Science Park Without Walls (SPWW) – iCentrum Partnerships and

Science Park Without Walls (SPWW) – iCentrum Partnerships
and Networks Feasibility Study
Final Report – November 2011
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Contents
1.0
Introduction ........................................................................................... 1
1.1
1.2
1.3
1.4
1.5
Study Focus................................................................................................................1
Impetus for the Study.................................................................................................2
Links to Other Studies ...............................................................................................3
Methodology ...............................................................................................................3
Structure of Report ....................................................................................................4
2.0
The iCentrum Concept .......................................................................... 5
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.3
The Proposed iCentrum Project................................................................................5
The Science Park .........................................................................................................5
Digital Plaza and iCentrum ...........................................................................................5
The iCentrum Vision .....................................................................................................6
The Role of Partnerships and Networks in the iCentrum Concept ...............................6
Strategic Alignment ...................................................................................................6
European Industrial Policy............................................................................................7
Clustering and Networking Within the Emerging UK Innovation Agenda .....................7
The British Innovation Gateway....................................................................................8
Summary Findings .....................................................................................................8
3.0
Networking and the Modern Innovative Business ............................ 10
3.1
3.2
3.3
3.6
The Changing Nature of Technology Businesses .................................................10
The Role of Incubation Facilities in Supporting Technology Start-ups...............11
The Growing Demand for Incubation Facilities and Internationalisation
Support – Evidence from the Business Survey.....................................................11
Demand for Incubation Facilities ................................................................................11
The Requirement for Internationalisation Support ......................................................12
The Current Availability of Internationalisation Support ......................................14
Internationalisation and the Changing UK Business Support Landscape...................14
The Need to Complement Existing European Clustering and Networking Activities ..15
Lessons Emerging From Other Science Parks and Existing Trans-national
Partnerships and Networks .....................................................................................17
Summary ...................................................................................................................19
4.0
Project Description.............................................................................. 21
4.1
4.2
Overall Project Purpose...........................................................................................21
Defining the General Focus of the iCentrum Network ..........................................21
3.3.1
3.3.2
3.4
3.4.1
3.4.2
3.5
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4.3
4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.5
4.6
4.7
4.8
4.9
Determining the Network's Core Functions ...........................................................23
Network Composition ..............................................................................................25
Business Membership ................................................................................................25
Public Sector Representation .....................................................................................27
Business Support Organisations ................................................................................28
Size of Network ..........................................................................................................29
Sector Focus.............................................................................................................29
Network Formality ....................................................................................................32
Geographical Focus .................................................................................................32
Management and Co-ordination..............................................................................34
Summary Findings ...................................................................................................35
5.0
Next Steps............................................................................................ 37
5.1
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
5.3
5.4
Introduction ..............................................................................................................37
Critical Pathway........................................................................................................37
Stage One: Strengthening the Existing Evidence Base to Define Network Focus......38
Stage Two: Define Network's Core Objectives and Activities .....................................39
Stage Three: Define the Network's Management Arrangements ...............................39
Stage Four: Establishing the Project Team ................................................................39
Stage Five: Finalising the Network's ICT Infrastructure..............................................40
Stage Six: Identifying Sources of Finance ..................................................................40
Stage Seven: Formal Launch of the Network .............................................................40
Infrastructure Considerations .................................................................................40
Summary Findings ...................................................................................................41
6.0
Conclusions......................................................................................... 42
Annex One: Case Studies ...................................................................A1
Annex Two: Key Initiatives at EU Level ...........................................A10
Annex Three: List of Consultees......................................................A15
List of figures
Figure 3.1 Importance of Services (Base: 41 Survey Responses) ............................12
Figure 3.2 Existing Business Engagement With Overseas Markets (Base: 41
Responses) ................................................................................................................13
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Figure 3.3 Key Components of Internationalisation Support Required by West
Midlands Businesses (Base: 41 Responses) .............................................................14
Figure 4.1 High Technology Employment Within High Technology Businesses in
the Birmingham City Region in 2010 (Base: 35,543 Businesses) ..............................26
Figure 4.2 Indicative Network Management Structure...............................................35
Figure 5.1 Critical Pathway for Development of Network ..........................................38
List of tables
Table 4.1
Table 4.2
Table 4.3
Table 4.4
Potential Options for the Overall Focus of iCentrum Network ...................22
Potential Functions of the iCentrum Network ............................................23
Options for Sectoral Focus of Network ......................................................31
Potential Geographical Focus of iCentrum ................................................33
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Executive Summary
Birmingham City Council commissioned Ecorys in September 2011 to undertake a study, funded through the
DISTRICT+ INTERREG programme, to explore the content and structure of trans-national partnerships and
networks that will be required to make the proposed Science Park Without Walls (SPWW) iCentrum project a
success.
The core principle of the iCentrum project is that the business of tomorrow will require facilities that allow for the
best access to markets, business partners, funders and business advisors, allowing businesses to network not
only with those who are physically adjacent but internationally as well.
This study is one of three inter-related feasibility studies that Birmingham City Council and Birmingham Science
Park Aston (BSPA) have commissioned, with the following over-arching objectives:
• To support technology businesses in Birmingham and the West Midlands and in particular the development
of international businesses trading in global markets.
• To foster Birmingham and the West Midlands as a location for fostering the 'new economy'.
• Through iCentrum/BSPA forge links with universities and science parks in the pursuit of fostering a network
of facilities to support technology businesses.
The principal aim of the study has been to generate options for Birmingham City Council and Birmingham
Science Park Aston (BSPA) to consider in respect of developing a network.
Potential Focus of the Network
Networks and partnerships have been considered at three different but linked (and not mutually exclusive)
levels:
• Business to business networks providing advice and support to businesses and fostering links between
businesses.
• Networks of science parks and universities. BSPA is already well placed to play a central role in the National
Virtual Incubator project that will connect BSPA with regional and national science parks and universities.
• City to city (or region to region links) including the options for continuing co-operation activities of DISTRICT+
in relation to support for technology businesses.
Some working assumptions have been made, which could potentially change if the type of network and
partnership activity also changes:
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• The core business clientele will be small/new businesses (including entrepreneurs that are not yet
businesses) that benefit from incubation and post incubation facilities. There will be – as now – a quality
threshold for businesses directly supported by iCentrum in this way.
• There will be a focus on technology businesses with the potential to cross-develop technologies across
business sectors. The alternative focus is one on specific sectors such as gaming (which we think is too
narrow and often covered by other facilities). There are some 35,000 technology businesses in the
Birmingham City Region.
• Some but not all of the businesses will be iCentrum/BSPA occupants. Some will be locally and regionally
based and will be users of certain iCentrum facilities on a subscription basis and others will be international
businesses with remote access to iCentrum. For example, iCentrum could adopt a membership scheme,
similar to those adopted by other UK science parks, including Liverpool Science Park1, which enables
businesses and individuals based outside the science park to hire meeting rooms, hot desks, and the
business support facilities.
Strategic Alignment
The development of networks and partnerships to support technology businesses is supported by the focus of
key existing European policy frameworks:
• It is entirely consistent with European Union policy (including Europe 2020) which will determine EU funding
opportunities.
• The facilitation of the exchange of information and knowledge is central to the growth of technology
businesses.
• The internationalisation of businesses clusters is key if businesses are to take advantage of global
innovation and new international markets. Increasingly clusters.
• New and small businesses (and especially those in an incubator environment) need mentoring and other
support to access business networks.
• There are already several networks that address some of the iCentrum objectives. The extent to which
BCC/BSPA partakes in these networks, such as the Enterprise Europe Network, European e-Business
Support Network, and European Cluster Observatory, or establishes new networks is a consideration for this
study.
The Evidence Base Demonstrating the Demand for Partnerships and Networks
This study considered the views of occupants of Faraday Wharf and other businesses within the West Midlands
ICT cluster. The survey results indicated that:
1
http://www.liverpoolsciencepark.co.uk/services/virtual-office.aspx
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• Businesses tended to be 'conservative' in their business service needs (e.g. traditional business advice and
ICT services and 'onsite'). This is probably because many businesses have not been exposed to the
possibilities of international sourcing of business support (including mentoring and access to funding) from
international sources. The demand for video conferencing facilities was considered to be less essential for
many businesses.
• Those businesses that attached importance to internationalisation stressed an interest in market intelligence
including the access to sector experts in specific international markets.
In developing the evidence base, the study has also learnt from lessons from other UK science and technology
parks, as well as other European clusters and networks. This includes:
• The development of new physical incubation and innovation centres are able to generate their own demand
through bringing something different to the property market, particularly in terms of their layout and
specifically communal spaces that foster the development of networking.
• The development of a focused core team to drive the concept and subsequently manage and support the
growth of the network is paramount.
• Building on the experiences of Liverpool Science Park and Keele University Science Park to name two,
phased developments of science park facilities are important means of generating the necessary level of
demand for space and facilities provided through the science parks, and in raising their market profile.
• The possibility of a wider range of networks that can vary from the physical to the virtual and from small
discreet networks to much larger ones (1,000 plus companies and other organisations) operating at a virtual
level. iCentrum could potentially build on the lessons emerging from the Cambridge Network, whereby
although around 100 delegates meet physically on a quarterly basis, the membership has expanded to
include around 1,000 corporate members that interact through online communication on a regular basis.
• The development of a support business environment (including access to finance providers and specialist
business/innovation support providers) to complement new physical incubation space is essential.
• The opportunities for networking and business support through core and visiting companies (the role Cisco
has played, and could continue to play, is important for iCentrum). BSPA could potentially follow Liverpool
Science Park's example of charging membership fees for companies located both within the science park
and elsewhere that wish to use the business support and telecommunication facilities.
The Added Value That a New Network Could Potentially Generate
We conclude that there is considerable value in new and continued network development but the following
issues are important when considering the focus and membership of the network:
• It should have a primary purpose of supporting businesses, with businesses and business representatives
such as chambers of commerce central to the composition of networks. Many existing networks are policy
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networks, normally involving public bodies. There is a need to access these networks, and their policy
knowledge and contacts, but the over riding objective of iCentrum is to provide a facility that gives practical
support to the formation and growth of technology businesses.
• All networks, irrespective of composition, need to have clarity of scope and purpose. Everything else –
membership, scale etc. should follow from this.
• Network development requires time, resources and management. A phased approach is in line with
experience from elsewhere and in particular in circumstances where the business base needs to see
demonstrations of the benefits of internationalization. One organisation (BSPA is one option) needs to act as
the network manager. Ideally there will be individuals who will be the key network 'drivers' and 'champions'.
• International networks need to account for language and cultural differences.
Core Functions of the Network
There is a menu of networking and partnership purposes and formats. The following list is not mutually
exclusive and a combination – a network of networks – could be considered for iCentrum.
Table i Potential Functions of the iCentrum Network
Option
Function
Baseline
Opportunities
OPTION 1:
BUSINESS-TOBUSINESS
NETWORK
i. Business to
business
activities
within
iCentrum and
BSPA
This already takes place to some
extent within BSPA through the
incubator facility and the presence
of Cisco
Demand will increase if the number of businesses
present on the overall science park increases through
iCentrum. There is scope for iCentrum to be a base
for non resident businesses who would be service
users. Such businesses might be locally/regionally
based but could equally be based elsewhere, using
internet and video conferencing facilities to access
iCentrum (potentially through the development of a
membership scheme, similar to that adopted by
Liverpool Science Park).
ii. Business to
business on
an
international
basis
Some evidence of Faraday Wharf
occupants utilising business to
business links with partners
globally, but significant scope for
expanding this through iCentrum,
particularly through the utilisation
of Cisco's facilities.
This is central to the aims and ambitions of iCentrum
and offers the greatest scope for development but will
require considerable investment (time, management,
enhanced video conferencing facilities, access to
databases to support business matching). It could be
developed on a country by country basis.
iii. Business
to business
support
Use of video conferencing facilities
to support access to international
business mentors,
financers/venture capitalists etc.
This can be developed much further through
enhanced video and telecommunications facilities.
iCentrum will need to develop its contacts and
databases of support agencies. This will be a gradual
process, although the findings from the research
process indicate that the following services could
potentially be provided on an international basis:
iv
Option
Function
Baseline
Opportunities
• Access to sector-specific support specialists
relevant to overseas markets;
• Signposting to potential overseas business
partners;
• Access to incubation facilities;
• Access to specialist internationalisation support
(including overseas market knowledge);
• Access to innovation support (including
universities and R&D centres);
• Access to financial support (including venture
capitalists);
• Access to training services (this could include
training for business support providers as well
as businesses).
OPTION 2:
NETWORK OF
SCIENCE
PARKS AND
UNIVERSITIES
OPTION 3:
STRATEGIC
iv. Hosting
technology
events,
focusing on
technology
businesses
BSPA is developing a growing
track record in hosting high-profile
technology events, given the
recent hosting of training events
for Apple and Amazon.
If iCentrum were to include conferencing facilities, the
staging of additional networks and events (including
business-focused technology sector conferences such
as the Medilink conference in the West Midlands)
could provide a 'short cut' into a range of businesses
and their advisors.
v. Lead or
participation
in science
park networks
BSPA is already working with
Cisco in respect of developing the
National Virtual Incubator (NVI).
BSPA is potentially in a strong
position to manage the
development of stronger links
between different science parks,
given that it currently functions as
an independent science park as
opposed to one that is closely
associated to a single university.
The principal short-term opportunity relates to the
continued progression and implementation of the NVI.
vi.
Participating
in EU cluster
and
technology
networks
Birmingham City Council has
some involvement in EU initiatives
and programmes (including
Eurocities)
The West Midlands ICT cluster provides a potential
base for developing stronger networking opportunities
between West Midlands ICT businesses; however, on
a strategic level, some scope exists for iCentrum to
develop links with the European Cluster Observatory
and European e-Business Support Network at the
strategic policy level, and Enterprise Europe Network
(from the standpoint of linking businesses to business
support provision).
vii. Hosting of
city and
BSPA could potentially build on its
existing track record of hosting
There is scope to further develop the activities of
DISTRICT + beyond the INTERREG IV funding period
v
Option
Function
Baseline
Opportunities
LEVEL
NETWORKS
BETWEEN
CITIES AND
REGIONS
regional
policy
networks
events for the DISTRICT +
network, in addition to other
INTERREG programmes.
(and possibly through the next INTERREG
programme – but other opportunities exist). This could
take the form of bilateral arrangements – especially
Vastra Gotaland – but the process requires resource
and management.
Source: Ecorys analysis (2011)
Conclusions
The report presents emerging conclusions and next steps for the development of the network. These are as
follows:
• Based on the literature and experiences from elsewhere there will be demand for business support
facilities to foster the growth of technology businesses. The service that iCentrum can provide will
cover a relatively small proportion of the total population of local/regional technology businesses but will
grow over time. The rate of growth will depend to a great extent to the ability of BSPA to build up contacts
with support agencies and country knowledge, as well as the resource that is available to provide tailored
support to businesses. The development of policy networks will depend in part on the resources that
Birmingham City Council can provide, although we acknowledge the current scarcity of public sector funding.
