Download Greater Cambridge Area

1- Greater Cambridge Area – The context
The Greater Cambridge Area is situated in the East of England, within easy reach of the
Midlands to the North and London to the South. For international travellers, London
Stansted airport lies just 25 miles from the centre of Cambridge, London Gatwick and
London Heathrow are 2 hours drive and Luton airport just one hour away.
The historic city of Cambridge lies at the heart of the sub-region. Famed traditionally for
it’s historical colleges and architecture, Cambridge and the Cambridge sub-region is
increasingly being recognised for its advancements in research and development and hitech growth (reported widely as 'The Cambridge Phenomenon / report1'). The area is
also referred to as the ‘Cambridge Technopole’, a geographic area of intense hightechnology innovation activity encompassing the city of Cambridge at its heart and the
sub-regional Greater Cambridge hinterland of approximately 20-mile radius.
Cambridge sits in the wider region of the East of England2, one of the fastest growing
regions in the UK. The Cambridge Technopole area has grown significantly since 1985 –
it is now home to over 3,500 high technology ventures employing around 50,000 people3
and makes a contribution of £7,6bn to the UK economy4.
Greater Cambridge attracts hundreds of business enquiries and visitors each year who
wish to benefit from the area's support for innovation and start-ups, its expertise in
research and development and hi-tech industries, and an increasing number of business
and science parks.
Source: Cambridge City Council
The Cambridge Phenomenon – The Growth of the High-technology industry in a university town, Seqal
Quince & Wicksteed, 1985. This report has recently been updated and can be obtained via www.sqw.co.uk
2
The East of England comprises of the six counties of Norfolk, Suffolk, Cambridge, Bedfordshire,
Hertfordshire and Essex. For more information on the East of England see www.eeda.org.uk.
3
Data from PACEC (www.pacec.co.uk). Data on Cambridge companies can be obtained from
Cambridgeshire County Council Research Group (http://wwwcamcbty.gov,uk/sub/resrchgp/).
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Greater Cambridge Partnership, 2003
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2 - Key Facts about Greater Cambridgeshire

Cambridge has been acknowledged as one of the world’s leading hightechnology business clusters by publications including Time, Fortune, and Wired.
E.g., Time recently assessed the top 50 ‘hottest’ high tech companies in Europe
– 9 of which are based in Cambridge.

Growth in the Cambridge economy is on par with leading regions in the USA and
the sub-region makes a significant on-going contribution to the economy - £7.6bn
GVA5.

Cambridge is one of a handful of regions to be consistently ranked by the
European Commission as ‘excellent for its support for high tech start-ups6’.

Numerous significant scientific discoveries and inventions have been made at the
University of Cambridge. This is reflected in the fact that the University has more
Nobel Laureates than any other university in the world – 80 in total.

University of Cambridge people and technology have been at the heart of over
180 new high-tech ventures in the past 10 years, many of which now lead their
industry sectors.
3 - The Success of Cambridge
It has been suggested that one of the reasons underpinning the success of Cambridge is
not so much what the individual organisations do, but the way in which they do it. This
can be summed up as:
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
Community – in Cambridge there is a sense of being part of something
significant and special that makes a real impact on the world. The Cambridge
Network’s strap line of ‘Cambridge ideas change the world’ perhaps best sums
this up.

Collaboration – because of the sense of community, organisations and
individuals are typically very willing to help each other. This is reflected in the
high level of engagement of the business community in educational activities
throughout Cambridge.

Constructive Chaos – there is no group that ‘organises’ Cambridge. New
initiatives are continuously springing up – some succeed and some fail. This may
be perceived as inefficient from one standpoint, but does not result in a highly
entrepreneurial environment.
Greater Cambridgeshire Partnership, 2003
See www.cordis.lu/paxis
4 - The Economy
The economy in Greater Cambridge remains one of high activity, characterised by the
growth of hi-tech clusters, new and expanding businesses in key growth areas of the UK
economy, a highly qualified workforce and low unemployment. This does however
understate differences across the area with much of the growth in the hi-tech and
business services sectors concentrated in Cambridge and South Cambridgeshire, and
an increasing presence of new and expanding manufacturing and distribution
businesses in the market towns.
Hi-Tech Growth
In a little over 20 years, the number of hi-tech firms located around Cambridge has
grown nearly eight fold.
Growth of the Hi-tech Industry in Greater Cambridge
Source: Technopole Report
Today, there are over 1,500 hi-tech firms concentrated predominantly in Cambridge and
the immediate surrounding area, employing approximately 44,000 people.
The growth of hi-tech businesses in the area - or the 'Cambridge Phenomenon' as it is
known - has been acknowledged in a number of leading publications as one of the
world's premier hi-tech clusters, earning Greater Cambridge the label 'Silicon Fen'.
The European Commission in recognition of its support of innovation and start-ups, and
the growth of hi-tech has also twice named greater Cambridge as a ‘Region of
Excellence’ and business clusters in the area.
The key business sectors are:

