Talk given on 21st September 2010 to the Nagano Techno Foundation, Japan

1. !"#"$%&'()*!"#$%"&'("&))*+
,(-.$''/$++$,-."/- !!
!/*0'1*2'(-34$$*
5('#"/-'.6*%7*+418/'9)"*:(-;.,."*7%/*24(,74<.,/'()*
=.*>%3(?-*:((%#4;%(*+"(./"@*+418/'9)"*
!%-3'-34*5('#"/-'.6@*A6%.%*
01"23+&"4+%$3(5%6$3+%$)&'"7+#(+#813+.%$3$"#&'("+6&"+9$+:(5"4+&#;++
8<.;==6&-9%147$#$68"(.()$>9)(73.(#>6(-=+

3. ,&-9%147$?+@A+

4. ,&-9%147$?+@A+
1600
Number of High Tech Companies
1400
1200
1000
800
600
400
200
0
1960 1970 1980 1990 2000

5. B7$"4&+
BC D36*4/"*<$,-."/-*'1&%/.4(.*"(CE*
– F%&,$4/*&%$'<6*.%%$@*"<%(%1'<*9%G(.,/(@*%&"(*
'((%#4;%(@*<34()'()*/%$"*%7*,('#"/-';"-@*("G*
<34$$"()"-*
HC =%1"*"I&"/'"(<"-*%7*-,&&%/;()*<$,-."/- **
– J")'%(4$@*(4;%(4$@*'(."/(4;%(4$*
KC A"6*<%(<$,-'%(-*
– L,/.3"/*'(7%/14;%(*

6. D(%#$%E3+4$F"1'("+&3+53$4+9*+@A+
7(/$%"-$"#+
MN"%)/4&3'<*<%(<"(./4;%(-*%7*1"#$%G6(""$6#$4+
<%1&4('"-@*-&"<'4$'-"9*-,&&$'"/-@*-"/#'<"*
&/%#'9"/-@*O/1-*'(*/"$4."9*'(9,-./'"-@*4(9*
4--%<'4."9*'(-;.,;%(-*P7%/*"I41&$"*,('#"/-';"-@*
-.4(94/9-*4)"(<'"-@*4(9*./49"*4--%<'4;%(-Q*'(*
&4/;<,$4/*O"$9-*.34.*6(-.$#$+8,.*4$-%*6(G
(.$%&#$CR*
3S&TUUGGGC8"//C)%#C,VUG34.G"9%U/")'%(4$U<$,-."/-U&4)"KWKXYC3.1$*

7. H$F"1'("+(:+&+6)53#$%+IJK+
N"%)/4&3'<*<%(<"(./4;%(-*%7*'(."/<%(("<."9*
<%1&4('"-*4(9*'(-;.,;%(-*'(*4*&4/;<,$4/*O"$9*
– 24(,74<.,/"/-*%7*<%1&$"1"(.4/6*&/%9,<.-*
– L'/1-*,-'()*-'1'$4/*-V'$$-@*."<3(%$%)'"-@*%/*'(&,.-*
– =,&&$'"/-*%7*-&"<'4$'-"9*'(&,.-*%/*'(7/4-./,<.,/"*
– =&"<'4$'-.*9'-./'8,.%/-*
– 5('#"/-';"-@*./49"*4--%<'4;%(-@*./4'('()*&/%#'9"/-***
D'.3*.34(V-*.%*Z'$$*D'<V-.""9@*=[D*.9*

8. H$F"1'("+(:+&+6)53#$%+ILK+
• :(."/<%(("<;%(-*<4(*8"*4<;#"*%/*'(#%$,(.4/6*
• N"%)/4&3'<*<%(<"(./4;%(*]*'1&/"<'-"*<%(<"&.*
– +'.6*^,4/."/*P4(<'"(.*</4_*4(9*./49"*),'$9-Q*
– +'.6*/")'%(*P:.4$'4(*14/8$"*4/%,(9*`"/%(4Q*
– D'9"*/,/4$*4/"4*Pa4&4*`4$$"6*G'("Q*
– +/%--b8%/9"/*PN"/14(U=G'--*<3"1'<4$-Q*
D'.3*.34(V-*.%*Z'$$*D'<V-.""9@*=[D*.9*

