A Perspective on InnovationA Perspective on Innovation

Andy Hopper

The Computer LaboratoryUniversity of Cambridge

What is innovationWhat is innovation

• New technologies

• New business models

• Explosive growth, winner takes all sectors

UniversitiesUniversities

• Academic professor, entrepreneur professor

• Serving / disrupting / creating new industry

• Becoming institutional and less flexible

• Rather monolithic in UK

• Innovation in Industry

• Intellectual property

• Capital

• UK fiscal policies

Broad ContextBroad Context

1 – ARM1 – ARM

• Micro-processor architecture - 30 years from first concept

• Technology rooted in symbiotic industry/university/finance situation

• Corporate spin-out

• Innovative business model and relentless execution

• Dominates low-power CPU architecture with 50Bn+ instances made

2 - VNC2 - VNC

• Remote graphical access

• Technology based on long-term industry/university expertise

• Open Source release

• RealVNC start-up organically grown

Server Viewer

RealVNC – new productsRealVNC – new products“Help!”

Fix

Access from Tablet and SmartphoneAccess to Tablet and Smartphone

Access built into processor

Access through the cloud

Automotive

RealVNCRealVNC

• Any device, across any network, in any combination

• Exists on over 1Bn devices

• The worlds most ported piece of software?

• Profitable from day one, 90% of revenues from export

• Business model to match unique circumstances

3 – Xen3 – Xen

• Virtualisation software

• Technology based on long-term university practical expertise

• Xen.org open-source “hypervisor” developers platform

• Xen Source Inc start-up with $6M of US VC money

• Sold after 3 years in 2007 for $500Mio on small revenues

• Now a widely used technology in the cloud

4 - Ubisense4 - Ubisense

SENSOR

SENSOR

TAG

Sensor Tag

• Real-time 3D location system based on ultra-wideband radio

• Up to 15cm accuracy at fully managed reliability levels

• Scalable in coverage and scope of application

Tag integrated with toolTag integrated with tool

BMW Car Plant, Germany BMW Car Plant, Germany (Final Assembly Tool Assistance)

• Tracking tools on complex production line

• Automatically programs tools for each car

• Eliminates barcode scanning

O2 Arena, UKO2 Arena, UK(Entertainment)(Entertainment)

• Projection of sound image is based on every

performers location

2002

2003

2004

2005

2006

2007

July : Founded

2008

2009

2010

2011

June : IPO on AIM

2012

F&A £1.6mEquity

A+ £1.6mEquity

A++ £2.0m

CL

A £1.0m

CL

HSBC£1.0mLoan

Pre-IPO£5.0m

IPO£5.0m

A++£1.6mEquity

F – FriendsA - AngelsCL – convertible loan

Ubisense FundingUbisense Funding

Ubisense plcUbisense plc

• Rooted in 25 years of Industry / University research

• Setting standards for Real Time Location Systems

• Sells to the largest manufacturing companies (BMW, Airbus)

• Intersection of computing / manufacturing

• 5% of passenger car production

17

5 – Raspberry Pi5 – Raspberry Pi

• Rooted in traditional capabilities of Computer Lab

• Not inspired by immediate profit motive

• Supported by Cambridge “plc” (CL, Angels, Broadcom)

• Humongous success and ecosystem

The Bear TrapsThe Bear Traps

• IP ownership

• Equity dilution

• Funding

• Science/technology is not good enough

• Market not ready for technology

• Management team

The University-Industry InterfaceThe University-Industry Interface

• Barriers to collaboration

• Where should the marketplace exist?

• Universities to adopt a volume strategy (not picking winners)

• Small shareholding in many ventures

• An independent “Entrepreneurs Charter” to guide best practice

• More nooks and crannies all round