• Supporting the internationalisation of technology businesses should be the network's core objective,
and the network should have a business to business focus. It will be very intensive working with small
groups and/or individual businesses. It will require BSPA and its partners to develop knowledge and
contacts. It will also require businesses to be 'nurtured' and 'educated' with the possibilities of
internationalisation. In spite of the growing proportion of businesses internationalising at an early stage, it
should be noted that the overall proportion of 'born global businesses' remains relatively small.
• The new business to business network should be developed through a phased process. It could build
on the work of BSPA to date, particularly the lessons and learning points from Faraday Wharf's success.
The network could connect individual businesses to other businesses, in addition to customers, financers
and business mentors.
• Network development requires time, resources and management. A phased approach is in line with
experience from elsewhere and in particular in circumstances where the business base needs to see
demonstrations of the benefits of internationalisation. One organisation (BSPA is one option) needs to act
as the network manager. Ideally there will be individuals who will be the key network 'drivers' and
'champions'.
• Other networks can be developed in parallel. Birmingham City Council and BSPA have a role to play in
continuing to place Birmingham and the region at the centre of developments that will support the next
generation of sustainable businesses. The two immediate priorities are the NVI and the post-DISTRICT+
regional network.
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1.0 Introduction
Birmingham City Council commissioned Ecorys in September 2011 to undertake a study, funded through
the DISTRICT+ INTERREG programme, to explore the content and structure of trans-national
partnerships and networks that will be required to make the proposed Science Park Without Walls
(SPWW) iCentrum project a success.
This report summarises the key findings to emerge from the study and outlines the key considerations
that Birmingham City Council, Birmingham Science Park Aston (BPSA) and partners will need to apply in
designing and developing these partnerships and networks.
1.1 Study Focus
The overall objective of the study has been to identify the international networks and partnerships
required to make the SPWW project a success, and enable businesses to access international markets.
The research study has been intended to inform the development of a network of experts and
organisations that will help stimulate the internationalisation of Small and Medium Sized Enterprises
(SMEs). In defining "internationalisation", we refer to the process by which enterprises increase their
level of involvement in international markets, mainly through the growth of trade, relations and alliances
with companies in different nations2.
The overall aim of the SPWW project is to create a network of regions that focus on developing and
subsequently engaging in a global virtual business support system. The system is intended to enable fast
access to new international finance, reduce time to overseas markets, the development and retention of
new entrepreneurs, and creation of new business opportunities3.
A core aspect of the SPWW concept is to create a network of experts, which will provide the target SMEs
with contacts, ideas and experience of 'doing business' in a particular foreign market. They will be the
'soft landing zones' which SMEs need to quickly access information and links on new international
markets and be a first point of contact for entrepreneurs to go to for practical help and direction. Although
the initial geographical targeting of the project will be the West Midlands region, it is envisaged that the
model could potentially be rolled out into other SPWW partner regions4 and beyond.
The over-riding aim of this study has been to develop a template and framework around the partnerships
and networks concept, giving an initial model that guides stakeholders and policy makers on the
configuration and structure of the network, and how it would work in practice. The Framework provides
specific guidance on:
• The composition of the networks/ partnerships, including the nature of experts and organisations that
should be involved;
2
See Susman, G (2007), "Small and Medium-sized Enterprises and the Global Economy"
http://www.birmingham.gov.uk/scienceparkwithoutwalls
4
The SPWW partner regions are the West Midlands (UK – Lead Partner), Vastra Gotaland (Sweden), Sachsen
Anhalt (Germany), and Lower Silesia (Poland)
3
1
• The nature of the networks/ partnerships, including size, formality, sector focus, and scale of
geographical focus;
• The overall goals of the project, both in terms of explicit quantitative targets, and other anticipated
benefits for the sectors and regions targeted;
• The management, administration and co-ordination of the networks;
• The critical success factors that will influence the development of strong networks/ partnerships.
The key parameters of the study have been as follows:
• To provide the first step to scoping out the shape and structure of the partnerships and networks
associated with SPWW. It will also provide the 'next steps' and critical pathway required to take the
project from its concept to reality.
• To identify links to other partnerships and networks operating within the DISTRICT+ partner Member
States (Poland, Sweden and Germany). It has also advised on opportunities linked to wider Global
markets including the US and China.
1.2 Impetus for the Study
This study has been funded through "Sub-projects", which is Component C4 of the DISTRICT+
INTERREG programme. The strand, co-ordinated by the West Midlands region, focuses on the
"implementation of inter-regional networking projects amongst organisations from the partner regions".
The proposed SPWW project is particularly pertinent to two of the DISTRICT+ programme's over-riding
objectives, given that it will attempt to
• Foster interaction between knowledge providers (particularly universities), SMEs and large companies
to foster innovation through catalysing the development of new products, processes and services;
• Support the development of the next generation of digital entrepreneurs through the provision of
advanced connectivity and new business services (including financial support);
Given that the overall aim of SPWW is to leverage growth by connecting geographic locations to
innovation-led growth by generating virtual clusters thereby by shrinking geographies and timescales’,
there is a need to establish the feasibility of creating trans-national partnerships and networks (potentially
operating on a virtual basis) that could support the internationalisation of digital SMEs operating within the
DISTRICT+ regions.
The project has a strong relevance with the existing activities of the SPWW partners, given that they are
all engaged in science park activities within their respective regions, which contain incubation facilities for
new knowledge and technology-intensive start-ups. The DISTRICT+ programme, and specifically the
SPWW and iCentrum projects offer potential for these regions to learn valuable policy lessons in terms of
shaping future approaches to science park development, and in particular, aligning these new
2
developments with the provision of support to entrepreneurs and businesses in the field of innovation and
internationalisation.
It is envisaged that research study will be a first step in the development of a network of experts and
organisations that will help stimulate the internationalisation of SMEs based in partner Member States as
well as networks between businesses. The report also details the next steps and critical pathway that will
need to undertaken if the proposed partnerships and networks are to prove successful.
1.3 Links to Other Studies
It is important to note that this study is closely linked to two other feasibility studies that have been carried
out concurrently in relation to iCentrum:
• A study exploring the potential market demand for the proposed iCentrum development;
• A study exploring the principal building and infrastructure requirements for the proposed project.
A fourth feasibility study is planned as part of the iCentrum development, exploring the types of business
and communication services that would need to be integrated into the proposed development.
1.4 Methodology
In order to meet the study objectives, the research approach has consisted of both desk research and
consultations.
The desk research consisted of two principal elements:
• A review of key policy frameworks at the European level, and UK national level to ascertain where
networks/partnerships are aligned with strategic aspirations.
• A review of successful networks that have been developed both in the UK, elsewhere in Europe and
outside Europe, highlighting in particular the critical factors that enabled the networks to become
operational, and driving forces behind the success of the networks.
Three sets of consultations were carried out:
• A structured questionnaire was e-mailed to each of the four DISTRICT+ partner regions to establish
the nature of existing networks operating in their region and aspirations for the SPWW project. Four of
the five SPWW partners completed and returned the questionnaire.
• Interviews with key representatives of BSPA and other organisations that could potentially play an
important part in the network, such as Birmingham City Council and the region's universities, to
establish their vision/aspirations for the Partnerships and Networks concept. 11 consultations were
completed in total, and a list of consultees is provided in Annex Three.
• A web survey of ICT and digital businesses across the West Midlands region (including occupants of
Faraday Wharf) to gauge levels of interest in participating in the Partnerships and Networks concept.
3
The survey generated 41 responses in total, of which 24 were located in the wider West Midlands
region, 15 had premises on Faraday Wharf at the time of the survey, and 2 did not provide their
location.
1.5 Structure of Report
The remainder of the report is structured as follows:
• Section 2 outlines the role of trans-national partnerships and networks within the proposed SPWW
concept, and its alignment with prominent European industrial policy frameworks.
• Section 3 details the potential need for the Partnerships and Networks concept, building on existing
literature regarding the evolving working practices of technology businesses in recent years, and
findings from the e-survey demonstrating companies' support requirements.
• Section 4 details the potential scope and structure of the partnerships and networks that could be
established through SPWW, based on transferable learning points from existing networks operating
within DISTRICT+ Member States and beyond, and the perceptions/aspirations of the project
consultees.
• Section 5 details the critical pathway that Birmingham City Council, BSPA, and DISTRICT+ partners
need to pursue to make the proposed SPWW partnerships and networks concept a reality.
• Section 6 summarises the core conclusions to emerge from the research.
The report also contains three annexes:
• Annex One includes the three case study examples of clusters and networks across Europe, which
have identified potential transferrable lessons that can be applied to the design of iCentrum;
• Annex Two contains details of key existing trans-national business and policy networks operating
within Europe that iCentrum could potentially align its activities with;
• Annex Three provides list of individuals and organisations that were consulted through the research
process.
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2.0 The iCentrum Concept
This section describes the proposed iCentrum project and the role of partnerships and networks in the
project. It also details the concept's alignment with existing European policy frameworks, and ways in
which the proposed project could potentially add value to existing European trans-national networking
projects.
2.1 The Proposed iCentrum Project
The iCentrum project is part of the Digital Plaza development earmarked for BSPA, and will form an
integral element of the proposed transformation and regeneration of the Eastside of Birmingham City
Centre, and establishing the area as the city's new Learning and Technology Quarter.
The core principle of the iCentrum project is that the business of tomorrow will require facilities that allow
for the best access to markets, business partners, funders and business advisors, allowing businesses to
network not only with those who are physically adjacent but internationally as well.
2.1.1 The Science Park
Birmingham Science Park Aston (BSPA) is located on a 14 acre campus close to Birmingham City
Centre. The Park is wholly owned by Birmingham City Council (BCC) which working towards the creation
of a ‘Digital District’ incorporating the Digbeth and Eastside areas, co-located with Birmingham’s
Enterprise Zone.
The aim of the digital district will be to encourage business growth, inward investment and improved
services in the sector. At BSPA there is an opportunity to create a new focus and expression of the
Digital District vision, in the form of an 11,000 square metre development known as the Digital Plaza,
which will act as an exemplar for the City and the Region
2.1.2 Digital Plaza and iCentrum
The iCentrum building is to be the first stage of the Digital Plaza concept on the BSPA campus and is
intended as a 4,200 sq m building that will house new incubator space, new innovation space and flexible
space. It is envisaged that the iCentrum will become the principal gateway to BSPA in physical terms
and, through state of the art connectivity, the hub of a virtual science park – the ‘Science Park Without
Walls’ (SPWW).
Many science parks stimulate innovation through aggregating - or clustering - talent, technology and
finance. By facilitating collaboration, Science Parks support inter-cluster communication and support
invention and innovation. It is proposed that iCentrum will go a step further, enabling collaboration within
the ICT, digital media and games sectors across physical boundaries as part of a virtual network utilising
digital connectivity.
The SPWW concept includes transnational EU funding from the DISTRICT+
5
INTERREG programme, linking BSPA to science parks in partner regions5 with a similar vision for virtual
clustering.
The iCentrum building is to be integrated into the Science Park and located next door to the highly
successful Faraday Wharf building at BSPA, which provides a home for cluster-relevant innovation space
and for programmes which support start-up firms and incubator concepts such as ‘Entrepreneurs for the
Future’ and ‘International Investment Forum’, the fast-track ‘Oxygen Accelerator’ mentoring programme
and the Cisco-supported ‘Tele-presence’ conferencing tool. Faraday Wharf is currently 95% occupied and
space is required for physical growth and for the further development of these successful programmes
and initiatives.
2.1.3 The iCentrum Vision
The iCentrum building will exemplify ‘connected real estate’, offering state of the art ICT collaboration
platforms in a state-of the art eco-friendly building. Workspace within the building will promote smarter
working, promote creativity and collaboration and support environmentally sustainable working.
Broadband links and internal wired and wireless connections will facilitate the virtual collaboration and
development that new businesses require. Space will be made available to new and established firms on
a service-based arrangement, with the emphasis on flexible occupation, flexible allocation and flexible
use of space.
2.1.4 The Role of Partnerships and Networks in the iCentrum Concept
It is envisaged that the proposed networks will complement the physical iCentrum development by
engaging the necessary range of partners to spread innovation and support the growth of technology
businesses, primarily through providing business and innovation support and opportunities for business to
business transactions - on an international basis through online and advanced video communications.
In line with the overall vision for iCentrum, the partnerships and networks that could be developed through
the project would need to respond to three over-riding objectives:
• To support technology businesses in Birmingham and the West Midlands and in particular the
development of international businesses trading in global markets.
• To foster Birmingham and the West Midlands as a location for fostering the 'new economy'.
• Through iCentrum/BSPA, forge links with universities and science parks in the pursuit of fostering a
network of facilities to support technology businesses.
2.2 Strategic Alignment
In order that the iCentrum concept is both fundable and practical, it is important that the proposed project
will be closely aligned with key policy frameworks in the field of innovation and business support, both at
the European and UK policy levels.
5
The partner regions actively engaged in the SPWW sub-project are Vastra Gotaland (Sweden), Lower Silesia
(Poland) and Sachsen Anhalt (Germany).
6
2.2.1 European Industrial Policy
The proposed SPWW concept, which seeks to lever innovation-led economic growth through the
generation of virtual clusters, is closely aligned with the over-riding aims of the Europe 2020 (the
European Union's Growth Strategy), particularly the action relating to supporting the creation and growth
6
of SMEs and assisting their internationalisation .
The project is particularly pertinent to the "Smart Growth" element of the strategy, which seeks to address
some of the principal causes of Europe's productivity gap, namely the relatively low levels of investment
in Research and Development (R&D) and innovation, and insufficient use of Information and
7
Communications Technology (ICT) . The "Digital Agenda for Europe" is one of the three flagship
initiatives that are being delivered within the "Smart Growth strand", and focuses on the role ICT can play
as an enabling factor to stimulating innovation in business models and generating growth and jobs across
the European Union.
The SPWW concept is also aligned with other elements of the Commission's Industrial Policy, which
recognise the importance of clusters as drivers of economic development through creating enabling
environments for innovation. Clusters have widely been defined as geographically proximate groups of
independent companies and institutions that are both competing and collaborating. The importance of
clusters in European policy is reflected by the establishment of range of cluster-related networking
initiatives, including the European Cluster Alliance in 2006 and European Cluster Observatory in 2007.
The SPWW concept is not only related to the initiatives that have already been delivered, but is also
relevant to one of the Commission's specific aims relating to its cluster policy, which is to foster transnational cluster co-operation. This priority recognises the need for clusters to internationalise in response
to companies internationalising their activities8.
2.2.2 Clustering and Networking Within the Emerging UK Innovation Agenda
Within the UK, the importance of creating business networks to facilitate the transfer of knowledge has
been acknowledged by central Government. For example, the Technology Strategy Board (the
organisation responsible for driving business innovation across the UK) has developed Knowledge
Transfer Networks to promote open innovation. The networks enable businesses, universities, research,
9
finance and technology organisations to network, share information and knowledge, and work together .
This importance of networking and transferring knowledge is also reflective of the proposed aims of
SPWW, and Digital Technology and ICT (the key target businesses for SPWW) also represent two of the
Technology Strategy Board's core focus areas.
