L I B R A R Y H O U S E

ESSENTIAL INTELLIGENCE

Innovation Campus in Communications

Technologies and their Applications

A Report Commissioned by Higher Education South East

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 About Library House

About Library House

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The research and consulting department at Library House has strong expertise in the analysis of the activities, performance
and impact of research organisations, universities, innovation-based companies and clusters. We understand how
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and how this is embedded in policy framework. Our approach is to provide evidence-based insights and analysis in the
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This report was published in August 2008.

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Innovation Campus in Communications Technologies and their Applications

Library House Research Services:

Martin T. Holi
martin.holi@libraryhouse.net
Head of Research and Consulting Services

Alexander Jan
alexander.jan@libraryhouse.net
Senior Consultant

Library House
Kett House, Station Road, Cambridge, CB1 2JX
Switchboard: +44 (0) 1223 500 550
www.libraryhouse.net

Project Management Team:

Martin T. Holi
martin.holi@libraryhouse.net
Head of Research and Consulting Services

Alexander Jan
alexander.jan@libraryhouse.net
Senior Consultant

Library House
Kett House, Station Road, Cambridge, CB1 2JX
Switchboard: +44 (0) 1223 500 550
www.libraryhouse.net

Additional Project Team Members:

• Chris Coffman, chris.coffman@libraryhouse.net

• Cameron Jack, cameron.jack@libraryhouse.net
• Vincent Martin, Vincent.martin@libraryhouse.net
• James Moore, james.moore@libraryhouse.net
• Steve Mounsey, steve.mounsey@libraryhouse.net
• Richard White, richard.white@libraryhouse.net
• Rochana Wickramasinghe, rochana.wickramasinghe@libraryhouse.net

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Contents
Part A: Summary Report. . . . . . . . . . . . . 1
1 Innovation Campus in
communications and its applications. . . 1
1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Framework for the analysis . . . . . . . . . . . . . 1
1.3 Assumptions . . . . . . . . . . . . . . . . . . . . . . . . 1
1.4 Results of the analysis. . . . . . . . . . . . . . . . . 1
1.4.1 Industry analysis. . . . . . . . . . . . . . . . . . . . . . 1
1.4.2 Location analysis. . . . . . . . . . . . . . . . . . . . . 2
1.4.3 Assisted Living. . . . . . . . . . . . . . . . . . . . . . . 3
1.4.4 MediaTech . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4.5 Competitive landscape around
Assisted Living and MediaTech. . . . . . . . . . 4
1.5 Where Technology meets the right place. . . 4
1.5.1 MediaTech Innovation Campus on the
Sussex Coast. . . . . . . . . . . . . . . . . . . . . . . . 4
1.5.2 Assisted Living in the Hampshire/Surrey . . .
region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.6 Governance model. . . . . . . . . . . . . . . . . . . . 5
1.7 Preliminary funding structure. . . . . . . . . . . . 5
1.8 Layout of the Innovation Campus . . . . . . . . 5
1.8.1 Basic requirements . . . . . . . . . . . . . . . . . . . 5
1.8.2 Assisted Living. . . . . . . . . . . . . . . . . . . . . . . 6
1.8.3 MediaTech . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.9 Convergence of Assisted Living and . . . . . .
MediaTech . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.10 Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.11 Recommendations. . . . . . . . . . . . . . . . . . . . 8
1.12 Next steps . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Part B: Analysis. . . . . . . . . . . . . . . . . . . . 9
2 Project Background. . . . . . . . . . . . . . . 9
2.1 Reasons behind feasibility study. . . . . . . . . 9
2.2 Regional Economic Strategy 2006-2016. . . 9
2.3 Perceived benefits behind Innovation
Campus Development. . . . . . . . . . . . . . . . 10
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Contents
2.4 Defining an Innovation Campus. . . . . . . . . 10
3 South East England: Overview . . . . . 10
3.1.1 South East “liveability”. . . . . . . . . . . . . . . . 11
3.1.2 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . 13
4 Regional Innovative Capacity . . . . . . 15
4.1 South East Innovation Landscape. . . . . . . 16
4.2 Landscape of Higher Education Institutes. 16
4.3 Reasons for University Omissions. . . . . . . 17
4.4 Analysis of the South East Research Base.17
4.4.1 Industry Sectors and their corresponding . . .
educational programs . . . . . . . . . . . . . . . . 17
4.4.2 Ranking according to the Research . . . . . . .
Assessment Exercise. . . . . . . . . . . . . . . . . 17
4.4.3 Ranking of University Departments in Key . .
Disciplines . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.4.4 Impact of HEIs on the Innovative landscape . 19
4.4.5 Ranking according to overall number of . . . .
students (headcount). . . . . . . . . . . . . . . . . 19
4.4.6 Ranking according to number of students
in relevant fields. . . . . . . . . . . . . . . . . . . . . 19
4.4.7 Ranking according to number of Post- . . . . .
Graduate Students. . . . . . . . . . . . . . . . . . . 21
4.4.8 Ranking according to Total Income and . . . .
Research Income of HEIs . . . . . . . . . . . . . 22
4.4.9 Research Output of South-East HEIs
- Publications. . . . . . . . . . . . . . . . . . . . . . . 22
4.4.10 Research Output of South-East HEIs
- Patents. . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4.4.11 Knowledge and Technology Transfer . . . . . .
activities of South East HEIs –
Collaborative Research . . . . . . . . . . . . . . . 22
4.4.12 Knowledge and Technology Transfer
activities of South East HEIs – Contract . . . .
Research . . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.4.13 Knowledge and Technology Transfer . . . . . .
activities of South East HEIs – Consulting. . 24
4.4.14 Knowledge and Technology Transfer . . . . . .
activities of South East HEIs – Licensing. . 24
4.4.15 Ranking according to Spin-Out Activity of . .
South East HEIs. . . . . . . . . . . . . . . . . . . . . 24
4.4.16 Performance of Most Active HESE . . . . . . . .
Universities Relative to All UK Universities. 26
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Innovation Campus in Communications Technologies and their Applications

4.4.17 Conclusions: HEI Landscape . . . . . . . . . . 27 6 Innovation Campuses. . . . . . . . . . . . 51

4.5 General Industry Overview for
South East England. . . . . . . . . . . . . . . . . . 27
4.5.1 Companies in the South East . . . . . . . . . . 27
4.5.2 Technology-based Industries in the
South East . . . . . . . . . . . . . . . . . . . . . . . . . 32
4.5.3 Information and Communication . . . . . . . . .
Technologies (ICT). . . . . . . . . . . . . . . . . . . 32
4.6 Public Sector Capacity. . . . . . . . . . . . . . . . 32
4.6.1 Regional Development Agencies
Budgetary Analysis. . . . . . . . . . . . . . . . . . . 32
4.6.2 Simultaneous SEEDA Projects. . . . . . . . . . 33
4.6.3 List of concurrent projects. . . . . . . . . . . . . 33
5 Innovation Interaction. . . . . . . . . . . . . 33
5.1 Overview of Communication Industry
within South East. . . . . . . . . . . . . . . . . . . . 33
6.1 Definition of concept . . . . . . . . . . . . . . . . . 51
6.2 ICT Innovation Campuses. . . . . . . . . . . . . 51
6.3 Model Analysis – A Theoretical
Framework. . . . . . . . . . . . . . . . . . . . . . . . . 52
6.3.1 Objectives of collaborative network. . . . . . 52
6.3.2 Nature of collaborating partners . . . . . . . . 52
6.3.3 Level of sector / disciplinary focus. . . . . . . 53
6.3.4 Location of collaborative networks . . . . . . 53
6.3.5 Anchor Tenants. . . . . . . . . . . . . . . . . . . . . . 53
6.3.6 Governance. . . . . . . . . . . . . . . . . . . . . . . . 53
6.3.7 Support structures and funding. . . . . . . . . 54
6.3.8 Physical Manifestations. . . . . . . . . . . . . . . 54
6.3.9 Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.4 SEEDA Innovation Campuses. . . . . . . . . . 58
6.4.1 Harwell Campus Innovation Campus . . . . 58

5.2 Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . 33
7 Interviews. . . . . . . . . . . . . . . . . . . . . . 59
5.3 Communication Companies . . . . . . . . . . . 34
7.1 Interview Conclusions . . . . . . . . . . . . . . . . 59
5.3.1 All Communication Companies. . . . . . . . . 34
7.2 Gatwick Diamond. . . . . . . . . . . . . . . . . . . . 59
5.3.2 Public Listed Communication Companies. 36
7.3 South Hampshire. . . . . . . . . . . . . . . . . . . . 59
5.3.3 Communication SMEs. . . . . . . . . . . . . . . . 36
7.4 Sussex Coast. . . . . . . . . . . . . . . . . . . . . . . 59
5.3.4 Venture Capital-backed Communication
7.5 Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Companies. . . . . . . . . . . . . . . . . . . . . . . . . 37
7.6 Surrey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.3.5 Summary Communication Companies. . . 37
7.7 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . 60
5.4 Collaborations Communication
Companies and Universities . . . . . . . . . . . 37
5.4.1 Knowledge Transfer Partnership . . . . . . . . 37 8 Methodology . . . . . . . . . . . . . . . . . . . 60
8.1 Identification of Preferred Location . . . . . . 60
5.4.2 TSB Research and Development. . . . . . . . 38
8.2 General Assumption. . . . . . . . . . . . . . . . . . 61
5.5 Applications. . . . . . . . . . . . . . . . . . . . . . . . 38
8.3 Relevant Location Analysis Factors. . . . . . 61
5.5.1 Assumption . . . . . . . . . . . . . . . . . . . . . . . . 38
8.3.1 Quality of Life. . . . . . . . . . . . . . . . . . . . . . . 61
5.5.2 Aerospace . . . . . . . . . . . . . . . . . . . . . . . . . 38
8.3.2 Knowledge Capacity of Higher Education. 62
5.5.3 Assisted Living. . . . . . . . . . . . . . . . . . . . . . 40
8.3.3 Knowledge Capacity in Businesses. . . . . . 62
5.5.4 Overview of Creative Industry within
8.3.4 Notes on MediaTech Company analysis. . 63
South East . . . . . . . . . . . . . . . . . . . . . . . . . 43
8.4 Results from the Analysis. . . . . . . . . . . . . . 63
5.5.5 Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
8.4.1 Introductory Comments. . . . . . . . . . . . . . . 63
5.5.6 Transportation. . . . . . . . . . . . . . . . . . . . . . . 47
8.4.2 Quality of Life. . . . . . . . . . . . . . . . . . . . . . . 63
5.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 50
8.4.3 Higher Education Institutes analysed . . . . 66
8.4.4 Industry Landscape. . . . . . . . . . . . . . . . . . 69
8.4.5 Overall Findings. . . . . . . . . . . . . . . . . . . . . 72

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9 Proposed Cases . . . . . . . . . . . . . . . . 73

10 Outline Business plan . . . . . . . . . . . . 74

10.1 Executive Summary. . . . . . . . . . . . . . . . . . 74
10.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . 74
10.3 Innovation Campus . . . . . . . . . . . . . . . . . . 74
10.3.1 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
10.3.2 Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
10.3.3 Development Plan . . . . . . . . . . . . . . . . . . . 74
10.3.4 Location. . . . . . . . . . . . . . . . . . . . . . . . . . . 74
10.3.5 Stakeholders . . . . . . . . . . . . . . . . . . . . . . . 75
10.3.6 Key Personnel . . . . . . . . . . . . . . . . . . . . . . 75
10.3.7 Main Funding and Investment Sources. . . 75
10.3.8 The Model . . . . . . . . . . . . . . . . . . . . . . . . . 75

11 References. . . . . . . . . . . . . . . . . . . . . 77

12 Used Abbreviations. . . . . . . . . . . . . . 78

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Innovation Campus in Communications Technologies and their Applications

Table of Figures Figure 27: Gatwick Diamond – Knowledge

Capacity in Business . . . . . . . . . . . . . . 72
Figure 1: University Economic Impact Matrix . . . 19
Figure 28: Surrey – Knowledge Capacity in
Figure 2: Degree of Innovation in Company Business. . . . . . . . . . . . . . . . . . . . . . . . 72
Landscape . . . . . . . . . . . . . . . . . . . . . . 28
Figure 29: Analytical Summary for Innovation
Figure 3: Sector Breakdown of LSE-listed Campus . . . . . . . . . . . . . . . . . . . . . . . . 73
Companies in the South East. . . . . . . . 28
Figure 30: Process visualisation chart with
Figure 4: Developmental Stages of Perceived Funding required over time . . 76
Telecommunication Industry. . . . . . . . . 33
Figure 31: SWOT-Analysis for Innovation Campus. . 76
Figure 5: MediaTech as Convergence of Creative
and Communications Industry. . . . . . . 43
Figure 6: Library House MediaTech
Classification. . . . . . . . . . . . . . . . . . . . . 44
Figure 7: Gartner Hype Cycle for Transportation. 49
Figure 8: Gartner Transportation Matrix. . . . . . . . 49
Figure 9: Categorisation of Innovation
Campuses . . . . . . . . . . . . . . . . . . . . . . 51
Figure 10: Fraunhofer Funding Structure. . . . . . . . 56
Figure 11: Reading – Quality of Life. . . . . . . . . . . . 64
Figure 12: Sussex Coast – Quality of Life. . . . . . . 64
Figure 13: South Hampshire – Quality of Life . . . . 65
Figure 14: Gatwick Diamond – Quality of Life. . . . 65
Figure 15: Surrey – Quality of Life. . . . . . . . . . . . . 66
Figure 16: Overall Standing of Reading HEIs . . . . 66
Figure 17: Overall Standing of Sussex Coast
HEIs . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Figure 18: Overall Standing of South
Hampshire HEIs. . . . . . . . . . . . . . . . . . 67
Figure 19: Overall Standing of Surrey HEIs. . . . . . 67
Figure 20: Reading – HEI Communications and
Applications . . . . . . . . . . . . . . . . . . . . . 68
Figure 21: Sussex Coast – HEI Communications . . .
and Applications. . . . . . . . . . . . . . . . . . 68
Figure 22: South Hampshire – HEI Communications
and Applications. . . . . . . . . . . . . . . . . . 69
Figure 23: Surrey – HEI Communications and
Applications . . . . . . . . . . . . . . . . . . . . . 69
Figure 24: Reading – Knowledge Capacity in
Business. . . . . . . . . . . . . . . . . . . . . . . . 70
Figure 25: Sussex Coast – Knowledge Capacity in
Business. . . . . . . . . . . . . . . . . . . . . . . . 70
Figure 26: South Hampshire – Knowledge Capacity .
in Business. . . . . . . . . . . . . . . . . . . . . . 71

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 Section Heading

Table of Maps
Map 1: Overview of the South East of England. . 10
Map 2: Location of top 50 locations in the
United Kingdom. . . . . . . . . . . . . . . . . . 12
Map 3: Locations of Universities in the
South East . . . . . . . . . . . . . . . . . . . . . . 16
Map 4: The Geographical Distribution of the
top 100 Foreign High-Tech Corporates . .
based in the South East of England. . . 29
Map 5: The geographical distribution of the
over 25,000 High-Tech SMEs based on
OECD-Definition in the South East of
England.. . . . . . . . . . . . . . . . . . . . . . . . 30
Map 6: The Geographical Distribution of the
300 Venture Capital-backed
Companies in the South East
of England.. . . . . . . . . . . . . . . . . . . . . . 31
Map 7: Location of University Spin-Outs
in the South-East and London. . . . . . . 31
Map 8: Regional distribution of South
East-based Communications
Companies. . . . . . . . . . . . . . . . . . . . . . 34
Map 9: Communication SMEs based in the
South East with the sector UK
SIC Code Group 84.2. . . . . . . . . . . . . . 36
Map 10: Overview of South East-based
venture capital backed companies
in the communication sector . . . . . . . . 37
Map 11: Location Analysis of the Aerospace
industry in the South East. . . . . . . . . . . 40
Map 12: Concentration of MediaTech
companies in the SE based on Library . .
House MediaTech Tags . . . . . . . . . . . . 45
Map 13: Location of Security Companies
in the South East. . . . . . . . . . . . . . . . . . 46
Map 14: Location of Transport Companies . . . . 48

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Innovation Campus in Communications Technologies and their Applications

