs• 2,500+ hi-tech companies; 250 biotech companies• 30% of workforce employed in knowledge-based industries• 80% job growth – UK average 15%• European Union certified centre of excellence for innovation and hi-tech business
• Where Entrepreneurship has driven positive development• Where the Science based Cluster has brought GLOBAL success
Science and Innovation Parks Science and Innovation Parks –– Assets for participating in a Assets for participating in a World Without Borders World Without Borders –– Cambridge has made progress Cambridge has made progress ––
Platform for Global Growth and Wealth Creation.Platform for Global Growth and Wealth Creation.
More science parks than in any other UK location
• 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
Tenants include:Kodak European Research Toshiba Research Europe Epson (UK) LtdPfizerAmgen Biosciences Napp PharmaceuticalsGenzyme Therapeutics Ltd Astra ZenecaGlaxoSmithKlineTakedaHitachiMicrosoft ResearchNokiaPhilips Medical Research
And more are planned And more are planned ––Hauser Forum opened Hauser Forum opened
2010 2010
“Brain Circulation and Knowledge Sharing Across Borders and Functions”
“Open Innovation Thinking” and Action to match
And Open Innovation brought Culture Change to CambridgeAnd Open Innovation brought Culture Change to Cambridge
Starting with MINDSET Starting with MINDSET –– Belief in Belief in ““A World Without BordersA World Without Borders””
• Combined headcount of technology providers currently exceeds 3,500 in UK• PA Technology employs up to 2,500 Worldwide• Combined direct and indirect revenues estimated at $1,5 billions – ? more• PA technology – Revenues $750millions+• Some players have seed funds• 70 identified spin-outs - highly successful incubator models
1960 1960 –– The The ““Columbus SpiritColumbus Spirit”” hits Cambridge hits Cambridge –– and a and a Cluster emerges Cluster emerges –– ““Open InnovationOpen Innovation”” in practice takes in practice takes
rootroot
The TechnologyPartnership
Scientific Generics Symbionics Team Consulting Plextek
P.A. Technology
Cambridge Consultants Ltd(1960)
Cambridge University
From 1960 From 1960 –– Birth of the Worlds largest Industrial Birth of the Worlds largest Industrial Ink Jet ClusterInk Jet Cluster
Elmjet Ltd
1986
LinxPrinting
Technologies1986
Support to Imaje (France) formed 1979
XaarPrinting
Technologies1990
Cambridge Consultants Ltdspin-out 1960
Cambridge University
Domino Printing
Sciences 1978
WillettInternational
Ltd1983
INCA Ltd
2000
• Total current revenues $2.0 billion +• Total headcount 4,000+• Major market share participation worldwide• Diaspora populates Ink Jet Industries in international locations• Ink Jet Cluster is enabling “Plastronics” Cluster. Revolution –
Plastic Logic – “E-Reader” – already raised $250 millions!
Cambridge
source: Cambridge 2020 report - 1998
The East of England RegionThe East of England Regionbecomes becomes ““Silicon FenSilicon Fen””
Key Components of Entrepreneurial Eco-system – Local start-ups and inward migration – as the Culture evolved
CambridgeUniversity
1960
1970
MRC Laboratory of
Molecular Biology
CADCentre
Sinclair Radionics
CCL
Barclays Bank
1980
Cambridge Interactive
System
Cambridge Science Park
Acorn
PA Technology
EiconResearch Ltd
Sinclair Research Ltd
1990
Analysys
Olivetti Research Laboratory
(acquired by AT&T in 1999)
Judge Business School
St. John Innovation
Centre
Scientific Generics
The Technology Partnership
TTP
Cambridge Research and Innovation Ltd (CRIL)
Institute of Biotechnology
CantabPharmaceuticals
Hitachi Cambridge Laboratory
Nickerson Biotech
Laboratory
Glaxo
2000
Toshiba Cambridge Research
Laboratory
Seiko Epson Research Lab
Unilever Cambridge Centre for Molecular Informatics Cambridge
NetworkInstitute of
Manufacturing
Amadeus Capital Partners
TTP Ventures
Microsoft Research (previously Entropic
Research)
Glaxo Institute of Applied
Pharmacology
BP
CfEL (previously CEC)
Cambridge Enterprise
CUE, Biology in Business
CMI
Avlar
ET Capital
Cambridge Gateway
3i Create Partners
Cambridge Angels
GEIF
Library House
Cambridge Capital Group
ERBI
PhilipsEPSON
The WellcomeTrust Sanger
Babraham Bioincubator
Cambridge Research Park
Granta Park
CHASE
Enterprise Link
The emergence of highThe emergence of high--technology clusters in technology clusters in Greater Cambridge Greater Cambridge –– The TransformationThe Transformation
1971 1981 1991 2001 The future?