Specifically within the West Midlands region, the SPWW programme will contribute towards addressing
some of the key economic challenges facing the region. It will help to stimulate innovation, which
represents an important means of addressing the region's low productivity and increasing its
competitiveness in the global economy (as detailed under the 'Business' theme of the West Midlands
6
http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/index_en.htm
http://ec.europa.eu/europe2020/priorities/smart-growth/index_en.htm
8
European Commission (2008), "Towards World Class Clusters in the European Union: Implementing the Broad
Based Innovation Strategy"
9
http://www.innovateuk.org/deliveringinnovation/knowledgetransfernetworks.ashx
7
7
Regional Economic Strategy)10.
More specific to European funding, the proposed project also cuts
across two of the priorities of the West Midlands European Regional Development Fund (ERDF)
Operational Programme; namely Priority 1 (promoting innovation and research and development) and
11
Priority 2 (stimulating enterprise development) .
The strong level of alignment between the SPWW objectives and key European, national and regional
policy frameworks would suggest that the SPWW project offers strong potential to help address some of
the key economic challenges facing the West Midlands region, and also capitalise on some of the key
opportunities for supporting economic growth on a European level.
2.2.3 The British Innovation Gateway
The need to capitalise on advancements in technology, both to support innovative start-ups and the
growth of existing businesses, and to connect with business partners and innovation support providers
overseas, has been acknowledged by the UK government in the announcement of the British Innovation
Gateway in January 2011.
As part of the legacy of the London 2012 Olympic and Paralympic Games, Cisco has committed up to
$500 million of investment and business activity in UK which includes the development of two networked
innovation centres in East London; one within Shoreditch and one within the Olympic Park site. The aim
of the programme is to boost entrepreneurship and innovation in UK technology-based businesses, by
connecting businesses with mentoring, training and in-house exerts on a UK–wide level using Cisco's
technology to connect networking academies (including Science Parks and Incubation Centres) across
the UK. As part of the project, a 'National Virtual Incubator' will be developed to enable technology-based
start-ups to access this proposed UK-wide network of support provision.
Notwithstanding the commonalities in the objectives of iCentrum and the British Innovation Gateway, one
of Cisco's explicit objectives is to develop linkages between the National Virtual Incubator and BSPA's
proposed SPWW iCentrum project at an early stage of the project12.
2.3 Summary Findings
Stemming from the findings of this section, the key considerations for the structure and focus of the
partnerships and networks to be developed through the proposed iCentrum concept are as follows:
• The proposed iCentrum project will play a leading role in the physically transformation of the Eastside
of Birmingham city centre, and will become the principal gateway to BSPA, not only in physical terms
through the iCentrum building, but virtual terms through the partnerships and networks that would be
created through the project.
• The proposed project is closely aligned with the key aims and objectives of the European
Commission's flagship industrial policies, including the Europe 2020 strategy, through supporting the
creation and growth of SMEs and assisting their internationalisation. It is specially linked to the
10
Advantage West Midlands (2007), "Connecting to Success: West Midlands Economic Strategy"
Advantage West Midlands (2008), "West Midlands ERDF Programme 2007-2013 – A Programme Overview
12
http://www.ciscolondon2012.com/live/big-initiative
11
8
"Digital Agenda for Europe" flagship initiative that is one of the activities being delivered through the
strategy's "Smart Growth" strand.
• One of the principal opportunities that could shape the proposed iCentrum development is the
prospect of linking with other Science Parks and Innovation Centres across the UK through the new
Cisco-led British Innovation Gateway project.
9
3.0 Networking and the Modern Innovative
Business
This section details the principal changes in the approaches of technology businesses, and how these
changes in business patterns could influence the demand for business support to be delivered on an
international basis, and also the demand to participate in trans-national business networks. The section
also identifies transferrable learning points from other existing trans-national partnerships and networks
that can potentially be applied to the design of the iCentrum concept.
3.1 The Changing Nature of Technology Businesses
The expansion of the internet and mobile technologies has led to a fundamental shift in the way that
many businesses operate, given that the effective generation and application of technology is increasingly
becoming a means of generating competitive advantages for regions.
From a business process standpoint, these advancements in technology have further increased the
importance of the exchange of knowledge and information as a factor driving business growth. They
have also played an important role in supporting the internationalisation of businesses, given that they
have increased the speed in which companies can search for, and communicate with potential partner
businesses, and also speed in which they can access consumers13. Moreover, these advancements
have led to increases in the proportion of companies internationalising at early stages in their
development, hence the rise of 'born globals', and reductions in the proportion of technology intensive
14
businesses that focus primarily on domestic markets before expanding into global markets .
Technological advancements have also facilitated the growth of remote working and the reduced need for
permanent office bases and face-to-face interaction between colleagues and business partners in many
advanced countries. Specifically, businesses, and particularly new start-ups managed by younger
entrepreneurs, are using internet connectivity as a primary means of networking with other businesses
and business support providers15.
Given that companies are internationalising their operations at an increasingly early stage, they are also
requiring support provision on an increasingly global level (particularly business and financial support that
will enable them to access overseas markets). As a result, the partnerships and networks concept is
designed to ensure that companies are able to access the necessary types of support to enable them to
internationalise.
13
inquirer.net (2009), "Technology Changing Ways of Business"
See Bell, J, Crick, D, and Young, S (2004), "Small Firm Internationalization and Business Strategy: An
Exploratory Study of Knowledge Intensive and Traditional Manufacturing Firms in the UK" in International Small
Business Journal 22 (1), pp. 23-56
15
Source: mashable.com (2011)
14
10
3.2 The Role of Incubation Facilities in Supporting Technology Start-ups
Both within the UK and beyond, there is a wide range of published research demonstrating the role
incubation facilities can play in supporting the development and growth of innovative start-ups and SMEs,
particularly through their role in providing access to hands-on intensive business support, financial
16
support, sector-specific expertise, and crucially, access to other entrepreneurs and suppliers . Clearly,
incubation provision will have an important role to play in the proposed iCentrum project, given that many
target businesses are likely to be small businesses, and particularly new innovative businesses managed
by young entrepreneurs.
17
Recent evidence from the UK indicates that incubators that generate the strongest impact in developing
high-growth firms are those that actively facilitate peer-to-peer networking (both through physical
communal spaces and online spaces), and those that address the multiple needs of new innovative
business ventures without prioritising a single one. In selecting occupants, successful incubators have
adopted a portfolio approach and have not relied on the performance of a single firm.
In addition, whilst many successful incubators supporting high growth businesses have strong links with
universities, it should be noted that that the presence of a strong entrepreneurial culture within a region
and supportive business environment (including access to venture capital, specialist advisors, grant
providers and angel investors) are other key determinants of success. A key consideration for the
development of any partnerships and networks as part of the iCentrum project will be the need to provide
this enabling environment for the target entrepreneurs.
Drawing on evidence from both Europe and the United States, it is also important that a multiple range of
stakeholders – both public and private sector organisations – contribute to the financing of these facilities,
particularly if the incubators have multiple objectives. Again, this is potentially a key learning point for the
potential financing of the iCentrum project.
3.3 The Growing Demand for Incubation Facilities and Internationalisation
Support – Evidence from the Business Survey
Reflecting the important role incubation facilities can play in supporting the growth of innovative start-ups
and SMEs, it is not surprising that the e-survey of ICT businesses within the West Midlands indicated
strong levels of demand for incubation facilities, and business support services that are normally
delivered through incubators, which includes support with adopting internationalisation strategies.
3.3.1 Demand for Incubation Facilities
The e-survey highlighted demand for the provision of incubation or grow-on space, and specifically strong
demand for science park locations (as indicated by 58% of companies surveyed). There is also strong
demand for premises that facilitate networking opportunities, with 61% of respondents considering the
provision of informal networking opportunities to be either 'important' or 'very important'. There is also
16
See, for example, http://www.ukbi.co.uk/resources/business-incubation.aspx
See NESTA (2011), "Incubation for Growth", A Review of the Impact of Business Incubation on New Ventures
With High Growth Potential, Research Summary September 2011
17
11
demand for locations in close proximity to other technology businesses and premises with teleconference
facilities (both identified as important by 1 in 3 respondents).
Figure 3.1 Importance of Services (Base: 41 Survey Responses)
Informal networking
Communal networking space
Proximity to technology businesses
Onsite business support
Teleconferencing Facilities
Onsite ICT Support
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage (%)
Very important
Important
Neither important nor unimportant
Not very important
Not at all important
Source: Ecorys Survey (2011)
Although the business survey identified strong demand for business planning and marketing support (as
indicated by 3 in 5 respondents), it also highlighted strong demand for support with finding business
partners and suppliers (as indicated by one-half of respondents) and also trading in overseas markets
(27%).
3.3.2 The Requirement for Internationalisation Support
Given that a significant proportion of ICT businesses across the West Midlands region are currently
participating in overseas markets, it is not surprising that there is a strong demand for tailored support
with the development of internationalisation strategies. Indeed, the e-survey of West Midlands ICT
businesses indicated that many companies were already operating in, and selling goods and services to,
overseas markets, even though more than half were either classed as growth or start-up businesses. Of
the businesses surveyed, 87.5% were already trading in European markets, with over half (54.2%)
trading with suppliers and customers in North America. Interestingly, the Middle Eastern and Asian
markets are becoming of increasing importance to companies in all sectors, particularly given the
disposable income of potential customers.
12
Figure 3.2 Existing Business Engagement With Overseas Markets (Base: 41 Responses)
87.5%
90.0%
80.0%
70.0%
54.2%
Percentage (%)
60.0%
50.0%
37.5%
37.5%
40.0%
30.0%
16.7%
20.0%
12.5%
10.0%
.0%
Europe
North America
Middle East
Far East
Overseas Markets
Indian subcontinent
Other (specify)....
Source: Ecorys Survey (2011)
In addition, many businesses are businesses are considering expansion into new and existing market and
product areas. Of the businesses surveyed, almost half (49%) are hoping to break into new overseas
markets and over one third (37%) are looking to increase their share of existing overseas markets.
It is also evident that there is demand amongst the companies for the provision of support services to
enable them to access overseas markets (see Figure 3.3, below). The most common types of support
services demanded by companies were:
• Contacts with potential business partners/suppliers;
• The identification of sector experts in foreign markets;
• Access to more market and sector intelligence.
These findings would suggest a strong demand amongst West Midland ICT businesses for the types of
support that could potentially be delivered through networks developed as part of the iCentrum concept.
13
Figure 3.3 Key Components of Internationalisation Support Required by West Midlands
Businesses (Base: 41 Responses)
Information about trans national
business networks
More market/ sector intelligence
Contacts with suppliers in foreign
markets
Contacts with sales agents in foreign
markets
Contacts with sector experts in
foreign markets
Contacts with potential business
partners or suppliers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage (%)
Very important
Important
Neither important nor unimportant
Not very important
Not at all important
Source: Ecorys Survey (2011)
3.4 The Current Availability of Internationalisation Support
Although there is apparent demand for tailored business support in the field of internationalisation, there
is currently a wide range of support to companies in the West Midlands in this field. Specific to the issue
of business networking, there is also a range of trans-national business networking and business support
initiatives underway. Clearly, there is a need for any proposed networking initiatives to be delivered
through iCentrum to complement and, where necessary, develop appropriate linkages with these existing
activities.
3.4.1 Internationalisation and the Changing UK Business Support Landscape
At the UK level, it is important to note that the business support landscape has evolved since the election
of the Coalition government in May 2010. For example, Business Link, the former regional-level business
support brokerage model, has been nationalised, with a stronger emphasis on the delivery of support
through web-based mechanisms, as evidenced by a new national Business Link website. Other notable
innovation support programmes, such as Grants for Research and Development, have also been
nationalised, with the government-funded Technology Strategy Board given the remit for delivering this
programme.
However, the tailored internationalisation support provision has remained in place, with UKTI operating on
a national level to provide businesses with support to access overseas markets and overseas business
partners. Within the West Midlands, UKTI delivers a European Regional Development Fund (ERDF)
14
funded programme to specifically support SMEs in priority growth sectors (including ICT and Digital
media to access these international trade opportunities, primarily through the delivery of trade missions
and seminars to raise awareness of emerging market opportunities.
3.4.2 The Need to Complement Existing European Clustering and Networking Activities
It is also important to acknowledge that the concept of trans-national partnerships and networks, both in
respect of business-to-business activities and exchange of good practice in industrial and innovation
support policy, within Europe is nothing new.
Strategic Level Trans-national Networks
Indeed, a wide range of initiatives have been delivered since the 1990's that enable cities and regions
from different Member States to work together and share learning points from policies that have been
implemented to tackle socio-economic challenges within specific target geographical areas. Examples
include EUROCITIES, URBACT and INTERREG itself.
Clearly, there is scope for the iCentrum project to build on the successes of recent city-to-city and regionto-region partnership programmes that Birmingham and the West Midlands have participated in. For
18
example, recent INTERREG programmes, including DISTRICT+ and "Making Knowledge Work" have
enabled Birmingham and the West Midlands region to build strong working relationships with other
European cities and regions (which could help to shape the geographical focus of any networks to be
delivered through iCentrum). They have also enabled the city and region to learn lessons from strategic
level innovation support programmes that have been delivered in these regions, which could usefully be
applied to any business to business/business support activities that are delivered through iCentrum. For
example, "Making Knowledge Work" identified examples of good practice in universities, businesses and
the public sector working together to commercialise R&D results.
Whilst there is scope for iCentrum to build on the legacy of lessons learned from these previous
programmes at a strategic level, there is also scope for the project to potentially develop linkages with
other prominent business-to-business networks that are being delivered either across Europe, or within
individual DISTRICT+ partner regions. Indeed, Annex Two of this document provides an analysis of
areas where iCentrum could potentially develop linkages with existing networks pertinent to ICT–intensive
sectors. A summary of the key findings of the analysis is detailed below.
Developing Linkages With Existing Trans-European Business-to-Business Networks
If the network delivered through iCentrum were to have a business-to-business focus, as opposed to a
strategy-policy level focus, there are clear opportunities for the network to add value to existing
networking activities.
One of the networks that business members of iCentrum could potentially develop linkages with is
"Clusters Linked Over Europe" (CLOE). Although this former INTERREG-funded programme supports
cluster manages across a range of sectors to network together, it is evident that ICT is one of the sectors
of focus, and that the Network contains strong business membership within Germany. One emerging
opportunity is for any network delivered through iCentrum to develop strong strategic links with CLOE,
18
See http://www.birmingham.gov.uk/makingknowledgework
15
particularly if business members of any iCentrum network (both based in Germany or other partner
regions) to develop partnerships or collaborative working arrangements with business members of CLOE.
At the strategic level, there is also some merit in the cluster manager of any network developed through
iCentrum to develop linkages with three cluster programmes that place some degree of focus on ICTintensive sectors:
• PRO INNO Europe provides a platform for the dissemination of good practice in the delivery of
innovation support policies. In shaping its strategy and areas of focus, iCentrum could explore the
development of linkages with this network.
• The Competitiveness Institute provides cluster managers (and SME cluster members) with access
to a range of events (including events focusing on internationalisation), given the evident demand for
advice and support relating to internationalisation amongst West Midland businesses.