9. F/%7"--%/*!%<.%/*+4/$*F4,$*N%f/'"9*#%(*'(9"*
M5#+#8$*+6&"+/&"138;++
:<"*74/1'()*c<$,-."/?*
P$4."*Bdee-Q*

10. N$%*+6(-.)$O+.()16*+1335$3+
Z,-'("--*'(<,84;%(*
:((%#4;%(*&%$'<6*
c=,(-".?*#"/-,-*c-,(/'-"?*'(9,-./'"-* J")'%(4$*'((%#4;%(*
-6-."1-*
=<'"(<"*&4/V-* `"(.,/"*<4&'.4$*
a4;%(4$*#"/-,-*
/")'%(4$*'--,"-* F,8$'<*-,&&%/.*#"/-,-* L%/"')(*!'/"<.*
*7/""*14/V".* :(#"-.1"(.*
g(."/&/'-"*&%$'<6*
:(9,-./'4$*&%$'<6*
>%8*</"4;%(*#"/-,-*G"4$.3*</"4;%(*

11. H1P$%$"#+.()16*+6("#$O#3+
• !/'#"/-*
– >%8*</"4;%(*#"/-,-*G"4$.3*</"4;%(*
– =3%/.@*1"9',1*%/*$%()b."/1*
– %<4$@*/")'%(4$@*(4;%(4$*%/*'(."/(4;%(4$*
• +,//"(.*-'.,4;%(*
– =./%()@*G"4V@*%/*&%."(;4$*<$,-."/*
– g<%(%1'<*&/%O$"*%7*$%<4;%(*
– L/""*14/V".*%/*&,8$'<*'(."/#"(;%(*

12. J>++Q8*+&%$+#8$*+1-.(%#&"#+"(CR+
• A$*+.&%#+(:+%$71("&)+1""(/&'("+=+$"#$%.%13$+=+
1"453#%1&)+.()16*+
– :(*14(6*(4;%(-*
– :(."/(4;%(4$*<%1&";;%(*#"/-,-*<%$$48%/4;%(*
• S6("(-16+4(C"#5%"+
– J"<"(.*4(9*$%()b."/1*
• ,8&"71"7+"&#5%$+(:+1""(/&'("+
– h&"(*'((%#4;%(*
– J%$"*%7*,('#"/-';"-*
– a"G*<34$$"()"-*

13. 3S&TUUGGGC<%1&";;#'."C)%,#C7/U****3S&TUU;(6,/$C<%1U6WiK9K9* **
3S&TUUGGGC8"//C)%#C,VUG34.G"9%U/")'%(4$U<$,-."/-U&4)"KWKXYC3.1$ * **

14. T$35)#;+S/$%*("$+C&"#3+#(+9$+U1)16("+N&))$*+
• U1)16("+V+
… Alps, Alley, Bayou, Beach, Bog, City, Desert, Ditch,
Dominion, Fen, Forest, Freeway, Glacier, Glen, Gulch,
Hill, Hills, Holler, Hollow, Island, Isle, Mesa, Mountain,
Necklace, Orchard, Parkway, Plain, Plains, Plantation,
Plateau, Polder, Prairie, Rain Forest, River, Sandbar,
Saxony, Seaboard, Snowbank, Spires, Swamp,
Triangle, Tundra, Valais, Valley Forge, Valley North,
Valley of the East, Vineyard, Wadi
+ many other {technology} {geographic feature}
3S&TUU.8jC<%1U-'$'<%('4C3.1$*

15. Q8*+&%$+#8$*+1-.(%#&"#+"(CR+
• A$*+.&%#+(:+%$71("&)+1""(/&'("+=+$"#$%.%13$+=+
1"453#%1&)+.()16*+
– :(*14(6*(4;%(-*
– :(."/(4;%(4$*<%1&";;%(*#"/-,-*<%$$48%/4;%(*
• S6("(-16+4(C"#5%"+
– J"<"(.*4(9*$%()b."/1*
• ,8&"71"7+"&#5%$+(:+1""(/&'("+
– h&"(*'((%#4;%(*
– J%$"*%7*,('#"/-';"-*
– a"G*<34$$"()"-*

