UK: IT Geographics
Overview of UK IT Geographies:
The UK has had their government sponsor R&D science
parks since the 1970s.They are located all over the UK. Most are near Universities
that are funded by the government for R&D. Also there are incubators
for internet start-ups with funding not only coming from the government
but from venture capital (VCs). Many firms have found success in the IT
incubators. Many incubators are part of science parks others are privately
held. There are two areas in the UK that have achieved a great level of
success. They are Silicon Fen in Cambridge and Silicon Glen in Scotland.
These areas have produced software and other IT technologies that are beginning
to be exported around the world.
In the late 1980s, there was British government incentive to create these types of parks near universities in heavily industrialized areas and inner cities that were going through a recession. Two of these areas that were somewhat successful in their development of biotechnology firms were Manchester and Birmingham.[2]
These two areas are interesting to note because both were highly industrialized and were going through a recession in the 1980’s. These areas still are highly industrial cities. Yet when industry was starting to slow, the British using the surrounding universities created policies that led to intercity science parks. Some of these have not been as successful as the UK would have liked but both Manchester and Birmingham have had some success.[3]
Birmingham supported by the University of Birmingham has created two bioresearch areas that have found some success as joint ventures between private companies and the university. These two areas are Birmingham Technology Limited and Birmingham Research Park Limited.
Manchester also has had success in the bio-technical research
area. They have set-up parks with joint ventures between the University
of Manchester and private companies for R&D research. They have also
gotten foreign investment in their science parks from US firms. An example
of this is Trafford Park where two US firms have research facilities. These
firms are Photronics and Omega Engineering who have helped create some
of the most advanced research facilities in the UK.[4]
Many of the UK universities have science parks. Many have biotech
firms, or industrial research firms but all have some IT companies. There
are many new parks in the planning stages to just deal with IT issues.
Many have private funding and are havens for incubators in these
science parks.
Here is a list of science parks through the UK.
Aberdeen Science & Technology Park
Aberdeen, AB10 1DB.
Aberystwyth Science Park
Powys, SY20 8EB
Aston Science Park
Birmingham, B7 4BJ
Belasis Hall Technology Park
Stockton on Tees, TS23 4HN
Birmingham Research Park
Institute of Research & Development
Birmingham, B15 2SQ
Brunel Science Park
Brunel University
Uxbridge, Middlesex UB8 3PH
Cambridge Science Park
Cambridge, CB2 2LD
Cardiff Business Technology Centre & Cardiff Medicentre
Cardiff, CF2 4AY
Chilworth Research Centre
Southampton, SO16 7JF
Coventry University Technology Park
Coventry, CV1 5FB
Cranfield Technology Park
Cranfield University
Cranfield, Bedford MK43 0AL
University of Durham Science Park and Mountjoy
Research Centre
Mountjoy Research Centre
Durham, DH1 3SW
Edinburgh Technopole - The Bush Research
Park
Midlothian EH26 0SB
Elvingston Science
Centre
Edinburgh, EH12 5HD
Heriot-Watt
University Research Park
Edinburgh, EH14
4AP
Highfields Science Park
Nottingham, NG1 7DW.
Manchester Science Park
Manchester
Merseyside Innovation
Centre
Liverpool, L3 5TF
Newcastle Technopole
Newcastle Upon Tyne, NE1 6PA
Newlands
Science Park
Cottingham Road
Hull, HU6 7RX
The Oxford Science Park
Magdalen Centre
Oxford,
OX4 4GA
Preston
Technology Management Centre
Lancashire PR1 8UD
St John's Innovation Park
St John's Innovation Centre Ltd
Cambridge, CB4 4WS
Scottish Enterprise Technology Park
Lanarkshire Development Agency
Bellshill, ML4 3AD
Sheffield Science & Technology Parks
Sheffield, S1 2NS
Snowdonia Technopole Eryri Ltd
Gwynedd LL57 4BF
South Bank Technopark
London, SE1 6LN
Staffordshire Technology Park
Stafford, ST17 4LA.
Stirling
University Innovation Park
Forthright Innovation
- Scion House
Stirling University
Innovation Park,
Stirling, FK9
4NF
The Surrey Research Park
Guildford, GU2 5YD
Swansea University
Innovation Centre
Swansea, SA2
7PP
University of Reading Innovation Centre
Research Support
Office
University of
Reading
Reading,
RG6 6AH
University
of Warwick Science Park
Barclays Venture
Centre
Coventry,
CV4 7EZ
Wavertree Technology Park
Liverpool, L7 9PG
West of Scotland Science Park
Glasgow, G20 0SP
Westlakes Science & Technology Park
Cumbria, CA24 3JZ
Wolverhampton Science Park
Technology Centre
Wolverhampton, WV10 9RU [5]
The UK has not only had success in biotech research they also
have had some success in the IT area creating their own “Silicon Valley.”
Although they have enjoyed some success ,many critics have charged that
they do not have the same mix of venture capital (VC), entrepreneurs, and
research facilities to become as successful as the Silicon Valley.
These areas are called Silicon Fen near Cambridge University and Silicon
Glen near Glasgow University.