Table of Tables Table 24: Summary Traditional Campus . . . . . . . 54

Table 1: Recommended locations and Table 25: Urban Knowledge Centre. . . . . . . . . . . 55

respective industry focus. . . . . . . . . . . . 7 Table 26: Institutionalised Innovation Campus . . 55
Table 2: Results and Interest shown through Table 27: Multi-Disciplinary Campus. . . . . . . . . . 55
studies . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 28: Multi-Centre Development. . . . . . . . . . 55
Table 3: Top 50 of the Halifax Top 300
“Quality of Life” locations. . . . . . . . . . . 11 Table 29: Overview of Public-Private-Funding
Initiatives. . . . . . . . . . . . . . . . . . . . . . . . 58
Table 4: Public expenditure on roads. . . . . . . . . 12
Table 30: Overview of Interviews . . . . . . . . . . . . . 59
Table 5: Method of travel to work. . . . . . . . . . . . 13
Table 31: Overview Proposed Cases. . . . . . . . . . 73
Table 6: Activity at major airports. . . . . . . . . . . . 14
Table 32: Recommended locations and
Table 7: Travel intensity. . . . . . . . . . . . . . . . . . . . 15 respective industry focus. . . . . . . . . . . 75
Table 8: List of South East Universities . . . . . . . 16 Table 33: Results and Interest shown through
Table 9: Performance of South East Universities studies . . . . . . . . . . . . . . . . . . . . . . . . . 75
in the Research Assessment Exercise
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 10: Ranking of Universities by Total
Number of Students. . . . . . . . . . . . . . . 20
Table 11: Ranking of Universities by Total
Research Income in 2006-07 in £000s. . 21
Table 12: Performance of Universities by
Number of Publications and Active . . . . .
Patents . . . . . . . . . . . . . . . . . . . . . . . . . 22
Table 13: Performance of Universities by
Collaborative and Contract Research
Income and Consulting Income in
2006-07. . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 14: Performance of Universities by
Licensing in 2006-07. . . . . . . . . . . . . . . 24
Table 15: Performance of Universities by
Spin-Out activity in 2006-07. . . . . . . . . 25
Table 16: Ranking of HESE Universities
Relative to All UK Universities. . . . . . . . 26
Table 17: Regional Distribution of Companies,
Public Companies, Private Non-SMEs,
and Private SMEs in the UK. . . . . . . . . 27
Table 18: RDA Budgets for 2007-2008 (£m) . . . . 32
Table 19: Communications Industry by
SIC Codes. . . . . . . . . . . . . . . . . . . . . . . 35
Table 20: South East-based Public Listed
Communications Companies on LSE . 36
Table 21: SIC codes used to identify major
players within the South East. . . . . . . . 43
Table 22: Summary of Communication
Industry and their Applications. . . . . . . 50
Table 23: Summary Virtual Campus. . . . . . . . . . . 54

viii

Part A: Summary Report
1 Innovation Campus in
communications and its applications
1.1 Introduction
Library House was commissioned by Higher Education South
East (HESE) in collaboration with the South East Science,
Engineering and Technology Advisory Council (SESETAC) and
the South East England Development Agency (SEEDA) to report
as an independent body on the placement of a new Innovation
Campus within the South East region. The main objective of
this report was to identify the possible technological foci and
locations for an Innovation Campus that would support the
strong and emerging industries within the South East. The
following document profiles the findings of the location analysis
and outlines Library House’s recommendations as well as the
suggested preliminary steps that should be implemented to
achieve such an Innovation Campus.
1.2 Framework for the analysis
The following documents form the framework for this report
• SEEDA: Science and Innovation Action Plan
• All documents related to the Regional Economic Strategy
for the South East 2006-20161
• SEEDA: Consultation paper on the developments of Place
Based Innovation Teams
• SEEDA: Corporate Plan 2008-11
• SESETAC: Meeting Minutes
• Telecare Knowledge Network (TKN): Final Report October
2007 – March 2008
• South East Media Network (SEMN): Growing Global Business -
Evidence Base for intervention in the Digital Content Sector and
the proposed relationship to the Regional Economic Strategy
1.3 Assumptions
The concept of an “Innovation Campus” is an umbrella term
encompassing the broader concept of collaborative networks and
the physical manner in which they are set up. This ranges from
large physically orientated science or technology parks, to small
managed business incubators, to any facility that trains and or
educates individuals to develop skills in innovative technology or
supports research in these technological areas. Though a physical
presence is important in most cases, an Innovation Campus can
also include virtual elements or non-manned skeletal technology
testbeds, where actual physical location is not essential.
An essential aspect of the Innovation Campus is its flexible
nature, with the ability to adapt to address key challenges to
growing businesses, ventures or projects, such as physical
location of headquarters or offices, funding requirements
or knowledge transfer constraints. One key aspect of these
Innovation Campus models is how they can directly influence
1
http://www.seeda.co.uk/res/
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Innovation Campus in communications and its applications
the performance of SMEs and support knowledge transfer
between those SMEs and the Higher Education Institutes (HEI),
to become substantial generators of employment and wealth
in the South East region. However, at the same time, it should
also provide advanced business support and best practices in
knowledge transfer initiatives. Essentially, Innovation Campuses
should be proactive in the support and promotion of growth in
all facets of the innovation landscape, from start-ups to large
corporations.
To follow the 2006 Regional Economic Strategy Implementation
Plan (RES), HESE, SESETAC and SEEDA have decided to focus
this Innovation Campus around the telecommunication industry,
with particular focus on its sector applications. It is the belief that
this approach will build upon the existing strengths within the
South East, and that it will also allow the already strong South
East telecommunications industry to become more globally
renowned, thus raising the economic profile of the South East.
Fostering an increase in economic impact is a key goal of the
RES, and it is believed that one component that will be key in
realising this goal is the introduction of Innovation Campuses in
the South East. However, in reality, to maximise the impact of
the Innovation Campus, there are two key issues that must be
considered - the first being high inputs to deliver high economic
impact and secondly, the focus of the Innovation Campus should
be initially on industries that have the potential to gain global
importance.
Despite the fact that the RES placed the onus on the Diamond
for Growth and Investment areas due to the nature of the
industry and the complex industrial capacity of the South East,
this analysis focuses on areas that display a capacity for an
Innovation Campus focused on the telecommunication industry
and its applications.
1.4 Results of the analysis
When analysing the South East region as a whole and in the
context of overall capacity, both in terms of industrial capacity
and that of higher education in the region, it becomes clear
that there is a greater concentration of potential locations in
the western side of this region, bordered by London through
Crawley to Brighton.
1.4.1 Industry analysis
The industry analysis of the region was focused around the
telecommunication and its applications. Though numerous
applications can be included with the telecommunications
industry, the ones that were considered most relevant to the
region included: mobile and landline communication (traditional
technology base), aerospace, defence, transport, security,
assisted living and mediatech.
Due to the desire for an Innovation Campus, expressed by SEEDA
and HESE, coupled with the need to maximise economic impact;
the mobile and landline communication, aerospace, defence and
transport sectors were considered too large and mature for an
Innovation Campus to have a significant enough impact to meet
the requirements outlined in the RES.
Innovation Campus in Communications Technologies and their Applications
As an example, the aerospace sector is predominantly composed
of multinational organisations and corporations. There is general
consensus an Innovation Campus would have little impact on this
industry in the South East, let alone globally. There are however,
other opportunities that would allow the South East to have an
influence upon the aerospace sector. A prime example is the
possibility that the European Union Space Agency is looking to
place a European Space Centre facility within the Harwell science
park which would provide a global site for aerospace in the South
East; or even the case of the University of Surrey, which already
has a large economic impact on the sector due to its work with
the aerospace industry and will surpass any impact an aerospace-
centric Innovation Campus could have. Similar examples are
applicable to the other sectors omitted from this analysis, and are
further explained within the body of the report.
Some of the applications in the telecommunication industry can
either be considered as convergence or platform technologies.
Security technologies are an essential and crucial part of any
communication technology and are often considered as one of
the platform layers (OECD 2003). Due to the nature of security
technologies, when coupled or used with telecommunications, it
is rare that these technologies are developed into stand-alone
products. It is therefore obvious that security technology cannot
provide an optimal base for an Innovation Campus; however,
it must be kept in mind that any future strategy involving a
telecommunication based Innovation Campus will have to
integrate the security technology sector as part of the concept.
Currently, both the MediaTech and Assisted Living sectors, acting
as convergence technologies are on the cusp of becoming major
sectors within the South East, and to a greater extent the UK
and internationally. Both these burgeoning sectors would benefit
greatly from small focussed and tailored investment that an
Innovation Campus could provide. However, it must be noted that
both these sectors are structured differently and face separate
challenges in the near future. In light of this both technologies
should be examined separately in their own context with the
recommended potential location and capacity in place.
1.4.2 Location analysis
Our analysis of the South East flagged several sub-regions
with a strong presence and innovative capacity within the
telecommunication industry and its potential technological and
service applications. Through the analysis it was found that
the majority of these areas correlated strongly with the SEEDA
determined “Diamonds for Growth and Investment” areas within
the western part of the South East Region. The only exception
to this being the Surrey region. Due to their relatively weak
telecommunication industry and related technology sectors,
“Milton Keynes & Aylesbury Vale” and “Basingstoke” were not
analysed2.
The other western diamond that was not analysed was the
“Oxford/Central Oxfordshire” diamond, as this area is quite
polar in the context of the South East region as a whole. The
“Oxford/Central Oxfordshire” diamond does not only greatly
benefit from the presence of a world leading university, it also
reaps benefits from the newly redeveloped Harwell Innovation
Campus. This Harwell Innovation Campus has been developed
due to the RES and so too has the Sustainability Innovation
2
According to Zook the ICT sector concentrates around key metropolitan areas (Zook 2002).
2
Campus that will be located in the eastern diamond of “Thames
Gateway”. This Sustainability Innovation Campus will lead the
innovation driven economic regeneration for the region, and
act as an anchor for the further development. Due to the RES
based initiatives currently being located and explored in these
two regions, it would be unwise to locate an Innovation Campus
in telecommunication in this area as it would have less economic
impact on the region as a whole than if it was placed in other
areas within the South East. The remaining diamonds analysed
included Gatwick Area, Brighton & Hove, South Hampshire,
Reading and the non-diamond area Surrey.
To clarify the analysed sub-regions and their associated industry
strengths are outlined below:
• Gatwick Diamond (Transport, Aerospace)
• Reading (Communication, IT, Security & University of
Reading and Thames Valley University)
• Surrey (Communication, Aerospace & University of Surrey
and University College for the Creative Arts)
• South Hampshire (Communication, Aerospace & the
Universities of Southampton, Portsmouth, Southampton
Solent and Winchester)
• Sussex Coast (MediaTech, and the Universities of Brighton
and Sussex)
1.4.2.1 Gatwick Diamond
On analysis, the Gatwick Diamond is the only sub-region which
does not include a major Higher Education Institute. It is the
common belief that the proximity of an HEI is an essential
component of any Innovation Campus, particularly in a knowledge
intensive industry area such as telecommunications. Further
to this, an HEI presence greatly benefits telecommunications
applications such as MediaTech and Assisted Living.
There are possible plans in the pipeline to potentially develop a
new HEI in the Crawley area; however, whilst noted, timescales
deem this irrelevant for the life of the project. To elaborate, it
would be impossible for an HEI to be already established and
gain a strong enough reputation to attract corporates and SMEs
to the sub-region all within a two year period; the approximate
timeframe for the design and development of the Innovation
Campus. All in all, it creates unnecessary risk for the Innovation
Campus which already has several inherent risks involved in its
development.
It is strongly suggested that the Gatwick Diamond would benefit
greatly from the implementation of traditional sub-regional economic
development activities. This would involve the predominant activity
being to attract established companies who can take advantage of
the excellent infrastructure in the area, rather than an Innovation
Campus that is focussed on newer, emerging and more innovative
technologies and activities. In lieu of the absence of an HEI, the
Crawley Borough Council has identified the four primary sectors in
Crawley as: Airport Related Industries, Advanced Manufacturing,
Business Support and Hotels, Restaurants & Retail3 which supports
our analysis that the Gatwick Diamond is best suited preferably
for companies in more mature industries. The unsuitability of the
Gatwick Diamond as a site for the Innovation Campus was further
exemplified by comments made by several potential industry

stakeholders in regards to the sub-region, who generally felt
that the desired focus of the Innovation Campus (on emerging
technologies) would be misplaced in the Gatwick Diamond.
Taking into account the situation within the Gatwick Diamond, we
conclude that an Innovation Campus is the wrong sub-regional
development programme for the area, and would be far from
the optimum placement for the Innovation Campus, especially
when compared to other more suitable sub-regions.
1.4.2.2 Reading
At the other end of the spectrum, the Reading Diamond is
considered by most interviewed corporates as the strongest
sub-region for the telecommunication industry. On analysis,
this statement was verified, as it was found that the majority
of the telecommunication and IT corporations in the South
East were located in this sub-region. This is partly due
to a clustering effect; many SMEs and start-ups locate
themselves within the science parks and areas around these
corporations. However, it is our opinion that this diamond
should not be considered as one of the preferred sites, due to
the fact that the additional value or economic impact which
could be created through an Innovation Campus here is also
limited when compared to the other potential sites Surrey,
South Hampshire and South Sussex. This being said however,
it is imperative that the South East promotes the Reading
area and maintains its competitive advantage, especially in
attracting world leading companies around communications
and information technology. Clarification of this need to
maintain its advantage was seen through some interviews
carried out by Library House, as some industry leaders stated
that Manchester was beginning to develop a reputation as
the information and communication technology (ICT) centre
for the UK.
1.4.2.3 Sub-Regions: Surrey, South Hampshire implementation and development of its features (David 1991).
and South Sussex
From the elimination of Reading and Crawley as possible locations,
the three remaining locations include South Hampshire, Surrey
and the Sussex Coast. It is the belief that the placement of an
Innovation Campus in any one of these three areas would result
in a stronger economic impact than the dismissed areas, but
would also work well to promote regional development.
As previously stated, it is recommended through analysis that
MediaTech and Assisted living should be the sectors of focus
for the Innovation Campus as they would benefit most from
the crystallising effects of such an initiative. When taking into
account the technological needs for each of these sectors and
comparing them against strengths of the three sub-regions,
definitive cases can be made; namely for an Innovation Campus
with an exemplar model on the Assisted Living sector for
Hampshire and Surrey as joint regions; and an exemplar model
for the MediaTech sector in the Sussex Coast area.
However, prior to considerations of the location and focus of the
potential Innovation Campus, the underlying technologies for
Assisted Living and MediaTech must be analysed.
3
http://www.crawley.gov.uk/stellent/idcplg?IdcService=SS_GET_PAGE&ssDocName=INT009794
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1.4.3 Assisted Living
In this report the definition of Assisted Living is synonymous
with the areas of telemedicine and telehealth. This definition
allows Assisted Living to be considered as an application of the
telecommunications industry, whose focus is upon the provision
of pervasive information, monitoring and remote clinical services
rendered, whilst still remaining inline with the underlying
philosophy of Assisted Living.
At this point in time, the majority of pure Assisted Living
technologies have a low Technology Readiness Level (TRL)
probably around the TRL 1 or 2 and are predominantly centred on
observations and technology concepts. However, paradoxically
the technology that is required to provide the infrastructure and
building blocks are already in existence, and are in some cases
already in use on a consumer base level, suggesting a TRL of 6
and upwards. The main bottlenecks in the acceptance of Assisted
Living technologies are the unawareness of what is achievable
and the lack of communication standards/protocols and a
clear authority to govern the sector. Despite this, through the
qualitative assessment undertaken, it was made clear that there
is huge interest from all stakeholders from within universities,
industries and the public sector; however, there is no real way at
this point to identify, evaluate and match existing and potential
technologies, stakeholders and ideas. One of the key reasons
for this is due to the TRL at which the pure Assisted Living
technology is at, meaning its potential is embedded in visions,
theories and ideas. Importantly, until it can be showcased or
transformed into real applications, it will remain this way.
From this it is clear to see that the development of an Innovation
Campus based upon an Assisted Living exemplar model has a
higher level of risk, in comparison to traditional models. This
risk however also represents a real opportunity for the South
East to make a significant and important impact within the
sector on a global scale. It is a common feature of new general
purpose technologies that it takes a long period of time before
The ideal model for an Assisted Living Innovation Campus
is one what would be “research-based” with strong ties to
multiple HEIs and the relevant knowledge transfer programs/
networks. This will allow access to a stronger research base and
also promote an open learning and collaborative environment
between all stakeholders, while at the same time allow the
consolidation of multiple SEEDA initiatives. The model should
also allow access to a demonstrative environment, showcasing
the technologies and research, which in turn would also increase
the appeal and access to funding, be it research based, seed
or corporate funding, from both public and private sources.
Significantly, the newly established department for Assisted
Living in the Technology Strategy Board (TSB) expressed an
interest in becoming actively and financially involved with local
Regional Development Agencies in such a venture, especially if
the onus is on the industry.
1.4.4 MediaTech
MediaTech is seen as a direct convergence of the creative
industries and the communication industry, where the creative
industry aspects include web design, software development and
Innovation Campus in Communications Technologies and their Applications
multimedia. Whilst the pure technology behind Assisted Living is
considered relatively young the pure technology behind that of
MediaTech is relatively mature on the TRL scale; in fact on the
TRL scale, it is on par with the telecommunication technology
that provides both the platform for itself and Assisted Living.
Though the technological platform is identical to Assisted Living,
the majority of the MediaTech applications are generally in the
development stage, due to the relative enthusiasm for and ease
of collaboration and interaction between proponents of creative
knowledge and technology.
The ideal model for a MediaTech Innovation Campus is
one that would be focused on promoting and showcasing
developments in the sector. This means that key aspects of
the development process should be enhanced through the
campus with access to a relevant workforce; however, at the
same time the campus should allow the integration of people
with varying skillsets. This can be achieved through the
utilisation of local HEI students as interns, to access, promote
and infuse the innovative capacity in SMEs with fresh ideas
and recommendations. This practice will also provide a more
practical orientation to the HEI course.
What is seen to be one of the biggest problems within the
MediaTech sector is the lack of business acumen of individuals
employed within the sector. In order to rectify this, the model
should implement programmes to teach or develop relevant
skills for people working in SMEs. The use of professional
development programmes, or small courses and workshops run
by both the university and corporate stakeholders would have a
significant impact on the success of SMEs.
However, this model should not necessarily be SME centric,
and should provide an area for HEI research and initiatives to
be showcased, critiqued and added to by other stakeholders
to encourage the creation of a knowledge, skills and expertise
feedback loop that would feed on the pool of knowledge that
already exists in the area. Unlike other models, the ideal
MediaTech development based Innovation Campus requires that
its surroundings offer a higher quality of life than that available
elsewhere: the example of the attractiveness of Brighton and
the strength of the creative industries in that area is a case
in point. However, this model should also allow access to the
general public, media and other small and large corporations,
to a demonstrative environment, showcasing technological
developments in the MediaTech space.
1.4.5 Competitive landscape around
Assisted Living and MediaTech
Through supporting a new industry like Assisted Living, the South
East region can foster the creation of many new companies
commercialising interesting and important applications. It
also offers the opportunity for the South East to spearhead
developments in the Assisted Living sector; a current sector
focus of many government and corporate bodies due to the
inevitabilities of the economic and infrastructure strains on
the healthcare system posed by an aging population. As Bhidé
pointed out in 2006, innovation has to be demand led and the
best proven method is if it is led by government incentives4.
4
Bhidé, A., Venturesome Consumption, Innovation and Globalization (2006)
4
Through one of the qualitative assessments undertaken, it was
found that there were a number of corporates with technologies
and services associated with Assisted Living on their strategic
map. However it is not clear at what point in the future these
technologies and services could be fully commercialised as they
felt that there was no cohesive framework or that support for the
sector currently existed, and that there was not enough interest
in the sector to justify employment of a large amount of capital
and resources to Assisted Living applications at this time.
It is not possible to predict how the industry landscape will
develop around these technologies; however if a market-
ready application framework emerges from this research-based
Assisted Living Innovation Campus, there will be more factors
upon which conclusions on the future of the sector can be
drawn. Firstly it is known that UK is a strong base for world-
class research. Next it is clear that the UK also has a strong
track record in transforming this knowledge into start-ups and
spin-outs (Library House 2007).
However, it is also a fact that the UK has difficulty growing these
companies into larger companies with international relevance.
These two factors coupled with the fact that the majority of
corporates who are interested in Assisted Living are primarily
non-UK based companies, is a point for concern. Although there
is a certain risk associated with the sector, the South East has an
opportunity that if done correctly, could become the innovation-
hub for Assisted Living. However it is also a growing concern
that locally developed innovations can be acquired by global
players that could cause the South East to loose out in terms
of job creation and the ability to benefit from this burgeoning
industry. This is an important consideration that needs to
be taken into account in composing further strategies for an
Innovation Campus.
The sector of MediaTech in the UK has what is considered to be
one of the strongest industry bases, predominantly due to the
governments’ large emphasis on the Creative Industry and its
related creative economy. The MediaTech sector also experiences
a lot of merger and acquisition (M&A) activity from corporates
in very niche areas, which is good for both the acquiring party
and the one being acquired. However, this sector’s fragmented
landscape makes it difficult for companies in the region to
create significant “buzz’’ and develop into truly world beating
organisations.
1.5 Where Technology meets the right
place
1.5.1 MediaTech Innovation Campus on the
Sussex Coast
Besides London, Brighton is regarded as one the most attractive
areas for MediaTech companies to reside. From qualitative
interviews, we found that when compared to London or
Cambridge, Brighton is the preferred location for employees
from MediaTech companies. All companies contacted proved
to be very positive when asked about Brighton in general, and
would be willing to contribute, participate and support, in one
or way or the other an Innovation Campus based there. Strong
support was received from the University of Brighton and the