Information technology

Mobile telecommunications

Biotechnology

Instrumentation
There are a number of agencies and organisations across the sub-region assisting
the growth and development of the hi-tech businesses and supporting services.
5 - Other Sectors
Occupational Structure of Employed Residents 2000 (Cambridgeshire)
Manufacturing is the second largest employment sector after the service industries,
accounting for around 16 - 20% of total employment. This sector is particularly
important to rural communities, which account for over 40% of total employment in
this sector.
Primary industries play a significantly smaller part in the local economy
(approximately 5% of the total employment). Agriculture plays a more significant role
to the local economy in the rural communities.
Tourism generates more than £500 million annually for the area, and supports 5,500
full time jobs (8% of the jobs total for the city) in Cambridge alone.
The Greater Cambridge Area - particularly Cambridge and the market towns - is very
popular with both domestic and international visitors. Almost half of all visitors are
from the UK, although the area attracts visitors from around the world especially
North America and Europe.
In addition to leisure visitors, the area also attracts business visitors and
conferences. This provides additional revenue with the average staying corporate
conference delegate spending approximately £140 per day.
Distribution, banking and finance are also important to the local market towns.
Self-employment accounts for an estimated 13% of all jobs in the Greater
Cambridge area.
New and Expanding Businesses
The proportion of new businesses within the services sector continued to grow in the
period July 1999 to June 2000. This was particularly so in South Cambridgeshire
with 92% of all new businesses in this sector. At a sub-regional level, the distribution
and business services sectors dominated the emergence of new businesses.
The growth in the hi-tech sector has slowed with the global turndown. However, it is
becoming apparent that some expanding hi-tech businesses are developing sites
further from Cambridge, thus spreading the economic benefit of the 'Cambridge
Phenomenon' further into the sub-region.
GDP
GDP per capita for the East of England is above the UK average. The latest regional
data (1998) showed the East of England to have the third highest GDP per capita in
the UK, preceded only by London and the Southeast.
Similarly, the personal disposable income per capita, or the amount residents have
to spend on goods and services, is significantly greater than the UK average.
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- Universities
There are three universities within the Cambridge Technopole area: the university of
Cambridge, Anglia Polytechnic University and the Open University.
University of Cambridge
University of Cambridge is one of
the largest in the U.K. Its
reputation for outstanding
academic achievement is
recognized world-wide. It has over
15,500 fulltime students.
www.cam.ac.uk
Anglia Polytechnic University
(APU)
APU has some 24,000 students (of
which 2/3 are mature students) &
courses are delivered with a strong
vocational emphasis.
Open University is the largest
provider of undergraduate parttime education in the East of
England supporting over 16,000
students.
www.anglia.ac.uk
Open University (OU)
www.open.ac.uk
The above universities are part of a £4.5m collaborative project to maximize business
innovation and economic growth through partnership with the higher education in the
East of England. The Regional Infrastructure for Innovation (RII) is made up of 10 of
the region’s Higher Education Institutions (HEIs) and supports business by mobilizing
the resources and capabilities of the HEIs towards their innovation needs
(www.rii.org.uk)
In recognition of the role that the University of Cambridge plays as the UK’s premier
teaching and research university, the UK Government awarded UK£65 million to
establish the Cambridge-MIT Institute (CMI). CMI is a joint venture between Cambridge
and the Massachusetts Institute of Technology focused on improving the Uk’s
productivity, competitiveness and entrepreneurship (www.cmi.cam.ac.uk)
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- Networks and Conferences in Cambridge
Examples of the key technology business related networks operating within Cambridge
are given in the table below.
Cambridge Chamber of
Commerce
Cambridge Chamber of Commerce www.cambridgeshirechamber.
represents the views of its membersco.uk
and lobbies government, at local,
regional and national level. Also