• The "European Cluster Observatory" provides tools (including research) to provide advice and
support to cluster managers in shaping policy and strategy. Again, the manager of any iCentrum
network could potentially engage with the Observatory to identify transferrable lessons from other
existing networks and clusters that could help to shape the strategy of any iCentrum network.
• The EU CReATE project aims to foster co-operation amongst clusters focusing on ICT, with the
primary aim of supporting innovation within ICT companies. Given that one of the core objectives of
iCentrum is to help stimulate innovation amongst West Midlands ICT businesses, it would appear
important that iCentrum could explore the development of working relationships with this project.
Although it is evident that many existing networks and clusters operate essentially at the strategic level,
there are two networks with a predominant business-to-business focus that iCentrum could explore the
development of close linkages with.
•
The European e-Business Support Network (eBSN) – a core focus of this network is to provide
support to ICT SMEs that are looking to internationalise.
•
The Enterprise Europe Network provides European businesses with access to a range of sectorspecific experts through virtual platforms.
Adding Value to Regional-Level Business Networks
It is also notable that there are a number of business networks actively operating within the DISTRICT+
partner regions, some of which have an ICT-related sector focus. It is possible that the membership of
these existing networks could also provide the foundation for the membership of any network developed
through iCentrum.
These include:
• West Midlands ICT Cluster – could provide a strong critical mass of SME membership (the cluster's
19
existing membership is around 3,000 businesses ). It is also characterised by strong involvement
from many of the region's universities, who have delivered innovation support to West Midlands ICT
SMEs through the cluster.
19
http://www.ictwm.org/pages/facts-figures
16
• Game Incubator Network (Sweden-wide network that is managed by Gothia Innovation, based in
Vastra Gotaland) – a national network for the video gaming industry, which provides support to
businesses in the fields of sales, technology, finance and exporting. iCentrum could potentially
develop linkages with the existing incubation facilities that are present within each Swedish region.
There is also scope for business members of iCentrum to explore the development of new working
relationships (including business partnerships) with businesses based within the incubators.
• Consulting Centres (located nationally across Poland, including the Lower Silesia region) – a
national network of over 100 Centres providing support to individuals wishing to start businesses in
any sector. Again iCentrum could potentially develop strategic and operational linkages with these
Consulting Centres, particularly from the standpoint of providing accommodation and business
support to new start-ups.
• Business Initiative for Central Germany (includes region of Sachsen Anhalt) – supports businesses
to work with universities. Again, iCentrum could explore the potential of developing linkages with the
new incubation facilities being developed through the new "Magdeburg Port of Science" initiative.
Although it is evident that potential exists for iCentrum to develop close linkages with existing cluster and
networking initiatives within Europe, it would appear that other networks do not have the same degree of
focus of providing individual businesses and groups of businesses with access to innovation and
internationalisation support. There are potential opportunities for iCentrum to develop linkages with these
existing networks to help instruct both its overall network strategy, and the nature of any business support
services delivered through the network.
3.5 Lessons Emerging From Other Science Parks and Existing Trans-national
Partnerships and Networks
In addition to developing appropriate linkages with other existing trans-national partnerships and
networks, it is also important that iCentrum recognises the key transferrable learning points that have
emerged form previous networks and clusters, particularly those pertinent to ICT-intensive business
sectors, in shaping the design of the network. The Case Studies within Annex One, together with the
consultations findings, and Ecorys' experience of other successful trans-national networks have identified
the following learning points that should be considered is shaping the iCentrum concept:
• The need for network members to have a common purpose and objective. This is clearly one of
the success factors behind the Bulgarian ICT cluster, where participants are clearly aware of the
principal objective of 'creating ICT SME growth and development through co-operation and the
development of new business opportunities'. Without a clear purpose, there is a high risk that
networks and become too fragmented in their activities and dysfunctional.
• The development of physical space is an important factor that can stimulate networking
activity. For example, both recent UKBI and NESTA research indicates that the development of well
designed modern incubation facilities (particularly where buildings include communal spaces where
businesses can interact) can play a central role in bringing businesses together and facilitating
collaboration.
17
• The need for the network to have a dedicated small core team of individuals to drive its
development. One of the key learning points emerging from the Cambridge network, and also that of
Palo Alto (California, United States) is that a small core team of individuals were responsible for
developing the vision for the networks, and subsequently supporting the growth and management of
the networks.
• A phased approach is an effective means of generating the necessary level of demand and
market credibility. Within the related Market Demand study, it is notable that Keele Science Park
adopted a phased approach to its development, which helped to increase demand for the Park's
associated networking provision.
• Networks should be relatively open in terms of enabling SMEs to become members. One of the
key factors behind the growth of the Cambridge Network, and also the 'IMPROVE' network in
Germany, was the fact that the business membership of their network was able to grow rapidly. This
enabled businesses to identify opportunities to collaborate and transfer knowledge and subsequently
interconnect.
• Science Parks and associated networks can generate opportunities for vertical supply chains.
One of the core factors influencing the success of the Palo Alto network was that the science parks
attracted anchor tenants that could subsequently provide market and spin-out opportunities for new
entrepreneurs. In recognition of these potential opportunities, it is important that the network members
have some degree of commonality, either on a sector-basis, or through their business processes
(such as the types of technology utilised).
• Access to academic expertise and sector-specific expertise plays an important role in
supporting innovation and subsequent growth within target businesses. One of the successes
behind the Greek ICT cluster (see Annex Three) is that it is characterised by strong involvement from
a number of universities, which are valuable sources of innovation support for ICT SMEs.
• The networks need to support businesses in accessing appropriate sources of finance. This
would address one of the main barriers to growth that many SMEs experience. It is notable that one
of the critical success factors behind the Cambridge and Palo Alto networks was that venture
capitalists were physically based on the science park site. In addition, the Bulgarian ICT network has
been active in developing virtual links to venture capital providers based in California.
• The networks should have an international geographical reach. If the networks are to generate
the necessary economic impact, it is important that their geographical reach goes beyond the region
and nation of the lead partner (particularly in engaging financial and business support providers with
the necessary expertise). For example, it is notable that the Bulgarian and Greek ICT clusters have
developed stronger links with organisations based in California during the early stages of their
development than other EU Member States.
• Both face-to-face and virtual contact between network members is an important factor in the
delivery of network activities. Experience from not only the Cambridge network, but also Sweden's
18
Game Incubator Network suggests that face-to-face communication plays a key role in the formative
stages of network development, particularly in developing relationships and trust between core
members. As the networks grow (particularly in terms of business membership), the importance of
online communication increases.
• The development of membership schemes for businesses and individuals that could
potentially use the services provided through the network. The charging of membership fees is
not only an important mechanism for ensuring that networks become self-sustaining on a financial
basis, but are also important mechanisms of generating communication and networking between
businesses. iCentrum could, for example, potentially develop a similar membership structure to that
adopted by Liverpool Science Park, where both science park tenants and businesses based outside
the science park (including those located outside the UK) can access different scales of membership
to enable them to use the Park's office address, hot desk facilities, broadband provision, and
20
telephone/e-mail services .
3.6 Summary
The findings within this section have demonstrated that the proposed iCentrum concept not only reflects
the ever-changing processes being adopted by technology businesses worldwide, but also the business
support needs of West Midlands ICT businesses.
• Technological advancements and subsequent changes in the working practices of SMEs have further
increased the importance of the exchange of knowledge and information as a driver influencing the
competitive advantage of regions.
• It is notable that the incubators that have demonstrated the highest impact in supporting the growth of
innovative SMEs and start-ups have been those that provide peer-to-peer networking facilities (both
physical and virtual), combined with a supportive business environment (including access to finance
and specialist advisors).
• There is evidence of demand amongst West Midland ICT businesses for science park premises, which
provide opportunities for formal and informal networking with like-minded businesses.
• There is also evidence of demand for bespoke business support provision relating to
internationalisation amongst businesses within the West Midlands ICT cluster, given that the e-survey
findings highlighted a demand for the provision of support in providing companies with the contact
details of potential business partners and suppliers, the identification of sector experts in overseas
markets, and access to market and sector intelligence specific to overseas markets.
• There is potential for the iCentrum partnerships and networks to work closely with existing transnational business networks that are currently operating at the EU level. However, through providing a
sector–specific focus, targeted essentially at ICT-intensive enterprises, and enabling businesses to
interact physically or virtually with other businesses, policy bodies, the knowledge base and business
20
See http://www.liverpoolsciencepark.co.uk/services/virtual-office.aspx
19
support providers to enable businesses in these sectors to access international business
opportunities, the iCentrum concept has the potential to add demonstrable value to these existing
networks.
• In defining its focus and operations, iCentrum needs to consider transferrable lessons that can be
applied from other existing networks and clusters, particularly from the standpoint of developing a
clear purpose and supporting objectives, phasing the growth and development of the network,
ensuring that the network develops strong linkages with universities and other appropriate forms of
specialist innovation support, and that the network is structured in a way that enables its membership
(particularly in terms of large firms and SMEs) to grow internationally.
20
4.0 Project Description
Building on the transferrable lessons that can be applied from existing European trans-national networks,
and networking activities that have been driven by science parks across Europe, this section sets out the
framework for the potential focus and structure of the Partnerships and Networks to be developed as part
of the iCentrum concept.
4.1 Overall Project Purpose
In shaping the focus and composition of the proposed networks, it is important to define the core activities
of the network, and its over-riding aims and objectives. Indeed, experience of other successful transnational cluster and networking programmes highlights the importance of developing a common purpose
and set of objectives.
It is important that the objectives for the Partnerships and Networks concept are closely aligned with the
overall vision for iCentrum and SPWW, which is ultimately to generate the necessary environment to
stimulate the creation of new technology-based enterprises and growth of existing enterprises, which
would lead to the creation of new jobs and economic output (GVA).
In achieving this overall objective, the Partnerships and Networks should aim to:
• Create the necessary enabling environment to catalyse the development and commercialisation of
new products, processes and services by entrepreneurs and existing businesses;
• Support businesses in target sectors to internationalise their operations, both by expanding the range
of markets that they are operating within, and through partnering with businesses or other
organisations (such as research institutes) overseas.
4.2 Defining the General Focus of the iCentrum Network
To help determine the precise focus of the network's activities and its membership, evidence from
European good practice guidance on cluster and network development suggests the need for further work
on enhancing the evidence base within each of the network's target geographical regions. This includes
enhancing the understanding of the critical mass of businesses and R&D institutions/universities in each
region that are active in the target economic sectors, and establishing levels of interest and commitment
to participating in the networks (see Section 5 for further details).
Notwithstanding this need to further enhance the evidence, based the findings from the desk research, esurvey of West Midlands ICT businesses, and strategic consultations with representatives of the SPWW
partners, there are three potential options for the network's focus, as detailed in Table 4.1 (below). They
are not necessarily mutually exclusive and could be linked together.
21
Table 4.1 Potential Options for the Overall Focus of iCentrum Network
Option 1: Business to
Business Networks
Option 2: Network of Science
Parks and Universities
Option 3: Strategic Level
Networks Between Cities/Regions
Potential Focus
of Activities
This would enable businesses
to interact with other
businesses, as well as
businesses interacting with
business and financial support
providers.
This would enable science
parks across the West
Midlands and potentially
beyond to share knowledge,
particularly in respect of what
works in technological
development.
This would provide opportunities for
different cities and regions to
exchange experiences of good
practice in industrial policy,
particularly in respect of the design
and delivery of innovation support
programmes targeted at start-ups
and SMEs. It would provide
particular opportunities for the newly
formed Local Enterprise
Partnerships (LEPs) across the
West Midlands to learn lessons from
other European regions in respect
of delivering successful industrial
policy, and how to access key
European funding streams.
Potential
Specific Areas
of Opportunity
for iCentrum
The findings from the esurvey, supported by those
from the strategic
consultations, have indicated
strong demand for tailored
support and networking
opportunities to enable West
Midlands businesses to
access new overseas markets
and new overseas business
partners. This type of network
could also facilitate the
exchange of knowledge, and
subsequently stimulate
innovation amongst member
businesses.
It is evident that BSPA have
undertook some formative work
in exploring these opportunities,
and they are potentially well
placed to capitalise on the
National Virtual Incubator
project that will link BSPA with
other science parks and
innovation centres across the
UK.
This type of network would provide
opportunities for building on the
successes of existing trans-national
partnership working programmes
which Birmingham and the West
Midlands region have participated
in. This could include DISTRICT+,
other INTERREG programmes,
URBACT and Eurocities
Source: Ecorys analysis (2011)
Although each of the three above options present opportunities to generate significant economic benefits,
experience from other successful trans-national networks and clusters suggests that the network would
encounter operational challenges if it were to have too broad a remit, particularly if that partners and
members were to have too broad a range of interests and requirements.
The findings from both the e-survey and consultations with SPWW partner representatives have indicated
that Option 1 (the development of Business to Business Networks) contains the strongest level of
demand. It is, of course, possible that universities and science parks could potentially have an important
role to play in the delivery of any business and innovation support provision to be delivered through a
business to business-focused network. At the strategic level, it is also important that iCentrum develops
strong linkages with trans-national policy exchange programmes (particularly those for which the West
Midlands is a member), in order to shape approaches to delivering innovation support to member
businesses.
22
4.3
Determining the Network's Core Functions
The research process has identified seven core functions that could potentially be delivered through the
network, as detailed in Table 4.2 (below). The table also details how each of the proposed functions
could potentially add value to existing networking or business support activities occurring in the SPWW
partner regions.
Clearly, these functions cover a wide range of activities, and they have therefore been grouped within the
three different options detailed in Table 4.1. Four of the potential functions can be grouped under Option
1, whilst two of the functions more closely reflect Option 2. The final function has a more direct alignment
with Option 3. It is clear that the final selected list of functions delivered through the network will be
heavily dependent on the Option selected for the primary focus of the network.
Table 4.2 Potential Functions of the iCentrum Network
Option
Function
Baseline
Opportunities
OPTION 1:
BUSINESS-TOBUSINESS
NETWORK
i. Business to
business
activities within
iCentrum and
BSPA
This already takes place to
some extent within BSPA
through the incubator facility
and the presence of Cisco
Demand will increase if the number of businesses
present on the overall science park increases through
iCentrum. There is scope for iCentrum to be a base
for non resident businesses who would be service
users. Such businesses might be locally/regionally
based but could equally be based elsewhere, using
internet and video conferencing facilities to access
iCentrum (potentially through the development of a
membership scheme, similar to that adopted by
Liverpool Science Park).
ii. Business to
business on an
international
basis
Some evidence of Faraday
Wharf occupants utilising
business to business links with
partners globally, but significant
scope for expanding this
through iCentrum, particularly
through the utilisation of Cisco's
facilities.
This is central to the aims and ambitions of iCentrum
and offers the greatest scope for development but will
require considerable investment (time, management,
enhanced video conferencing facilities, access to
databases to support business matching). It could be
developed on a country by country basis.
iii. Business to
business
support
Use of video communications
facilities to support access to
international business mentors,
financers/venture capitalists
etc.