Brighton City Council when discussing both financial and possible
location sites; dependant upon if an Innovation Campus was to
be situated within the Sussex coast area.
Overall the combination of a strong knowledge base, the local
support and the attractiveness and liveability of the region is
probably the strongest case for an Innovation Campus.
1.5.2 Assisted Living in the Hampshire/Surrey As with the majority of successful national/international operating
region
As stated previously, an Innovation Campus has the ability to
be flexible in its shape, form and physicality. This holds true for
the case of an Assisted Living Innovation Campus in the Surrey-
Hampshire sub-region. Through the qualitative and quantitative
analysis of the region, the Surrey-Hampshire area was flagged
as an area that was known for its history in collaborative and
knowledge transfer activities. Additionally, in recent years, it has
seen multiple Assisted Living-centric projects originating from
the sub-region from the region, with particular concentration on
the Portsmouth area. Furthermore, the universities in this area
have a strong reputation in the development of hardware in
relation to the telecommunication industry for both the private
and public sector. The research-based Innovation Campus model
would fit perfectly and complement the already strong research
environment within this area.
The final decision on the location of the Innovation Campus will
be dependent on the following three factors:
Firstly the area that would potentially have the greatest economic
impact overall; however the area of impact must align with the
RES and its diamonds for growth regions. This makes Surrey a
particularly interesting case as it is not situated in a diamond
zone.
Secondly the outcome of the DTZ report on an Innovation Campus
in Healthcare has not yet been made available, and it is assumed
that the recommendations will have impact upon the healthcare
sector in the western parts of the South East, which would in turn
affect the case of Assisted Living within the South East.
The final factor is based upon the results from the tendering
process recommendation. This will allow the evaluation of the
universities and councils motivation to contribute to the proposed
Innovation Campus.
1.6 Governance model
The majority of highly successful models analysed were mainly
funded through public support. However the case of the MIT
Media Lab in Boston is an exemplar case of a perfect location
(Johansson et al. 2006) creating a successful campus despite
funding origins. Many attempts at copying this model have
been made though none of them has been as successful. A
prime example of this is the failed Media Lab in Dublin. This
was a clone of the original MIT lab and it was funded by the
Irish government with €35m and by private partners for €8m.
However, after a relatively short period of time, the lab closed
its doors due to the lack of corporate buy-in. This highlights
one of the challenges associated with undertaking a project of
this nature.
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Despite the great enthusiasm for an Innovation Campus focussing
on the MediaTech and Assisted Living sectors, the qualitative
interviews with senior corporate management were not able
to give a cohesive or authoritative comment or guarantee
sponsorship of such a project. This was to be expected due
to an inherent risk that a sector focussed, publicly funded and
industry led Innovation Campus might not be immediately
supported by the private sector.
public funded initiatives, it is expected that it should follow a
minimum tapered finance term for two to five years.
1.7 Preliminary funding structure
Due to the constraints of the initial investment by SEEDA, a
tiered approach to the funding will need to be developed to
maximise use of funds while still maintaining its alignment with
the RES in creating the largest possible economical impact. If the
recommendations are accepted, the initial interchangeable steps
needed, will be to firstly create a world class management team
to manage the project, then to approach possible stakeholders
and branding. The second step would be to allow those regional
areas identified to tender and make their case. These initial
steps are seen not to be capital intensive and would allow a
re-evaluation of the budgetary status of SEEDA, based on the
chosen tender. If the ceiling amount for the budget is still within
the range of £4m to £5m, it is obvious that a new build site
would be out of the question, and it would be on the willingness
of the areas tendered to donate a site, or for major investment
by national or international bodies. The continued investment
by SEEDA is expected to last for up to five years dependant on
project milestones; this will allow the continual appraisal and
management of the project to be maintained.
Due to the focus of the Innovation Campus, it may be possible
to source funding from public sources which would support its
sustainability. As Assisted Living focuses on societal change and
is set up as an innovation platform created by the Technology
Strategy Board (TSB), there will be a strong case for funding by
the TSB on projects within the Innovation Campus. Likewise,
in regards to MediaTech, it is considered to be an area of the
Creative Industries and it is therefore of technological interest
to the TSB. Also depending on the model chosen, there could
also be funding allocated to campus projects and activities
from numerous other public bodies, including the Research
Councils and the Higher Education Funding Council for England
(HEFCE).
1.8 Layout of the Innovation Campus
1.8.1 Basic requirements
The basic assumption for the location for an Innovation Campus
has to reflect and support the already existing capacity of the
region and needs to be aligned with the ultimate goal of the
said campus; this assumption was made clear through the early
stages of analysis and interviews with industry experts.
All versions of an Innovation Campus will require conference
and training facilities. This holds true especially in the healthcare
sector which will be an essential part of an Assisted Living
Innovation Campus in Communications Technologies and their Applications
Innovation Campus. This training can either take the form of
university courses or as continuing professional development
programmes. Training within the MediaTech industry is also
lacking and would have to be provided within the same forum. In
general, it has to be ensured that these courses are organised in
cooperation with relevant association and professional bodies.
The Innovation Campus will have to provide platforms that bring
together researchers, businesses and users. These will be used
to identify best practices, develop innovative concepts and new
products and services that are required to ensure the success of
their associated technologies. Additionally they will provide help
through a number of methods, including assistance in finding
funding and supporting them with advice and guidance. Example
topics could include IP protection, business development and
strategy and management skills.
All new technologies, especially within the Assisted Living sector
will benefit from research support from the social, economic and
management sciences to better understand the societal and
economic impact of the new technologies. This will provide the
platform for the management of the companies to show the
market potential, new business models and innovative ways to
market the products and services they are producing.
The possibility of co-ordination with other initiatives within the
South East should be taken into account; an example of this
is the eco-village initiative - one of which is located in Bordon-
Whitehall - which should be considered as it will create synergies
with the programmes under the Innovation Action Plan. The
reasoning behind the alignment of interests with the eco-village
is due to the fact that the eco-village can be used to showcase
technologies related to Assisted Living and MediaTech, hence
providing a real life, large scale test-bed. However, any co-
ordination has to firstly fulfil the other primary needs and should
be seen only as a secondary activity.
1.8.2 Assisted Living
There are a number of ideal features that would not only
complement an Assisted Living focused Innovation Campus, but
would also enhance the overall appeal to all possible stakeholders
including corporates, universities, SMEs and the general public. On
an aesthetic level, the facility must be seen to be at the pinnacle of
design for such a facility, with both interior and exterior accentuating
the themes associated with Assisted Living solutions.
Accessibility to the building and its possible levels should be
of the highest standards to further support the campus’s focus
on the Assisted Living and the practicalities and potential
efficiencies and benefits of applying this to real life situations.
Additionally, this will allow easy access to the technologies
created or demonstrated on the campus for the general public.
The public opinion of Assisted Living technologies will play a
particularly important role in the acceptance of new products
and services in the sector. Additionally GPs, medical staff and
care workers should also be considered key stakeholders in
the project, as they will be the individuals who will ultimately
be using the resulting technologies and services produced and
showcased at such a facility.
In order for the campus to attract corporations, researchers and
SMEs, the facility must offer the latest technology considered
6
to be the driving force behind the industry. These technologies
include current sensor technologies, wired and wireless
broadband technologies, tracking technologies, short range
wireless protocols. The Innovation Campus must also allow or
encourage access to new “invisible” protocols and standards
which may not currently be in high demand or in reach of the
general populace. This will allow for all parties to test and gauge
their ability to interact, complement or enhance each others
technologies.
It has been expressed by many corporations that a real life
demonstration area would be essential in a campus such as
the one proposed. This should allow for all groups interested
in Assisted Living, including SMEs, large corporates, the
general public and potential clients to see the technology in
a real life setting. In order to achieve this, the demonstration
area should not only be confined to a small simulated area
– i.e. mock home/hospital facility, but should be integrated
throughout the entire complex. This would encourage visitors
to take part in a real life demonstration and experience it
first hand. On an ideal campus, it is not just necessary to
showcase the industry but it is also essential to allow and
promote collaboration and experimentation from all interested
parties.
1.8.3 MediaTech
In order to design and administer a MediaTech-centric Innovation
Campus that has a wide appeal to stakeholders, universities and
local communities, there are a number of key criteria Library
House feels must be met.
The physical layout of the Innovation Campus would ideally be
made up of one building, or a group of buildings clustered very
close together to prevent fragmentation. The site must also be
in close proximity to the town the MediaTech campus is linked
to, allowing a real sense of the partnership with the town’s core
MediaTech community. For a truly regional campus to succeed
the location must also have strong infrastructure to the rest of
the region, allowing easy access to all interested parties. This is
vitally important as without it a truly regional campus may not
succeed.
The external aesthetics of the site, as well as the facilities
and equipment provided, must be flexible and adaptable to
cutting edge and emerging technologies, as well as providing
all currently adopted technology within industry and consumer
markets. It must also be highly adaptable and can easily be
integrated to any new technology that could be result from the
growth of the sector, one example includes WiMAX.
The aim of the campus should be to provide a site to act as a
creative centre point for the region. In order for this to succeed
the physical location should provide an area for companies to
showcase their technology to potential clients, industry peers as
well as the general public; this would require the latest in audio
and visual hardware and software. Ideally the site should provide
conference facilities for meetings, networking and mail boxes,
allowing small start up companies within the region to have an
active physical address within which to base their headquarters
or regional office, much like the St John’s Innovation Centre
(http://www.stjohns.co.uk) in Cambridge.
 Innovation Campus in communications and its applications

The site must also provide a strong virtual infrastructure, allowing able to monitor their dependants remotely. These dependants
the development of an online campus, working in synergy will be able to call for help, or may be monitored constantly so
with the physical site to provide an international gateway to that emergency services are able to act even without a call.
the MediaTech sector within the South East. The online aspect
may also provide a virtual community enabling booking for The interviewees widely regard the UK as the leading European
the facilities, viewing future events and a forum where people country in Assisted Living technologies. This strength, coupled
can meet and discuss the MediaTech sector, encouraging open with an already excellent international reputation in the field of
innovation among outside parties and those directly involved in MediaTech, gives the South East a unique opportunity whereby
the campus itself. it can become a leader of research and development in these
mutually complementing sectors. There are already a number of
cases in which companies that began in the telecommunication
1.9 Convergence of Assisted Living hardware sector have gone on to develop MediaTech applications,
products and solutions, allowing more complete interaction with
and MediaTech their systems by end users. Furthermore, a number of these
The natural progression of any technology is such that it tends companies are shifting their strategies towards the Assisted
to become more innovative and integrated as it becomes more Living sector. Not only should these systems be showcased and
commonplace within society (Brynjolfsson and Kahin 2000). This demonstrated, but they should also be allowed an arena to
progression has been clearly been evinced by the developments promote conceptualisation and collaboration, akin to the MARS
within the telecommunications industry over the last 20 years Toronto model detailed within the report.
(Collis et al. 1997). In that time, the industry has moved from
landlines, to cordless phones, to basic mobile phones, and to
the latest smart-phone iteration, iPhones and all. At the cutting 1.10 Location
edge, a phone is no longer just a device used for making calls;
it has become a convergence platform for all aspects of media,
design and communication. Apple’s iPhone is a fine example of Industry Region Location
this type of converged device. Assisted Living South Hampshire/ Southampton
Surrey
However, the convergence within the telecommunication MediaTech Sussex Coast Brighton
industry is not just exemplified by these devices. Over the past
few decades, as telecommunication technologies have became Convergence Sussex Coast Brighton
more accessible, innovation and convergence have progressed (AssistedLiving &
rampantly. Arguably, the most significant offshoot was the MediaTech)
internet, which has had an immeasurable impact on modern
civilisation, and which has paved the way for the successes of Table 1: Recommended locations and respective industry focus
the MediaTech sector.
The recommended locations and their respective industry of
Another important, although less obvious combination is that
focus for the Innovation Campus are outlined in Table 1. The
of the transportation and telecommunication industries, a
reasoning behind these recommendations is based on the results
convergence which has led to such technologies as telematics,
of the analysis carried out within this report.
GPS and intelligent transportation systems. When these devices
are combined with another level of telecom solutions, yet more
powerful tools may be created such the ability to monitor Location Public HEIs Corporate
Local
traffic flows, in various locations, and to remotely control the Interest
traffic lights in order to meet identified needs. In reality, the Brighton ++ + ++ ++
convergence of applications within the telecommunications
Crawley -- -- o o
industry has led to many high impact innovations.
South o ++ ++ o
MediaTech and Assisted Living can be thought of as convergence Hampshire
applications on the telecommunications platform; both these Surrey ++ ++ o o
sectors are conglomerates of telecommunication applications,
both are, in some cases, subsets of each other, and both have the Table 2: Results and interest shown through studies
potential to create great impact on a domestic and international
scale. The two sectors require the same level of telecommunication
technology, coupled with a strong security platform (Johansson In order to express the logic behind the selection of the locations
et al. 2006). Additionally, each sector derives a great deal of in Table 1, Table 2 outlines the results and also the interest
value from both design and media. An example of this type of garnered from particular stakeholders in their respective sub-
convergence is the new system designed by Acis, incorporated regions. When discussing “Public Reputation”, it is the overall
into the Thames Gateway regeneration in Kent. perceived quality of life and branding of the area that comes
into scrutiny. The area of “HEI Reputation” is based both on
In the Acis system, design, technology and media help individuals quantitative and qualitative analysis, and represents the
to monitor their bus times, traffic issues, and even real-time reputation and the performance of the HEIs. The “Corporate
reports from the police. In future it will be possible for this sort Impression” reflects the views of senior corporate members and
of system to become more pervasive, so that the users will be their perception of the area, as well as their view for the need

7 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

and the impact an Innovation Campus would have on the • The Innovation Campus requires a physical presence which fulfils
sub-region. The final point is “Local Interest”, which directly representative requirements, and a virtual component which
correlates to the amount of interest shown by possible integrates regional, national and international stakeholder needs to
stakeholders within the area, including HEIs, local government communicate on all levels (Nijkamp and Salomon 1998).
and corporations. • The initial funding from SEEDA should be mainly used to
finance a high calibre team and for equipment that cannot be
As can be seen Brighton has the more positive set of results, sourced from industry contributions.
with the only perceived issue being that of the region’s HEI
reputation. In regards to South Hampshire, it has a strong • It is key to integrate leading experts and champions into the
HEI reputation and corporate impression, however lacks both next steps. Experience from other initiatives shows that excellent
a positive public reputation and interested parties. project management teams and interest from industry champions
would dramatically increase the overall success of this project.
It must be noted, that it is strongly recommended that the locations • Once the decision to proceed has be finalised, the SEEDA has to
sited in Table 1 and Table 2 be asked to tender to SEEDA. This will signal a long term commitment by securing high calibre staff and
ascertain if the interest and commitment that each of the possible transforming temporary opportunities into permanent successes.
stakeholders in this region is enough to warrant large investment
• Provision of funding over the first five years will need to be
of an Innovation Campus in the region. committed by a public sector body - as any contribution - especially
from industry is purely speculative. This will also create an outreach
and impact far beyond an industry-led initiative.
1.11 Recommendations
• The planned innovation teams should be located on the
• Invite the recommended sub-regions to tender a further Innovation Campuses
investigation into Innovation Campuses for Assisted Living
and MediaTech sectors. We believe that an Innovation • The South East has to lobby for Innovation Campuses nationally
and internationally. This prevents any negative impact, for
Campus can combine both tangible and intangible assets to
example a degrading business framework for businesses which
establish a base for a successful regional economic strategy
results in the migration of companies.
(Polenske 2001).
• The South East should also make sure that the Innovation
• Further investigation of location should be determined on
Campuses can develop as international centres of excellence.
a competitive basis. Though there is strong interest from
various stakeholders, this process should be undertaken to • To ensure the sustainability of the Innovation Campuses, a global
mitigate any risk and ensure additional financial commitment focus should be the objective, aligning itself with the RES.
– mainly in the form of funding and a physical location for • Exploration of next steps towards a convergence orientated
the campus. Assisted Living and MediaTech site
• Integration of existing and future programmes under
the Innovation Action Plan to provide a more focussed 1.12 Next steps
approach, for example through combining the skills of the • Invite the shortlisted sub- regions to tender to determine
existing Knowledge Networks5 and Enterprise Hubs6 with the local councils’ and HEIs’ interest in contributing to the
the Innovation Campuses and the Innovation Teams7, development of Innovation Campuses.
to create a larger scale of impact and avoid redundant
initiatives. • Hiring world-class teams to evaluate the future opportunities
involving Assisted Living and MediaTech.
• Co-operation between other initiatives and businesses
within the South East such as the eco-villages Bordon- • Consultation process to communicate the plans, integrate
Whitehall, to create synergies with the programmes under feedback and align the agendas of different stakeholders to
ensure an inclusive and cohesive working process.
the Innovation Action Plan. The eco-village might provide
a platform to showcase technologies related to Assisted • Talking to other relevant stakeholders (Governmental
Living and MediaTech. However, any location has to fulfil organisations, Regional Development Agencies and Associations)
the requirements laid out in the section, “Layout of the to ensure their participation, encouraging them to line up their
Innovation Campus”. activities and reduce redundant developments.
• Ensuring that Innovation Campuses are aligned with national • Identifying existing and future initiatives within the South East
initiatives like the Treasury’s Science Cities, Department for which can be combined with the Innovation Campuses.
Health Invention for Innovation and Technology Strategy • Evaluating the appropriate physical locations according to the
Board initiatives. main requirements (representation, conference facilities, lab &
• The Innovation Campuses, though focussed on the Assisted testing space, accessibility).
Living and MediaTech sectors, should remain open to all • Understanding the international perspectives on Assisted Living
applications of the telecommunications industry. and MediaTech.