16. ,)53#$%3+&"4+$6("(-16+7%(C#8+
g+hah2:+*NJhD0k*
FJh!5+0:`:0m*NJhD0k*
,)53#$%3+6&"+35..(%#;+
+h2Fg0:0:ha* :a`g=02ga0* :aah`l0:ha* =A:=* ga0gJFJ:=g*

17. WC(+$O&-.)$3;+,(.1"7+C1#8+3#%56#5%&)+
$6("(-16+68&"7$3+
• X&"68$3#$%?+@A+
– J4&'9*)/%G.3*9,/'()*'(9,-./'4$*/"#%$,;%(*
– !"<$'("*
– J")"("/4;%(*34-*'(<$,9"9*9"#"$%&1"(.*%7*
1"9'4U:0*<$,-."/*
• ,&-9%147$?+@A+
– J,/4$@*4<49"1'<@*'-%$4."9@*/"-'-.4(.*.%*
<%11"/<"*
– N/%G.3*%7*3')3b."<3*<$,-."/*'(*BWYe-*
BUT are clusters more resilient to
shorter term economic shocks?

18. Q8*+&%$+#8$*+1-.(%#&"#+"(CR+
• A$*+.&%#+(:+%$71("&)+1""(/&'("+=+$"#$%.%13$+=+
1"453#%1&)+.()16*+
– :(*14(6*(4;%(-*
– :(."/(4;%(4$*<%1&";;%(*#"/-,-*<%$$48%/4;%(*
• S6("(-16+4(C"#5%"+
– J"<"(.*4(9*$%()b."/1*
• ,8&"71"7+"&#5%$+(:+1""(/&'("+
– h&"(*'((%#4;%(*
– J%$"*%7*,('#"/-';"-*
– a"G*<34$$"()"-*

19. Q8&#+13+Y(.$"+1""(/&'("ER+
• MnCCo*'(p%G-*4(9*%,j$%G-*%7*V(%G$"9)"*
.%*4<<"$"/4."*'(."/(4$*'((%#4;%(@*4(9*
"I&4(9*.3"*14/V".-*7%/*"I."/(4$*,-"*%7*
'((%#4;%(*nCCoCR*
• +3"-8/%,)3@*kC@*DC*`4(34#"/8"V"@*4(9*>C*D"-.@*"9-C*h&"(*
:((%#4;%(T*J"-"4/<3'()*4*a"G*F4/49')1C*Heeq@*hI7%/9*
5('#"/-'.6*F/"--C*
GGGC'71C"()C<41C4<C,VU<.1U.")U%&"('((%#4;%(C3.1$*

20. W8$+-(4$)+(:+Y(.$"+1""(/&'("E+
Research Development Commercialisation
IP in-licensing Products in-sourced
(e.g. Co-branding)
Company
Boundaries
Core Market Focus
Technology
Spin-outs
IP out-licensing
Ideas &
Technologies
!%<3"/.6@*2C*PeeqQ@*F/'1"/*%(*ch&"(*:((%#4;%(?T*F/'(<'&$"-*4(9*F/4<;<"@*&914*PF/%9,<.*!"#"$%&1"(.*4(9*24(4)"1"(.*l--%<'4;%(Q*`'-'%(*Pl&/'$*eeqQ@*&&CBKbBYC*
+3"-8/%,)3@*kC*PeeKQ@*h&"(*:((%#4;%(T*03"*a"G*:1&"/4;#"*7%/*+/"4;()*4(9*F/%O;()*L/%1*0"<3(%$%)6@*Z%-.%(T*k4/#4/9*Z,-'("--*=<3%%$*F/"--C*

21. Q1#8+(.$"+1""(/&'("?+14$&3+&"4+
.&%#"$%3+6&"+9$+&"*C8$%$+>>+

22. Z%+4($3+)(6&'("+-&<$%R+
• +%1&4('"-*<3%%-"*.%*)(6&#$+1"+6)53#$%3+
– a%V'4*PF4$%*l$.%@*k%$$6G%%9@*+418/'9)"@*".<Q*
– 2'</%-%_*PZ"'r'()@*='$'<%(*`4$$"6@*Z4()4$%/"@*".<Q*
• +%1&4('"-*-""V*.%*4$/$)(.+6)53#$%3+4/%,(9*
.3"'/*%G(*74<'$';"-*
– F3'$'&-*Pg'(93%#"(*k'0"<3*+41&,-@*aQ*
– 5('$"#"/*P+%$G%/.3*F4/V@*5AQ*