provides the information,
networking opportunities, business
skills training courses and offers a
full export documentation service as
well as information on all aspects of
international trade.
Cambridge Europe and
Technology Club (CETC)
Cambridge High-Tech
Association of Small Enterprises
(CHASE)
Cambridge Network (CN)
Cambridge University Local
Industry Links (CULIL)
Eastern Region Biotechnology
Initiative (ERBI)
Enterprise Link
Cambridge University Institute
for Manufacturing (IFM)
Group of high tech businesses
and service providers aiming to
improve profitability, technical
and business skills and market
penetration
CHASE is an association of small
businesses in the Cambridge
area working in, or associated
with, high technology. Focused
in 1987, CHASE focuses on
technology start-ups and small
enterprises, particularly catering
for the needs of those with fewer
employees.
Cambridge Network enables its
members to work together &
leverage their collective resource
in new ways for the benefit of
technology-enabled enterprise in
the Cambridge sub-region.
Founded in 1988, CN has more
than 1,100 members across
business, government
CULIL is a forum for dialogue
between the University & local
businesses. It provides a natural
space for contact between
different commercial and
academic communities in the
region, where issues of common
interest can be discussed.
The Eastern Region
Biotechnology Initiative was
established in 1997 as a
networking and communications
organization to enhance the
growth and development of
biotechnology in Cambridge and
the East of England.
Enterprise Link offers support for
early-stage technology-based
businesses. Assist the growth of
companies through networking, &
providing first-level advice,
signposting & contacts.
Launched in 1999 – now has 200
members.
IfM helps manufacturers grow &
become more competitive by
helping to raise their
www.nwallace.demon.co.uk/ce
tc/
www.chase.org.uk
www.cambridgenetwork.co.uk
www.clo.cam.ac.uk/culil
www.erbi.co.uk
www.enterprise-link.co.uk
www.ifm.eng.cam.ac.uk/events
manufacturing skill base,
developing innovative tools and
techniques, & industrial problem
solving; Best practice & new
technique deployment services;
Business networking.
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- Science parks and Incubators
The Greater Cambridge Area is home to a range of specialist accommodation for
knowledge -intensive and early stage ventures.7
Babraham Bioincubator Started in 1988 –
www.babraham.co.uk
combined office and
laboratory space for
start-up and early stage
ventures.
Cambridge Science
Started in 1970 –
www.cambridgesciencepark.co.uk
Park
Premises for over 60
science-based firms.
Granta Park
Research & development www.grantapark.co.uk
park, covering 86 acres,
7 miles south east of
Cambridge.
Melbourn Science Park
Premises for technology- www.ttp.com
based firms. Park now
owned by TTP.
St Johns Innovation
Started in 1987 –
www.stjohns.co.uk
Centre
Provides business
support and
accommodation for early
stage 50 knowledge
based companies.
Peterhouse Technology 12 acre R&D park
N/a
Park
Cambridge Research
112 acre R&D and office www.cambridgeresearchpark.com
Park
park.
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- Support for new and growing ventures in Greater Cambridgeshire
There are a number of publicly funded (or part-funded) agencies that deliver support for
entrepreneurs and established businesses in Greater Cambridgeshire.
For more information see “Development Sites” section of Greater Cambridge Partnership website –
www.gcp.uk.net
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Cambridge Enterprise
Agency
Support, advice, training
and mentoring for start-ups
and established businesses
www.cambsenterprise.co.uk
Business Link for
Cambridgeshire
Provides range of Business
Link services to meet local
businesses needs.
www.cambs.businesslink.co.uk
Cambridgeshire Chamber of
Commerce
Cambridge Chamber
provides a variety of
business support &
information to help new,
developing & established
companies
www.cambridgeshirechamber.co.uk
9 - Organisations within the University of Cambridge have developed specific
competence to support start- up, growing and mature ventures.
Cambridge Enterprise
Institute for manufacturing
…… linking technology,
management & operations
Judge Institute of
Management
Corporate Liaison Office
The new technology
venture support activities of
the Entrepreneurship
Centre, Technology
Transfer Office and
Challenge Fund are
integrated
Ifm works closely with
companies in areas of
strategy and performance,
technology management,
international manufacturing
and supply networks