This can be developed much further through
enhanced video and telecommunications facilities.
iCentrum will need to develop its contacts and
databases of support agencies. This will be a gradual
process, although the findings from the research
process indicate that the following services could
potentially be provided on an international basis:
• Access to sector-specific support specialists
relevant to overseas markets;
• Signposting to potential overseas business
partners;
• Access to incubation facilities;
• Access to specialist internationalisation support
23
Option
Function
Baseline
Opportunities
(including overseas market knowledge);
• Access to innovation support (including
universities and R&D centres);
• Access to financial support (including venture
capitalists);
• Access to training services (this could include
training for business support providers as well
as businesses).
OPTION 2:
NETWORK OF
SCIENCE
PARKS AND
UNIVERSITIES
OPTION 3:
STRATEGIC
LEVEL
NETWORKS
BETWEEN
CITIES AND
REGIONS
iv. Hosting
technology
events, focusing
on technology
businesses
BSPA is developing a growing
track record in hosting highprofile technology events, given
the recent hosting of training
events for Apple and Amazon.
If iCentrum were to include conferencing facilities, the
staging of additional networks and events (including
business-focused technology sector conferences such
as the Medilink conference in the West Midlands)
could provide a 'short cut' into a range of businesses
and their advisors.
v. Lead or
participation in
science park
networks
BSPA is already working with
Cisco in respect of developing
the National Virtual Incubator
(NVI). BSPA is potentially in a
strong position to manage the
development of stronger links
between different science
parks, given that it currently
functions as an independent
science park as opposed to one
that is closely associated to a
single university.
The principal short-term opportunity relates to the
continued progression and implementation of the NVI.
vi. Participating
in EU cluster
and technology
networks
Birmingham City Council has
some involvement in EU
initiatives and programmes
(including EUROCITIES)
The West Midlands ICT cluster provides a potential
base for developing stronger networking opportunities
between West Midlands ICT businesses; however, on
a strategic level, some scope exists for iCentrum to
develop links with the European Cluster Observatory
and European e-Business Support Network at the
strategic policy level, and Enterprise Europe Network
(from the standpoint of linking businesses to business
support provision).
vii. Hosting of
city and regional
policy networks
BSPA could potentially build on
its existing track record of
hosting events for the
DISTRICT + network, in
addition to other INTERREG
programmes.
There is scope to further develop the activities of
DISTRICT + beyond the INTERREG IV funding period
(and possibly through the next INTERREG
programme – but other opportunities exist). This could
take the form of bilateral arrangements – especially
Vastra Gotaland – but the process requires resource
and management.
Source: Ecorys analysis (2011)
In defining the function of the network, and range of activities, one of the core considerations for the
SPWW team is whether the activities should be delivered through a single network, or series of
interlinked networks.
24
In addition to determining the core activities of the network, it is also important to consider the potential
composition of the network's membership, in addition to management and administration arrangements.
In developing the options, it is again important to consider the key lessons emerging from previous
successful trans-national networking programmes; namely:
• The need for the network to have a small number of core individuals driving its work;
• The need to be flexible in the scheduling of network meetings (i.e. the need to avoid sticking to a rigid
format of meeting monthly, quarterly, annually etc);
• The need to manage network numbers depending on its format (for example, physical networks have
greater levels of success when membership is limited to a smaller select number, whereas online
networks have higher membership numbers);
• The need to account of language and cultural differences, particularly at network meetings.
4.4 Network Composition
The composition of the network will be heavily dependent on the agreed final focus of the network
(relating back to the Options listed in Table 4.1), particularly with regard to the organisations that would
form the core members of the network, and drive its design and delivery.
Notwithstanding the need to define the precise focus and accompanying functions of the network, the
consultations and review of other successful networks have identified a series of core organisations that
should potentially be involved in any network linked to iCentrum, regardless of which core Option is
pursued. These include:
• Private sector businesses;
• Public sector organisations;
• Business support organisations.
4.4.1 Business Membership
Previous research has indicated that successful clusters are generally driven by industry, and therefore,
the composition of the business membership will be a key factor influencing the success of any networks
delivered through iCentrum.
For the networks to generate the highest possible impact, it is crucial that they contain a strong level of
membership from SMEs (including new start-ups), particularly those with growth potential. The
consultation findings have indicated that many SME network members could potentially be new start-ups
(including young entrepreneurs) that could be based within iCentrum's proposed incubation facilities.
Network members could also include SMEs operating within the target sectors that are based outside of
BSPA, but could use iCentrum's meeting room or video communication facilities through a membership
scheme.
At the macro-level, the presence of innovative SMEs are viewed by the European Commission as
fundamental for generating jobs and growth within the EU, primarily as channels for the
21
commercialisation of research and sources of high growth companies . The existing literature suggests
21
http://ec.europa.eu/enterprise/policies/innovation/policy/innovationunion/consultation/files/138_inno_forum_en.pdf
25
that clustering activities can present significant opportunities for SMEs through co-operating with other
22
firms in that cluster .
Within the West Midlands alone, it is evident that the existing ICT cluster contains a strong critical mass of
SMEs, with 3,000 member businesses, and around 35,000 businesses across the region operating
across a wide range of ICT sub-sectors (see Figure 4.1 (below). It is also evident that there is a base of
SMEs within the cluster with a strong willingness to trade overseas, with 2 in 3 companies surveyed
indicating a desire to establish new relationships with overseas business partnerships, and 2 in 5
companies surveyed looking to strengthen existing overseas business partnerships.
Figure 4.1 High Technology Employment Within High Technology Businesses in the Birmingham
City Region in 2010 (Base: 35,543 Businesses)
0.01
1.33
0.45
0.42
6.77
15.87
3.10
0.83
0.28
0.40
0.01
0.14
23.51
34.12
12.78
Publishing of computer games
Motion picture, video and television programme production activities
Motion picture, video and television programme distribution activities
Sound recording and music publishing activities
Wireless telecommunications activities
Other telecommunications activities
Computer consultancy activities
Other information technology and computer service activities
Other software publishing
Motion picture, video and television programme post-production activities
Motion picture projection activities
Wired telecommunications activities
Satellite telecommunications activities
Computer programming activities
Computer facilities management activities
Source: Ecorys analysis (2011) using NOMIS data
Although strong SME representation appears paramount to the success of the network, evidence from
successful clusters and network both from Europe and beyond indicates that the presence of large firms
is also a critical success factor. The literature indicates that large firms act as a catalyst and driver for the
ongoing development of networks and clusters, given the role they can play in stimulating the entry of
firms into the network and growth of related firms.
They also act as mini innovation systems in their own right, given that they can:
• Supply incubation space to employees;
• Finance business start-ups;
22
NICE (2006) NICE – Networking ICT Clusters in Europe Innovation through Collaboration
26
• Provide technical expertise to other companies;
• Provide a customer and supplier base.
It would therefore appear important that partnerships and networks developed through iCentrum contain
high levels of membership from SMEs, but are also anchored by a small number of large companies.
This further highlights the importance of iCentrum attracting at least one large corporate business to act
as an 'anchor tenant' within the new iCentrum development, and further foster innovation amongst other
businesses linked to the iCentrum network.
At this stage, it is difficult to define the extent to which the networks should be open or closed; however, in
order for them to generate widespread impacts on the respective regional economies, it is important that
the business membership consists essentially of businesses with growth potential/growth aspirations and
clear aspirations to trade overseas. As a result, there may be a need for the network to contain some
entry criteria relating to these issues. Experience from other regions suggests that the successful
engagement of Chambers of Commerce could act as a critical tool for marketing the network to
businesses operating within ICT sub-sectors and recruiting companies to the network.
4.4.2 Public Sector Representation
Although many successful clusters and networks are driven by the private sector, the public sector also
has a major role to play. Critically, the networks will need to engage universities and research
organisations in the respective regions.
Whilst universities could potentially be a source of
entrepreneurs and innovative business start-ups (particularly in knowledge-intensive ICT-related sectors),
more fundamentally, they will have a major role to play in providing support to businesses in progressing
innovations.
Across some of the existing SPWW partner regions; it is notable that there is a strong critical mass of
universities, many of which are working with ICT-related businesses. For example, the Vastra Gotaland
region has 3 universities (University of Gothenburg, Chalmers Institute and Skvode University) working
with ICT businesses, and the West Midlands region contains 13 universities that already work in
collaboration in delivering innovation support programmes (Innovation Vouchers being an example). It is
also notable that the lead SPWW partner (BSPA) is actively pursuing measures to collaborate with
universities both across the West Midlands and elsewhere in the UK through NVI.
Local Authorities and Regional Development Agencies/Local Enterprise Partnerships will also have
an important role to play in facilitating the development of the networks, primarily through the
development of supportive policy interventions, both from an economic development standpoint (including
innovation and sector support policies), and also a planning standpoint (where there is a requirement for
new physical premises). They also potentially have an important role to play in linking the networks to
other policy-orientated trans-national partnership programmes between cities and regions (such as
Eurocities, INTERREG and URBACT).
Again, it is apparent that there is strong public sector support for the SPWW concept across the partner
regions, with the Regional Development Agencies in Lower Silesia and Vastra Gotaland acting as key
partners in their respective regions, and Birmingham City Council and the Birmingham and Solihull Local
Enterprise Partnership actively supporting the SPWW concept within the West Midlands region. The
national policy environment within the UK could also help to shape the iCentrum development in a
27
favourable manner, with the Enterprise Zone for East Birmingham having potential to attract inward
investors into the locality, through the provision of physical space.
4.4.3 Business Support Organisations
As stated in Section 4.2, the engagement of business support providers will be fundamental to the
success of the partnerships and networks established through iCentrum. Although the precise nature of
business support organisations to be engaged in the networks would only be determined once the focus
of the network and associated business support services are agreed, the research process has identified
four types of business support providers that should potentially be engaged in network activities:
• Science Parks and incubation providers – the engagement of incubation providers is critical to
providing the necessary environment to support the development of sustainable new start-ups.
Similarly, Science Parks will play a key role, not only in acting as sources of accommodation for
incubation and start-up space, but in providing physical space for existing companies with high levels
of growth potential. They also have an important role to play in connecting businesses with the
necessary finance support providers (including venture capitalists) and sector-specific support
providers.
It is notable that each SPWW partner region has incubation providers and Science Parks represented
on their partnership, many of whom offer innovation and internationalisation support to businesses on
an ad-hoc basis. However, one of the principal aspirations of the iCentrum project is for different
Science Parks within each region to work in collaboration in supporting businesses to innovate and
internationalise.
• Finance providers (particularly venture capitalists) – a core element of successful business
networks (particularly in growth-orientated sectors such as ICT) is the presence of finance providers,
particularly venture capitalists, who can add particularly value in providing financial resources to
support to start-ups and university spin-offs. The engagement of venture capital providers was indeed
23
a key factor behind the rapid growth of the ICT-cluster in Boulder, Colorado (United States) . It is
evident that venture capital providers are working closely with the Science Parks in the West Midlands
and Vastra Gotaland regions, and these relationships could be further developed and nurtured through
iCentrum. Furthermore, BSPA is actively seeking to strengthen relationships with venture capital
providers in the United States, which again could potentially be strengthened through iCentrum,
particularly if it were successful in attracting technology businesses with strong growth potential.
• Business mentors –access to business mentors with a strong understanding of the businesses and
economic sectors included within the network, as well as target overseas markets, will play an integral
role in ensuring that they are able to access support that is bespoke to their requirements. The
availability of business mentors will play an important role in supporting the growth and development
of new start-ups. In response to this requirement, iCentrum could explore the development of close
working links with the support providers engaged in the Enterprise Europe Network.
23
http://www.nytimes.com/2010/05/14/business/14boulder.html
28
• International trade support organisations – although SMEs and particularly start-ups are
increasingly becoming global in their mindset, many still have only a partial awareness of the
opportunities presented by trading internationally and how to access these opportunities. As a result,
the engagement of export support organisations and inward investment bodies operating in the
respective partner regions will enhance businesses' intelligence of overseas markets, and will also
support them to access suitable overseas business partners. Within the West Midlands, for example,
it would appear important that iCentrum develops close working relationships with UKTI and Marketing
Birmingham. The business survey findings alone indicated that 3 in 5 companies would welcome the
provision of support relating to sector and market intelligence in overseas markets.
4.4.4 Size of Network
Again, it should be noted that the size of the network will, to a large degree be dictated by its agreed
focus and core functions. For example, a business-to-business focused network (Option 1) could
reasonably be expected to have a significantly higher number of network members than a network of
science parks and universities (Option 2), where membership would be restricted to a narrower range of
organisations, or network focusing on strategic city and regional policies (Option 3), where membership is
likely to consist mainly of public sector organisations.
Regardless of the network's primary focus, the findings of the literature review and consultations would
suggest that in its formative stages, the intensive engagement of a smaller number of core organisations
in each of the respective partner regions (based on the four categories listed in Section 4.4.3 above) will
be key to the success of the networks developed through iCentrum. During its formative stages, it would
appear crucial that the network's membership were restricted to a small number of highly active partners.
However, the findings would also suggest that the most successful clusters are those that are mature and
have large membership (i.e. over 50 members), and it would therefore appear important that any
networks developed through iCentrum should have strong aspirations to grow.
To facilitate their growth, particularly if the network were to have a business-to-business focus, it is also
important that the networks are driven by industry, and that the private sector contributes significantly to
their financing (over 75% of total funding). For example, the Cambridge network is funded through
business members paying membership fees (the cost of which is influenced by the number of employees
within the company). The network is accessible to both local businesses and companies looking to invest
in the Cambridge area, and the network has grown significantly, as evidenced by the scale of its current
24
membership (1,000 corporate members and 16,700 individuals) . One of the options for iCentrum would
be to follow the model developed by Cambridge, given that membership fees could represent an
important source of funding for the network, and ensure that it were to be self-sustaining in operational
terms.
4.5 Sector Focus
Similar to the nature of organisations to become engaged in the network, careful consideration will need
to be applied to the sectoral focus of the Network, particularly if the network is to focus on business-tobusiness issues (Option 1), or if it is to focus on Science Park to Science Park interaction (Option 2 –
24
St John's Innovation Centre (2011) Cambridge Technopole Report
29
given that there would be a need for science park members to offer complementary sector-based
strengths).
Experience from successful clusters from other regions would suggest that there is a delicate balance to
be struck between the network focusing on too narrow a theme that result in network members being in
too close competition and not collaborating, and the network having too broad a sector focus and
business members not having sufficient common needs to capitalise on networking opportunities and
knowledge sharing.
Based on existing good practice guidance relating to the development of clusters and networks, and the
findings of the consultation process, four potential options have emerged in relation to the sectoral focus
of the iCentrum network, which are detailed in Table 4.3 (below).
30
Table 4.3 Options for Sectoral Focus of Network
Advantages of
Option
Option i: Narrow Sector Focus
on Computer Gaming subsector
Option ii: Focus on the
Digital Media Sector
Option iii: Focus on innovative
sub-sectors characterised by the
intensive application of ICT
Option iv: Broader sector
focus to encompass all
knowledge-intensive sectors
The narrow sector focus would
secure the presence of likeminded businesses potentially
encountering similar challenges,
and support organisations that
have core competencies pertinent
to ICT.