Silicon Fen:
Cambridge has been a university on the cutting edge of
science and technology since the 1600s. Sir Isaac Newton created the fundamental
principle of modern physics there in 1678.[6]
Since then and today great research scientists go to Cambridge to do research
and invent create new scientific achievements. So it is no surprise the
around Cambridge there are many computer start-ups. They have hopes being
the next Silicon Valley. Recently Sir Alec Broers, the Vice Chancellor
of Cambridge University spoke to many of the high-tech community in Cambridge
and said, “Silicon Valley is the 747 of the technology world and Cambridge
is that seagull that flies into its engine.”[7]
This maybe wishful thinking or just a pep talk to the thousands of start-up high tech firms that are in the out lying region of Cambridge called Silicon Fen. Although Silicon Fen is now getting a lot of press, it was started in the early 1970’s out of a similar incentive from the British government. Here they wanted to foster a high-tech area similar to Stanford and Silicon Valley. So far it has some success with 1,200 high tech firms that employ about 35,000 people.[8] This union between Cambridge University and high tech firms was pushed along in 1997 by Microsoft when they created a research facility that was a joint venture between the University and Microsoft.[9]
Cambridge’s history of partnerships with private firms have foster some successful start-up like Acorn, and ARM. Both of these are start-ups that began in the late 1980s and are flourishing in the Cambridge area. There also is the 3i Group which is an investment-banking group that helps these companies get VC to keep going and to get ready for Initial Public Offerings. There are hundreds of other Dot-coms and other technical companies in the Cambridge area.
However, there are not the Suns, Apples, or Intels that
can foster the VC investment that has occured in Silicon Valley. Thereare
not really any big firms that can return more VC back to this area. Most
firms have to go to the US for VC or have offices in the US to take advantage
of the US stock markets especially NASDAQ. Many companies in Silicon Fen
have to be as big as or hope to be as Sun or Intel. That means they have
to be international right from the start. Robin Saxby, CEO of Advanced
RISC Machines, was quoted as saying “ Ninety percent of our business
is from outside the UK. I basically live on planes, and we’ve got
offices in Silicon Valley in Los Gatos, Seoul, Tokyo, development in Austin
[Texas] and sales and Marketing in the Thames Valley.”
[10] So unlike the start of Silicon Valley many of these companies
are branching out of Silicon Fen and are looking for foreign investment.
Silicon Glen:
Silicon Glen is located between Glasgow and Edinburgh along the M8 motorway. This area has been cultivated by Glasgow University and it was fostered by Scotland’s regional government courting foreign investment. Instead of challenging Silicon Valley Glasgow University invited their firms to come and set-up facilities in the area. Using Irelands lead in attracting software firms into depressed industrial centers, Glasgow attracted such companies as IBM, Hewlett-Packard, Compaq, Sun Microsystems, and other US high-tech firms.[11]
Scotland has created the Scottish Enterprise and the Scottish Software Federation as groups to help foster not only foreign investment but also create Scottish owned high tech firms. This has led investment groups from Silicon Fen as well as Silicon Valley to invest in start-ups in Silicon Glen. This has led to the beginning of some strong software companies. One of these is Vis Interactive created Earthworm Jim, a popular Nintendo and Playstation game. Vis Interactive also helped in the design of Eidos red-hot Tomb raider with the creation of Ms. Croft.[12]
Also the Scottish government and Glasgow University put pressure on both BT and Scottish Telephone authority to bring broadband to this area quickly in order to foster dot.com startups. This plan has been somewhat successful and was used as the guide by the British on their plan to foster Internet start-ups. It is hoped that this plan will foster even more software start-ups.[13]
Even Silicon Glen has not lived up to all its expectations. It does not have the really strong firms as Silicon Valley. It has wooed many of them to have operations in the area but these are mostly manufacturing and not R&D centers as in Silicon Fen. There are very few start-ups that have been successful. Most have been in the entertainment part of the software industry. It was hoped that this area would foster more innovation.
Incubators:
In London there is new community that some are calling Web Alley.
It’s located the near East End where a groups of dot. comers create more
E-commerce ventures.[14] In this maze of
E-commerce venture of new media firms are rising of out incubators. One
of these new incubators is New MediaSPARK, who has offices in London. This
is one of the larger incubators in Britain who are trying to invest venture
capital in Internet firms.[15] One of the
problems for the UK and much of Europe is that venture capital markets
are much more conservative than in the US.[16]
So many European incubators are crossing country boundaries and have offices
across Europe. One of these is GorillaPark, which was originally from Amsterdam,
and has created offices in London. [17]
There are many other European incubators that are seeking to get into the
UK market. Many feel that with both Silicon Glen and Silicon Fen the UK
has a go to attitude toward IT.[18]
Conclusion UK’s “Silicon Valleys”:
Both Silicon Fen and Silicon Glen do have some very successful start-ups but they are not Silicon Valley. They still need the Valley for VC and outside markets. Many of the companies that have started in Silicon Fen have moved to Silicon Valley. Silicon Glen needs to foster more investment in R&D and less in bringing in manufacturing facilities for it to become like a real Silicon Valley. Although there has been an insurgence European Incubators coming into the UK to set-up more IT start-ups, the government through it science and technology parks are creating successful innovations. It is not known if all these investments will lead to the UK becoming the next Silicon Valley.
This report was completed in December 2000 for the class Impacts of National Information Technology Environments on Business given by Prof. Carmel in the program of Management Of Global Information Technology at the Kogod School of Business at American University in Washington D.C.