Technology Development Consultancies and the High-Tech Cluster in Cambridge(<SPECIAL REPORTS>ECOSYSTEMS IN ADVANCED INNOVATIVE REGIONS IN THE U.K. AND THE U.S)

Abstract

Over the last fifty years Cambridge, UK, has earned a reputation as a cluster of science and technology innovation. The role of the University of Cambridge tends to be over-emphasised in the academic literature: it undoubtedly plays an important enabling function in attracting capable people and in performing world class research, but this does not entirelu explain the robustness of surrounding eco-system that has grown organically over the past few decades. The first part of this paper discusses the components of that eco-system and the scale of the scientific cluster that has emerged. In the remainder of the paper the focus lies on a type of R&D service firm, the technology development consultancy (TDC), that has played a very significant role in the growth and reputation of the Cambridge cluster. The business model operated by TDCs - financing the development of proprietary technologies that may eventually be licensed or spun out by conducting contract research for other companies - is discussed at some length. The paper argues that the TDC business model offers a variety of paths to growth and that its flexibility contributes significantly to these firms' longevity. Their role in the Cambridge cluster deserves to be better understood.