This slightly wider sector focus
would help to facilitate the
exchange of knowledge
between businesses and
support organisations in the
wide range of sub-sectors that
constitute digital media.
This broader sector focus would
provide opportunities for businesses
and support organisations (including
universities and public sector
bodies) across a range of subsectors to share knowledge and
potentially collaborate, which could
play a key role in supporting
innovation amongst member
businesses.
Again, this broad sectoral focus
would generate opportunities
for the transfer of knowledge
and collaboration between
businesses (and appropriate
support organisations)
operating within different subsectors.
This broader sector focus should
also capture the necessary critical
mass to ensure sufficient demand
for iCentrum.
Potential
Disadvantages
This degree of sub-sector focus
appears too narrow to enable the
network to be a success. There is
a strong risk that too many
member businesses would be
competitors and reluctant to
collaborate.
Again, similar to gaming, this
option contains the potential
risk that sector coverage would
be too narrow, and that network
members would be more likely
to compete, rather than
collaborate.
In addition, because other
university science parks across
the UK have adopted a focus on
the gaming sub-sector, it is
possible that demand for iCentrum
amongst this small sub-sector of
businesses would be too low.
Moreover, existing competition
from other UK cities could
present a barrier to iCentrum
generating sufficient levels of
demand, with more mature
digital media clusters having
been developed in the
Manchester and London city
regions, through flagship
developments in Salford and
Ravensbourne respectively.
Source: Ecorys analysis (2011)
31
To ensure that the network
consisted of like-minded
businesses, the network would need
to contain robust entry criteria, not
only in terms of the businesses'
sector focus, but in terms of their
aspirations and willingness to
internationalise and collaborate with
other companies.
It should also ensure the
necessary critical mass, in
terms of target companies, to
generate sufficient demand for
iCentrum.
With such a broad sector
focus, the risk of business
members not sharing common
needs would be high. It would
also increase the complexity of
developing entry criteria for
member businesses.
It would also increase the
difficulty of developing a set of
coherent objectives that
member businesses can work
towards.
When considering the evidence from other regions, it would appear that a broader sectoral focus on the
various sub-sectors that involve the intensive application of ICT could potentially generate the necessary
levels of interaction between businesses that are members of the network during the network's formative
stages. Even if the network were to have a broad ICT sectoral remit, computer gaming could form one of
the cluster's key sub-sectors. It could also support the development and growth of green technologies,
which directly relates to one of Birmingham City Council's key strategic priorities within the West
Midlands.
4.6 Network Formality
Regardless of the final core focus of the network (reflecting the Options in Table 4.1), the development of
advanced telecommunication systems could facilitate interaction between network members on a transnational basis. Fundamentally, the over-riding consensus to emerge from the consultation process also
indicates that, particularly in the network's formative stages, physical interaction is crucial between key
network members in order to build relationships and trust.
Indeed physical interaction was highlighted as a particularly important factor in the development of
relationships between network members and venture capital providers was an important factor influencing
the success of many successful existing networks, such as those in Cambridge and Palo Alto, although
clearly as the network matures and relationships further develop, virtual communication is likely to
become increasingly prominent.
As the network matures, it is anticipated that online/virtual communication will increase, particularly as
network membership grows. However, the consultation process suggested that the staging of physical
meetings would still be play an important role in further developing and sustaining the cluster, particularly
from a strategic planning standpoint.
Examples from other regions would suggest that the combination of physical and virtual interaction would
be the most effective form of communication for the network. For example, the Cambridge Network
25
meets on a quarterly basis, with each meeting attended by around 100 delegates .
Given the likely growth in importance of online interaction as the network matures, it would appear critical
that the network is supported by leading edge broadband and telecommunication equipment. One means
of facilitating meetings across national boundaries would be for the lead network organisations (see
Section 4.7) to ensure that partner regions were all equipped with leading-edge video communication
technology to ensure regular and cost-effective interaction between network partners.
4.7 Geographical Focus
Across all three potential options for the overall focus of the network (included in Table 4.1), the research
findings have identified four potential options for the geographical focus of any network developed
through iCentrum, which are detailed in Table 4.4 (below).
25
St John's Innovation Centre (2011) Cambridge Technopole Report
32
Table 4.4 Potential Geographical Focus of iCentrum
Potential
Advantages/
Opportunities
for iCentrum
Option a: West
Midlands Focus
Option b: Initial
Focus on SPWW
Partner Regions
Option c: Europe-wide
Focus
Option d: Global
Focus
The network would
contain either a businessto-business, science park
to science park, or city to
city focus within the West
Midlands.
The strategic
consultations
highlighted the strong
level of political
support for the
concept from the
current SPWW partner
regions.
This option would
generate opportunities for
iCentrum to complement,
and potentially develop
strategic links with existing
trans-national business
and policy networking
programmes.
This would enable
businesses,
universities or public
sector bodies to
develop linkages with
their counterparts
within key growth
areas of the global
economy.
These regions also
have similar economic
structures, and each
region has helped to
shape the design of
the SPWW concept to
date.
It also reflects the existing
trading patterns of West
Midlands businesses
(given that 4 out of 5
companies surveyed
already trade in other EU
Member States, and 2 in 3
have business partners in
other member states).
Similarly, it reflects
existing collaborative
working patterns between
West Midland universities
and other overseas
universities.
If Option 1 were
pursued, it is
questionable as to
whether this
geographical focus
would provide member
businesses with
access to the
necessary range of
international markets
and international
business support
provision.
This geographical focus
would not be fully
reflective of key existing
trading links and
partnership working
arrangements amongst
businesses and
universities within SPWW
partner regions, given that
many science parks and
businesses already have
strong links with
businesses and business
support providers in North
America.
If the network were to
have a business-tobusiness focus (Option
1), it could potentially
build on the work
undertaken by the West
Midlands ICT cluster,
which has a critical mass
of around 3,000
members.
If it were to have a
science park to science
park focus (Option 2), it
could potentially build on
the work of the West
Midlands Higher
Education Association,
which connects the
region's universities.
Potential
Disadvantages
The domestic focus
would not provide
companies with direct
access to
internationalisation
opportunities, or science
parks and public sector
bodies with access to
good practice in policy
development and delivery
from overseas regions.
It is also probable that a
regional-level businessto-business focused
network would also not
add sufficient value to the
existing work of the ICT
cluster.
Similarly, it would
restrict the scope by
which universities and
science parks can
connect with
institutions with the
necessary expertise
internationally.
For example, if
Option 1 were
pursued, it would
enable businesses to
access market
opportunities, and
develop trading links
with companies
operating within
potential growth
areas of the global
economy, such as
North America.
A network with such
a broad geographical
reach would be
difficult to administer
in its formative stage.
Source: Ecorys analysis (2011)
Based on the above options, it is recommended that a phased expansion of the network should take
place in geographical terms. In its formative stages, the network's geographical focus should be relatively
narrow. The existing SPWW and DISTRICT+ partner regions could provide an initial foundation for the
33
focus of any such network, given the relative similarities of the economic structures of the region's in
question, existing critical mass in terms of potential network participants, and existing support for the
SPWW concept.
During its formative stages, the network could potentially expand rapidly to incorporate partner regions
within nations where SPWW partner regions currently have mature trading links. For example, due to
historic and cultural reasons, it is notable that many West Midlands (and wider British companies and
universities) have strong trading links with counterparts in the United States, Australasia, the Indian subcontinent and Far East. It is also notable that the latter two represent strong growth markets, particularly
in economic sectors that involve the intensive application of ICT. One of the success factors behind both
the Bulgarian and Greek ICT clusters was that they capitalised on existing trade links with the United
States during the formative stages of the cluster operating trans-nationally26.
Longer-term, a core aspiration of the network could be to increase its membership on a pan-European
level. A key enabling mechanism could be to develop strong linkages with existing pan-Europe business
networks, such as CReATE. Similarly, through fostering relationships developed in its formative stage,
and using its telecommunication infrastructure, the network could strengthen its presence worldwide,
particularly in securing membership amongst businesses and business support providers within the
mature North American markets, and growing markets of East Asia and the Indian sub-continent.
4.8 Management and Co-ordination
Evidence from other regions indicates that successful networks and clusters are characterised by the
presence of some form of cluster/network manager. Again, the individual/organisation responsible for
managing any network delivered through iCentrum would depend on the agreed focus of the network
(relating back to Table 4.1). There are; however, two notable options for the management of the network,
regardless of which of the three options are pursued:
• For the network to be managed by the public sector, who could potentially supply funding to help form
the network;
• For the network to be managed by a private sector organisation.
Good practice guidance relating to cluster and network formation suggests that the private sector needs
to play a leading role in driving their development, both from a financial standpoint, and in ensuring that
the activities respond sufficiently to business needs.
Given that the network will be trans-national in its nature, one available option to ensure both effective
cluster leadership and effective co-ordination of activities across cluster boundaries, one option is to
install network/cluster manager within the lead partner region, and to then identify a single organisation
that could act as lead network co-ordinators within each other partner region. Within each partner region,
the other core organisations engaged in network activities could act as associate network partners and
play an active role in shaping network activities at a strategic level within the respective regions. This
structure is explained in Figure 4.2 (below), using the example of West Midlands as lead partner region.
26
http://www.ictalent.org/en/ictcluster/about-ict-cluster
34
Figure 4.2 Indicative Network Management Structure
Source: Ecorys analysis (2011)
Clearly, the lead organisation/partner can only be identified once the focus and activities of the network
are finalised; however, if the West Midlands were to act as lead partner (building on its leadership role for
the SPWW project), BSPA could be one of the options for lead partner. Within each region, the associate
members could consist of universities, R&D institutes and public sector bodies (such as Regional
Development Agencies).
4.9 Summary Findings
Although further intelligence gathering is required to further define the focus and structure of the
partnerships and networks to be developed through iCentrum, the research process has identified a
series of core potential areas of focus for the networks, in addition to potential network structures.
• iCentrum could host a network, or series of interlinked networks, centred on business to business
activities in the following thematic areas:
► The provision of business to business arrangements within occupants of iCentrum and BSPA;
► Business to business arrangements beyond BSPA to include other businesses not only in the
West Midlands region but other partner regions;
► The provision of business to business support;
► The hosting of technology events;
► Leadership of, or participation in science park networks;
► Participation in EU cluster and technology networks;
► Participation in and the hosting of city and regional policy networks.
35
• Although network membership will be determined to a large degree by its core focus, for the network
to be successful, it is important that it generates the necessary critical mass in terms of membership.
Regardless of the network's agreed focus, it will need to secure the engagement of key public sector
bodies (particularly Regional Development Agencies/Local Enterprise Partnerships and Local
Authorities to ensure the creation of a supportive policy environment. If the network were to have a
business-to-business or science park to science park focus, it would also need to secure strong SME
membership (particularly those with growth potential and innovative start-ups);and the engagement of
a small number of large corporate businesses. In delivering the innovation support provision, it is
critical that universities become engaged within cluster activities, with Science Parks potentially
playing a key role in delivering incubation provision.
• It is important that network members (particularly business members) have some degree of
commonality in their operations and associated challenges and opportunities, although a narrow
sectoral focus (such as one focusing solely on computer gaming) is unlikely to lead to the necessary
levels of collaboration and knowledge sharing. A broader sectoral focus incorporating the various subsectors that intensively apply ICT in their business operations is likely to generate the necessary
collaboration to ensure the networks generate strong impacts for the regional economies concerned.
• Although as the network matures, online interaction will become an increasingly important facet, the
importance of physical interaction should not be underestimated, particularly in building relationships
and trust between key network members at the formative stage.
• During the network's formative stage, its geographical focus should be kept relatively narrow. Given
the existing relationships that have been developed between the core SPWW partners, the network
could initially focus on the DISTRICT+ partner regions, in addition to other regions worldwide where
businesses in target sectors within DISTRICT+ partner regions have mature trade links. Longer-term,
the geographical reach of the network could expand worldwide, as relationships with other transnational business networks are enhanced.
• A critical factor behind the success of the network will be the installation of a single organisation,
ideally within the lead partner region, responsible for managing and co-ordinating network activities.
However, to co-ordinate activities within the other partner regions, it is important that a lead network
member is identified in each partner region to fulfil this role, with other core network members acting
as 'associate network partners' and playing an active role in shaping the activities of the network at a
strategic level. The lead partner will need to be determined once the focus and objectives of the
network are finalised.
36
5.0 Next Steps
5.1 Introduction
Whilst the previous section has detailed the potential focus and structure of any partnerships and
networks that could be developed through iCentrum, it is evident that a significant amount of
developmental work is required if the network is to progress from a concept to reality. This section details
the critical steps that BSPA and the SPWW partners could undertake to progress the concept to an
implementable project.
5.2 Critical Pathway
As indicated in Sections 3 and 4 of this report, any network associated with iCentrum should be
developed through a phased approach. This will involve a series of critical steps in both the network's
design and delivery.
The flow diagram in Figure 5.1 (below) details the critical steps that the client team will need to undertake
to develop the current concept into an implementable project. Building on the findings of the consultation
process, together with existing good practice guidance relating to the formation of clusters and networks,
it would appear that seven core steps are required to progress the current partnerships and networks
concept into a deliverable project.
Whilst it is noted that some formative work has already been delivered in respect of stages 1 to 3, further
scoping work is clearly required across the DISTRICT+ partner regions to finalise the network's focus,
before its precise role and operational arrangements can be defined.
37
Figure 5.1 Critical Pathway for Development of Network
Source: Ecorys analysis (2011)
5.2.1 Stage One: Strengthening the Existing Evidence Base to Define Network Focus
As stated in Section 3, there is a need to strengthen the existing evidence base relating to each of the
proposed partner regions before the focus, structure and activities of the network can be finalised. Within
each of the core proposed partner regions, the following activities should be undertaken:
• Identify existing cluster policies that are being delivered in the regions, in order that the partnerships
established through iCentrum can complement and develop links with existing clusters, and that the
networks developed through the project add value to existing clusters.
38
• Develop a detailed understanding of the number and geographical distribution of businesses in key
economic sectors. An additional core task is to develop an understanding of the value chains within
which the companies operate.
• Identify the principal challenges and opportunities faced by the companies in these sectors to help
define the nature of business support services that will be delivered through the network.
• Identify the existing critical mass of R&D active organisations and universities. This will provide an
indication of the strength of the existing innovation ecosystem.
• Identify other key public or private sector bodies that could potentially add value in creating the
necessary enabling environment to foster innovation, such as Regional Development Agencies, Local
Enterprise Partnerships, and Chambers of Commerce.
The strengthening of the existing evidence base will act as an important means of establishing whether
the necessary critical mass of organisations exists in each core partner region to make the proposed
network viable. Fundamentally, it will also act as an important means of establishing levels of interest
amongst core organisations of taking part in the network.
5.2.2 Stage Two: Define Network's Core Objectives and Activities
Having established the existing critical mass with the region, the next core task will be to define the key
objectives and activities of the network. It is important that the objectives are not only aligned with key
existing policy frameworks, but that they also reflect the key challenges and opportunities identified by the
target businesses and other relevant organisations in respect of innovation and internationalisation.
