Dr Yazid A. Abubakar

Kingston Business School

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Innovation EcosystemsInnovation Ecosystems

Agenda

We will explore the following:

• Part 1: Regional innovation systems

– Silicon Valley, US– Cambridge Silicon-Fen, UK

• Part 2: Regional VC/Angel Funding

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PART 1:

• WHAT ARE INNOVATION SYSTEMS?

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• To understand where the idea of system of innovation comes from, let us first look at the linear model of innovation.

Source: Strath.ac.uk

Innovation System: Origin of the Idea (1)

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Science / Technology – Push model (first generation - mid 1950s – mid 1960s):

Basic Science

Design & Engineerin

g

Manufactur-ing

Marketing

Sales

Source: Deakins & Freel, 2006

Linear Model of Innovation

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OutdatedOutdated

Innovation Networks: The Apple I-Pod

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Systems of innovationSeeing the innovation process as a system underlies the appreciation

that:

– Innovations no longer depend on one organisation’s own effort

– Successful innovations result from interaction and collaboration between organisations

– A region’s success in innovation relies on the strength of its system that is capable of generating and exploiting new knowledge

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Why are Regional Innovation Systems Relevant?

• Important processes driving innovation occur locally, especially for small and medium enterprises (SMEs);

• SMEs have spatially restricted search patterns for collaborative partnerships or technological inputs;

• Strong local differences in innovation performance

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Regional differences in concentration of innovative firms

What is Regional Innovation System?

• Regional innovation system consists of interacting knowledge generation and exploitation sub-systems for commercializing new knowledge (Cooke, 2004 p.3)

• E.g. Silicon Valley (US), Cambridge Cluster (UK), Bangalore cluster (India), Baden Wurttemberg (Germany) etc.

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Sub-systems of RIS1. Knowledge Generation:

• Universities & Colleges for scientific & technical training• Public & private research laboratories

2. Knowledge Exploitation:

• Entrepreneurs• Innovative Firms• Venture capitalists & Business Angels• Lawyers• Technology transfer offices (TTOs) & Incubators• Accelerators

1. Culture:• Positive attitude towards entrepreneurship, innovation and networks

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Adapted from: Cooke et. al., (2003); Trippl & Toedtling (2008)

SILICON VALLEY INNOVATION SYSTEM, US

A History of Innovation

Silicon Valley has thrived over successive waves of technology invention and innovation

1950

Personal Computer

1960 1970 1980 1990 2000

Val

ue

Ad

ded

Defense

Integrated Circuit

Internet

1950 1960 1970 1980 1990 2000 2008

Clean Tech

Elon Musk (Tesla, Solar City)

Marc Andreesen (Netscape)

Steve Jobs (Apple)Funds:–Mike Markkula/Sequoai Capital

Gordon Moore (Intel)Funds: Arthur Rock

Hewlett & Packard(HP)Fred Terman

Knowledge Generation Knowledge Exploitation

Higher Education Institutions•Stanford University

Innovative Firms/Spin-outs•HP•Intel•Apple•Yahoo•Google•Linkedin•39,900 companies ($2.7trillion)

Finance•SV Angel•Kleiner Perkins•Sequoia Capital

•$31 Billion (since 2009)

Incubation/Science Park•Stanford Industrial Park

Silicon Valley Innovation System H

Some Silicon Valley companies

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PART 2:

• Regional VC and Angel Funding

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www.wordstream.com

Source: Florida (2013)

VC locations in United States (US)

Source: www.geog.cam.ac.uk/

UKGermany

VC locations in UK & Germany

The Most Innovative Regions in the World (by Start-ups)

Source: Telefonica (2012)

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CAMBRIDGE INNOVATION SYSTEM, UK

Knowledge Generation Knowledge Exploitation

Higher Education Institutions•University of Cambridge

•Anglia Ruskin University

•Open University (OU)

Technology Transfer •Cambridge Consultants Limited (CCL) – Tim Eiloart (1960)

Innovative Firms/Spin-outs•ARM•Cambridge Silicon Radio•Autonomy (Acquired by HP)•Plastic Logic•Over 1,584 companies (£13Billion)

Finance•Amadeus Capital Partners (VC)•Cambridge Angels

Incubation/Science Park•Cambridge Science Park (1970)•Babraham bio-incubator (1998)

Cambridge Innovation System H

CCL 1960

Until 1985

1986-1990

1991-1995

1996-2000

2001-2002

PA1970

Gordon Edge

Collin SmithersPlextek

Scientific Generics

Gordon Edge, Bob Pettigrew

Pivotal Resources

Absolute Sensors

Sensopad Technologies

ImergeSphere Medical

3D Molecular Sciences

IonicaQuantumBEAM

Gordon Edge, Bob Pettigrew, Alan Green

Adaptive ScreeningFlying Null

Diomed Tony Raven

Sentec

Ubinetics

Andrew Dames

Andrew Dames

Acquired by Synaptics

Smartbead Technologies

PolatisHolotag

Caroline Garey

Andrew Dames

PreludeRobert Hook

Xaar

David PatonMike WillisSteve Temple

Mike Willis

Aphamosaic

Cambridge Silicon Radio

Cyan Technology

Pelikon

Roundpoint

INCA Digital Printers

ELMJET

Domino

DCS Cambridge Mass

Spectrometry

Bill BaxterWill EvePaul AnsonMike Payne

Graham MartinColin GrayWill Eve

Acquired by Videojet

Technologies

Graeme MintoDavid Paton

Xennia TechnologiesAlan Hudd

Transversal

David YipDavid McKay

Barrie GriffithsSteve Mullock Kore

Technology

Yuno Ltd

Steve BarlowRobert SwannPhil O’ Donovan

James CollierGlenn Collinson

Chris Davies

Acquired by Elumin founded by Dr. Hans Wagner

David Bending

Symbionics

Ali Pourtaheri

Dennis Fielder

Acquired by Cadence

Tality

Fen Technology

TTP

Gerald Avison

Adrian Lucas

Mark HowardRichard Doyle

Stuart Hendry Gavin Troughton

Elizabeth HillMark Tracy

Nigel Playford

WavedriverAcquired by PowerGen

TTP Ventures

TTP LabTechCreativity

Partnership

Acumen Bioscience

ip.access

Myriad

Acquired by Mettler-Toledo

Automation Partnership

Demerged from TTP Group

TTPCom

Chris FryerChris

Barnardo

Mike Storey

Cambridge Physical Sciences

Roger Millar

Signal Process Ltd

Robin Smith-Saville

VividStephen Eason

Acquired by Vetura

Radiant Networks

Mike Crossfield

Tony Milbourn

Tim Eiloart

Ross Green, Mike Kellaway

Richard Archer

John Cassells

Richard PhilpottJohn Cassells

David Cornell

Anne Miller

Figure 2 – The hi-tech start-ups spawned from the Cambridge ConsultantsTin Bustin, Ciaran McAleer