23. Z.$"+1""(/&'("+8&3+.(#$"'&))*+
3#%("7+)1"23+#(+6)53#$%3+
• +$,-."/-*<4(*-,&&%/.*%&"(*'((%#4;%(*
• h&"(*'((%#4;%(*<4(*-,&&%/.*<$,-."/*
9"#"$%&1"(.*
• gI41&$"-T*
– F3'$'&-@*g'(93%#"(*+41&,-*4(9*Z/4'(&%/.*
– 5('$"#"/*4(9*+%$G%/.3*F4/V*
– =,1'.%1%*+3"1'<4$@*+!0*4(9*+418/'9)"*

24. D81)1.3+[+1W$68+,&-.53+S1"48(/$"+

25. @"1)$/$%+&"4+,()C(%#8+D&%2+

26. U5-1#(-(+,8$-16&)?+,HW+&"4+
,&-9%147$+
• :(Vr".*<$,-."/*-./%()*'(*
+418/'9)"*
• +5*-&'(b%,.*+!0*
9"#"$%&"9*"<%-6-."1*%7*
&4/.("/-*P$%<4$$6*4(9*
'(."/(4;%(4$$6Q**.%*9"#"$%&*
Fbhg!*9'-&$46-*,-'()*
'(Vr".*."<3(%$%)'"-*
• =,1'.%1%*+3"1'<4$*G4-*
$%()b."/1*9"#"$%&1"(.*
&4/.("/*.3"(*4<^,'/"9*+!0C*

27. ,8&"71"7+%()$+(:+5"1/$%31'$3+
• g1"/)"(<"*%7*4*c.3'/9*1'--'%(?*
– 0"4<3'()@*/"-"4/<3@*4(9*(%G*c4&&$'<4;%(?*
• %()b-.4(9'()@*<%/"*1'--'%(*%7*-%1"*,('#"/-';"-**
– 4(9*N/4(.*,('#"/-';"-*'(*5=*
• a"G*7%<,-*7%/*%.3"/*,('#"/-';"-*
– 24(6*5A*,('#"/-';"-*'(*$4."*BWWe-*
• 5('#"/-';"-*<4(*&$46*V"6*/%$"*G'.3'(*<$,-."/-*
– D34.E*k%GE*D36E*

28. Q1#81"+6)53#$%3?+5"1/$%31'$3+6&"+
.%(/14$;+
• F"%&$"*P"1&$%6""-@*'(."/(-Q*
• gI&"/;-"*P<%(-,$;()*-"/#'<"-Q*
• A(%G$"9)"*P.4<'.@*"I&$'<'.Q*
• J"-%,/<"-*P"^,'&1"(.@*74<'$';"-@*'(<,84;%(Q*
• F,8$'<*-&4<"-*P<%(7"/"(<"-@*(".G%/V'()Q*
• a"G*O/1-*P-&'(b%,.-@*-.4/.b,&-Q*
• M5#+%132+(:+Y-1O$4+-1331("E++
– I&6&4$-16+=+6(--$%61&)?+38(%#G#$%-+=+)("7G#$%-KR+

29. ]$C+68&))$"7$3+
• +$,-."/-*7%/1"9*U*"1"/)"9*.%*
499/"--*&4/;<,$4/*<34$$"()"-*
– l&%$$%*1'--'%(-T*"C)C@*<$,-."/-*%7*
V"6*-6-."1*-,&&$'"/-*P4</%--*5=Q*
– J"("G48$"*"("/)'"-T*"C)C@*<$,-."/-*
'(*V"6*$%<4;%(-*PG'(9*s*G4#"*
."<3(%$%)'"-**%(*<%4-.4$*$%<4;%(-Q*
• +4(*<$,-."/-*8"*c9"&$%6"9?*P%/*
c<%(#"/."9?Q*.%*499/"--*&4/;<,$4/*
<34$$"()"-E*