5
http://www.southeastknp.co.uk/Networks/Networks
6
http://www.enterprisehubnetwork.co.uk/
7
http://www.seeda.co.uk/publications/Business_&_International/docs/SEEDAPlaceBasedConsultationPaper.pdf

8

Part B: Analysis
2 Project background
Higher Education South East (HESE) in collaboration with both the
South East Science, Engineering and Technology Advisory Council
(SESETAC) and the South East England Development Agency (SEEDA)
has commissioned Library House to report as an independent body
on the placement of a new Innovation Campus within the South
East region. The key objective of this report is to identify the possible
focus and locations for a campus.
In order to do this an understanding of the drivers behind a
successful Innovation Campus, and how an Innovation Campus
would affect not only the region, but also the overall economy
needed to be achieved. Multiple aspects of the South East landscape
were analysed to give a complete picture, with focus on the impact
of the Higher Education Institutions and companies within this
area; a strong understanding of the communication sector and the
applications of this platform technology were vital to help create a
focus for the report.
2.1 Reasons behind feasibility study
This report has been commissioned to develop an understanding
of the constraints and opportunities in building a sustainable and
successful Innovation Campus with strong links into the local and
national economy and research base. The study will also analyse
potential location cases and their possible impact, both across the
region and beyond due to their spatial transformational properties.
All these aspects coincide with the 2006 Regional Economic Strategy
implementation plan.
2.2 Regional Economic Strategy
2006-2016
In 2006, SEEDA released a paper entitled the Regional Economic
Strategy 2006-2016 (RES). This paper stated that though the South
East was considered a world class region in terms of economies;
however, it was seen that the biggest challenge for the South East
was continued prosperity in face of global competition. The key
aspect of this plan is the need for the South East to achieve world
class sustainable prosperity.
As part of this plan a number of actions and priorities were identified.
The ones that are pertinent to this feasibility study include the aim
to develop Science and Innovation campuses with world class
research facilities; to create a regional infrastructure fund which
will finance development within Growth Areas and Growth Points,
which are inclusive of the Diamonds for Investment and Growth.
As part of the aim for global competitiveness, four areas were
identified that would aid the South East. These four areas include:
• Targeting inward investment and supporting strategically
important companies
• Developing and internationalising innovative companies
• Strengthening the region’s global gateways and innovation
infrastructure
• Achieving a double dividend of growth and sustainability
through innovation and creativity.
9 w w w. l i b r a r y h o u s e . n e t
Project background
In addition to the aforementioned actions, it was decided that
within the South East’s economic strategy, there should be
focus on the Culture and Creative Industries and Information
and Communications Technologies. This would be achieved
through “Smart Growth”, by increasing business support and
raising productivity through smart use of knowledge and skills.
The aims of the RES for the Culture and Creative Industries by
2016 include:
• Greater enterprise with increased take-up of market
opportunities locally, regionally, nationally and
internationally
• Improve leadership and management skills across the
sector, including small minority interest groups.
• Engendering the Culture and Creative Industries as economic
and social catalysts in place making, both in existing areas
of growth and areas that are currently under-performing
• Increased opportunities arising from 2012 exploited to
ensure a legacy for Culture and Creative Industries
• A stronger evidence base supporting investment decisions
as part of a strategic framework for cultural opportunity in
the region
• Development and success of the creative industries with
links to the tourist economy localised especially within the
Coastal South East.
In regards to the ICT (Information and Communications Technology)
industry, by 2016, the RES aims to have the ICT industry:
• Helping businesses, particularly SMEs (Small Medium
Enterprises), to make use of ICT in driving process changes
which will contribute to GVA (Gross Value Added) and
productivity increases
• Contributing to Smart Growth and Sustainable Prosperity
by significantly increasing the number of people able to
telework
• Focusing on those people facing multiple barriers to digital
inclusion as a way of tackling concentrations of economic
exclusion (it is estimated that 90% of new jobs require ICT
skills and digital inclusion projects have been shown to lead
to economic inclusion, because they address confidence
and interpersonal issues as well as ICT skills)
• Addressing the ICT skills base through mainstream skills
programmes focusing on strategic, managerial understanding
of business benefit as much as technical skills
As part of the RES, a number of areas were identified as areas
of growth. Additionally, it was also realised that the South East
could not be seen as just an independent region and should be
seen as part of the Greater South East, with particular focus upon
the Thames Gateway. Another area of interest for the RES was
the Oxford to Cambridge Arc inclusive of the Golden Triangle.
It was seen as part of the plan to enhance and develop local
and global networks for technology transfer, aid in the support
and growth of innovative businesses within this area, develop
technology platforms and deliver Innovation Campuses tailored
for the region’s needs and capabilities.
In addition to these two areas, another three areas were
identified as potential growth areas/points/diamonds. These
areas include:
Innovation Campus in Communications Technologies and their Applications
• The Gatwick Diamond
• Milton Keynes and Aylesbury
• Urban South Hampshire.
It is believed that the RES will be the key plan that will allow
the support of sustainable economic growth in each of these
economic areas.
As previously mentioned and in extension all the plans outlined
in the RES, it was observed by SESETAC that the South East
has a need for four major Science and Innovation Campuses
which should be developed by 2011. Furthermore, SESETAC
posits that regardless of the physical location of the campuses,
they should have regional impact and strong ties with both
businesses and top-rated academic institutions. The objectives
hoped to be achieved by the campuses – as set out by SESETAC
– include the development and increase of growth of business
opportunities through boosting collaboration; promotion
of three priority sectors/industries/emerging technologies,
including sustainable systems, healthcare technologies and the
communications industry; and finally, leveraging private and
public sector investment into science and technology to facilitate
the achievement of the RES’s targets.
To date the first two campuses are to be located at Harwell
Chilton within the Golden Triangle/Oxford Cambridge arc and at
Ebbsfleet Valley in the Thames Gateway region.
This feasibility study will look at the other possible locations.
2.3 Perceived benefits behind
Innovation Campus Development
The are many perceived benefits of the creation of Innovation
Campuses, however the primary benefit that is expected from
this Innovation Campus is that of regional regeneration and/or
exploitation of existing strengths within the South East innovation
landscape. Note however that the benefits extended by any
Innovation Campus are dependant on the model and focus of the
campus; therefore, this report focuses on these areas and develops
possible cases to ensure the benefits are attained.
2.4 Defining an Innovation Campus
The concept of an “Innovation Campus” is essentially one locale
that encompasses, grows and initiates all stages of innovation.
An essential aspect it should incorporate is a model of business
incubation which will directly influence the success rate of early
stage companies and speed the growth of companies which have
the potential to become substantial generators of employment
and wealth. However, like a science park model it should also
be an area for more advanced business support and knowledge
transfer initiatives; it should be proactive in the support and the
growing of all facets of the innovation landscape from start ups
to large corporations.
Furthermore the Innovation Campus should not only contain the
aforementioned facilities but also enhance the experience of the
tenants with research, demonstration and training facilities.
10
3 South East England: Overview
The South East region is the most populous of all the English
regions. Its boundaries range from Milton Keynes in the north to
the New Forest and Isle of Wight in the south, to Dover in the
East. Four of its counties sit next to London, including Berkshire,
Buckinghamshire, Kent and Surrey. Not only is the South East
considered to have one of the lowest unemployment rates in
comparison to other regions (Office for National Statistics (ONS),
April 2008), but it also has the highest economic activity rates
and is thus considered as one of the most successful regions in
England. As the South East contains over 20 universities and
numerous further education colleges with a throughput up to
74,000 new graduates per annum, the South East is renowned
for a concentration of skilled and specialist workers.
In the 2004/05 tax year, the South East contributed over £11bn
to the National Exchequer, which equates to 50% of the total
net take (National Audit Office Nov. 2006). The annual growth
rate of the region in 2007 was estimated to be at 3.3% which
is 20 per cent higher than the UK average (Experian Business
Strategies 2007), with a GVA figure of £166.3bn (ONS 2006).
Map 1: Overview of the South East of England
There are over 729,500 enterprises that operate within the
South East region, with approximately 307,000 registered for
VAT (SEEDA, 2008).
Additionally, the region has the third highest TEA (Total Early-
stage Entrepreneurial Activity) Index after London and the
South West according to the GEM UK 2007 Report (May 2008).
This has been a significant factor in the resulting number
of patents for high-technology companies, as in 2006-2007
the South East was granted 428 patents making it the most
active region in the UK with regards to patenting (Intellectual
Property Office Annual Report 2007). Furthermore, the region
also has the second highest number of venture capital backed
companies after London, 301 compared to 447 (Library
House, 2008).
 South East England: Overview

3.1.1 South East “liveability” Halifax Top 300 Quality of Life Survey 2007
According to the 2008 regional snapshot (SEEDA, 2008), the Rank Local Authority Region
South East has the largest proportion of the UK’s population, 1 Wokingham South East
with over 8.2 million people, or 13.6% of the UK’s people living 2 South Bucks South East
there. This gives a population density of 432 people per km2. 3 Chiltern South East
The population in the South East is also growing substantially, 4 Surrey Heath South East
highlighted by the fact that it increased in the time period from
5 Hart South East
1981 to 2006, the total population change is calculated to be at
13.2%. (ONS) 6 Elmbridge South East
7 Waverley South East
As with any area that is deemed by the general population to 8 Tandridge South East
have a high level of “liveability”, one would expect to see a 9 Wycombe South East
large numbers of inter-regional movements. This holds true 10 West Berkshire South East
with the South East, as it has the highest number of annual
11 South Cambridgeshire East of England
inter-regional inflow movement in comparison to the other
regions, with a total annual inflow movement of 220,000 12 St Albans East of England
individuals into the region, nearly one and a quarter times 13 Rutland East Midlands
greater than London’s 160,000 inflow individuals - the next 14 Mid Suffolk East of England
closest region. 15 East Hertfordshire East of England
16 Mole Valley South East
A significant factor to consider for region’s future economic
17 Uttlesford East of England
and social development is that the South East has an aging
population; 19.3% of people living in the South East are 18 Vale of White Horse South East
pensioner age or older, compared to the national average 19 Horsham South East
of 18.7%. There are also slightly fewer under fives than the 20 Guildford South East
national average, with 5.7% of the South East population 21 West Oxfordshire South East
under five compared to the national average of 5.8%. The 22 Mid Sussex South East
standardised mortality ratio (UK=100), taking account of the
23 Aylesbury Vale South East
age structure of the population is 91.
24 Blaby East Midlands
Despite the fact that the South East has a large concentration of 25 Winchester South East
wealth when doing a comparative income and GDP, the regions 26 Windsor and Maidenhead South East
cost of living adjusted earnings are the lowest in the UK. 27 Bracknell Forest South East
28 Three Rivers East of England
To further illustrate the liveability of the South East, in
29 Fareham South East
October 2007, Halifax compiled a listing of 300 locales within
the United Kingdom that they believed had the greatest 30 Sevenoaks South East
quality of life 8. Halifax determined the ranking by using 31 Woking South East
key indicators based upon data from the ONS, Department 32 Dacorum East of England
for Environment, Food and Rural Affairs (DEFRA), the Met 33 Babergh East of England
Office, the Department for Transport, local authorities 34 Mid Bedfordshire East of England
and from the Halifax house price database. Once this
35 Chelmsford East of England
information was collated, a ranking was determined. From
the list of 300, the top 10 locations were all situated within 36 South Norfolk East of England
the South East and 28 of the top 50 locations were located 37 Test Valley South East
within in the South East (Source: Halifax). 38 Suffolk Coastal East of England
39 East Dorset South West
40 Epsom and Ewell South East
41 Bromsgrove West Midlands
42 Rochford East of England
43 Huntingdonshire East of England
44 Brentwood East of England
45 North Wiltshire South West
46 East Hampshire South East
47 Harborough East Midlands
48 South Oxfordshire South East
49 Basingstoke and Deane South East
50 South Northamptonshire East Midlands

Table 3: Top 50 of the Halifax Top 300 “Quality of Life” locations

(Source: Halifax)

8
http://www.hbosplc.com/media/pressreleases/articles/halifax/2007-10-17-Residentso.asp?section=Halifax

11 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

Map 2: Location of top 50 locations in the United Kingdom (Source: Halifax)

Motorways and trunk roads 1,2

Local roads3
New
New construction/
Current
construction/ improvement Public
maintenance Expenditure Revenue Expenditure
improvement Total for highways lighting
including routine per 1,000 expenditure Total per 1,000
and lighting, road and routine
and winter kilometres on road safety kilometres
structural safety and maintenance4
maintenance4
maintenance structural
maintenance
North East 26.1 17.6 43.7 88.2 148.9 75.8 10.7 235.4 15.2
North West 157.6 59.6 217.2 148.3 359.6 187.5 26.8 573.9 16.4
Yorkshire and 65.8 15.5 81.3 75.1 266.9 136.3 13.6 416.8 13.8
The Humber

East Midlands 175.8 62.8 238.6 168.3 252.8 104.2 14.0 371.0 12.8
West 226.0 76.4 302.4 238.3 263.3 133.4 14.1 410.8 13.2
Midlands

East 164.0 55.5 219.5 156.4 364.0 148.8 17.6 530.4 14.0
London 19.7 2.3 22.0 57.2 428.0 291.5 282.4 1,001.9 71.4
South East 253.7 91.5 345.2 228.7 377.9 195.4 26.7 600.0 13.3
South West 188.0 76.3 264.3 199.4 311.9 131.1 13.8 456.8 9.5

England 1,276.7 457.5 1,734.2 167.5 2,773.2 1,404.2 419.7 4,597.1 16.1

Wales5 90.0 33.4 123.4 .. 219.7 99.4 32.9 351.9 ..

1 Expenditure on motorway and trunk roads excludes expenditure under Design, Build, Finance & Operate (DBFO) schemes.

2 Figures are now collected on a resource accounting basis and cannot be compared with data prior to 2001/02. In particular, until 2001/02, associated
costs of investment (including depreciation and capital costs) were not included within these figures. Apportionment between the Government Office
Regions involves an estimation process.

3 Local Authority expenditure excludes car parks.

4 Includes expenditure on gritting and snow clearing.

5 In Wales, the total figure for local roads includes construction and improvement capital figures and revenue figures which are on an accruals basis. The
revenue expenditure for local roads is on a net current basis, which is the expenditure excluding that financed by sales fees and charges but including
that financed by specific government grants.

Table 4: Public expenditure on roads, 2005/06

(Source: Department for Transport; Welsh Assembly Government)

12
 Infrastructure

3.1.2 Infrastructure on improvement and maintenance of local roads is on

average higher than all regions within England except for
The South East region has a well established and diverse London.
transportation infrastructure. Transport links are strong not only
to regional and national destinations, but also to Europe and the
The importance of a well maintained road infrastructure system
rest of the world. The South East’s infrastructure backbone is
can be seen from the figure below (Table 5). The economy of
centred on its road system, with 12 major motorways and over
the local region relies heavily upon the road system as it is
a hundred motorway junctions.
the primary method of transport for people travelling to and
from work; 73.4% choose to travel by car over other forms of
According to Department for Transport data (Table 4) the South transport.
East invests the most of any region on construction of new
motorways and trunk roads and structural improvements
Equally the region has strong alternate transport infrastructures
to strengthen its infrastructure further. This is reiterated
in place providing rail, air and sea infrastructure locally, regionally,
with the South East’s total expenditure on major roads, the
nationally and internationally.
second highest region in England. The region’s expenditure

Usual method of travel to work1 by region of residence, fourth quarter 20062,3

Car, van, Motorbike,

Bus, coach, Other
minibus, moped, Bicycle Rail Foot Other5
private bus rail4
works van scooter

United Kingdom 70.6 0.8 2.7 7.7 4.3 2.5 10.5 0.8

North East 75.6 .. 1.5 8.7 1.1 1.3 10.5 1.0

North West 75.3 0.6 1.6 8.3 2.5 0.4 10.4 0.9
Yorkshire and The 72.7 0.9 2.8 9.2 2.1 .. 11.3 0.6
Humber

East Midlands 76.8 0.9 3.2 5.8 1.2 .. 11.3 0.6

West Midlands 77.1 1.0 2.1 7.5 1.9 .. 9.7 0.6

East 75.0 0.8 3.9 3.2 6.4 0.9 9.3 0.6

London 37.3 1.4 3.4 15.9 12.9 18.2 10.0 0.8
South East 73.4 1.1 3.4 4.2 6.3 .. 10.7 0.7
South West 76.5 1.0 3.9 4.5 1.4 .. 11.9 0.8

England 69.8 0.9 3.0 7.5 4.7 2.9 10.5 0.7

Wales 81.9 .. 1.1 4.5 1.1 .. 10.4 ..
Scotland 68.9 .. 1.2 12.2 4.0 .. 11.5 1.7
Northern Ireland 83.7 .. .. 4.7 .. .. 8.7 ..
1 Analysis excludes those on government schemes, those who work from home or in the same grounds or building as their home, and those
who work in different places using their home as a base. See Notes and Definitions for Labour Market also.
2 The Labour Force Survey (LFS) has moved to publishing data for calendar quarters. See Notes and Definitions for Labour Market.
3 For some regions and methods of travel, sample sizes are too small to provide a reliable estimate.
4 Underground, light railway and tram.
5 Includes taxi as main method.

