This continually evolving community is like a ‘perpetual motion engine’ attracting fresh, bright people inspired to do things differently; creating not just embryonic companies but entirely new industry sectors. - Charles Cotton
In the foreword to The Cambridge Phenomenon: 50 Years of Innovation and Enterprise, Bill Gates KBE, Microsoft founder and philanthropist, states: “the phenomenon of Cambridge is an inspiring reminder of the great power of human ingenuity to make life better and more productive for all of us.”
Charles Cotton, founder and chairman of Cambridge Phenomenon Ltd (pictured at the launch with Cambridge Network CEO Claire Ruskin) described the cluster as a ‘perpetual motion engine’. He believes that the generation of new ideas for businesses is core to its strength. Cotton says that the book – which charts the companies and people that have fulfilled the prophecy made in the 1960s of the ‘white heat of technological revolution’ – provides many learning points, not least the key ingredient of a ‘Cambridge Spirit’ that promotes cooperation for a greater goal.
Sir Leszek Borysiewicz, Vice-Chancellor of the University of Cambridge, agrees and says that the contribution of technology to quality of life is as important as the economic benefits.
“Major breakthroughs such as sequencing the human genome, which heralded a new generation of healthcare, and the affordable personal computer, upon which a generation of school children became computer literate, are just two of the many contributions that Cambridge ideas have made to the world.
“The University of Cambridge has facilitated technology transfer by encouraging entrepreneurship among academics. This has been highlighted in the book as one of the success factors for the cluster.”
At the event yesterday, he underlined the commitment of the University "to continue the vital process of getting our research into use, and the importance - amid all the committees and buildings and networks - of the people who create the Cambridge Phenomenon anew every day."
The book, written by Kate Kirk and Charles Cotton, describes the explosive growth since the 1960s, which has resulted in an influential and world-renowned technology cluster. There are now about 1400 technology companies in Cambridgeshire employing more than 40,000 people.
Charles Cotton says: “Cambridge has produced eleven billion-dollar tech companies, but equally important is the diversity of smaller companies employing highly skilled individuals and the increasing number of international companies choosing to locate R&D labs here. This continually evolving community is like a ‘perpetual motion engine’ attracting fresh, bright people inspired to do things differently; creating not just embryonic companies but entirely new industry sectors.”
Cotton, who joined ‘Micro-men’ Clive Sinclair and Hermann Hauser shortly after the launch of the world’s first affordable home computer in the early 80s, says that cultural change has been a vital ingredient in the cluster’s success and identifies three key factors.
“The first was a cultural shift in views about ‘commerce’ when the University of Cambridge actively encouraged academics to pursue non-academic roles. We are seeing now the success of this policy with serial entrepreneurs such as Greg Winter (Cambridge Antibody Technology), Shankar Balasubramanian (Solexa) and Andy Hopper (Acorn Computers and Virata) who are also active professors inspiring the next generation of students.
“Secondly, we needed to overcome the inherent British fear of failure. Setting up a business, particularly one based on a novel technology, is inherently risky. We have now developed a better understanding of the nature of failure and distinguish between external events, such as loss of funding after the bursting of the dot.com bubble, and internal factors such as poor decisions, which can be learned from, and this has increased confidence. Soft-starts, where technology is developed within a company before being spun-out, has also successfully de-risked technology for many investors.
“The third factor is the ‘Cambridge Spirit’ - the willingness to collaborate and share knowledge. This is particularly evident in the growth of Angel groups where serial entrepreneurs offer experience and finance, providing a nurturing environment for young companies.”
Cotton believes that the book is a valuable resource for capturing knowledge of how a ‘technology cluster’ can evolve; he also asserts that Cambridge is unique.
He says: “Cambridge keeps evolving. Eight hundred years of history and 88 Nobel Prize winners* is obviously an advantage but in some industries it is the ‘personal brand’ offered by an entrepreneur or scientist that is important. Increasingly we are seeing companies staying in Cambridge after acquisition by overseas players and international companies such as Amgen, Medimmune, Microsoft, and Nokia, choosing to locate their research labs here to be close to these people.
“I see spin-in, where companies choose to locate here, as part of the contribution Cambridge technology is making to the economy. Success should not be measured simply by the size of the companies we create. Cambridge’s strength is a continually evolving ecosystem employing many thousands of people, that is inspiring new markets, new companies, new products and services and is sustainable.”
What is the Cambridge Phenomenon?
The Cambridge Phenomenon in numbers
- *88 affiliates of the University of Cambridge have won the Nobel Prize since 1904,
- Since 1960 around 5,000 hi-tech companies have been founded.
- Today there are around 1400 high-tech and related services companies
- 40,000 people are employed in these companies
- Key sectors - IT, Healthcare, Bioscience, Cleantech, Energy
- In 1990 - zero $Bn companies (by market cap.)
- In 2000 - five $Bn companies - ARM, Autonomy, CAT (Cambridge Antibody Technology), Ionica, Virata
- In 2010 - nine $Bn companies - Abcam, ARM, Autonomy, AVEVA, CAT, CSR (Cambridge Silicon Radio), Domino, Marshall, Solexa. ARM and Autonomy are now valued at more than $10 Bn
- More than 12 major tech consultancies, including Cambridge Consultants, PA Consulting, TTP and Sagentia set Cambridge apart from other clusters
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Image: (L-R) Warren East is the Chief Executive Officer of ARM, Cambridge's best-known technology company; Professor Andy Hopper is Professor of Computer Technology at the University of Cambridge. He co-founded Virata and many other technology companies; Cambridge Network Founder and Director Hermann Hauser is Cambridge's best known entrepreneurial venture capitalist. As well as founding Acorn Computers and countless other technology companies, he also co-founded Amadeus Capital Partners; Charles Cotton is the Founder and chairman of Cambridge Phenomenon Ltd whose book The Cambridge Phenomenon 50 Years of Innovation and Enterprise was launched yesterday; David Braben is the founder of Frontier Developments, a computer games development company and co-founder of Raspberry Pi , the ARM powered, low cost education computer; Professor Haroon Ahmed is an Emeritus Professor of Microelectronics at the Cavendish Laboratory, the Physics Department of the University of Cambridge.
About the book
Title: The Cambridge Phenomenon: 50 Years of Innovation and Enterprise
Imprint: Third Millennium Publishing, London
Foreword: Bill Gates
Author: Kate Kirk and Charles Cotton
Publication: 8th May 2012
RRP: £50 / ISBN: 978-1-906507-57-7
Specifications: Hardback, 280 x 240 mm, c. 90,000 words, 224 pages, printed in colour throughout, over 450 illustrations
www.cambridgephenomenon.com/book
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Media contact: Nina Beadle/Claire Lynn/Rachel Holdsworth, Holdsworth Associates 01954 202789 email nina@holdsworth-associates.co.uk