30. W8%$$+6)53#$%+$O&-.)$3+
• +418/'9)"@*5A*
– %<4$*<$,-."/*G'.3*'(."/(4;%(4$*&/"-"(<"*
• g4-.*%7*g()$4(9@*5A*P/")'%(4$Q*
– J")'%(4$*(".G%/V*%7*<$,-."/-*
• g'(93%#"(b",#"(bl4<3"(*0/'4()$"*Pgl0Q*
– +/%--b8%/9"/*(".G%/V*%7*<$,-."/-*

31. ,&-9%147$?+@A+

32. B+%5%&)+3$^"7+>>+
D'.3*.34(V-*.%*l$4(*Z4//"$$@*3S&TUUGGGC4$4(84//"$$C<%1U*

33. B+:&-(53+5"1/$%31#*+>>+
D'.3*.34(V-*.%*l$4(*Z4//"$$@*3S&TUUGGGC4$4(84//"$$C<%1U*

34. B+8178+#$68+/$"#5%$+Y.8$"(-$"("E+
1600
Number of High Tech Companies
1400
1200
1000
800
600
400
200
0
1960 1970 1980 1990 2000

35. U#&%#G5.3+&"4+3.1"G(5#3+
X5)'"&'("&)+6(%.(%&'("3+ ,("35)#&"61$3+

36. _$&#5%$3+(:+,&-9%147$+6)53#$%+
• 5('#"/-'.6*-./"().3-*'(*cJ?*
• +%11"/<'4$*-./"().3-*'(*c!?*
– !"-')(@*9"#"$%&1"(.@*&/%.%.6&'()@*84.<3*&/%9,<;%(@CC*
• N%%9*$'(V-*U*7"G*84//'"/-*8".G""(*.3"*cJ?*4(9*c!?*
– Jt!@*-.,9"(.*&/%r"<.-*PBqK*$%<4$$6*&U4Q@*/"</,'.-@*
&/%8$"1*-%$#'()@*<%1&4(6*</"4;%(@*./4'('()*
– l<;#"*(".G%/V'()@*G'$$'()*<%$$48%/4;%(*
• Z/4(9**]*:(#"-.1"(.*14)(".*PL!:@*`+Q*
• F"%&$"*P4(9*.3"'/*<%(("<;%(-Q*
– M!%'()*G"$$*4(9*9%'()*)%%9R*

37. U.1"G(5#3+&%$+&+:$&#5%$+(:+#8$+6)53#$%+
Spin-outs from
Cambridge Consultants Ltd (CCL)

38. _)(C+(:+.$(.)$+13+2$*+
+%&6/')3.*u*mC2C26'(.*b*6C16'(.vr'1-C<41C4<C,V@**

39. ,HW+=+U5-1#(-(+,8$-16&);+++DGZ0SH+W$68"()(7*+S6(3*3#$-+
Device electronics
Optics enhancement ST Microelectronics (France)
PLED materials
CDT CDT
Cavendish Lab. (UK) Dow Chemical (USA)
IP & Technology Centre Covion (Germany)
Sumitomo Chemical (Japan)
Manufacturing process Bayer (Germany)
Melville Polymer Lab. (UK)
Manufacturing Oxford University (UK)
CDT
Development Centre
Process equipment Polymer deposition
Tokki (Japan) Device physics Litrex Corp. (USA)
Ulvac (Japan) Toppan Printing (Japan)
OTB (NL)
CDT
Cavendish Lab. (UK)
=%,/<"T*+!0*.9*

