PANEL 1A Infrastructure for Enterprise Innovation Hubs

Greater Cambridge Partnership Infrastructure for Enterprise – Innovation Hubs 18 April 2007 Martin Garratt, Director

Introduction Background to Greater Cambridge Partnership (GCP) Sub Regional Economic Strategy Infrastructure for Enterprise – the Hardware Infrastructure for Enterprise – the Software Conclusion

Background Sub-Regional Economic Partnership (SREP) for the Greater Cambridge area Public/Private/Community Sector Boards Funded by EEDA, County Council and District Councils and Private Sector 25 mile radius of Cambridge

Greater Cambridge Area

Sub Regional Economic Strategy Goal 1: Encouraging global success in entrepreneurship, research and development and business growth across the high tech cluster Goal 2: Encouraging business growth and economic development which will underpin a growing and sustainable sub-regional economy Goal 3: Developing a skills base to support a world class economy Goal 4: Benefiting all across the Sub-Region Goal 5: Creating a high quality place to live work and visit

The Learning Collaboration Babraham Addenbrooke’s Papworth Technology Hub Growth Programme & Facility Start-up Facility SJIC Pre-start Facility Cambridge University Enterprise Hubs Life Sciences Hub

Enterprise Hubs Technology

High Value Manufacturing

Case Study Hearing aid technology company Sell technology on a chip at £1.1m p.a. Business model for £65m by 2009 Supply chain –Photo fabricationSt Neots –Tool and mouldHaverhill –PackagingEly –Plastic painting / printingCambridge –Coil windingBar Hill –AssemblyKings Lynn

Business Parks

Enterprise – the Software Technopole Group Centre for Entrepreneurial Learning Sector Networks

CHASE

Enterprise – the Software i-Teams Women in SET Business Planning Competition

International Relations Focus Int’l RegionCountryRegion AsiaChinaSilicon Valley * The AmericasUSBoston Europe (all)IndiaShanghai Eastern EuropeGermanyBeijing Middle EastJapanMunich KoreaBangalore SingaporeBrussels TaiwanHong Kong RussiaParis * Including SF, SJ, SD

Conclusion GCP – senior level economic partnership Strategic plan for area Enterprise support – hardware & software

Centre for Technology Management Infrastructure for enterprise hubs St John’s Innovation Centre and the Institute for Manufacturing Dr Tim Minshall University of Cambridge Institute for Manufacturing ( & St John’s Innovation Centre Ltd (

Centre for Technology Management New

Centre for Technology Management Engineering Colleges Central administration Academic departments University of Cambridge

Centre for Technology Management St John’s Innovation Centre is wholly-owned by St John’s College and houses about 50 businesses with a wide range of sizes – providing office and laboratory space as well as support infrastructure

Centre for Technology Management Incubation elements Ideas Expertise Entrepreneurs Accommodation Funds Networks People Connections Partnerships Advice Credibility

Centre for Technology Management

St. John’s Innovation Centre Ltd. Formed in % owned by St. John’s College, Cambridge Three aims: –Return on investment for St. John’s College –Supportive environment for start-up and growth of new technology ventures –Encouragement of technology transfer

Centre for Technology Management Tenant mix and size biotech 6% other tech 14% software 49% support services 31% Number of employees > 50

Centre for Technology Management Business development & incubation Growth Incubation ‘Seed’ Incubation Independent Growth SJIC core businessSJIC ‘extra’ activities

Centre for Technology Management SJIC also provides: Enterprise Link –Networking for new technology entrepreneurs Innovation Relay Centre –Technology partnerships Close integration with University of Cambridge –Access to: Facilities Expertise Students Graduates

Centre for Technology Management Engineering Colleges Central administration Academic departments University of Cambridge

Centre for Technology Management The Institute for Manufacturing Help industry to create wealth more effectively. EDUCATION RESEARCH Services GOVERNMENT INDUSTRY UNIVERSITIES

Centre for Technology Management Role of universities in the knowledge economy Graduates –‘regenerating the gene pool of industry’ Research –Public availability of leading edge outputs ‘Intermediate activities’ –Consultancy, executive education, student projects, use of university labs and workshops,… Licensing –Packaged intellectual property Spin-outs –Formation of new commercial entities

Centre for Technology Management Example: Students projects

Centre for Technology Management Example: Research approach Tech-based start-ups – significant generators of innovation but typically resource constrained. Larger companies –need access to new innovations and to source them from wherever they are generated.