This stage will also involve the developing a suitable system to monitor the progress and achievements of
the network. It is important that the system is able to monitor levels of achievement against objectives,
and economic impacts that can be attributed to the network's activities within the core partner regions.
5.2.3 Stage Three: Define the Network's Management Arrangements
An essential stage of the development of any trans-national network will be to identify the organisation
responsible for managing and co-ordinating the network's activities on a day-to-day basis. This stage will
also involve defining the legal status of the network.
Given the widespread geographical coverage of the network, some consideration should also be applied
to identifying potential lead organisations to oversee network activities within each of the other partner
regions, and report back to the lead partner.
5.2.4 Stage Four: Establishing the Project Team
To ensure the smooth operation of the network, there will be a need to identify an individual to manage
the network on a day-to-day basis, and also a core team with the necessary range of skills to support the
network manager in co-ordinating activities.
To support the core project management team, there will also be a need to develop an advisory board
consisting of representatives of core network members within each of the partner regions. The advisory
39
board would provide guidance to the core team on the strategic positioning of the network, and monitoring
and evaluating the network's activities.
5.2.5 Stage Five: Finalising the Network's ICT Infrastructure
One of the core aspirations of iCentrum is to connect businesses with other businesses and also
businesses with business and financial support organisations (both within existing core DISTRICT+
partner regions and also outside Europe) through the use of advanced ICT. One of the key requirements
of the core network team will be to ensure that all partner regions have the necessary level of ICT to
facilitate this ongoing communication between network participants.
An additional core element of the ICT infrastructure will also be the development of databases detailing
businesses, universities, research institutions, business and innovation support providers, and other key
public sector institutions that are members of the network. The main purpose of the database will be to
increase the ease by which businesses can find details of potential partner businesses in other partner
regions, and also that they can find details of business and innovation support providers that have the
expertise to address their needs.
5.2.6 Stage Six: Identifying Sources of Finance
In order that the network is to generate the necessary scale of impacts on the partner regions, it is also
imperative that the network is sufficiently resourced in financial terms. The findings from Section 3
indicate that the network will need to secure suitable levels of private sector funding to ensure that the
network not only becomes self-sustaining, but that its activities will successfully address the needs of
member businesses.
Although the provision of private sector funding will help to sustain the network over a longer period of
time, it is also probable that the network will need some public sector funding to enable it to become
operational.
5.2.7 Stage Seven: Formal Launch of the Network
A formal launch event will help to stimulate interest amongst network members and will help to build trust
and relationships between different core network members. The format of any launch event would need
to be finalised once the network's focus and core activities are defined; however, it is important that
delivery of visible projects commences within nine months of the network launch to maintain interest in
the network's activities amongst members.
After the network is launched, it is imperative that its principal impacts and achievements are monitored
and evaluated on an ongoing basis. The network management team and advisory group should also be
flexible in their approach and be prepared to change the focus of network activities if/when the nature of
the needs and challenges encountered by its members (particularly those relating to innovation and
internationalisation) change.
5.3 Infrastructure Considerations
In order to ensure that any network is able to function in a successful manner, there are a series of hard
and soft infrastructure considerations that will need to be applied. It is probable that both the formation
40
and subsequent management of the network will be labour intensive processes. For example, identifying
and subsequently securing the involvement of the necessary number and range of businesses and
businesses support providers (particularly universities and finance providers, such as venture capitalists)
is likely to require substantial human resource inputs, particularly from individuals with a strong existing
knowledge of the needs of the target businesses and associated business support infrastructure.
Moreover, it is likely that further human resource inputs (particularly facilitation inputs) will be required to
ensure that the businesses and support providers are able to work together.
It is also anticipated that the network will be reliant on leading-edge ICT facilities to support its operation.
This will include, for example, the need to develop a comprehensive database of member businesses (to
assist companies to find the most appropriate overseas business partners), database of business support
specialists (to signpost businesses to the most appropriate areas of expertise), and database of patents
(to help foster innovation amongst member businesses).
It is also vital that key network members across the partner regions have the necessary
telecommunications infrastructure in place. This not only includes the provision of cutting-edge
broadband facilities to enable ICT-intensive businesses to carry out their day-to-day operations, but also
ensuring that science park members are equipped with the necessary video communication technology to
facilitate day-to-day interaction with other network members on an international scale. Where there are
deficiencies in available telecommunication systems, the need to install new telecommunication facilities
could potentially place financial resource pressures on network members and partner regions.
5.4 Summary Findings
Although it is evident that some progress has been made in planning the network's activities, it is
important that the above phased approach is taken. The development of a strong evidence base will be
critical in instructing the development of the network's core objectives, and selection of core partners.
This will help to ensure that the network will also work to a common vision and purpose.
Given that it is envisaged that the network will have an international focus, the development of an
advanced and reliable ICT infrastructure will act as an important mechanism for supporting the network's
operation. It is also important that the network receives the necessary levels of private sector finance to
ensure that it can be self-sustaining, particularly given the current scarcity of public sector funding across
many European Member States.
In planning and subsequently delivering the network activities, careful attention should be directed at
considering the hard and soft infrastructure requirements that will ensure the network's successful
operation. This includes ensuring the availability of sufficient human resources to recruit network
members and subsequently facilitate working relationships between members. It also includes ensuring
that partner regions are equipped with the necessary ICT infrastructure, including the availability of
leading edge broadband and video communication facilities to enable day-today communication between
network members on an international level.
41
6.0 Conclusions
Although further scoping work is required to fully define the network's activities and membership, the
research findings have indicated that there is considerable value in pursuing new and continued network
development as part of the iCentrum project. It is also apparent that there is strong support for the
development of a business to business network from the DISTRICT+ partner regions, and that there is
interest in participating in trans-national networking activities amongst the West Midlands ICT business
base.
• Based on the literature and experiences from elsewhere, there will be demand for business
support facilities to foster the growth of technology businesses. The service that iCentrum can
provide will cover a relatively small proportion of the total population of local/regional technology
businesses but will grow over time. The rate of growth will depend to a great extent to the ability of
BSPA to build up contacts with support agencies and country knowledge, as well as the resource that
is available to provide tailored support to businesses. The development of policy networks will depend
in part on the resources that Birmingham City Council and other policy bodies can provide, although it
is acknowledged that these resources are currently under considerable pressure.
• Supporting the internationalisation of technology businesses should be the network's core
objective, and the network should have a business to business focus. It will be very intensive
working with small groups and/or individual businesses. It will require BSPA and its partners to
develop knowledge and contacts. It will also require businesses to be 'nurtured' and 'educated' with
the possibilities of internationalisation. In spite of the growing proportion of businesses
internationalising at an early stage, it should be noted that the overall proportion of 'born global
businesses' remains relatively small.
• The new business to business network should be developed through a phased process. It
could build on the work of BSPA to date, particularly the lessons and learning points from Faraday
Wharf's success. The network could connect individual businesses to other businesses, in addition to
customers, financers and business mentors.
• Network development requires time, resources and management. A phased approach is in line
with experience from elsewhere and in particular in circumstances where the business base needs to
see demonstrations of the benefits of internationalisation. One organisation (BSPA is one option)
needs to act as the network manager. Ideally there will be individuals who will be the key network
'drivers' and 'champions'.
• Other networks can be developed in parallel. Birmingham City Council and BSPA have a role to
play in continuing to place Birmingham and the region at the centre of developments that will support
the next generation of sustainable businesses. The two immediate priorities are the NVI and the postDISTRICT + regional network.
42
Annex One: Case Studies
A1
Case Study 1: The Cambridge Network
Overview
The Cambridge Network is a commercial business networking organisation that was established by local
business leaders to stimulate networking activity in the region. In essence, the Cambridge Network is a
private sector led organisation that links business and academia to each other and to the global high
technology community27. It is described as a network of networks, drawing in other public and private
sector partners, deepening on the needs of its members, or indeed, potential investors. The network does
not focus exclusively on the ICT sector but does run a series of Special Interest Groups (SIG), one of which
is focussed on the IT and Infrastructure sector. A number of the founding fathers of the network are ICT
companies, and thus the sector and its companies are well represented in the membership.
Is the cluster strategic or practical?
The network has traditionally had a very practical edge to it. Key areas of activity include: open meetings,
which cover a topic relevant to members and typically attract 200-300 business leaders; café networking
events, which are held 3 or 4 times a year, and typically attract around 100 people; the Cambridge
Corporate Gateway, which is an opportunity for international companies and investment houses to access
technology companies in Cambridge. The network also works in partnership with other organisations, for
example, the Learning Collaboration, who help local companies to collaborate, share and purchase
training and management development opportunities. A new policy focused SIG was created in 2011 to
bring together public and private organisations to discuss issues such as the challenges and opportunities
facing the Cambridge area, for example, with respect to economic development and spatial planning.
How big is the cluster and how is it funded?
28
The network has over 1,000 corporate and 16,700 individual members many of which operate in the ICT
sector. The businesses and organisations that make up its membership are typical of those found in the
Cambridge Cluster or Silicon Fen as it is often called. However, membership to the cluster is not restricted
to local businesses, it is open to any business looking to invest in the Cambridge region. The network is run
on a commercial basis, and is funded through membership fees, which are based on the number of
employees of the company looking to join.
What is the sectoral focus of the cluster?
The high tech cluster in Cambridge is divided into a series of sub-clusters, one of which is IT. The SIG for
the sub-sector states that it is open to all businesses in Cambridge operating in the software and
information technology sector.
27
28
St John's Innovation Centre (2011) Cambridge Technopole Report
St John's Innovation Centre (2011) Cambridge Technopole Report
A2
What is the geographic reach of the cluster?
The Cambridge Network was initially designed as a mechanism for high tech businesses in Cambridge to
engage with each other and create a platform through which to market themselves on the world stage. In
order to facilitate the internationalisation of the cluster, the network established an outward facing
Corporate Gateway service. The gateway is marketed at businesses and investment houses operating
outside of the Cambridge region but who are looking to collaborate with or invest in high businesses. The
networks run the gateway in partnership with the University of Cambridge, UK Trade and Investment and
Enterprise Europe East of England amongst other partners. In practice, the Corporate Gateway is a twoday event that provides potential investors with opportunities to meet high tech companies, and other
relevant stakeholders.
Who manages and administers the cluster?
The Cambridge Network has a Board of Directors comprised of the founding members of the organisation.
The founders take a lead in facilitating the Special Interest Groups as well as setting the themes for various
events and networking meetings. The network itself is managed by a small dedicated team that arrange
and facilitate the activities delivered. The team includes a Chief Executive Officer, plus a series of officers
responsible for the delivery of the key network services (e.g. open meetings, corporate gateway etc).
Website: http://www.cambridgenetwork.co.uk
A3
Case Study 2: Bulgarian ICT Cluster
Overview
The Bulgarian ICT Cluster (BICTC) was designed to encourage greater collaboration amongst Bulgarian
ICT companies and facilitate foreign trade visits to grow the emerging ICT sector, and increase joint
29
venture activity . As the cluster has matured the role of BICTC has changed and it is now more of a
strategic, influencing body that represents the sector at a national, and indeed, international level. BICTC
30
was established using public sector funding in 2004 but now operates as Non Governmental
Organisation (NGO). The website that accompanies the cluster31 states that:
"The organizations main objective is ICT SME growth and development through promotion of
cooperation, building competitiveness and creation of new business opportunities."
The main activities of the organisation include:
• creating the right environment for further development of world class clusters in Bulgaria, particularly in
ICT sector;
• supporting ICT SMEs to increase their competitiveness, including the provision of workforce and
management development training;
• supporting innovation processes, boosting technology R&D in Bulgaria; and
• stimulating and support dialog between state administration, enterprises and universities and research
centres based on a triple helix approach.
Is the cluster strategic or practical?
The focus of the cluster has changed over the course of its life. Initially it was very practical in focus and
was concerned with encouraging Bulgarian ICT companies to network and collaborate (horizontal
clustering) and explore supply chain opportunities (vertical clustering). However, when the cluster
becomes a legal NGO its role changed, and it became more involved in developing ICT cluster policy and
practice. A key role involves stimulating and support dialog between the state administration, enterprises
and universities and research centres. Expanding the cluster concept to the rest of Eastern Europe is also
a key goal of the cluster partners. More of the practical activity, including stimulating collaborative activity
and organising trade is undertaken by regional, or sub-sectoral ICT cluster partners. These include ICT
Cluster Varna32, the Bulgarian Telecommunications cluster33 and the Microelectronics and Industrial
34
Digital Systems cluster , which were created after the initial success of BICTC.
29
EGAT/EG & E&E (2005) Assessment of the Bulgarian Enterprise Growth and Investment Project
The Bulgarian Enterprise Growth and investment project (EGIP). EGIP was implemented from April 2000 to April 2005;
it was one of the first competitiveness programs in Eastern Europe. The purpose of EGIP was to improve public
information and the interaction between government and society.
31
http://www.ictalent.org/en/ictcluster/about-ict-cluster/
32
http://www.ict-cluster-varna.eu/index.php?lang=en
33
http://www.btcluster.org/index_en.shtml
34
http://cmees.org/en/vision/objects-of-activity/
30
A4
How big is the cluster?
The size of the cluster has changed along with its focus. The cluster is now much smaller, and is
constituted of umbrella organisations, opposed to ICT companies, given its strategic focus and status as
an NGO. However, ICT companies are still heavily involved as a strategic sounding board in all decision
making exercises.
What is the sectoral focus of the cluster?
The sectoral focus of the cluster was initially determined by the companies who chose to interact as part
of project. In practice this meant that the cluster was not fully representative of the full extent of ICT
companies in Bulgaria. However, by focussing on associations (e.g. the Bulgarian Association of Software
Companies and the Bulgarian Web Association) opposed to ICT companies, this has enabled the cluster
partners (i.e. the associations) to better understand how different ICT sub-sectors interact and therefore
create a cluster that is more representative of the ICT sector overall.
What is the geographic reach of the cluster?
While the cluster initially focussed on brining the countries ICT companies together, from a very early
stage the private sector partners decided that its reach should extend beyond Bulgaria. Initially this
involved planning trade visit to other countries (e.g. to the USA to Silicon Valley and Washington) as well
as organising for foreign firms to visit Bulgarian companies. BICTC has also been involved in numerous
European Commission funded cluster and network development projects. A key example being the
35
Achieve More Partnership , where BICTC worked closely with partners from St John's Innovation Centre
in Cambridge to overcome barriers to sharing knowledge and innovation practices in the ICT sector
across Europe. By focussing on influencing cluster development policy and practice, opposed to the ICT
companies themselves, the partners believe that the geographic reach of the cluster will extend beyond
Bulgaria and therefore have a greater economic impact on the counties economy.
What impact has the cluster had thus far?