40. !-.(%#&"6$+(:+Y`(1"1"7+#8$+4(#3E;+
4</%--*G3%$"*<$,-."/*
GGGC"/8'C<%C,V *GGGC<418/'9)"(".G%/VC<%C,V*

41. !-.(%#&"6$+(:+Y`(1"1"7+#8$+4(#3E;+
G'.3'(*,('#"/-'.6*
GGGC"(."/&/'-"(".G%/VC)/%,&C<41C4<C,V*

42. !-.(%#&"6$+(:+-1O1"7*

43. D%(/131("+(:+3.&6$+#(+35..(%#+
3$%$"41.1#*?+6())&9(%&'("?+"$#C(%21"7+
W8$+&53$%+_(%5-+

44. S&3#+(:+S"7)&"4+"$#C(%2+(:+Y6)53#$%3E+
&"4+Y8593E+
• i*14r%/*c<$,-."/-?*
• BX*c3,8-?*
• k%G*.%*</"4."*#4$,"E*
– 5(9"/-.4(9'()*4(9*
"(34(<'()*<%/"*
-./"().3-*
– Z,'$9'()*-<4$"*
– =./"().3"('()*$'(V4)"-*
'(."/(4$$6*4(9*
"I."/(4$$6*
3S&TUUGGGC-.r%3(-C<%C,VU("G-UHeeWUdU/")'%(4$b."<3(%&%$"b/"&%/.U*

45. S1"48(/$"G0$5/$"GB&68$"+W%1&"7)$+
• >%'(.*'((%#4;%(*
-./4.")6*
• Z"(<314/V'()@*
&/%1%;%(*4(9*
"#4$,4;%(*
• 0"<3(%$%)6*t*
8,-'("--*
<%11,(';"-*
• +%4<3'()*
"(./"&/"(",/-*
4(9*'1&/%#'()*
4<<"--*.%*
'(#"-.%/-*
3S&TUUGGGC"$4.C%/)U*

46. A$*+6("6)531("3+IJK+
• g#"/6%("*G4(.-*.%*8"*c='$'<%(*`4$$"6?*
– a""9*-&"<'4$'w4;%(*4(9*<%1&$"1"(.4/';"-*
– `"/6*-'1'$4/*&%$'<"-*'(*&$4<"*4/%,(9*.3"*G%/$9*
• F%$'<6*4)"(94-*7%/*&/%1%;()*<$,-."/-*4/"*
1'I"9*
– >%8*</"4;%(*#"/-,-*G"4$.3*</"4;%(*
– =3%/.b."/1*#"/-,-*$%()b."/1*
– J")'%(4$*#"/-,-*(4;%(4$*#"/-,-*G%/$9*#'"G-*

47. A$*+6("6)531("3+ILK+
• 0/"(9*.%*%&"(*'((%#4;%(*CC*
– CC*-,&&%/.-*<$,-."/*9"#"$%&1"(.*
– CC*8"("O.-*7/%1*-./%()*<$,-."/-*
– CC*146*3"$&*.%*499/"--*8')*<34$$"()"-*G'.3*<$,-."/-*
• =,&&%/.*7%/*<$,-."/-*
– F$"(.6*%7*c.%&*9%G(?*'(';4;#"-T*/"4$*-,<<"--*146*-."1*
7/%1*c8%S%1*,&?*4&&/%4<3*
– F/%1%."*'(."/1'()$'()*%7*&"%&$"T*G'.3'(*4(9*8".G""(*
<$,-."/-T*,-"*%7*,('#"/-';"-*4-*c&,8$'<*-&4<"-?*
– =,&&%/.*-'1&$"*P"4-6*'(@*"4-6*%,.Q*&/%r"<.-*-,<3*4-*
-.,9"(.*&$4<"1"(.-@*),"-.*$"<.,/"-@*<%1&";;%(-@*".<C*

48. _5%#8$%+1":(%-&'("+
• T$3(5%6$3+:(%+#813+.%$3$"#&'("+&%$+&#;+
– 8<.;==6&-9%147$#$68"(.()$>9)(73.(#>6(-=+

49. !"#"$%&'()*!"#$%"&'("&))*+
,(-.$''/$++$,-."/- !!
!/*0'1*2'(-34$$*
5('#"/-'.6*%7*+418/'9)"*:(-;.,."*7%/*24(,74<.,/'()*
=.*>%3(?-*:((%#4;%(*+"(./"@*+418/'9)"*
!%-3'-34*5('#"/-'.6@*A6%.%*
01"23+&"4+%$3(5%6$3+%$)&'"7+#(+#813+.%$3$"#&'("+6&"+9$+:(5"4+&#;++
8<.;==6&-9%147$#$68"(.()$>9)(73.(#>6(-=+