ScientificInstruments
Nanomaterials
Drugs delivery
Sensors/actuators
Informatics
Instrumentation
Medical engineering
LEPs
Drug modelling
Bluetooth
Sentient computing
Telecoms
Industrial inkjet
Biosciences
Computing
Software
ScientificInstruments
Wirelesscommunications
Telecoms
Industrial inkjetComputing
BiosciencesSoftware
ScientificInstruments
Hi-tech 20,200 25,100 34,900 46,200jobs:
Computing
Software
ScientificInstruments
Industrial inkjet
1971 1981 1991 2001 The future?
ScientificInstruments
Nanomaterials
Drugs delivery
Sensors/actuators
Informatics
Instrumentation
Medical engineering
LEPs
Drug modelling
Bluetooth
Sentient computing
Telecoms
Industrial inkjet
Biosciences
Computing
Software
ScientificInstruments
Telecoms
Industrial inkjet
Biosciences
Computing
Software
ScientificInstruments
Wirelesscommunications
Telecoms
Industrial inkjetComputing
BiosciencesSoftware
ScientificInstruments
Wirelesscommunications
Telecoms
Industrial inkjetComputing
BiosciencesSoftware
ScientificInstruments
Hi-tech 20,200 25,100 34,900 46,200jobs:
Computing
Software
ScientificInstruments
Industrial inkjetComputing
Software
ScientificInstruments
Industrial inkjet
50,000
Science Parks and Science Parks and Innovation Centres Innovation Centres ––
Incubators Incubators –– within 20 Km within 20 Km of Cambridgeof Cambridge
Excellent Communication Excellent Communication Links Links –– road, rail and road, rail and
airportsairports
The Bioscience Cluster The Bioscience Cluster benefits from close benefits from close proximity of large proximity of large
Pharmaceutical CompaniesPharmaceutical Companies
Cambridge Science Park - Trinity College – Europe’s first - 1970
Open Innovation needs Provision of space to Open Innovation needs Provision of space to support serendipity, collaboration, networkingsupport serendipity, collaboration, networking
The Hauser Forum Cambridge
At the Heart of CambridgeAt the Heart of Cambridge–– Its Greatest Local Asset Its Greatest Local Asset -- A A Great University 800 Years Great University 800 Years YoungYoung
The University:• Formed by scholars who settled
in 1209• Has produced more Nobel
Laureates than any other university, and most nations ! 86 in total
• Has 16,500 full time students and 150,000 alumni worldwide
• Has 31 colleges, including 3 graduate colleges
• Outstanding Science and Technology Record
• Global Reach and ConnectionsAnd we have And we have Anglia RuskinAnglia Ruskin and and
nine other Excellent Universities in nine other Excellent Universities in the Region the Region –– more great assets!more great assets!
Judge Business School
Home of The Home of The Centre for Centre for
Entrepreneurial Entrepreneurial Learning Learning –– CfEL CfEL ––
Key Support Key Support Structure for Start Structure for Start
Ups.Ups.
