PANEL 1A Infrastructure for Enterprise Innovation Hubs

PANEL 1A

Infrastructure for Enterprise Innovation Hubs

Greater Cambridge Partnership

Infrastructure for Enterprise – Innovation Hubs18 April 2007Martin 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

St John’s Innovation

Centre

The LearningCollaboration

UniversityOf

Cambridge

Technology/ICTTechnology/ICT

Needs-determineddevelopmental

programmes fortechnology-based,

advanced manufacturingand life sciences businesses

PrePre--startstart StartStart--upup Early stageEarly stagedevelopmentdevelopment GrowthGrowth (10 100)(10 100)

Idea generationIdea generationand early stageand early stagecommercialisationcommercialisation

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 fabrication St Neots– Tool and mould Haverhill– Packaging Ely– Plastic painting / printing Cambridge– Coil winding Bar Hill– Assembly Kings Lynn

Business Parks

Enterprise – the Software

• Technopole Group• Centre for Entrepreneurial Learning• Sector Networks

Sector Networks

CHASE

Enterprise – the Software

• i-Teams• Women in SET• Business Planning Competition

Business Planning Competition

International Relations Focus

Int’l Region

Country Region

Asia China Silicon Valley *

The Americas US Boston

Europe (all) India Shanghai

Eastern Europe

Germany Beijing

Middle East Japan Munich

Korea Bangalore

Singapore Brussels

Taiwan Hong Kong

Russia Paris* Including SF, SJ, SD

Conclusion

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

www.gcp.uk.net

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(www.ifm.eng.cam.ac.uk)

&St John’s Innovation Centre Ltd

(www.stjohns.co.uk)


www.fundingtechnology.org

New


Engineering

Colleges

Central administration

Academic departments

+

+

+

University of Cambridge


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


Incubation elements

IdeasExpertise

Entrepreneurs

AccommodationFunds

NetworksPeople

Connections

Partnerships

Advice

Credibility



St. John’s Innovation Centre Ltd.

• Formed in 1987• 100% 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


Tenant mix and size

biotech6%

other tech14%

software49%

support services

31%

Number of employees

0

5

10

15

20

25

1 - 5 6 - 15 16 - 50 > 50


Business development & incubation

GrowthIncubation

‘Seed’ Incubation

IndependentGrowth

SJIC core businessSJIC ‘extra’ activities


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


Engineering

Colleges



+

+

+



The Institute for ManufacturingHelp industry to create wealth more effectively.

EDUCATION

RESEARCH

Services

GOVERNMENT

INDUSTRY

UNIVERSITIES


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


Example: Students projects


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.



A simple problem ..

Start-upEstablished firmWhy?

How?

1Limited

Business model, financing, growth, ..Structure, approach, experiences,..


Start-upEstablished firmWhy?

How?

Investors

Consultants

Other start-ups

Other established firmsOther

start-upsOther start-ups

Lawyers

UniversitiesPublic agencies

PartnershipsLawyers

Grants, support

Grants

Research collaboration

IP, investment

Partnerships

Investment (corporate VC)

Grants

Services

Complexity ..


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?



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?


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.


EDUCATION

RESEARCH

Services

GOVERNMENT

INDUSTRY

UNIVERSITIES


Constraints and replicability

• Patient investment• Management style• Business model

• Pump-priming funding• ‘Non-traditional’ academics• Cambridge structure


Engineering

Colleges



+

+

+



www.fundingtechnology.org

New

Inca Digital Printers Ltd. Nigel R. Puttergill

18th April, 2007 - 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)

1970 1980 1990 2000

Domino Linx ElmjetVideojet

Xaar Inca

Cambridge Consultants Ltd (CCL)1970 1980 1990 2000

Domino Linx ElmjetVideojet

Xaar Inca

Cambridge Consultants Ltd (CCL)


Venture Capital Funded

At launch (May 2000) Inca was valued at £6M

A second round raised £2M leaving:Advent Venture Partners 36%

Small financial investor 3%Cambridge Consultants 14%Founders 37%ESOP 10%

£600k

£1.5M7 people+ IP

Cambridge Consultants Ltd (CCL)

Advent Venture Partners

(AVP)CCL15%

Founders39%

ESOP

AVP35%


Financials

Year 1 Year 2 Year 3 Year 4 Year 5

Sales £0.8m £5.1m £11.3m £14m £19mProfit/loss (£1.4m) (£2.7m) £0.3m £1.0m £1.5m

Staff 22 65 90 105 130

Inca grew quickly and is cash neutral


The Products & Awards

Columbia Turbo

Spyder 320

Queen’s Award for Enterprise: International Trade - 2005Queen’s Award for Enterprise: Innovation - 2005


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)


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. 2nd 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 poundsproducts 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.”


Dainippon Screen Mfg. Co., Ltd.

Kyoto based manufacturer of capital equipment for:

• Graphic arts• Semiconductor• Flat Panel• Precision measuring equipment

Revenue - $2.46 billion


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)


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


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


Thank you for your attention

Infrastructure for Enterprise Innovation

HubsEIF 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 Foundation123 Hovsep Emin st.Phone: (374 10) 219797Fax: (374 10) 219777E-mail: [email protected]

Documents

PANEL 1A Infrastructure for Enterprise Innovation Hubs