through research,
education and direct
support.
www.cec.cam.ac.uk
www.rsd.cam.ac.uk/tto
www.challengefund.cam.ac.uk
www.clo.cam.ac.uk
Through its
Entrepreneurship
Consulting projects, Major
Consulting projects, and
individual projects the
Institute encourages MBAs
and undergraduates to
collaborate with local
companies on specific
projects.
Provides the business
liaison gateway for the
University of Cambridge to
find out relevant information
about the university, such
as research, intellectual
property, executive
education etc.
www.jim.cam.ac.uk
www.ifm.eng.cam.ac.uk
www.clo.cam.ac.uk
There is a now significant level of interaction between local start-ups and the University
of Cambridge through the numerous student in-company projects organised via various
departments. Information for potential host companies is given at
www.ifm.eng.cam.ac.uk/student projects.
10 - Public Bodies in the East of England
There are a number of bodies in the East of England that are responsible for ensuring
that the growth of Cambridge is linked to the broader issue of economic development of
the local and wider region and national government policy.
District Councils
Responsible for public services within
the five districts of Cambridgeshire.
www.camcnty.gov.uk/sub/links/districtcoun
cils.htm
Greater Cambridge
Partnership
Cambridgeshire
Chamber of
Commerce
Cambridgeshire
County Council
Business Link for
Cambridgeshire
East of England
Development
Agency
Invest East of
England
Government Office
for the East of
England
An umbrella organization of public
and private sector interests for the
region.
Represents the views of its members &
Lobbies Government at local, regional
and national level.
Responsible for public services in the
county of Cambridgeshire
Impartial advice and business support
for Cambridgeshire businesses
Development & Implementation of
strategies for economic development
of the East of England.
Responsible for attracting and
supporting overseas investment into
the region
Represents central government in
Cambridge
www.gcp.uk.net
www.cambridgeshirechamber.co.uk
www.camcnty.gov.uk
www.cambs.businesslink.co.uk
www.eeda.org.uk
www.investenglandofengland.com
www.go-east.gov.uk
Increasing emphasis is now being placed on linkages between initiatives and
Organisations. One example is ‘Innovation East’ which is set up by EEDA. This group’s
remit is to provide “coherent strategic monitoring for the East of England Innovation
priorities in order to provide value added outcomes for the region’s economy”.
______________________________________________________________________
Summary - The development of Cambridge
1209: Scholars leave Oxford to seek refuge in Cambridge – leads to formation of
University of Cambridge.
1511: St John’s College founded
1534: Trinity College founded
1881: Horace Darwin establishes ‘Cambridge Instrument’ (now part of Leica)
1960: Cambridge Consultants formed “to put the brains of Cambridge University at the
disposal of the problems of British Industry”
1969: Mott Report published with recommendation for an expansion of ‘science-based
industry’ in Cambridge.
1970: Inspired by Mott Report, Trinity College establishes Cambridge Science Park.
1970s: Acorn Computers and Sinclair established in Cambridge.
1978: Barclays Bank begins to support new technology ventures.
1985: ‘Cambridge Phenomenon’ report published by SQW – highlights growth of hightechnology business activities in Cambridge.
1987: St John’s Innovation Centre established.
1990: University of Cambridge Judge Institute of Management established.
1997: Ionica plc becomes first Cambridge company to have US$bn valuation
1997: 1st Cambridge Enterprise Conference held.
1998: University of Cambridge Institute for Manufacturing established.
1998: Cambridge Network formed to provide a voice for the high-technology business
community.
1998: Greater Cambridge Partnership established.
1999: University of Cambridge Entrepreneurship Centre, University Challenge fund and
Cambridge University Entrepreneurs established, University Technology Transfer Office
activities enhanced.
1999: Publicly quoted Cambridge companies, including ARM and Autonomy, reached
multiple billion US$ valuations.
2000: Cambridge MIT institute established in Cambridge with £65m of Government
funds to promote entrepreneurship, productivity and competitiveness.
2000 & 2002: Cambridge recognized by the European Commission as being a “region of
excellence for the support of high tech start-ups”.
For further information contact
Lucy Kemp
East of England Development Agency
The Business Centre
Station Road
Histon
CB4 9LQ
[email protected]
07764301374