Table 5: Method of travel to work

Source: Labour Force Survey, Office for National Statistics

13 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

3.1.2.1 Rail 3.1.2.2 Sea

The rail system like the roads has a well developed network
throughout the region. Intercity rail link services over seventy
stations which provides access to the entire South East region
and to the rest of the UK. The Eurostar provides rail access
to mainland Europe. The rail network is used by 6.3% of the
South East’s population to get to work which is 2 percentage
points higher than the national average and third to the East
and London.
There are 11 seaports located within the region a large proportion
of which service Europe. Of these Dover provides the largest
passenger seaport in the UK delivering over 58% of International
sea passenger to the continent. Southampton sea freight port
accounts for nearly fifty per cent of containerised trade with
the Far East, and handles 40.6 million tonnes of freight, second
only to Teesside and Hartlepool. On a related note, the Channel
Tunnel, also in Dover, provides an additional 26 million tonnes of
freight from the mainland and was responsible for carrying 16
million passengers from the continent to the UK.

Activity at major airports1

Thousands and thousand tonnes
2001 2006
Air passengers (thousands) Air passengers (thousands)
International International

Freight Freight
Non- handled Non- handled
Domestic Scheduled Total Domestic Scheduled Total
scheduled (thousands scheduled (thousands
tonnes) tonnes)

All UK Airports2 38,387 104,896 37,949 181,231 2,146 49,711 151,948 33,481 235,140 2,315

Newcastle 1,024 787 1,566 3,376 1 1,783 1,919 1,705 5,407 -

Manchester 2,824 6,606 9,653 19,083 106 3,522 10,085 8,516 22,123 149
Leeds/Bradford 441 445 638 1,524 2 632 1,720 435 2,787 -
Liverpool 706 1,331 214 2,251 23 884 3,798 280 4,962 6

Nottingham 331 436 1,613 2,380 195 673 2,524 1,524 4,721 272
East Midlands
Birmingham 1,168 3,676 2,868 7,712 12 1,523 4,944 2,589 9,056 15

Luton 1,756 3,380 1,404 6,540 23 1,540 7,128 747 9,415 18

Stansted 2,020 10,461 1,173 13,654 166 2,678 20,085 917 23,680 224
Heathrow 6,634 53,698 121 60,454 1,180 5,993 61,278 68 67,339 1,263
Gatwick 2,980 17,033 11,084 31,097 280 4,062 21,041 8,978 34,081 212
London City 455 1,163 1 1,619 - 620 1,737 2 2,359 -

Bristol 549 912 1,212 2,673 - 1,413 2,923 1,374 5,710 -

Southampton 618 188 50 856 - 1,293 601 19 1,913 -

Cardiff 113 393 1,018 1,524 1 365 696 932 1,993 2

Aberdeen 1,662 336 527 2,525 5 1,837 758 568 3,163 4

Edinburgh 4,259 1,350 429 6,038 16 5,863 2,458 285 8,606 36
Glasgow 3,829 1,358 2,056 7,243 6 4,575 2,286 1,959 8,820 6
Prestwick 631 454 147 1,232 43 570 1,667 158 2,395 29

Belfast City 1,188 1 3 1,192 1 2,054 45 7 2,106 1

Belfast 2,614 251 738 3,603 32 3,482 837 696 5,015 38
International

Other UK airports 2,585 637 1,434 4,655 54 4,349 3,417 1,722 9,487 39

1 Airports handling one million passengers or more in 2006. Passengers/freight are recorded at both airport of departure and arrival. Includes
British Government/armed forces on official business and travel to/from oil rigs.
2 Including airports handling fewer than one million passengers.

Table 6: Activity at major airports

(Source: Civil Aviation Authority)

14
 Regional innovative capacity

Distance travelled per person1 per year: by mode of transport, 2005 to 20062 (Miles)

Cars and Public transport

Pedal All modes of
Walk other private
cycle transport
road vehicles Bus Rail Taxi and other All public transport

Great Britain 199 38 5,891 288 534 221 1,044 7,171

North East 188 25 4,970 338 269 351 958 6,140

North West 215 35 5,630 303 360 144 808 6,687
Yorkshire and 203 36 6,086 294 393 181 867 7,192
The Humber

East Midlands 212 46 6,136 233 375 135 744 7,138

West Midlands 165 19 5,868 288 180 161 629 6,681

East 198 46 6,967 166 733 152 1,051 8,261

London 231 53 3,103 495 1,258 254 2,007 5,395
South East 187 45 7,034 171 715 226 1,112 8,378
South West 204 44 7,079 185 321 240 745 8,073

England 202 40 5,849 277 569 199 1,046 7,137

Wales 160 20 6,686 264 154 116 535 7,401
Scotland 191 23 5,846 407 412 497 1,316 7,376
1 Within Great Britain only. Figures relate to region of residence of the traveller and include trips undertaken outside this region. See Notes and
Definitions.
2 Data are averaged over a two year period. See Notes and Definitions.

Table 7: Travel intensity

(Source: National Travel Survey, Department for Transport)

3.1.2.3 Air 4 Regional innovative capacity

The South East also contains the UK’s two largest airports,
Heathrow and Gatwick. Together these act as the UK’s major hubs
for passengers and air freight. Heathrow is the busiest airport in
the world, serviced by 90 airlines to over 180 locations, making
the airspace over the South East also the busiest in the world.
The traffic attracted to the region by Heathrow and Gatwick
demands an efficient and well implemented infrastructure
enabling the 100 million passengers and 1.475 million tonnes of
freight to pass through the South East annually.
The South East plays a pivotal part in the UK economy acting
as the major hub for air and sea movement internationally. This
has required the South East to invest and improve its national
infrastructure in order to meet increased demand. The result is
a complex, well maintained infrastructure allowing easy access
to the region nationally and internationally.
The process of innovation-led economic development is a multi-
dimensional process which can be divided into differing sections
including, areas, capacity, knowledge base and innovation
outcomes. The areas, in this case, include Higher Education
Institutions (HEIs), companies and the public sector. Capacity
refers to the potential of the areas, that is, the number of students
or the size of the workforce, or the amount received or spent
on research. The knowledge base is in reference to the forms
of education, the number of publications or work experience
received. Innovation outcomes refer to what is produced
through the previous steps in the innovation chain. Measurable
outcomes include licensing and the creation of innovation-based
companies and spinouts from research conducted in either
a university or an existing company. In order to do a proper
location analysis, one must examine the state of activities that
fall under the variables outlined in the methodology section.
Studying the whole Regional Innovation process chain will help
to produce a more full account of the regional capacity of the
South East.

15 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

4.1 South East Innovation Landscape University

In the following sections, the report provides a detailed analysis Bournemouth University
of the innovation landscape in the areas: Buckinghamshire New University

• Higher Education Institutes Canterbury Christ Church University

• Companies The University of Winchester

• Public Sector Southampton Solent University

The University of Brighton
4.2 Landscape of Higher Education The University of Greenwich
Institutes Kingston University
The South East and to some extent the Greater South East is Oxford Brookes University
known for its concentration of high calibre Higher Education
The University of Portsmouth
Institutes. In this report, we define South East Higher Education
Institutes as only those that are commonly regarded as Thames Valley University
universities that have a funded research capacity and whose University of Chichester
data is available through public based resources (such as HESA,
HEFCE, the EPSRC, and STFC). HEIs can be seen as principle Brunel University
provider of input into any industry especially that of the ICT The University of Kent
industry (Johansson et al. 2006).
Royal Holloway, University of London
This section will examine the Higher Education South East The University of Oxford
Universities both individually and as a group relative to the
The University of Reading
whole of the UK. Subsequent sections will analyse the impact of
South East Universities compared to other regions as part of a The University of Southampton
location-based analysis. The University of Surrey

The focus of the analysis is mainly on research and knowledge The University of Sussex
transfer activities around communications technologies and their University for the Creative Arts
applications. The Universities in the South East that were used
in this study are listed in Table 8.
Table 8: List of South East Universities

Higher Education Institute

University Institute

Map 3: Locations of Universities in the South East

(Source: HESE)

16

4.3 Reasons for University Omissions
In this analysis of the universities of the South East Region, a
number of the higher education institutions in the region had
to be omitted. The four HEIs omitted from the South East are
detailed below together with an explanation of the reasoning
behind their omission. Firstly, both the Open University and
Cranfield University were not included in the analysis as they
have multiple campuses, and do not provide a breakdown of
figures by individual campus in the analysed datasets, which
would thus lead to skewing of the results. Secondly, the Wye
Campus of Imperial College, which is the only campus of Imperial
located in the South East, is currently non-operational and it was
thought best to omit from the analysis. Finally, we also omitted
Henley Management College as no data had been released to
either HESA or HEFCE (for the HE-BCI Survey) and will be part
of the University of Reading from August 2008 onwards.
4.4 Analysis of the South East
Research Base
An Innovation Campus will can benefit from several knowledge
and technology transfer activities, mainly:
• Academic Research
• Teaching
• Continuing Professional Development
• Collaborative and Contract Research
• Consulting
• Venturing
• other supporting outreach activities.
The potential contribution of universities can be determined
through the application of quantitative and qualitative measures.
It is obvious that universities of different size are located in the
South East. Thus, with regards to the objectives of an Innovation
Campus and especially the involvement of businesses, it is
important to evaluate the overall impact a university can have in
the creation and success of an Innovation Campus; understanding
how efficient universities are in achieving this contribution is less
important. Both quantitative and qualitative indicators will be
collected to comprehensively evaluate a potential contribution of
the universities in the South East to an Innovation Campus.
The main quantitative indicators collected were:
• Research Income
• Total number of students, number of students in relevant
disciplines, number of post-graduate students
Research Output measured in terms of:
• Number of Publications
• Number of Patents
Knowledge and Technology Transfer Activities measured in
terms of:
• Number and value of Collaborative Research projects
• Number and value of Contract research
• Number and value of Consultancy projects
17
Regional innovative capacity
• Number and value of licensing agreements
• Formation of Spin-Out Companies
The main qualitative indicators that were collected were:
• Research Assessment Exercise (RAE) Ratio calculated from
the RAE in 2001
• RAE Rankings in relevant university departments
4.4.1 Industry Sectors and their corresponding
educational programs
As the communication related industries can be all encompassing
when all applications are considered, it was necessary to look
at specific educational programmes to ascertain if the Higher
Education Institution had strengths within that area and to
also allow a standard for comparison. Library House placed the
following subject areas into those that we believe have an impact
upon the communication industry and their applications:
• Engineering
• Computer Science
• Physical Sciences
• Biological Sciences
• Mathematics
• Design
• Allied with Medicine
4.4.2 Ranking according to the Research
Assessment Exercise
The most important national research ranking for UK
universities is the Research Assessment Exercise (RAE),
conducted jointly by HEFCE, the Scottish Funding Council
(SFC), the Higher Education Funding Council for Wales
(HEFCW), and the Department for Employment and Learning,
Northern Ireland (DEL). The most recent RAE was conducted
in 2001 and although this year’s ranking is currently being
produced (RAE 2008), it will not be published until December
2008 which is beyond the scope of this report. Submissions
to the RAE Ranking are assessed by a panel. We calculated
the ratio of departments that achieved a 5 or 5* ranking to
the number of departments submitting to the RAE. The ratio
is a number between 0 and 1 where one equals the maximum
possible score (high research quality). A classification of
universities by RAE Ratio along with the number of departments
that participated in the RAE is shown in Table 9.
Table 9 shows that the University of Oxford is the highest ranked
university when classified by the RAE-Ratio, and is ranked 4th
in the whole of the UK. The next ranked university is Royal
Holloway, University of London, closely followed by the University
of Southampton.
The South East performs well in comparison the whole of the
UK, with seven of the twenty universities that had participated in
the RAE being ranked within the top 50 in the whole of the UK,
with Brunel University being ranked 51st.
w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

4.4.3 Ranking of University Departments in Key 14) were rated 5 or above. Similar results were obtained for
Disciplines
The RAE rating of university departments in the following key
disciplines was next examined: Engineering, Computer Science,
Physics, Mathematics, the Biological Sciences, Design, and Allied
with Medicine.
This revealed that the South East is well placed in terms of the
areas of Engineering, Computer Science and Maths, with several
universities running departments that received the rating of 5
in these disciplines. In fact, for Engineering, the Universities of
Oxford and Southampton both received a 5* rating, an indicator
of exceptional quality, whilst 40% of the universities (5 of
Computer Science, with 40% of the universities (4 of 10) which
had a rating of 5 or above, and Southampton performing at a 5*
rating for Computer Science. In terms of Mathematics, 64% of
the universities (7 of 11) had a rating of 5 or above.
This is also true for in the areas of Physics and Biological
Sciences. The South East performs exceptionally in Physics,
with 63% of the universities (5 of 8 which had a rating) having
a rating of 5 or above. Significantly, Oxford and Southampton
were given a 5* rating. In the Biological Sciences, 50% of the
universities (5 out of 8 of which had a rating) had a rating of
5 or above. The South East universities were also competitive
in terms of design, with Brighton achieving a 5 rating, and 5

RAE Rating for Departments in Each Discipline

# Departments
RAE UK
University that participated
Ratio Ranking Computer Allied with
in the RAE Engineering Physics Biology Mathematics Design
Science Medicine

The University of Oxford 0.91 46 4 5* 5 5* 5 5 4

Royal Holloway, 0.74 19 13 5 5 5 5
University of London
The University of 0.71 34 16 5* 5* 5* 5 5 4 3a
Southampton
The University of 0.53 38 30 5 4 4 4 4 4 3a
Reading
The University of Surrey 0.53 19 30 4 5 5 5 5*
The University of Sussex 0.52 28 32 5 5 5 4
The University of Kent 0.30 23 48 4 4 3a 4 5
Brunel University 0.29 21 51 5 4 5 4 3a
The University of 0.27 15 55 3a 5 3a 4
Portsmouth
The University of 0.19 16 61 3b 4 3a 3a 5 4
Brighton
Oxford Brookes 0.12 26 71 3b 3b 3a 3a 3b 3b
University (Nursing)
Bournemouth University 0.11 9 72 3b 2 5 3b
(Nursing)
Buckinghamshire New 0.00 6 - 2 3a
University
Canterbury Christ 0.00 7 - 2
Church University
The University of 0.00 9 -
Winchester
Southampton Solent 0.00 19 - 2 3b
University
The University of 0.00 13 - 3a 4 3a 3a
Greenwich
Kingston University 0.00 10 - 3a 3b 4 3a
Thames Valley University 0.00 9 - 1 3b
(Nursing)
University of Chichester 0.00 7 - 2
University for the no data no data no data
Creative Arts

Table 9: Performance of South East Universities in the Research Assessment Exercise 2001
(Source: RAE 2001)

18
 Regional innovative capacity

Collaborative Supporting
Academic
Area Research with Licensing Venturing Consultancy Outreach
Research
Industry Activities
Combined input (total expenditure excluding tuition) Conferences organised for:
• -SMEs / Industrial Partners
Total Research • -Academics
Input
Income • Business Representation
University’s research
on University Board

• # Publications •# Contracts • # Licenses • # spinouts • # Projects Sources:

• # Patents • Industrial • Surveys or Quality • Public Data
Income interviews • Surveys or • Surveys or interviews
Output
interviews

• # Citations • Surveys or • Surveys or •# Employees • Consultancy

• # Highly Cited interviews interviews • Revenue Income
Researchers • External • Surveys or
Impact
investment interviews
raised
• Exit values

Figure 1: University Economic Impact Matrix

(Source: Library House and Dr. Kevin Kullen, University of Glasgow)

other universities achieving a 4 rating. In terms of the Allied with
Medicine area, Surrey received a 5* rating, whilst Portsmouth
and Brighton both achieved 4 ratings.
Taken together, this suggests that the South East has many
universities with high quality departments in the key areas that
feed into the communications and Assisted Living industry. The
South East thus appears to be in an extremely good position to
provide students, academics and expertise for a strong positive
impact upon the communications industry.
4.4.4 Impact of HEIs on the Innovative competitive in Engineering, Physics, Computer Science and
landscape
HEIs contribute to economic development through knowledge
and technology transfer activities. For an analysis of these
activities, the University Impact Matrix developed by Dr. Kevin
Cullen and Library House was used. This matrix was tested in
several earlier reports on knowledge and technology transfer
(Library House 2007b).
4.4.5 Ranking according to overall number of relative to the whole of the UK, having received 16.3% of all
students (headcount)
The total number of students in the South East for the 2006-
07 academic year was first examined, using recently released
data from HESA. This is shown in Table 10, and reveals that the
University of Greenwich received the most number of students,
closely followed by the Universities of Southampton and Oxford.
Kingston University and the University of Brighton were ranked
4th and 5th respectively.
students than the mean for all UK universities (4.7% higher).
Additionally, the majority (57%) of the South East’s universities
had more students than the mean number of students for all
UK universities.
4.4.6 Ranking according to number of students
in relevant fields
The number of students studying in disciplines relevant to the
communications sector was next determined, and is also shown
in Table 10. This reveals that the South East Universities are
Biology when compared to the whole of the UK. For example,
the SE Universities receive similar proportions of students in the
Biological (12.9%) and Physical (13.7%) Sciences, Engineering
(13.3%), and Computer Science (13.7%) to the 13% of all
students that it receives in the UK. In addition, the South East
Universities receive a slightly higher proportion of Mathematics
students (14.1% vs 13% of all students).
The South East Universities are particularly competitive in terms
of the proportion of Allied with Medicine and Design students
Allied with Medicine students in the UK, and 17.9% of all Design
students, compared to the 13% of students it receives overall.
This is 25% and 38% more students respectively than the
overall proportion of students received as a whole in the region.
Taken together, this suggests that the South East is competitive
in terms of the Biological, Physical, Mathematical and Computer
Sciences, and in Engineering, and extremely well placed in
subjects Allied with Medicine and Design.

