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Creating the Climate for Innovation

Creating the Climate for Innovation. Jack Lang Serial Entrepreneur Entrepreneur in Residence University of Cambridge. ISBN: 0273656155. ISBN: 0273656155. Number of high tech firms in Cambridge. 1600 800 300. 8% of EU VC. 1960 1970 1980 1990 2000.

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Creating the Climate for Innovation

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  1. Creating the Climate for Innovation Jack Lang Serial Entrepreneur Entrepreneur in Residence University of Cambridge

  2. ISBN: 0273656155 ISBN: 0273656155

  3. Number of high tech firms in Cambridge 1600 800 300 8% of EU VC 1960 1970 1980 1990 2000

  4. Cambridge Cluster • About 1500 companies • Employing about 50,000 • Technion ~30 • Largest European cluster • $20 billion value created by Cambridge Alumni • Stanford $1000 billion? • Billion $ market cap companies • ARM, • Virata, • CSR, • Autonomy, • Cambridge Antibody • Cambridge Angels Source: Cambridge Technopole Report

  5. Driven by People.... • Local heros • Small core group of “seeds” • Structural and relational social capital • Network – know each other • Serial entrepreneurs • Experience, contacts • Trusted by external investors • Willing to give time to new ventures • Mentoring • Observable • Articles, talks, dinners • “If he can do it, so can I!”

  6. RealVNC Virtual Network Computing Andy Hopper Steve Pope Merged with Globespan Level5Network Andy Hopper Peter Warton Ubisense Andy Hopper Andy Hopper Andy Ward Pete Steggles Cambridge Broadband Andy Hopper IPV (Telemedia Systems) Hermann Hauser Andy Hopper Acquired by Western Multiplex Corp Acquired by American Microwave Acquired by AT &T Virata(ATML) Adaptive Broadband Simon Elliot TerraPrise Amadeus Capital Partners Lily Cheng James Hay VBN online Olivetti Research Lab Hermann Hauser Tensails nCipher Splashpower Richard Green Andy Hopper Alex Van Someren Robin Saxby Acquired by Broadcom Acquired by GE Michael Pepper Don Arnone ARM ANT Element 14 Small World Acquired by Olivetti Teraview Richard Green Authur Chance Alex Van Someren Niko Stan Boland DakoCytomation - Merged with Cytomation Inc Cambridge Interactive Systems Part of DAKO Diagnostics John Snyder Charles Lang Webtop Shape Data Acorn Hermann Hauser, Chris Keightley Hermann Hauser IQ Bio Peter Duffett-Smith Acquired by NTL Smartlogik Acquired by Dialog CAD Netchannel CPS Hermann Hauser Jack Lang Hermann Hauser Jack Lang Cambridge University Top express Jack Lang Electronic Share Information Acquired by E* Trade Muscat Analysys CDT Until 1985 John Snyder Dr. Martin Porter Enterprise Accelerator David Cleevely Richard Friend John Snyder Cambridge Semiconductor 1986-1990 Richard Friend Adam Twiss David Reeves Zeus Technology Plastic Logic Cambridge Network Gehan Amaratunga Florin Udrea Pilgrim Beart David Cleevely Hermann Hauser Alec Broers ActiveRF ART 1991-1995 Cambridge 3G Daniel Hall Collin Ager Garraint Davies Virtual Business Network Antenova Saviso Group David Cleevely Innovia Pilgrim Beart Polight Technologies Adam Twiss Bryan Amesbury David Cleevely SimonElliot 1996-2000 Stephen Elliott Pavel Krecmer 2001-2002

  7. Cambridge Cluster Common Directorships/Investments Richard Youell Hermann Hauser Graham O'Keeffe Gordon Edge Robert Hook Andrew Dames Sir Alec Broers Jack Lang Jamie Urquhart Bob Pettigrew Nigel Berry Richard King Phil O'Donovan Stephen Ives Laurence Garrett Duncan Stewart Gerald Avison Robin Saxby Mike Muller Charles Cotton Chris Wade Pilgrim Beart John Paul Auton David Cleevely Andy Hopper Dr. Peter J. Duffett-Smith Stephen Elliott Peter Wynn Alex Van Someren Richard Friend Robert Swann Ray Anderson Simon Segars Source: Yupar Myint and Shai Vyarkarnam Judge Business School Michael Ledzion

  8. Hierarchy of NeedsAbraham Maslow 1943 A Theory of Human Motivation Growth Self- Realisation Self Esteem Recognition Peer esteem Belong, be accepted Give and receive friendship Protection from danger Economic Security Warmth Food Drink Air Actualisation Esteem Social Safety Physiological PAY is not a specific need, only a means

  9. Safety and Security • Thriving local economy • Easy to get a job if it goes wrong • Conventional jobs not so secure • Academic competition • Large corporates down-sizing • Try before you buy: • Sabbaticals, part time appointments • Spin outs, in-house incubators, “intrepreneurs”

  10. Social & Esteem • Compatible with Lifestyle choices • Working hours • Dress, meetings, schools etc • Social acceptance • Better to try and fail, than not try • OK to be an entrepreneur

  11. Complexity • Understanding the process • Company formation • IPR • Tax • Finding advisors • Mentors • Professional services • Lawyers, accountants, PR etc • Banks, investors • Incubators

  12. Advantages • Personal Growth • Better toys • Own boss • Prospect of personal wealth • Tax, IPR licence

  13. ACCTO • Criteria for customer acceptance • Everett Rogers “The Diffusion of Innovation” • Simon & Schuster International; • ISBN: 0743222091 • A - relative Advantage • Loose IPR regime • C - Complexity • Can I understand what I need to do? • C –Compatibility • Part-time posts • T -Trialability • Can I test it without risk first? • Sabbticals • O - Observability • Can others see the benefits? • Local heroes

  14. Role of Universities • What Universities should do: • Teach skills • Money • Legals • Project Planning • Market research • Mentor • Contacts, exemplars • Friendly infrastructure • Banks, lawyers, patent agents, accountants etc • Encourage • Business Plan competitions • Sabbaticals/part time • Publicity • Network • What Universities should NOT do: • Run incubators • Run Seed funds • Run Venture Capital funds • Grab IPR • No UK University has made money on IPR licensing • Patent anything

  15. Role of Government • What Government should do: • Positive tax regime • EIS • Soft Loans • Export credits • Secondary Share market • Informal Investment • Simplify regulation • Reporting • Employment • Skills • Encourage • Heroes • Network • Outsource • What Government should NOT do: • Give Grants • People compete for the grant, not the market • Run incubators • Leave it to commercial market • Run Seed funds • Leave it to the professionals • Run Venture Capital funds • Leave it to the professionals • Grab IPR • Don’t kill the goose • No European University has made money on IPR licensing

  16. University IPR Policy changed Cambridge Cluster • About 1500 companies • Employing about 50,000 • Technion ~30 • Largest European cluster • $20 billion value created by Cambridge Alumni • Stanford $1000 billion? • Billion $ market cap companies • ARM, • Virata, • CSR, • Autonomy, • Cambridge Antibody • Cambridge Angels Source: Cambridge Technopole Report

  17. Wildflower Meadow model SUN (finance) Rain (expertise) Harvested by larger entity Passes through entity Entrepreneur (Seed) Outgrows strength = Runs out of cash - Dies Seeds form new colonies (spinouts) Market provides fertile ground • Market too small • Stunted growth • - Eventually dies Colonise neighbouring patch

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