Now delivering to Now delivering to Global MarketsGlobal Markets
Serving The University Serving The University –– Students and Staff, Students and Staff, Entrepreneurs, Industry and The Community. Entrepreneurs, Industry and The Community. Key unit in Knowledge Transfer and working Key unit in Knowledge Transfer and working
on the on the ““Mindset FactorsMindset Factors””
Helping create the Entrepreneurial EcosystemHelping create the Entrepreneurial Ecosystem
Working closely with Cambridge Enterprise Ltd – The University Technology Transfer Company and University Seed and Venture Funds
Collaboration between R&D and Collaboration between R&D and Technology Commercialisation Technology Commercialisation
Centres of Excellence Centres of Excellence –– jointly fundedjointly funded
International International Collaborations with Collaborations with TOP Partners is a TOP Partners is a
BIG PLUSBIG PLUS
Until 1985
1986-1990
1991-1995
1996-2000
2001-2002
CambridgeUniversity
AcornHermann
Hauser
Acquired by Olivetti
Olivetti Research Lab
Andy Hopper
Adaptive Broadband
Cambridge BroadbandAcquired by American Microwave
Acquired by Western Multiplex Corp
Andy HopperPeter Warton
IPV (TelemediaSystems)
Andy Hopper
Virata(ATML)
Hermann HauserAndy Hopper
Merged with Globespan
Acquired by AT &T
RealVNCVirtual Network
Computing Level5NetworkAndy Hopper
ANTAlex van SomerenNicko van Someren
nCipherAlex van SomerenNicko van Someren
NetchannelHermann HauserJack Lang
Acquired by NTL
ARMElement 14
Stan BolandSimon Knowles
Acquired by Broadcom
Amadeus Capital PartnersHermann Hauser
IQ Bio Hermann Hauser, Chris Keightley
Part of DAKO Diagnostics
DakoCytomation -Merged with Cytomation
Inc
CDT
Richard Friend
Richard Friend Plastic Logic
Analysys
David Cleevely
Cambridge Network
David Cleevely Hermann HauserAlec Broers
Cambridge 3G
David Cleevely
CPSPeter Duffett-Smith
PolightTechnologies
Stephen ElliottPavel Krecmer
ART
Daniel Hall
Pilgrim BeartActiveRF
Pilgrim BeartAntenova
Zeus Technology
Adam TwissDavid Reeves
Cambridge Semiconductor
Gehan AmaratungaFlorin Udrea
MuscatJohn SnyderMartin Porter Enterprise
AcceleratorJohn Snyder
John SnyderWebtop
SmartlogikAcquired by Dialog
Small World
Richard GreenAuthur Chance
Dick Newell
CADShape Data Charles Lang
Acquired by GE
TensailsRichard Green
VBN online
TerraPrise
Ubisense
Andy HopperSteve Pope
Andy HopperAndy WardPete Steggles
Simon ElliottDavid Cleevely
Electronic Share Information
Acquired by E* Trade
Hermann HauserJack LangTop
expressJack Lang
Splashpower
Lily ChangJames Hay
Saviso Group
Adam TwissBryan Amesbury
Innovia
Collin AgerGarraint Davies
Cambridge Interactive Systems
Hermann HauserMike MullerTudor BrownJamie Urquhart
Dick Newell, Tom Sancha
The hiThe hi--tech starttech start--ups associated with the Cambridge University ups associated with the Cambridge University –– Many Global ConnectionsMany Global Connections
Stan BolandSimon Knowles
Icera
Laser-ScanR. O. Frisch
M-SpatialAdrian CuthbertJon Billing
version (Sept 2005) – not to be used or copied without permissionCopyright – Y.M.Myint - [email protected], Dr. Shailendra Vyakarnam [email protected]
Local role models Local role models –– inspiring inspiring EntrpreneurshipEntrpreneurship
Serial Entrepreneur, Venture Capitalist, and Serial Entrepreneur, Venture Capitalist, and PhilanthropistPhilanthropist……..
Dr Dr Hermann Hermann HauserHauser
Amadeus Amadeus Capital Capital
PartnersPartners
The Hauser Forum and Plastic LogicThe Hauser Forum and Plastic Logic
Going GlobalGoing Global…… reaching $US 500K or reaching $US 500K or exceeding $US 1 billionexceeding $US 1 billion
The Cambridge Cluster The Cambridge Cluster --An example of An example of ““Bottom UpBottom Up”” –– not not ““Top Top DownDown”” Growth and DevelopmentGrowth and Development…….lessons here.lessons here……..
Building communities of Building communities of enterprise,social inclusion and enterprise,social inclusion and
common purpose. With International common purpose. With International MindsetMindset
SubSub--regional developmentregional development
Regional economic developmentRegional economic development
National Economy National Economy –– World EconomyWorld Economy
A Joined Up System and SocietyA Joined Up System and Society
An Imperative to optimise Technology and Knowledge An Imperative to optimise Technology and Knowledge Development and Transfer. An Entrepreneurial Development and Transfer. An Entrepreneurial EcosytemEcosytem. It . It
has worked in Cambridgehas worked in Cambridge
Read All About It !......... Now availableRead All About It !......... Now available…………....