The South East universities received a healthy number of

students as the region shows a slightly higher total number of

19 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

# of Post- # of Students Classified by Relevant Discipline

Total # of
University Graduate Computer Physical Biological Allied with
Students Engineering Mathematics Design
Students Science Sciences Sciences Medicine
The University of 24,917 6,925 1,237 2,202 584 1,062 222 583 4,580
Greenwich
The University of 24,736 7,614 2,760 556 2,110 1,795 630 1,055 4,922
Southampton
The University of 24,639 8,499 891 725 2,674 1,458 1,299 379 491
Oxford
Kingston University 23,006 4,806 2,509 1,870 670 1,216 179 2,426 2,936

The University of 21,135 4,049 643 856 663 1,176 87 2,199 4,856
Brighton
The University of 19,600 4,028 1,671 1,546 716 1,570 252 1,100 1,813
Portsmouth
Thames Valley 19,139 1,939 186 430 18 486 0 3,225 7,787
University
Oxford Brookes 18,768 5,121 1,022 599 124 821 77 383 2,121
University
The University of 18,383 3,772 544 859 480 1,260 203 1,210 1,919
Kent
Bournemouth 17,871 2,446 597 615 299 751 0 1,308 4,183
University
The University of 15,705 6,106 2,373 403 675 1,519 165 469 4,424
Surrey
Brunel University 15,512 5,161 2,214 1,325 88 1,729 563 1,273 1,282
Canterbury Christ 14,944 3,585 0 241 150 721 0 683 3,910
Church University
The University of 14,679 4,040 430 399 965 1,045 376 559 585
Reading
The University of 12,447 3,173 486 534 555 1,397 225 753 130
Sussex
Southampton Solent 10,639 651 911 548 81 366 1 1,976 0
University
Buckinghamshire 8,917 620 193 614 0 552 0 1,981 2,638
New University
Royal Holloway, 8,334 2,373 0 320 604 1,010 319 427 2
University of London
The University of 5,298 1,047 0 0 0 488 18 889 169
Winchester
University for the 5,273 239 0 0 0 0 0 4,832 0
Creative Arts
University of 4,930 1,216 8 38 0 732 154 1,001 0
Chichester
Total HESE 328,872 77,410 18,675 14,680 11,456 21,154 4,770 28,711 48,748
Universities:
Mean HESE 15,661 3,686 889 699 546 1,007 227 1,367 2,321
Universities:
Total All UK 2,362,814 559,389 140,582 106,912 83,904 164,216 33,792 160,524 300,901
Universities:
Mean All UK 14,955 3,540 890 677 531 1,039 214 1,016 1,904
Universities:
Percentage of HESE 13.9% 13.8% 13.3% 13.7% 13.7% 12.9% 14.1% 17.9% 16.2%
Universities/Total UK
Universities:

Table 10: Ranking of Universities by Total Number of Students

(Source: HESA)

20
 Regional innovative capacity

4.4.7 Ranking according to number of
Post-Graduate Students
The number of post-graduate students studying in each of
the South East universities selected for our analysis was next
examined, which is shown in Table 10. This table reveals that the
University of Oxford had the highest number of post-graduate
students in the South East in the 2006-07 academic year (8499
students), 11.6% more than the 2nd ranked University of
Southampton (7614 students). Furthermore, the Universities of
Greenwich and Surrey, and Brunel University were ranked 3rd,
4th and 5th respectively.
In terms of the measure of total numbers of Post-Graduate students,
the South East performs well when compared to the whole of the
UK, with the mean number of post-graduate students being 4%
higher than that for the whole of the UK (3,686 vs 3,540 students
respectively), and the majority (57%) of the universities having
more post-graduate students than the mean for the UK, with the
University of Sussex being just below the UK mean.
4.4.8 Ranking according to Total Income and
Research Income of HEIs
The South East universities were next classified in terms of total
income received in 2006-07, that was calculated using recently
released data from HESA. This is shown in Table 11. This
reveals that the University of Oxford comfortably received the
most income in 2006-07 amongst the South East Universities
(£676.3m), around 2.1 times more than the second ranked
university, the University of Southampton (£324.8m). The

Research Income from Funding

Total Research Total Research
University Councils (excluding that from Total Income
Income Grants & Contracts
tuition)

The University of Oxford 346,187 97,954 248,233 676,380

The University of Southampton 118,719 45,136 73,583 324,800
The University of Surrey 49,192 17,490 31,702 181,740
The University of Reading 47,196 22,168 25,028 167,672
The University of Sussex 40,003 17,441 22,562 127,860
Royal Holloway, 25,583 13,929 11,654 104,912
University of London
The University of Kent 20,788 7,712 13,076 127,601
Brunel University 20,550 8,358 12,192 131,783
The University of Brighton 10,332 4,672 5,660 135,263
The University of Portsmouth 9,468 4,499 4,969 132,859
The University of Greenwich 8,464 1,337 7,127 144,589
Oxford Brookes University 7,118 2,588 4,530 134,510
Kingston University 4,304 1,381 2,923 150,366
Bournemouth University 2,838 717 2,121 88,830
Canterbury Christ Church 1,342 135 1,207 81,076
University
Buckinghamshire New University 1,154 632 522 52,401
The University of Winchester 751 442 309 31,635
Thames Valley University 619 106 513 106,218
University of Chichester 521 309 212 29,659
University for the Creative Arts* 476 - 476 47,899
Southampton Solent University 236 134 102 73,762
Total HESE Universities: 715,841 247,140 468,701 3,051,815
Mean HESE Universities: 34,088 11,769 22,319 145,325
Total UK Universities: 5,048,644 1,671,653 3,376,991 21,289,853
Mean UK Universities: 29,698 9,833 19,865 125,234
% HESE Universities of Total UK 14.2% 14.8% 13.9% 14.3%
Universities:

Table 11: Ranking of Universities by Total Research Income in 2006-07 in £000s

(Source: HESA)

* Data for the University for the Creative Arts was obtained from its 2006-07 Annual Report. We were unable to obtain data on specific Research
Income from Funding Councils from the Annual Report, thus the Total Research Income listed in Table 9 is an estimate.

21 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

University of Southampton in turn received approximately 1.8

times more income than the 3rd ranked university, that of Surrey # Publications # Active
(£181.7m), which suggests that Oxford and Southampton are University from Jan 2001- Patents in
the two largest universities in terms of income in the South East April 2008 2006-07
by a significant margin.
The University of Oxford 38,817 397
4.4.8.1 Total Income The University of Southampton 19,449 350
The South East as a region performs well relative to the UK. The University of Reading 8,527 26
Despite having around only 13% of the HEIs in the UK, it received The University of Sussex 7,565 105
14.3% of the income of all UK universities. In addition, the mean
income received by the SE universities was £145.3m, 16% more The University of Surrey 7,327 39
than the mean income for all UK universities (£125.2m). The University of Kent 4,225 17
Brunel University 4,056 66
4.4.8.2 Research Income Royal Holloway, University of 3,816 20
London
The total research income of the HESE universities was next
calculated, in order to determine the standing of these universities The University of Portsmouth 3,181 34
relative to the UK as a whole. This data is also presented in Oxford Brookes University 1,838 32
Table 11 and reveals that amongst the South East Universities,
Kingston University 1,752 0
the University of Oxford comfortably received the most research
income in 2006-07 (£346.2m), having received 2.9 times more The University of Brighton 1,629 6
research income than the second ranked university, the University The University of Greenwich 1,477 29
of Southampton (£118.7m). The University of Southampton
however received approximately 2.4 times more research income Bournemouth University 1,145 39
than the 3rd ranked university, that of Surrey (£49.2m). This The University of Winchester 342 0
suggests that Oxford and Southampton are the two largest
University of Chichester 287 0
research universities in the region by a considerable margin.
Canterbury Christ Church University 244 0
The South East as a region performs well relative to the UK. Thames Valley University 197 0
Despite having around only 13% of the HEIs in the UK, it
Buckinghamshire New University 153 0
received 14.2% of the research income of all UK universities.
In addition, the mean income received by the SE universities Southampton Solent University 132 0
was approximately £34.1m, 15% more than the mean income University for the Creative Arts - 0
for all UK universities (£29.7m). The South East also performs
well in terms of the size of research institutions, with 57% of Table 12: Performance of Universities by Number of Publications and
its universities being above medium size (classified as Total Active Patents (Source: ISI Web of Knowledge and HE-BCI Survey)
Research Income greater than £5m, and shown in light grey in
Table 11), and 38% of the total being of large size (classified as 4.4.10 Research Output of South-East HEIs -
Total Research Income greater than £20m, and shown in dark
grey in Table 11).
Patents
In order to determine another measure of the research output
of the HESE universities, the number of active patents for each
4.4.9 Research Output of South-East HEIs - of the universities from the HE-BCI survey was determined,
Publications and displayed in Table 12. This revealed that the Universities of
Oxford and Southampton were again the most active in terms
In order to determine the research output of the HESE universities, of their patent portfolio, holding 397 and 350 active patents
the number of publications from each of the universities from respectively in 2006-07. This is considerably more than the 3rd
the ISI Web of Knowledge database from 2001 to April 2008 ranked University of Sussex, which held 105 active patents, or
was determined. This data is shown in Table 12 and reveals that nearly 3.8 times less than Oxford. Brunel University was ranked
amongst the South East Universities, the University of Oxford 4th, having held 66 active patents, followed by the Universities
comfortably received the most number of publications receiving of Surrey and Bournemouth with 39 active patents.
twice as many as the second ranked university, the University
of Southampton. As with the other metrics described so far, the
University of Southampton received approximately 2.3 times 4.4.11 Knowledge and Technology Transfer
more publications than the 3rd ranked University of Reading.
The Universities of Sussex and Surrey were ranked 4th and 5th
activities of South East HEIs –
respectively. Taken together, this suggests that the University Collaborative Research
of Oxford in particular, and the University of Southampton to Collaborative Research is an important measure of the research
a lesser extent, are the most active in the region in terms of activities of universities. Table 13 lists the South East Universities
publications by a significant margin. by collaborative research income received in 2006-07 using data
from the recently released 2008 HE-BCI survey. This revealed

22
 Regional innovative capacity

that the University of Oxford was the most active university in
the South East, having received £12.4m, closely followed by
the University of Kent, which received £11m. This is closely
followed by Royal Holloway (£10.5m), which suggests that
Royal Holloway, along with Oxford and Kent, are quite active
in terms of collaborative research in the region. The University
of Southampton (£9.8m), and the Universities of Surrey and
Reading were ranked next (both with around £6m).
The South East region performs competitively compared to the
whole of the UK, with a mean contract research income 1.2
times lower than that for all UK universities and the percentage
of collaborative research income received in total being similar
to its representation in the whole of the UK by HEIs (11% vs
13% respectively).
received in 2006-07 using data from the HE-BCI survey. This
revealed that the University of Oxford was the most active
university in the South East by a significant margin, having
received £63.4m, three times that of the 2nd ranked University
of Southampton, which received £21m. The University of Surrey
was ranked 3rd, having received £12.2m in contract research
income, around 5.2 times less than that received by Oxford. The
Universities of Sussex (£6m), Greenwich (£5m), and Reading
(£4.2m) were ranked 4th, 5th and 6th, respectively.
The South East performs quite well as a region when compared
to the whole of the UK. Although receiving a lower percentage
of collaborative research income in total compared to its
representation in the whole of the UK by HEIs (10% vs 13%), the
mean collaborative research income received by each university
was significantly higher (22%) than that received by the whole
of the UK on average (£6m compared to £4.9m).

4.4.12 Knowledge and Technology Transfer

activities of South East HEIs – Contract
Research
Contract Research is also an important measure of the knowledge/
technology transfer and research activities of universities. Table
13 lists the South East Universities by contract research income
4.4.13 Knowledge and Technology Transfer
activities of South East HEIs – Consulting
Consulting with external organisations is an important measure
of the research and knowledge/technology transfer activities

Collaborative Contract Resarch Consulting Total Research

University
Research Income Income Income Income
The University of Oxford 12,401 63,426 1,407 346,187
The University of Southampton 9,772 20,977 8,520 118,719
The University of Surrey 6,016 12,205 19,724 49,192
The University of Reading 5,916 4,206 719 47,196
The University of Sussex 254 6,018 176 40,003
Royal Holloway, University of 10,548 1,116 665 25,583
London
Brunel University 4,078 2,348 402 20,550
The University of Kent 11,063 2,012 1,010 20,788
The University of Brighton 4,609 933 226 10,332
The University of Greenwich 488 5,021 6,088 8,464
The University of Portsmouth 1,639 1,407 244 9,468
Oxford Brookes University 894 1,663 1,266 7,118
Kingston University 3,236 1,028 237 4,304
Bournemouth University 1,022 1,199 834 2,838
University for the Creative Arts 233 0 51 476
Canterbury Christ Church University 0 1,123 1,802 1,342
Buckinghamshire New University 171 509 2,397 1,154
The University of Winchester 0 198 56 751
University of Chichester 0 141 146 521
Thames Valley University 513 0 89 619
Southampton Solent University 1 24 101 236
Total HESE Universities: 72,854 81,422 46,160 715,841
Mean HESE Universities: 3,469 5,979 2,198 34,088
Total All UK Universities: 668,669 782,698 287,791 5,048,644
Mean All UK Universities: 4,232 4,954 1,821 29,698
Percentage of HESE Universities/ 11% 10% 16% 14.2%
Total UK Universities:

Table 13: Performance of Universities by Collaborative and Contract Research Income and Consulting Income in 2006-07
(Source: HE-BCI Survey and HESA)

23 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

of universities. Table 13 lists the South East Universities by Licensing Total Number
consulting research income received in 2006-07 using data from University
Income (£000s) of Licenses
the HE-BCI survey. This revealed that the University of Surrey was
The University of Oxford 2,984 80
the stand-out performer, having received £19.7m in consulting
income. The University of Southampton was ranked 2nd, having Oxford Brookes University 610 2
received £8.5m in consulting income, or nearly 2.3 times less than The University of Southampton 491 239
Surrey. The University of Greenwich (£6.1m) was ranked 3rd, with
The University of Greenwich 163 99
Buckinghamshire New University (£2.4m) ranked 4th.
The University of Reading 154 4
The South East performs particularly well in comparison to the Brunel University 147 3
whole of the UK. Firstly, the mean consulting research income The University of Surrey 96 30
was 22% higher than the mean for all UK universities (£2.2m
The University of Sussex 44 0
compared to £1.8m). Secondly, the region out-performed its
representation in the whole of the UK in terms of HEI number, The University of Kent 44 4
having received 16% of all consulting income, despite only Bournemouth University 16 1
representing 13% of UK universities.
The University of Winchester 11 0
The University of Brighton 9 1
4.4.14 Knowledge and Technology Transfer Buckinghamshire New 0 0
activities of South East HEIs – Licensing University

Licensing is an important measure of the knowledge and Canterbury Christ Church 0 0

technology transfer activities of universities. The South East University
Universities were thus classified by licensing income using data Southampton Solent University 0 0
from the HE-BCI survey. This is shown in Table 14, and revealed Kingston University 0 0
that the University of Oxford is the most active in terms of
licensing income, receiving nearly £3m in 2006-07, over 5 times The University of Portsmouth 0 2
the income of the 2nd ranked Oxford Brookes University, which Thames Valley University 0 0
received £610k. Southampton was ranked third, having received University of Chichester 0 0
£491k in licensing income in 2006-07. Taken together, this
Royal Holloway, University of 0 17
suggests that Oxford is extremely active in terms of licensing in
London
the South East by a significant margin.
University for the Creative Arts 0 0
The South East performed on par with the UK as a whole, Total HESE Universities: 4,769 482
receiving a similar percentage of licensing income relative to
Mean HESE Universities: 227 23
the number of universities in the UK (12% vs. 13%), and mean
licensing income (£227k vs £255k). Total UK Universities: 40,330 3,286
Mean UK Universities: 255 21
When classified by the total number of licenses, the University % HESE Universities of Total 12% 15%
of Southampton is quite active, receiving nearly 2.4 times more UK Universities:
licenses than the 2nd ranked University of Greenwich (239 vs. 99
respectively). The University of Oxford was ranked 3rd, having Table 14: Performance of Universities by Licensing in 2006-07
received 80 licenses. (Source: HE-BCI Survey)

The South East region performs quite well when compared to

the UK as a whole as it received 15% of all licenses in the UK in
2006-07, compared to its representation of 13% of all HEIs. The
region also received 23 licenses per university on average, slightly
higher than the mean number of licenses for the UK (21).
4.4.15 Ranking according to Spin-Out Activity of
South East HEIs
The Number of Active Firms is a good measure of the consistency
of spin-out activity of a university over a period of many years.
Table 15 also lists the South East Universities in terms of the
number of active firms, and reveals that the University of Oxford
has the highest number, with 63 active firms. This is nearly 2.9
times more than the 2nd ranked University, Southampton, which
has 22 active firms. The University of Surrey was ranked 3rd,
with 14 active firms.

Formation of spin-out companies is an important measure of
the knowledge and technology transfer activities of universities.
The South East Universities were thus classified by the number
of spin-out companies formed in 2006-07 using data from the
recently released 2008 HE-BCI survey. This is shown in Table
15, and revealed that the University of Oxford was the most
active, having spun-out 7 companies spun-out in 2006-07. This
was closely followed by Brunel University, which spun-out 5
companies, and the Universities of Portsmouth, Kent and Surrey,
which all spun-out 4 companies.
The South East performs exceptionally in terms of overall spin-out
activity with the UK as a whole, with the region having formed 19.5%
of all spin-out companies in the UK in 2004-05, 1.5 times that of the
13% spun out of all HEIs in the UK as a whole. In terms of the number
of active spin-out companies, which is an indicator of the quality and
consistency of spin-out activity over a number of years, the South East
performs competitively with the UK region as a whole, having formed
the same percentage of active-spin-outs compared to the proportion
of HEIs that it represents (both 13%).