The strategic nature of the cluster resulted in a number of quick win investments in the Bulgarian
economy. These investments came in two forms, new investments by international ICT firms expanding
their own operations into Bulgaria, and from strategic investments into existing Bulgarian ICT firms. For
example, after a visit to Bulgaria where a Finnish firm witnessed that the ICT sector was working together
through the BICTC and had a voice in central Government, the firm made a strategic investment in a
Bulgarian ICT firm. Another example is that of US-based Hewlett Packard, which increased their
investment into its Bulgarian operation based on similar observations, leading to the hiring of 1,000 more
35
The ACHIEVE MORE Partnership was an ICT sectoral initiative to help 400 European SMEs to access the best tools
and funding they need to accelerate their growth. The Partnership is managed by nine delivery partners from five
European countries and extends out to 50 business and technology incubators, 15 ICT clusters and up to 5 early stage
finance providers. The project was funded by the European Commission.
A5
engineers. During the investment decision process in both of these examples, the ICT cluster took on an
active role to facilitate investment.
Who manages and administers the cluster
BICTC has a dedicated project manager and assistant who play a crucial role in facilitating cluster activity,
for example, brining umbrella organisations together for events, meetings and policy debates. The cluster
project team are also involved in external cluster and network development activity, including that funded
by the European Commission (see earlier example of the Achieve More Partnership).
Website: http://www.ictalent.org/en/ictcluster/about-ict-cluster/
A6
Case Study 3: Greek ICT Cluster
Overview
The Greek ICT Cluster has a primary strategy of assisting SMEs to target customers and match industrial
partners. In shaping this strategy they based their aspirations on the Greek ICT Nano/Microelectronics
Systems cluster (Mi-Cluster in short)36 which was established in 2009.It was a relatively small cluster with a
revenue of €350m and employment figures of 2000 workers. As a result they experienced difficulties in
accessing global markets.
Moving forward a Greek Technology Formation Cluster Liaison Office (CLO) is being developed in the hub
of technology that is Silicon Valley in the USA. The goal ultimately being that CLO can provide a link
between Greek SMEs and the Silicon Valley Ecosystem, which in real terms goes towards representing
37
customers, business partners, VC’s, Service providers and academics in the field .
The general functions and services of CLO are:
•
Market intelligence
•
Network development
•
Promotional events
•
The transfer of knowledge
•
Training and incubation
•
Business development
•
Speciality of services including field trip with Greek clusters
In delivering the services the CLO recognises that not all SMEs are at the stage where they are able to
respond to initiatives like this
Is the cluster strategic or practical?
Practically the cluster has been able to provide the opportunities for companies/individuals to move into the
ICT sector. Athens still holds the role of the biggest ICT cluster and with over half of the service providing
SMEs from the Greek ICT sector. The cluster offers a service of providing SMEs with opportunities in the
heart of their target market/area and essentially act as a hub for internationalisation.
How big is the cluster and how is it funded?
The funding for cluster activities is based on the sustainability of potential projects. At present the CLO has
been developed from state funding but it is thought that it will be sourced soon from private financing.
36
37
Internalisation Handbook, The “Guidelines” version (2011) Work in Progress
Internalisation Handbook, The “Guidelines” version (2011) Work in Progress
A7
Throughout the sector there are opportunities for funding both through the public and private sectors.
Additionally they have developed a Private- Public partnership framework38 which has been developed to
enable the set up of larger scale ICT projects.
What is the sectoral focus of the cluster?
39
ICT in Greece has undergone significant growth in recent years through both private and public sectors ,
with 85% of the sector based around telecommunications. In recent years they have witnessed the
development and growth of the broadband sector.
The objectives of the cluster are to raise the standards of innovation, business sophistication and
entrepreneurial spirit. The clusters focus is to utilise market intelligence through corporation’s network
events and through network development. This is based around the development of a database which
holds the information of local service providers, partners and Universities.
What is the geographical reach of the Cluster?
The immediate reach was aimed at assisting Greek SMEs to gain access to international partners and
markets through the Silicon Valley Eco system. Actions within the sector can be populated in specific
market areas to developed CLO’s in markets within or outside of the EU. In regards to the export of the
products they are expected to be sold to Germany and the UK. Within Greece top research takes place at
The Aristotle University of Thessaloniki, Thessaloniki Science Park, The University of Crete, The University
of Patras and Patras Science Park amongst others.
What impact has the cluster has thus far?
In recent years of economic downturn the ICT sector in Greece has proven to hold its ground40. IT clusters
in Greece can be found in Athens, Thessaloniki, to name two. At these and other hubs there is international
research and information and communication technology taking place. Recent IT in ward investment
41
projects in Greece have included the establishment of The HTC Regional Headquarters in the country,
Nokia investing in their R & D Centre in the capital, Athens and the development of a Microsoft Innovation
Centre in Athens. For companies outside Greece looking to invest, they are able to access high quality
personnel, attractive funding opportunities and a strong pick up of technologies.
Who manages and administers the cluster?
The cluster is managed and administered by the CLO who enforce a facility for Greek SMEs to partner with
others in the target market. As with the funding it is though that the CLO will in time move from being state
38
http://www.investingreece.gov.gr/default.asp?pid=36&sectorID=39&la=1
http://www.investingreece.gov.gr/default.asp?pid=36&sectorID=39&la=1
40
Exploring ICT Opportunities in Greece
41
http://www.investingreece.gov.gr/default.asp?pid=36&sectorID=39&la=1
42
http://www.startupgreece.gov.gr/sites/default/files/Exploring%20ICT%20market%20in%20Greece.pdf
39
A8
supported to a privately funded mode42l. Both the public and private sectors are embracing ICT growth in
the country.
Website: www.proinno-europe.eu/.../
http://www.investingreece.gov.gr/default.asp?pid=36&sectorID=39&la=1
A9
Annex Two: Key Initiatives at EU Level
A10
Cluster comparison table
Cluster
Cluster Aims / Activities
Similarities with iCentrum
Differences with iCentrum
Opportunities for iCentrum
The European e-Business
Cluster activities are policy
The network focuses specifically
It is a policy focussed network,
Membership to the network
Support Network for SMEs
focussed and look to identify new
on supporting SMEs in the ICT
although it does have some
would help raise the 'profile' of
(eBSN)
opportunities for e-businesses
sector. Membership is targeted at
practical dimensions to it with
iCentrum as well as provide
(by exploring existing sector
regional representatives of
respect to disseminating good
information on policy changes
specific initiatives) as well as
cluster initiatives providing
practice.
and potentially business
identifying good practice in
support to SMEs. The network is
opportunities for SMEs. It may
relation to the provision business
largely policy focussed but does
also help to identify clusters,
support and e-Invoicing and e-
have a practical edge in relation
networks and partnerships that
procurement aimed at SMEs.
to the identification of good
SMEs could link up with when
practice.
they are looking to
internationalise.
Clusters linked over Europe
CLOE is an informal network of
CLOE is managed by a cluster
Membership of the cluster is
One of the CLOE Team
(CLOE)
clusters across Europe. Activities
management team (cluster
aimed at cluster management
members (cluster scouts)
are designed to support cluster
scouts) who are responsible for
bodies opposed to SMEs.
responsible for CyberForum, an
management bodies and regional
the priority clusters, one of which
However, SMEs operating in
ICT company network in
partners looking to identify other
is ICT. There is a strong focus on
clusters who are members of
Germany, with more than 700
cluster partners / regional
helping ICT businesses to
CLOE can potentially access
members. The business
partners to work with in Europe.
internationalise by linking up with
support via the cluster scouts.
members of the network could
SMEs in other cluster across
potentially develop linkages with
Europe. Members of the cluster
CLOE members particularly from
have to pay an annual fee to join
the standpoint of developing new
and benefit from cluster support
business partners/collaborations.
activities.
The Competitiveness
Special Interest Groups (SIG)
Members of the cluster have to
Membership of the network is
There are opportunities for the
Institute (TCI)
provide cluster managers and
pay an annual fee to join and
aimed at cluster management
iCentrum cluster management
members of clusters (i.e. SMEs)
benefit from cluster support
bodies and practitioners in the
team to link up with cluster
with access to a range of events
activities. The SIGs are designed
first instance. However, cluster
partners to exchange good
and activities. There are SIGs
to share good practice and
members can potentially take
practice and take part in, and/or
focussed on global ICT cluster
stimulate collaboration between
part in events and activities.
deliver cluster events and
management and on
cluster managers and SMEs.
activities. Where the cluster
internationalising clusters.
Events and activities are held in
management team are actively
A11
Cluster
Cluster Aims / Activities
Similarities with iCentrum
Differences with iCentrum
Opportunities for iCentrum
Cluster management activities
various countries at the premises
involved in SIGs there is also the
focus on the exchange of good
of cluster members, who act as
opportunity for SMEs to take part
practice and the facilitation of
facilitators.
in events and activities, for
cluster research projects. Cluster
example, the Business to
member activities focus on B2B
Business matchmaking event
matchmaking and the facilitation
organised by the Global ICT SIG.
of joint projects.
European Cluster
The observatory is a virtual
It is possible to search the
The observatory is a virtual
The observatory could be
Observatory
cluster and online tool that
database of information for
cluster and is very policy and
potentially useful as the first port
provides cluster managers,
information specific to ICT
research focussed. It is targeted
of call with respect to identifying
practitioners and academics with
clusters. It therefore enables
at cluster managers and
other clusters and organisations.
access to a range of research,
cluster managers and potentially
practitioners rather than SMEs in
It’s body of cluster mapping to
mapping studies etc.
SMEs to identify other ICT
the main. Membership to the
cluster mapping research and a
clusters and companies and
observatory is free.
range of other cluster policy and
explore a range of research and
research documents could also
policy documents pertinent to
be useful in instructing the
cluster development and growth.
strategic focus of iCentrum
activities.
The cluster aims to develop and
There is a focus on supporting
The project appears to have a
There is potential for iCentrum to
foster cooperation’s between
innovation amongst ICT
strong focus on the
build strong links with the network
clusters in the ICT field. Primarily
companies – with a particular
commercialisation of R +D and a
where business members require
filling gaps between ICT and the
emphasis on the
more limited focus on stimulating
support commercialising R & D.
commercial field.
commercialisation of technology.
internationalisation.
The Enterprise Europe
The Enterprise Europe Network
They provide businesses with the Although they have a wide range
iCentrum could potentially
Network
enables the small businesses to
opportunity of tapping into new
of technology leads they do have
develop strong links with this
make the most of the European
markets, sourcing and licensing
other focuses and are not so
network to enable businesses to
Network. The network is
new technologies, and essentially predominantly ICT focused at
communicated through the
have access to EU funding and
iCentrum. They are able to
European Commission’s website.
finance. The cluster has the
provide information on intellectual
The EU-Project CReATE
A12
access sector experts.
Cluster
Cluster Aims / Activities
Similarities with iCentrum
Differences with iCentrum
geographical reach of bringing
property or EU laws and
together business support
standards.
Opportunities for iCentrum
organisations from across 49
countries through a range of
databases which holds over
13,000 profiles.
PRO INNO Europe provides a
They are willing to support
The cluster has a strong policy
iCentrum could develop strong
platform for the exchange of
measures at both UK and EU
focus and also has a clear focus
links with the project to access
information, views and learning.
member state level. PRO INNO
on knowledge exchange. There
the markets across Europe.
The ultimate aim is to assist
provides a platform for the
is also a wider sector focus.
Additionally they have a
European enterprises and
exchange of information, views,
willingness to improve design,
companies to innovate faster and
mutual learning and practical
implementation and delivery of
provide a leading role to national
cooperation. In the field of
innovation policies.
and regional innovation policies.
innovation policy development.
West Midlands ICT Cluster
Within the West Midlands, ICT is
The cluster includes business-to-
The current ICT cluster does not
Within the West Midlands, the
(United Kingdom)
classed as a growing cluster, and
business networking activities,
include the development of
businesses and universities that
the cluster encompasses a
and collaboration between
business-to-business relations on
are participating in cluster
network of around 3,000
businesses and universities to
a trans-national level, nor
activities could also form part of
help foster innovation.
relationships between
the membership of iCentrum.
PRO INNO Europe Initiative
43
businesses , with the Regional
Development Agency providing a
businesses and business support
secretariat. It is also
providers on an international
characterised by strong
level. The cluster does not have
involvement from many of the
as strong a focus on supporting
region's universities, who have
the internationalisation of SMEs
delivered innovation support to
as the proposed iCentrum
West Midlands ICT SMEs
project.
through the cluster.
Game Incubator Network
The cluster is a network for the
The incubator network is a non
The network supports science
The incubator has a strong
(Sweden)
gaming industry, which provides
profit organization that provides
parks that host game industry
gaming profile knowledge.
43
http://www.ictwm.org/pages/facts-figures
A13
Cluster
Cluster Aims / Activities
Similarities with iCentrum
Differences with iCentrum
Opportunities for iCentrum
support to businesses in the
support to each incubator
start ups. They are particularly
A link with iCentrum would
fields of sales, technology,
through business development,
interested in individuals and
provide opportunities for SMEs in
finance and exporting. The game
development of technology
teams rather than targeting
SPWW partner regions and
incubator can be found in Gothia
support, and game development
existing SMEs.
develop linkages with the
Science Park and gaming
fund.
Swedish ICT and gaming
incubators can be found across
network.
Sweden.
Consulting Centres
The network of over 100 centres
There are possible linkages for
The centres are essentially
The development of links with
(nationally across Poland,
wishing to provide support to
providing start-up support to
focused on existing start-ups and
Consulting Centres provides
but includes Lower Silesia
businesses wishing to start up in
members and particularly those
less focused on existing SMEs.
opportunities in delivering
region)
any sector.
with aspirations to move into an
Furthermore the field is wide and
support to SMEs opening to
international market.
not targeted enough at the ICT
internationalisation.
sector.
Business Initiative for
This network looks to strengthen
The initiative appears to be
The sector is limited and ICT is
From a business support
Central Germany
the innovation capacity of small
strategic in operation. It also
not the primary sector focus.
standpoint, the iCentrum network
and medium sized enterprises
includes the provision of
could potentially enable start-ups
across a range of economic
incubation facilities through the
to access sector-specific support.
sectors including ICT.
modelling post of science
initiative,
Source: Ecorys analysis (2011)
A14
Annex Three: List of Consultees
A15
List of Study Consultees
Organisation
Birmingham Science Park – Aston (e4f)
Birmingham Science Park – Aston (CEO)
Birmingham Science Park – Aston (Operations)
Birmingham Science Park – Aston (Business Innovation)
Birmingham Science Park – Aston (iCentrum Project Manager)
Birmingham Science Park – Aston (European Projects)
Birmingham and Solihull Local Enterprise Partnership
Birmingham City Council (Business Innovation)
Birmingham City Council (ERDF)
University of Aston
Birmingham City University
Region Vastra Gotaland
Gothia Innovation AB
Lower Silesian Regional Development Agency
Lower Silesia Innovation and Science Park
City of Magdeburg
A16
Individual
Simon Jenner
Dr David Hardman
Philip Lines
Gary Gould
Hugo Russell
Joanna Fletcher
Paul Heaven
Suresh Patel
Tara Verrell
Dr Phil Extance
Peter Rayson
Marcus Nordanstad
Benny Johansson
Tomasz Pajak
Mariusz Cholewa
Dr Klaus Puchta