Centre for Technology Management

A simple problem.. Start-up Established firm Why? How? 1Limited Business model, financing, growth,.. Structure, approach, experiences,..

Centre for Technology Management Start-up Established firm Why? How? Investors Consultants Other start-ups Other established firms Other start-ups Other start-ups Lawyers Universities Public agencies Partnerships Lawyers Grants, support Grants Research collaboration IP, investment Partnerships Investment (corporate VC) Grants Services Complexity..

Centre for Technology Management Problems working with large firms How to get in? Who to talk to? How to cope with organisational change? Very slow decision cycles How to understand what they really want? Trust?

Centre for Technology Management

Problems of working with start-ups IP Roadmaps (can’t share) Brand abuse Financial stability Over promise / under–deliver Technology, product or solution? Can it be manufactured?

Centre for Technology Management Integrated outputs A website providing introductory information on this topic – case studies, short briefing papers, sources of further information, etc. A series of evening workshops held at local technology business incubators and science parks A toolkit (workbook, presentations, checklists) plus training sessions for advisors and mentors.

Centre for Technology Management EDUCATION RESEARCH Services GOVERNMENT INDUSTRY UNIVERSITIES

Centre for Technology Management Constraints and replicability Patient investment Management style Business model Pump-priming funding ‘Non-traditional’ academics Cambridge structure

Centre for Technology Management Engineering Colleges Central administration Academic departments University of Cambridge

Centre for Technology Management New

Inca Digital Printers Ltd. Nigel R. Puttergill

18 th April, KEF VI Inca Digital Printers – the beginning Founded May 2000, by Bill Baxter (CEO) and six colleagues Purpose – to develop, build and sell industrial / commercial UV inkjet printers Spin-off from Cambridge Consultants (one of many)

18 th April, KEF VI Venture Capital Funded At launch (May 2000) Inca was valued at £6M A second round raised £2M leaving: Advent Venture Partners36% Small financial investor 3% Cambridge Consultants14% Founders37% ESOP10% £600k £1.5M 7 people + IP Cambridge Consultant s Ltd (CCL) Advent Venture Partners (AVP) CCL 15% Founders 39% ESOP AVP 35%

18 th April, KEF VI Financials Year 1Year 2Year 3Year 4Year 5 Sales£0.8m£5.1m£11.3m£14m£19m Profit/lo ss (£1.4m)(£2.7m)£0.3m£1.0m£1.5m Staff Inca grew quickly and is cash neutral

18 th April, KEF VI The Products & Awards Columbia Turbo Spyder 320 Queen’s Award for Enterprise: International Trade Queen’s Award for Enterprise: Innovation

18 th April, KEF VI The importance of Cambridge to Inca’s success Easy to form a spin-off company in Cambridge It’s an established process There is local expertise Specialized legal resources (IP & company set- up) Cambridge has high profile for VC companies Tax incentives (EMI & EIS) Large pool of technical resource (people)

18 th April, KEF VI The Exit NEWS RELEASE Dainippon Screen acquires Inca Digital Printers Acquisition links innovative wide format digital inkjet specialist with world’s leading manufacturer of equipment for the digital prepress, printing, semiconductor and flat panel display industries. 2 nd June 2005 : Today Dainippon Screen Mfg. Co., Ltd (Kyoto, Japan) announces that it has acquired Inca Digital Printers, the specialist wide-format digital inkjet printer manufacturer, in an agreement totaling UK pounds products perfectly. Significantly, Inca’s expertise gives us access to important new markets in industrial printing and packaging. By combining Inca’s expertise in wide format inkjet printing, with Screen’s considerable experience in the media technology, semi- conductor and flat-panel display industries we can further strengthen and grow Inca and Dainippon Screen’s businesses, while working together to develop new applications across multiple sectors in the future.”