24
 Regional innovative capacity

Spin-Outs with some HEI Ownership Graduate Start-ups Staff Start-ups

Estimated Estimated
Estimated
# of # of current # of current
University # of current # of # of
Spin-Outs Start-ups turnover of Start-ups turnover of
Active turnover of Active Active
established established all active established all active
Firms all active Firms Firms
in 2006-07 in 2006-07 firms in 2006-07 firms
firms(£000s)
(£000s) (£000s)

The University of Oxford 7 63 0 27 0 40,000 0 0 0

Brunel University 5 5 483 0 0 0 0 0 0
The University of 4 3 350 42 48 801 2 2 0
Portsmouth
The University of Kent 4 4 402 7 1 1,020 1 1 500
The University of Surrey 4 14 1,482 1 2 0 1 1 0
Kingston University 2 2 0 122 318 28 1 3 2,000
The University of 1 1 0 2 11 33 0 7 69
Winchester
The University of 1 4 0 1 0 0 0 0 0
Greenwich
Oxford Brookes 1 1 190 0 0 0 0 0 0
University
Royal Holloway, 1 6 744 1 1 100 1 2 86
University of London
Buckinghamshire New 0 0 0 0 13 0 0 0 0
University
Canterbury Christ 0 0 0 0 0 0 0 0 0
Church University
Southampton Solent 0 0 0 34 0 215 0 0 0
University
Bournemouth University 0 1 424 3 20 9,130 0 5 114
The University of 0 0 0 0 0 0 0 0 0
Brighton
Thames Valley 0 1 1,266 0 0 0 0 0 0
University
University of Chichester 0 0 0 0 0 0 0 0 0
The University of 0 2 40 0 0 0 0 0 0
Reading
The University of 0 22 29,691 0 100 0 0 0 0
Southampton
The University of Sussex 0 4 0 2 10 2,555 0 5 2,074
University for the 0 0 0 71 600 25,000 0 0 0
Creative Arts
Total HESE Universities: 30 133 35,072 313 1,124 78,882 6 26 4,843
Mean HESE Universities: 1.4 6.3 1,670.1 14.9 53.5 3,756.3 0.3 1.2 230.6
Total All UK 154 1,018 515,788 1,508 3,718 276,475 62 226 41,430
Universities:
Mean All UK 1.0 6.4 3,264.5 2,080 5,972 1,749.8 0.4 1.4 262.2
Universities:
Percentage of HESE 19.5% 13.1% 6.8% 20.8% 30.2% 28.5% 9.7% 11.5% 11.7%
Universities/Total UK
Universities:

Table 15: Performance of Universities by Spin-Out activity in 2006-07

(Source: HE-BCI Survey)

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Innovation Campus in Communications Technologies and their Applications

# of
Total # of Post- Collaborative Contract
# of Consulting Licensing # of Active Spin-Outs
University Research Graduate Research Research
Students Income Income Spin-Outs Formed in
Income Students Income Income
2006-07
The University 1 23 10 17 2 54 2 2 4
of Oxford
The 13 21 12 22 12 7 23 14 -
University of
Southampton
The University 28 66 27 25 17 1 49 29 7
of Surrey
The University 30 74 62 26 42 68 45 75 -
of Reading
The University 36 87 83 107 31 105 60 60 -
of Sussex

Table 16: Ranking of HESE Universities Relative to All UK Universities

(Source : 2008 HE-BCI Survey, and HESA)

When classified by graduate spin-out activity, Kingston University
and the University for the Creative Arts (UCA) in particular are
extremely active, having established 122 and 71 start-ups in
2006-07 respectively, significantly more than the 3rd ranked
University of Portsmouth with 42. This is also true in terms of
active graduate start-ups, with UCA having 600 active graduate
start-ups, double that of the 2nd ranked Kingston University.
This is due in part to the nature of the creative industry with a
high level of freelancers and small companies. Both universities
are particularly good in this regard, with Kingston having
triple the number of spin-outs compared to the University of
Southampton, which was ranked third.
The HESE universities were well placed with regards to the
number of postgraduate students, with two universities, Oxford
(10th) and Southampton (12th), ranked in the top 15 UK
universities. The University of Greenwich was also ranked in the
top 20, being ranked 19th.
In terms of Collaborative Research Income, the HESE universities
were particularly well placed, with 6 in the top 30, with Oxford,
the highest ranked university, being ranked 17th. Southampton
was ranked 22nd, Surrey 25th, Reading 26th, whilst Kent and
Royal Holloway, University of London were ranked 20th and 21st
respectively.

The South East region as a whole performs extremely well in
terms of graduate start-ups, receiving 20.8% of the graduate
start-ups formed in 2006-07, and 30.2% of all active graduate
start-ups. Taken together, this suggests that the South East is
extremely active in terms of graduate start-up activity.
4.4.16 Performance of Most Active HESE
Universities Relative to All UK Universities
In order to determine how competitive individual universities are
relative to all UK universities, the 5 most active universities in terms
of total research income, the Universities of Oxford, Southampton,
Surrey, Reading, and Sussex, were classified relative to all UK
universities in the measures analysed above. This is shown in Table
16. The most active HESE universities outside of this cohort were
also analysed to provide a more complete analysis.
Table 9 revealed that, in terms of total research income, 4 HESE
universities were ranked in the top 30 UK universities. Oxford
was the top-ranked university amongst all UK universities, with
Southampton ranked 13th, Surrey 28th, and Reading 30th.
In terms of the number of students, 3 HESE universities were
ranked in the top 30, with Southampton ranked 21st, and Oxford
23rd. The University of Greenwich, which was ranked 76th
amongst all UK universities in terms of total research income,
was the highest ranked HESE university in terms of the number
of students, being ranked 20th amongst all UK universities.
The HESE universities performed well in terms of contract
research income, with 3 universities, Oxford, Southampton,
and Surrey ranked in the top 20 UK universities, with Oxford
ranked 2nd.
In terms of consulting income, the highest ranked HESE
universities also performed well, with Surrey ranked 1st amongst
all UK universities, with Southampton ranked 7th. The University
of Greenwich was also ranked in the top 50 UK universities,
being ranked 33rd.
In terms of Licensing Income, the HESE universities performed
competitively with 3 HESE universities ranked amongst the
top 25 UK universities, and 5 amongst the top 50. Oxford was
ranked 2nd amongst all UK universities, whilst Oxford Brookes
and Southampton were ranked 22nd and 23rd respectively.
The Universities of Reading and Surrey were ranked 45th and
49th respectively.
Finally, in terms of spin-out activity, the HESE universities also
performed competitively, with 3 of the 5 HESE universities in
our analysis ranked in the 30-most active UK universities in
terms of the number of active spin-outs. Oxford was ranked
2nd amongst all UK universities, whilst Southampton and Surrey
were ranked 14th and 29th respectively. In terms of the number
of spin-out formed in 2006-07, 5 HESE universities were ranked
amongst the top 10 UK universities, with Oxford ranked joint 4th
amongst all UK universities, Brunel joint 6th, and Surrey, Kent
and Portsmouth ranked joint 7th respectively.

26
 Regional innovative capacity

Taken together, this suggests that the top-ranked HESE In addition, the South East is extremely well placed in relation
universities perform competitively compared to all UK universities. to the whole of the UK with regards to spin-out activity in
Oxford in particular was particularly outstanding, being ranked general, as well as graduate spin-out activity and contract
in the top 2 in most of the measures that were analysed. Surrey research, and importantly, disciplines such as subjects Allied
was particularly outstanding in consulting, and to a lesser with Medicine and Design.
extent, in the number of spin-outs formed, whilst Southampton
was consistent, being ranked in the top 25 UK universities in all
measures analysed except for the number of spin-outs formed in 4.5 General Industry Overview for
2006-07. The HESE universities also performed well as a group
in terms of collaborative research income with 6 universities South East England
ranked in the top 30 UK universities. The following section provides a general overview of business
and different innovation-based industries in the South East. A
more detailed analysis on the communications industry and their
4.4.17 Conclusions: HEI Landscape applications will be provided in Section 5.
Our analysis suggests that the South East as a region is
extremely competitive with the whole of the UK in terms of the
various measures of research and knowledge transfer activities 4.5.1 Companies in the South East
examined in this section. Table 18 shows that the South East is the most preferred location
for business in the UK after London.
The University of Oxford is a particularly well performing HEI,
being placed top in every method of ranking for universities in All companies located in the South East contribute to the overall
the South East except for total student number. Additionally, capacity. However, some of these companies are more relevant
it competes exceptionally well in terms of metrics examining to understand the innovative capacity of the region.
the UK university ecosystem as a whole. Furthermore, The
University of Southampton consistently comes second in most
of the rankings of South East HEIs. Moreover, Southampton
usually performs at least twice as well as third place in each
ranking, meaning Southampton is a significant player in terms
of UK university performance when analysing it with the metrics
used for the purposes of this report. Both Oxford, and to a lesser
extent, Southampton, are also extremely competitive compared
to all UK universities, with Oxford being ranked in the top 2
of all UK universities in many measures, whilst Southampton is
consistently ranked in the top 25 UK universities.

Total Number of Venture-Capital

Region Total Number of Companies
Public Listed Companies Backed Companies

North East 133,620 55 58

North West 444,150 188 148

Yorkshire and the Humber 349,930 96 100

East Midlands 327,300 47 70

West Midlands 376,315 74 137

East of England 512,455 165 163

London 757,685 1,054 437

South East 740,785 291 300

South West 417,910 95 108

England 4,060,150 2,065 1,521

Rest of UK 618,930 160 282

United Kingdom 4,679,080 4,290 1,803

Table 17: Regional Distribution of Companies, Public Companies, Private Non-SMEs, and Private SMEs in the UK
(Source: FAME and Library House, 2008)

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Innovation Campus in Communications Technologies and their Applications

Figure 2: Degree of Innovation in Company Landscape

Any potential Innovation Campus will interact mainly with the

innovation-based companies which can be split into:

• R&D-intensive larger companies and

• Small to medium sized venture capital backed companies and
spin-outs in the area of communication and their applications.
Additionally several additional datasets were checked to ensure
the completeness of the landscape. This includes:
• Public listed companies at the London Stock Exchange
(LSE)
• High-Tech SMEs

4.5.1.1 All public Companies (LSE Main & AIM)

A list of UK-based companies listed on the London Main Market
and on the Alternative Investment Market (AIM) was obtained
from the LSE (www.londonstockexchange.com) and cross-
referenced with Companies House to identify the geographic
locations of the companies.

On first analysis the sector structure of public companies

based in the South East with the overall UK sector structure
was compared. This analysis showed that the South East has a
strong presence of technology-based companies, mainly in the
areas:
• Software & Computer Services 20%
• Support Services 15%
• Electronic and Electrical Equipment 8%
• Pharmaceuticals & Biotechnology 8%
• Health Care Equipment & Services 5%
A detailed breakdown and comparison is available in Figure 3.

Figure 3: Sector Breakdown of LSE-listed Companies in the South East

28

4.5.1.2 Top 100 UK R&D Companies
According to a DIUS definition, Research & Development
(R&D) projects are those which aims to resolve scientific or
technological uncertainty and achieve an advancement in
science and technology.
The DIUS Scorecard lists the top 800 UK companies investing
in R&D (as defined by the UK Statement of Accounting Practice
(SSAP) 13) (www.dti.gov.uk/innovation/randd/randd-scoreboard)
The DTI Scorecard (2006) was cross-referenced with FAME and
the locations of the companies identified and foreign-owned
companies were discounted.
Companies which did not identify R&D as an accounting activity
are not included in the analysis. The analysis assumes that all
company R&D is conducted in the same location as the registered
head office and that all R&D occurs in one location.
4.5.1.3 Top 100 Foreign R&D Corporates
The companies excluded in section 4.5.1.2 are shown in Map
4. Many foreign corporates in communications and applications
are based in the South East. The actual organisational structure
of these Foreign Innovation-based Corporates can hugely vary.
Some corporates located their European headquarters in the
Map 4: The Geographical Distribution of the top 100 Foreign High-Tech Corporates based in the South East of England (Source: Fame 2008)
9
http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/index_en.htm
29
Regional innovative capacity
UK, while others run research facilities or only administrative
operations.
4.5.1.4 Summary Larger Enterprises
• The majority of major corporate activity is spread out
west of London around the population centres of Slough,
Bracknell, Reading and Newbury in the M3/M4 corridor.
• 14 of the top (by revenue) 100 corporates are based in
the South East of England Only one, Vodafone, operates
primarily in the telecommunications sector.
• 30 of the top (by revenue) 100 foreign owned high-tech
corporates are located in the South East (used as a proxy
for foreign corporate R&D bases).
• of the 30 corporates primarily operate in the telecommunications
sector.
4.5.1.5 SMEs
A SME are companies whose headcounts, turnover or balance
sheet total fall below certain limits. This report is based on the
“SME definition: Commission Recommendation of 06 May 2003”.9
Around 230,000 private companies in South East were identified
via Company House/FAME.
w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications
4.5.1.6 High-Tech SMEs
For a general overview of High-Tech SMEs in the South East
we used the ONS definition of High-Tech companies based on
Standard Industrial Classification (SIC) codes, in accordance with
the Organisation for Economic Co-Operation and Development
(OECD) definition.
4.5.1.7 Venture Backed Companies
Private equity involves the provision of finance to unquoted
(private) companies. Specifically, venture capital private equity
funds invest in early stage companies. Venture capital can be
financed by both public and private funds. Companies raise
finance to expand and develop their business activities and
these companies can be described as innovation-based.
On the basis of the Library House’s proprietary database the
geographical region of venture capital backed companies was
identified.
Private equity involves the provision of finance to unquoted
(private) companies. Specifically, venture capital private equity
Map 5: The geographical distribution of the over 25,000 High-Tech SMEs based on OECD-Definition in the South East of England
(Source: Companies House/FAME).
30
funds invest in early stage companies. Venture capital can be
financed by both public and private funds. Companies raise
finance to expand and develop their business activities and
these companies can be described as innovation-based.
On the basis of the Library House’s proprietary database the
geographical region of venture capital backed companies was
identified.
4.5.1.8 Spin-Out Companies
Spin-Out companies are one activity of university technology transfer
(Section 4.4). They partly overlap with venture capital backed
companies. Probably a 20-30% of all spin-out receive venture capital
funding during their life cycle (Library House 2007a).
HEIs in the South East are the origin for 90 of the over 580
active UK university spin-out companies. Nearly 50% (44)
companies were spun out of the University of Oxford, followed by
Southampton (14) and Surrey (8). Map 5 shows the geographical
distribution of spin-out companies in the South East.
 Regional innovative capacity

Map 6: The Geographical Distribution of the 300 Venture Capital-backed Companies

in the South East of England (Source: Library House).

Map 7: Location of University Spin-Outs in the South-East and London (Source: Library House)

31 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

4.5.1.9 Summary Innovation-based 4.5.3.25 Creative Industries

Companies The South East is known not only for its high number of creative
• Most innovation-based SMEs in the South East are based in
the M3/M4 corridor
• Venture capital backed companies are distributed fairly
evenly in the region but the majority are still roughly
clustered in the area west of London
• Two notable areas for university spin-outs exist in the South
East, the biotech cluster around Oxford and Abingdon and
the area around Southampton.
4.5.2 Technology-based Industries in the
South East
industries companies, but also for the scope and intensity of all
the industry sectors it contains. The South East holds twenty
five per cent of the UK’s media corporations (SEMN) and is the
home of the Pinewood Shepperton and one of the major BBC
studios. Significantly, the film and digital media industry alone
has a turnover of over £4.5bn in the region. Though the leisure
software industry in the South East is still seen as embryonic
in nature, its approximately 5,000 people are employed by in
these industries in the region. Additionally, prolific multinational
computer games and entertainment software publishers as
Lionhead Studios, Electronic Arts and Nintendo have all chosen
to base their UK headquarters within the region.

4.5.2.1 Information and Communication 4.6 Public Sector Capacity

Technologies (ICT)
4.6.1 Regional Development Agencies
With over 185,000 people employed within 30,000 ICT
companies in the region, the South East is considered to have
Budgetary Analysis
the highest concentration of ICT enterprises in Europe (Source: SEEDA has one of the lowest budgets of all RDAs. Only a part
SEEDA). The majority of the concentration lies within the of the overall budget will be available for investments into
Thames Valley, with particular focus on the telecoms sector with innovation. As a proxy for investment available in the different
such large corporations such as Vodafone, Nokia, Microsoft and regions we divided the overall RDA budgets though the number
IBM located there. of registered SMEs in each region. This analysis shows that the
South East has the lowest amount of capital available per SME.

4.5.3.2 Life Sciences RDA Budget

RDA £ RDA Budget as
Employing over 240,000 people within 6,900 healthcare Region (£m)
per SME % of GVA
companies, and containing twenty per cent of the UK’s medical 2007-08
devices companies, the South East is renowned in the UK as a North East £282 £17,114 0.79%
major hub for Life Science companies (Source: SEEDA). Due to
the high quality of research and development, coupled with the North West £402 £5,547 0.38%
number of Higher Education Institutions, and strong electronics,
engineering software and biotechnology sectors within the Yorkshire £310 £5,520 0.40%
South East; the region has attracted a large number of research
production facilities and global healthcare organisations. East Midlands £179 £4,698 0.25%

West Midlands £296 £5,396 0.35%

4.5.3.23 Aerospace
East £139 £2,014 0.13%
The entire UK owns over twenty per cent of the European
aerospace and defence market, which it is estimated to be worth London £374 £2,661 0.21%
over £32bn to the UK by 2009 (Source: SEEDA). The South
East has a high percentage of aerospace and defence research South East £166 £905 0.10%
and development companies and contains seven of the top ten
global aerospace and defence companies. South West £162 £2,560 0.19%

Total £2,310 n/a n/a

4.5.3.24 Research & Development
Almost a quarter of the UK’s R&D workforce is located within the
South East, which has an annual expenditure of £4.66bn, roughly
a quarter of the entire UK expenditure on R&D (Source: SEEDA).
One of the contributing factors to the large concentration of R&D
within the South East is the high number of world class Higher
Education Institutes within the region and their collaboration
with the multinational corporations also situated in the region.
Average £256 3,327 0.25%
Table 18: RDA Budgets for 2007-2008 (£m)
The Science and Innovation Strategy provide insights into how
SEEDA plans to spend nearly £80m on science and innovation
activities between the years 2005-2011. Over a quarter of
this amount (£25m) is budget for the Innovation and Science
Campuses across the South East. This emphasises the strategic
importance of the Science and Innovation Campuses to promote
the innovative capacity of the South East.

