Transcript core presentation

Cambridge in Context
Jody Chatterjee
Executive Director, Enterprise - EEDA
April 2007
What I will cover
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East of England in national and international context
R&D, innovation in the East of England
Cambridge – current performance and future growth
What EEDA is doing
The 9 Regional Development Agencies in
England
Productivity is high by national standards but
lags behind London and South East
30,000
4.5%
4.0%
25,000
3.5%
20,000
3.0%
2.5%
15,000
2.0%
10,000
1.5%
1.0%
5,000
0.5%
0
0.0%
North
East
North Yorkshire East
West
East of London
West
& the M idlands M idlands England
Humber
GVA per head (£)
South
East
South
West
% grow th 2004 - 2005
Greater South East (GSE)
• GSE = East of England, London and South East regions
• The performance of the whole of the GSE has declined
• World Knowledge Competitiveness Index rankings
– East of England 62nd in 2005 (out of 125 world regions) down 12 places
from its position in 2004.
– London (56th) down 10 places; South East (55th) down 15 places
• US and Scandinavian regions
– much higher capability of turning knowledge/creative inputs into
sustainable growth and economic output
• Asia-Pacific regions
– rising quickly up knowledge competitiveness rankings
-15
N Ireland
Scotland
Wales
South West
South East
London
Eastern
W Midlands
E Midlands
York & Humber
North West
North East
GSE importance to UK - regional balance sheet
(OEF 2007)
15
10
5
0
-5
-10
GSE – intra-region variation in performance
GVA per capita, 2003
GVA per capita (£)
7,000 - 12,000
12,000 - 13,000
13,000 - 14,000
14,000 - 15,000
15,000 - 16,000
16,000 - 17,000
17,000 - 18,000
18,000 - 19,000
19,000 - 20,000
20,000 - 200,000
Source: Local Knowledge
East of England – R&D performance
Areas of strength
Areas for development
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Community Innovation Survey
suggests low levels of innovation
across economy as a whole
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Major east-west split
– Knowledge intensive firms
– Venture finance
– Skills base
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Core of EU Research Area (Espon
2004)
Highest R&D investment by private
sector as % of GVA of English regions
Highest level of EU business R&D
partnering
2nd highest level of non-EU
international R&D business partnering
Leading English region in terms of new
product to market
Cambridge ranked 2nd in Shanghai
Index of global universities
Significant number of 5* departments
and world-leading research facilities
R&D spend does not translate to innovative
businesses
East of England – International Migration
• Net inflow to UK in 2005 of 185,000 people
• Luton (19.7%), Cambridge (19.2%) and Forest Heath (23.0% - US
Airbase effect) have highest levels of foreign-born population of East
of England districts
• Rapid rise from EU accession states and Portugal
Greater Cambridge – current performance
• Between 1971-2001 employment growth of 80%
– Five times that of UK in equivalent period
• Cambridge ‘technopole’
– 1,500 hi-tech ventures
– 45,000 jobs in hi-tech sector
– 128,000 jobs in knowledge-based sectors (33% of employment)
• Cambridge home to the largest concentration of seed and venture
capital outside London, and in 2004 secured:
– 25% of UK venture capital
– 8% of EU venture capital
Greater Cambridge – major assets
• University of Cambridge
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Ranked second in Shanghai Global university Index
Cambridge has higher level of research income than Harvard
59% of departments 5*, further 35% rated at 5
4,700 research postgraduates
• Anglia Ruskin University
– Major strengths in applied research
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11 major science/business parks
Level 3 and 4 qualification rates above national rate
Market-leading companies and research institutes
Highly networked – locally and globally
Greater Cambridge – future forecasts
• Greater Cambridge total employment growth of 23%
2001-2021
• Hi-tech employment growth 21% 2002-2021
– Smaller % of total employment in Greater Cambridge by 2021
• But UK forecast for hi-tech job growth static to 2021
– Therefore Greater Cambridge will account for 2.2% of UK hi-tech
jobs by 2021, up from 1.8%
• Knowledge-based jobs forecast to rise by 45,000 by
2021, accounting for 36% of total employment
(Roger Tym/GVA report for GCP & EEDA)
Cambridge in regional context – labour
market effect
Norw ich Urban Area
Luton/Dunstable
•Cambridge highest ratio of
people working in urban area v.
people living in the urban area
and in work
•4th largest urban labour market
in region (well above scale as a
population centre)
•This underplays wider subregional labour market because
of diffusion beyond the city
boundary
Southend Urban Area
Cambridge Urban Area
Peterborough
Cambridge
Ipsw ich Urban Area
Watford
St Albans/Hatfield
Colchester
Chelmsford
Basildon/North Benfleet
Bedford/Kempston
Hemel Hempstead
Harlow /Saw bridgew orth
Stevenage
Grays/Tilbury
Welw yn Urban Area
Great Yarmouth Urban Area
Bury St Edmunds/Fornham All Saints
King's Lynn
Low estoft
Cheshunt
Clacton-on-Sea/Little Clacton
Thetford
(SQW Census 2001 – data for continuous urban
areas)
0
20,000
Total number of people w orking in urban area
40,000
60,000
80,000
100,000 120,000 140,000
Total living in urban area and w orking somew here
Cambridge – major regional growth pole to
2021 and beyond
• RSS Jobs
growth to 2021
Key challenge 1 – Diffusing/replicating the
Cambridge phenomenon?
Diffusion
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Structural transformation underway in wider sub-region
Need for leading business infrastructure
Requires positive planning framework
Ensuring availability of direct and supporting skills and capability
Replication – what is possible?
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Understand drivers of current performance
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Global university
Laissez-faire approach to exploitation of research, development and innovation (but
changing)
World leading clusters
Finance
Networked: within Cambridge and to global pipelines
Co-opetition ethos
Entrepreneurial academics, students and business people
Key challenge 2 – Maintaining Cambridge’s global
competitiveness
• University – increasing funding and leverage value
• Infrastructure challenges
– housing affordability; transport, education and health
infrastructure
• Cultural offer to attract and embed mobile businesses
and talented people
• Addressing mezzanine finance gap
• Business support access and offer
• Creating and embedding companies in the region –
‘Gorillas’
What is EEDA doing?
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Enterprise hub programme
Transformation of business support
Access to finance – proof of concept, R&D grants, RVCF
Running the Gauntlet
Destination Growth
Infrastructure investment work with Cambridgeshire Horizons and
Greater Cambridge Partnership
• Supply chain development
Issues
• Why is it proving difficult to replicate the Cambridge phenomenon in
this region and elsewhere?
– Is the Cambridge phenomenon a product of a special group of people
around some specific sectors during an unusual period of time with
particular types assets and resources?
– Do we have to accept that there will be different models in different
circumstances/geographies?
– What lessons can we learn and adopt or adapt in other situations?
• Should we expect Cambridge to be the ‘driver’ for the regional
economy?
– How far can a modest city/town be expected to be the driver for the
regional economy?
– Can we expect a global ‘business’ (the University) to also play on a
regional or local level?
• How can a regional economic development agency or government
help to create the environment to encourage another
‘phenomenon’?
Summary
• The Cambridge phenomenon is unusual and almost
unique….but there are lessons that can be adapted and
applied elsewhere
• The phenomenon has matured into a model that works
for those involved
• It is still developing and transforming and may deliver
‘further’ sustainable benefits to the region