18 th April, KEF VI Dainippon Screen Mfg. Co., Ltd. Kyoto based manufacturer of capital equipment for: Graphic arts Semiconductor Flat Panel Precision measuring equipment Revenue - $2.46 billion

18 th April, KEF VI Why Dainippon Screen acquired Inca Digital? Investing in Inkjet for the future of graphic arts business Investigating inkjet technology for applications in printed electronics and flat panel Inca has advanced UV inkjet know how Inca products address new market segment for Screen (Graphics)

18 th April, KEF VI Why Dainippon Screen acquired Inca Digital? Screen recognised the importance of the inkjet community in Cambridge Access to core research programmes – University Access to small privately funded research companies Developing closer relations with other commercial inkjet companies Specialist consultants (IP, technology) THE CAMBRIDGE NETWORK

18 th April, KEF VI Screen and Inca today Design, development and manufacturing of Inca products still continues as before. Inca maintains its independence for technology development and product design Screen and Inca exchange know-how and support Joint development projects Exchange of engineers Advice, problem solving Procurement Cambridge is becoming the corporate centre of Inkjet development

18 th April, KEF VI Thank you for your attention

Infrastructure for Enterprise Innovation Hubs EIF Experience By Bagrat Yengibaryan

Enterprise Incubator Foundation Non-profit business development and incubation agency Established in 2002 by the Government of Armenia within the World Bank’s “Enterprise Incubator” Project to support the development of Armenia’s IT industry Mission is to stimulate economic growth of Armenia by assisting the local IT enterprises in business and skills development areas and stimulating entrepreneurial activity and start-up formation in the country

Infrastructure for Innovation Hubs This is an evolving concept that has reached different levels across the world, reflecting the different stages of development. Technological and other change is rapidly transforming the environment in which the Innovation is developed. We should promote it at the national level. To put the potential of knowledge and ICT at the service of development

Challenges Incubator as a Start up Wide range of Services -Business Services -Skill Development Services -Facility Services Revenue Generation Virtual vs. Physical

Support Actors – Key Stakeholders Government Private Sector Educational Institutions/Academia Think Tanks Research Centers

Role of Government Development of strategy, including the necessary human capacity building Initiate structured dialogue involving all relevant stakeholders, including through public/private partnerships, and for the exchange of best practices

Role of Government Government should take action, in the framework of national development policies, in order to support an enabling and competitive environment for the necessary investment in Innovation and for the development of new services Provide funding for joint projects

Business Development/ Cluster Development Cluster promotion (Foreign Offices) Branding Business development (software process improvement, CMMI certification) Capacity development (training labs, curricula development, R&D facilities) Consultancy (legal, accounting, sales, marketing)

Business Development/ Cluster Development FDI attraction Microsoft Innovation Center SUN Solution Development LAB Financing mechanisms (Venture Capital) Start-up creation Surveys and Publications

EIF as Part of Knowledge Infrastructure R&D Centers Training Labs VC Funds Techno parks

Key Results Achieved Annual sector growth 20%, Annual workforce growth 30% 10% growth in start-ups creation IT industry produces ~ 10% of Armenia’s exports and almost 2% of Armenia’s GDP Productivity increase 7% 70% of IT companies using EIF services FDI attracted (Sun Microsystems, Alcatel, Microsoft, National Instruments, HP) First VC fund established in Armenia

Success Factors Idea generation Turning ideas into action Public-private partnership Matching interests Quality services/new perspectives Networking opportunities Big picture

What is needed? Political support Skilled human resources Dedicated management Creative culture Start-up capital Physical Infrastructure

Next Steps Development of New Strategy and Implementation Plan Joint actions with Donor Community and Private Sector on Implementation of Projects on exploring ICT and E- development aspects related to knowledge based economy Establishment of Innovation Centers and Start-up Funds, Industrial Zones, etc

Enterprise Incubator Foundation 123 Hovsep Emin st. Phone: (374 10) Fax: (374 10)