••Managing through uncertain timesManaging through uncertain times••Creativity, Imagination and InnovationCreativity, Imagination and Innovation
••The Entrepreneurial SpiritThe Entrepreneurial Spirit••Leveraging Science and TechnologyLeveraging Science and Technology
••Having a Global Mindset Having a Global Mindset –– Knowledge Sharing and Open Knowledge Sharing and Open InnovationInnovation
••Cross Border AlliancesCross Border Alliances••Transformational EducationTransformational Education
••Regionally and Locally Regionally and Locally –– ““Joined UpJoined Up”” Communities and Communities and SocietySociety
Looking Ahead….Exploiting the Future – Cambridge and UK Economy
And in Cambridge – specifics – some already happening – some still “visions”….
Ramsey Chatteris Littleport
Mildenhall
Bury St Edmunds
Haverhill
Saffron WaldenRoyston
St Neots
Huntingdon
HUNTINGDONSHIRE
SOUTH CAMBRIDGESHIRE
CAMBRIDGE
NORTH HERTFORDSHIRE(PART)
ST EDMUNDSBURY(PART)
FOREST HEATH(PART)
EAST CAMBRIDGESHIRE
FENLAND(PART)A1(M
)
A14
M11
A14
A10
A14
A11
A11
A10
UTTLESFORD(PART)
A10
A1
The FUTURE Cambridge Phenomenon The FUTURE Cambridge Phenomenon –– Looking Ahead Looking Ahead –– Growing the next ClustersGrowing the next Clusters
• Advanced Computing Advanced Computing –– ITIT
••TelecommunicationsTelecommunications
••Software including BioinformaticsSoftware including Bioinformatics
••Materials Materials –– Polymer SciencePolymer Science
••NanotechnologyNanotechnology
••Regenerative MedicineRegenerative Medicine
••Stratified MedicineStratified Medicine
••Medical TechnologyMedical Technology
••““Connecting for Health Connecting for Health ““ –– ““EE--HealthHealth””
••““CleantechCleantech and and GreentechGreentech”” –– Renewable Energy Renewable Energy and mitigating against Climate Changeand mitigating against Climate Change
Within the Greater Cambridge Sub-Region
Creating a World Without Borders and enabling Economic
and Social Development
Through Education Without Borders and Student
Leadership and Entrepreneurship
The The NEXTNEXT GENERATIONS will GENERATIONS will determine the future of our regions determine the future of our regions
and the Worldand the World
Education and Education and Knowledge Knowledge
Transfer Transfer across across
Borders and Borders and BoundariesBoundaries
Student Student LeadershipLeadership
And now we have ICUE And now we have ICUE –– for International and CCUE for International and CCUE for China !for China !
45,000 UK 45,000 UK members in 2 members in 2
years !years !
Creating a World Without Borders
It can be more than a Dream
And we have TECHNOLOGY to “live the dream” – The Digital Industrial Revolution is here!
Entrepreneurs have a big part to play Entrepreneurs have a big part to play –– turning start turning start ups into World Beaters! Some are already doing it ups into World Beaters! Some are already doing it
Mark Mark ZuckerbergZuckerberg –– FacebookFacebook going to the Public going to the Public Market at a valuation of $ 100 billions . Social Market at a valuation of $ 100 billions . Social
Media is changing the world !Media is changing the world !
And from And from FacebookFacebook to to InstagramInstagram –– Kevin Kevin SystromSystromfrom zero to $ 1 billion from zero to $ 1 billion –– fast trackfast track
From zero to 30 million users in no time at all ! From zero to 30 million users in no time at all ! Survival of the Survival of the fastest. fastest. And China has many young And China has many young
Entrepreneurs.Entrepreneurs.
ChinaChina--UK UK –– Opportunities to work togetherOpportunities to work together
Connecting across Continents Connecting across Continents –– creating a World Without creating a World Without Borders Borders –– with ENTREPRENEURSHIPwith ENTREPRENEURSHIP
Connecting our Universities and our CompaniesConnecting our Universities and our Companies
In In Pursuit of of Excellence ! Excellence ! –– Final ThoughtsFinal Thoughts
““Excellence can be achieved, if we:Excellence can be achieved, if we:Care more than others think is wise,Care more than others think is wise,Risk more than others think is safe,Risk more than others think is safe,
Dream more than others think is practical,Dream more than others think is practical,Expect more than others think is possibleExpect more than others think is possible..””
Deborah JohnsonDeborah Johnson--RossRoss
Seeking A World Without Borders
Thank You for ListeningThank You for Listening
[email protected]@alanbarrell.com
www.alanbarrell.comwww.alanbarrell.com
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