32
 Innovation Interaction

4.6.2 Simultaneous SEEDA Projects
There are a number of projects that have been initiated
by SEEDA in response to the Regional Economic Strategy
implementation plan. With the primary focus on increasing the
South East region’s global competitiveness by 2016, particular
emphasis has been placed upon targeting inward investment
and the support of strategically important companies. This will
be supported by the development and internationalisation of
innovation companies, alongside continuing to strengthening
the region’s global gateways and innovation structure. In order
to achieve this, initiatives in line with the aforementioned and
the RES have been implemented.
4.6.3 List of concurrent projects
The following projects have to be taken into consideration for
the analysis of an Innovation Campus:
a) Science and Innovation Campuses
• Harwell
• Science and Innovation Campus in Sustainable Systems at
Kent Thameside
b) Innovation Advisory Service
intertwined as the advancement in technologies will lead to
the advancement in communication methods which would thus
expedite the flow of information which would ultimately affect
the advancements of technology, leading to the cyclic effect the
ICT industry has upon itself.
As the communication industry is considered to be a large all
encompassing sector - where its technologies and services can
be applied to a number of different areas - it was decided that
telecommunication should be used in lieu of a broader term
and that there should be a focus on the sector’s applications
especially those that have either an established or burgeoning
position within the South East area. These areas are those that in
someway utilise communication or those where communication
is an intrinsic part of their business.
5.2 Definition
Telecommunication can be defined as the assisted transmission
of signals over an extended distance utilising technological
mechanisms for the purpose of communication. The rate and
method of communication grows extensively larger each year,
due to the advancements in hardware – such as digital and optical
technology and software. With this in mind it makes it hard to
disassociate telecommunication or general communication from
any technologically based sector.

c) Enterprise Hubs Developmental stages of Telecommunication Industry

d) Innovation Platforms
Research Standards Network Client
e) Innovation Teams

f) Knowledge Network Programme

According to SEEDA “the objective of the Knowledge Network

Programme is to catalyse collaboration and bring more innovation
to market. This is achieved through Knowledge Networks, which
bring together representatives of the knowledge base and
business.”

• South East Security Knowledge and Innovation Network

(Security-KIN)
• Air Traffic Management Knowledge Network (ATMKN) Figure 4: Developmental Stages of Telecommunication Industry
(Source: Library House)
• The Digital Content Knowledge Network
• Telecare Knowledge Network (TKN) As the figure above demonstrates, the developmental stages of
the telecommunication industry evolve from a strong research
background through to the creation of standards, then networks
5 Innovation Interaction or infrastructure, through to the client interface. Also depicted
in Figure 4 is how particular applications of the communication
5.1 Overview of Communication Industry industry overlay stages in the developmental process. It is also
clear that hardware, software and security are fundamental
within South East components of all of the developmental stages, whilst design is
The Information, Communication and Technology (ICT) area in employed when the technology or service is ready to transition
the UK is one of the fastest growing markets in Europe (EITO). into the outward client facing stage.
The South East is considered the biggest ICT region in the UK
with over 180,000 hardware, telecom, software and services
companies in the region. Though this is not a direct indicator
of the communication industry alone, it has to be said that the
communication industry cannot be considered in isolation from
the ICT industry. The development path of both industries is

33 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

5.3 Communication Companies • Group 32.2 and 33.3 Manufacturing

In order to asses the current state of the communication companies in • Manufacturing of telecommunication equipment
the South East, analysis of the Companies House company data (via
• Group 72.4 Database Activities
FAME) was undertaken to determine the number of companies that
consider themselves in or involved within the communication area. • Includes mainly database programming, but also
remote access to these databases
When using FAME to determine the company landscape, a number
of aspects were used to produce the most precise data. Firstly, • Group 92.2 Radio and Television Activities
postcodes from the primary trading address took preference over
those of the primary registered address, as many companies • Broadcasting activities
register their companies’ in one area, but carry out the majority
of their trading elsewhere. Additionally, all companies selected for 5.3.1 All Communication Companies
the analysis are independent with no holding companies (note
Using the results from FAME, the general landscape of the
however that this was obviously not the case for the ‘foreign high-
communication companies are shown in Map 8. The strongest
tech corporate R&D bases’ analysis)
distribution of communication companies ranges from Reading
to Brighton. Also located within this belt region are a number
Standard Industrial Classification (SIC) codes are used to classify
of the larger companies within the South East Region, and the
businesses by the type of economic activity in which they are
majority of universities analysed for this report.
engaged. The following SIC codes were used to determine the
telecommunication landscape in the South East Region:

• Group 64.2 Telecommunication

• Main Telecommunication SIC Code includes Radio,

Television, Wired, Wireless, Satellite and Other
Telecommunication activities

Map 8: Regional distribution of South East-based Communications Companies

(Source: FAME and Library House Analysis)

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 Innovation Interaction

SIC 2003 SIC 2007

SIC 2003 Description SIC 2007 DESCRIPTION Comments
CODE CODE

32201 Manufacture of telegraph 26301 Manufacture of telegraph Central office switching equipment,
and telephone apparatus and and telephone apparatus and cordless telephones (except cellular),
equipment equipment PBX equipment, telephones, and data
communications equipment, such as
bridges, routers, and gateways

Manufacture of telegraph
Repair of communication Repair of communications equipment
32201 and telephone apparatus and 95120
equipment (in combination with manufacturing)
equipment
32.2 Manufacture of telegraph
Manufacture of radio and
32202 26301 and telephone apparatus and Mobile phones
electronic capital goods
equipment
Manufacture of communication
Manufacture of radio and equipment other than telegraph, Wireless telephone equipment, radio
32202 26309
electronic capital goods and telephone apparatus and and television broadcast equipment.
equipment
Manufacture of radio and Repair of communication Repair of communications equipment
32202 95120
electronic capital goods equipment (in combination with manufacturing)
Manufacture of television
Manufacture of telegraph
and radio receivers, sound or
32300 26301 and telephone apparatus and Telephone answering machines
video recording or reproducing
equipment
apparatus and associated goods
32.3 Broadcast studio equipment such as
Manufacture of television Manufacture of communication
reproduction equipment, transmitting
and radio receivers, sound or equipment other than telegraph,
32300 26309 and receiving antennas, paging
video recording or reproducing and telephone apparatus and
equipment; radio and infrared remote
apparatus and associated goods equipment
control devices
64200 Telecommunications 60100 Radio broadcasting Transmission of radio programmes
Television programming and Transmission of television
64200 Telecommunications 60200
broadcasting activities programmes
Wired telecommunications
64200 Telecommunications 61100 Wired telecommunication activities
activities
64.2 Wireless telecommunications
64200 Telecommunications 61200 Wireless telecommunication activities
activities
Satellite telecommunications
64200 Telecommunications 61300 Satellite telecommunication activities
activities
Other telecommunications
64200 Telecommunications 61900 Other telecommunications activities
activities
Internet radio broadcasting
72400 Database activities 60100 Radio broadcasting [not explicitly mentioned in NACE 1.1/
CPA 2002]
72.4 Image with sound internet
Television programming and broadcasting
72400 Database activities 60200
broadcasting activities [not explicitly mentioned in NACE 1.1/
CPA 2002]
Broadcasting of radio programmes
(except on a subscription or fee
92201 Radio activities 60100 Radio broadcasting basis, to a third party, such as cable
systems or direct-to-home satellite
92.2
systems)

Television programming and Broadcasting and programming of

92202 Television activities 60200
broadcasting activities television programmes

Table 19: Communications Industry by SIC Codes

(Source: UK SIC Code 2003 and 2007)

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Innovation Campus in Communications Technologies and their Applications

5.3.2 Public Listed Communication Companies

Company Sector Sub-Sector Market MarketCap

VODAFONE GROUP Mobile Telecommunications Mobile Telecommunications UK Main Market 85627.77

SPIRENT Technology Hardware & Telecommunications UK Main Market 442.61
COMMUNICATIONS Equipment Equipment
INTEC TELECOM SYSTEMS Software & Computer Software UK Main Market 132.71
Services
VISLINK PLC Technology Hardware & Telecommunications UK Main Market 73.26
Equipment Equipment
ADEPT TELECOM Fixed Line Fixed Line AIM 10.21
Telecommunications Telecommunications
MOBESTAR HOLDINGS Mobile Telecommunications Mobile Telecommunications AIM 5.41
MOBILE STREAMS Mobile Telecommunications Mobile Telecommunications AIM 2.43
TELSPEC PLC Technology Hardware & Telecommunications AIM 2.32
Equipment Equipment
PATIENTLINE Fixed Line Fixed Line UK Main Market 0.57
Telecommunications Telecommunications

Table 20: South East-based Public Listed Communications Companies on LSE

(Source: LSE, 2008)

5.3.3 Communication SMEs

Map 9: Communication SMEs based in the South East with the sector UK SIC Code Group 84.2. (Source: Companies House)

Map 9 is an overview of the Telecommunication SME’s based
in the South East. Using the search criteria to include all active
companies whose employee number is less than 250 people and
have nominated either of their primary or secondary SIC codes
as belonging to the 64.2 group. Over 7000 companies were
identified within the UK and it is clear from the mapping that
there is a high concentration of these SMEs within the Reading
area. This concentration is partially due to the high number of
large telecommunication companies within this area, namely
Vodafone and Nokia.

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 Innovation Interaction

5.3.4 Venture Capital-backed Communication Companies

Postcode Number
RG – Reading 8
GU – Guildford 4
OX – Oxford 3
SL – Slough 2
BH 1
BN 1
HA 1
KT 1
RH 1
SO 1
SP 1
TW 1
Total 25

Map 10: Overview of South East-based venture capital backed companies in the communication sector
(Source: Library House)

On analysis of Library House data, it is seen that the highest
number of venture backed companies within the communication
sector is concentrated to the north-west of the region. Reading
has the highest number, followed by Guildford and Oxford.
This again would be partially due to the influence of such large
corporations as Vodafone and Nokia.
5.3.5 Summary Communication Companies
As it can be seen in the previous summary, the South East region
has an extensive network of telecommunication companies
and other supporting enterprises. There seems to be a strong
concentration of these companies within the Reading area with
particular emphasis on the M3/M4 corridor, situated to the west
of London. Within this area there is clustering of corporates,
venture backed companies, university spin-outs, high-tech
SMEs alongside the high concentration of telecommunications
companies already explored above.
5.4 Collaborations Communication East involved the University of Reading.
Companies and Universities
In order to analyse the extent of collaboration between the
commercial sector and the higher education institutes, two
databases were utilised. These include the both the Knowledge
Transfer Partnership (KTP) and the Technology Strategy Board
(TSB) Research and Development Program.
5.4.1 Knowledge Transfer Partnership
The Knowledge Transfer Partnership is the largest available data
source to identify collaborations between the commercial sector
and Higher Education Institutes. The database itself contains
over 4,400 records of completed collaborations and over 500
current KTPs. In review of the database it was shown that nearly
600 collaborations were recorded for the South East, however
not all of these were necessarily with HEIs within the region or
within a relevant sector for this report.
The average value of these KTPs is £72,000 and they each
comprise of three main groups, commercial entities (private
enterprise, public body or voluntary agency), Knowledge Base
Partners (HEI, research organisation or other education colleges)
and Associates (recently qualified persons).
5.4.1.1 Communication
Within the KTP database, there has been no attempt to define
or create a communication classification. The partnerships
were analysed from a companies or a Knowledge Base Partner
perspective. The UK SIC Codes provided by the KTP database
were utilised for company analysis. Overall the database
contained 57 KTPs with communication companies in the UK,
10 of which involved South East based companies. The most
partnerships within the telecommunication industry in the South
Overall it can be seen that there is a small number of KTPs within
the communications industry in the South East, though some of
the non-SIC specific KTPs could be argued to be communication
related in some way or form. Even with such a small number,
it is easy to see a correlation between the location of a HEI
and its proximity to proactive businesses, to the number of
collaborative projects undertaken; though it can be said that
extensively larger corporations will attract collaborative projects
from further afield. Within the South East it can be said that
the University of Reading is the main collaborator within the
telecommunications sector. It is also clear that there are a
number of connections between HEI’s and corporate entities
within the South East, especially within the Greater South East
partner regions.

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Innovation Campus in Communications Technologies and their Applications
5.4.1.2 Multimedia and Design
When looking at collaboration activities within the Multimedia
and Design sector in the South East, it was found that the KTP
database did use a classification for this area. When analysed,
it was found that the UK had overall 455 KTPs with a skew
towards the design side, with over 90% being design based
partnerships. Within these 455 KTPs, 41 KTPs were design based
with SE-based Companies and 7 KTPs were in Multimedia; 35
of these KTPs were intraregional with 12 originating in Brighton.
Additionally, Brunel, Reading and Portsmouth had 7, 6 and 5
KTPs each respectively.
From a South East regional HEI perspective, the HEI’s
were involved with 55 KTPs in Multimedia and Design, with
Brunel collaborating on 18 projects and Brighton, Reading
and Portsmouth each collaborating on 13, 7 and 5 projects
respectively.
On the whole it can be seen that the creative industry is by
far, more active in KTPs than the telecommunication industry.
In light of this, the University of Brighton is the most active
partnering institution with companies within the South East.
Brunel also has strong inter-regional links while Reading and
Portsmouth also display strengths in both the creative industry
and the telecommunication industry. Note that Reading has one
of the highest numbers of KTPs nationally.
5.4.2 TSB Research and Development
As one of the many innovations driven by the TSB, a new
technology programme known as Collaborative Research
and Development (R&D) has been developed. The TSB R&D
programme is designed to aid the collaborative processes
between industry and the research communities. There is
a strong emphasis from the TSB on the areas of science,
engineering and technology, as they have been deemed
the most strategically important to the future of the UK’s
innovation base. It is hoped that through this programme,
new innovations in products, processes and services will
emerge. The programme at this point in time contains 298
R&D Collaboration projects throughout the UK, 172 of these
being located within the South East region. Of the 298 projects
listed, 16 have been listed in the key area of “Information and
Communications Technologies”, 88% of which are located
within the South East.
5.5 Applications
5.5.1 Assumption
The information contained in the following sections has been
sourced through interviews with experts within their field,
and from publically available data sources. This approach,
though not conducive in creating a definitive market analysis
for each of the specific application areas, it does however
lend to the knowledge of each of the specific areas and allows
the ability to gauge the attractiveness of each of the areas to
all stakeholders.
38
5.5.2 Aerospace
5.5.2.1 Definition
The aerospace sector can be defined as a sector primarily
focused upon the research, design, manufacture, operation and
maintenance of civilian and military aircraft, space vehicles, and
missiles. The UK aerospace industry is the second largest in
the world, generating revenues of £20bn in 2006 and securing
new orders worth over £26bn for 2007. This represents
approximately 13% of the global aerospace market. The sector
employs over 124,000 people in the UK, and by conservative
estimates supports over 276,000 jobs. The sector employs a
further 50,000 people overseas, generating an additional £8bn
in sales revenues. The prospects for the aerospace industry look
promising, as it is currently estimated to have an annual growth
rate of 5%. This growth is expected to accelerate substantially
in the near future, as the new EU Air Transport agreement of
March 2008, is expected to lead to demand for more passenger
and freight aircraft. The sector invests over £2.5 billion in
research and development each year and is second only to the
pharmaceutical industry in terms of intensity of R&D activity.
5.5.2.2 Aerospace Public Policy
Recently there have been many initiatives put forward by the
Government with regard to the Aerospace industry. In 2004 an
initiative known as the National Aerospace Technology Strategy
(NATS) was created to provide a framework for research.
Since then, the industry has received greater funding from the
Government’s technology program than any other industry sector,
although as a consequence the industry may cease to receive
funding from the Department of Business, Environment and
Regulatory Reform (BERR). As part of the research framework,
NATS established a series of Aerospace Innovation Networks
(AINs) to coordinate government, industry and academic
research in areas that would directly shape the future of the
aerospace industry. Funded at both the national and regional
levels, these areas include:
• Aerodynamics and Computational Fluid Dynamics (CFD)
• Environmental technology
• Advanced aerospace materials and structures
• Health management and prognostics
• Through-life support
• Synthetic environments and systems simulation
In addition to the steps taken by NATS, the government launched
a number of Aerospace Technology Validation Programs (ATVPs)
to look specifically at areas including:
• Civil Powered Wing
• Environmentally Friendly Engine Program
• Potential of Electric Aircraft
• Autonomous systems
• Future Air Battlespace
• Air Traffic Management
In addition, rising passenger numbers have prompted growing

concerns about the environmental impact of aviation. The UK’s
Sustainable Aviation strategy, based on a partnership between
government and industry, is considered a pioneering approach in
this area. With growing public concern over the ‘carbon footprint’
generated by air travel, government-backed research, including
the Environmentally Friendly Engine program, demonstrates an
emerging demand for greater aircraft efficiency and low-emission
technologies. This strategy is created to coincide with the European
Union Emissions Trading Scheme (EU ETS) on aviation.
Another joint government and industry initiative, known as the
Aerospace Innovation and Growth Team (AeIGT), has identified
engine technology as being centrally important to the UK’s
aerospace industry, and also as coinciding with the government’s
Sustainable Aviation Strategy.
In addition to industry framework, there has been a strong
focus by government agencies such as BERR and the Society
of British Aerospace Companies (SBAC) on the skills needed for
the aerospace industry. These agencies have focused on areas
such as advanced materials engineering, software systems, and
modelling and simulation, with potential applications in both the
civil and defence sectors.
It has been said that aerospace is a “long term industry”, and
that “decisions taken now will affect this highly successful UK
sector for the next 20 years” (Source: IFM Cambridge).
5.5.2.3 Aerospace Landscape
The United Kingdom is the birthplace of several leading
manufacturers in the global aerospace industry, including BAE
Systems and Rolls Royce. The majority of the UK’s defence
budget is spent within the aerospace industries; however, the
defence budget has reduced over recent years, and several major
programs are nearing completion. There are therefore reasons
for concern over the future role of defence contracts within the
aerospace industry, as the equipment budget available to the
Ministry of Defence is reduced further. By comparison, the civil
aerospace turnover increased 8%, to £10.5bn, in 2006 and is
expected to continue to grow over the coming years.
Not only is the UK home to major European aerospace
manufacturers, but it is also host to major US aerospace
corporations such as Honeywell, Raytheon, Rockwell Collins,
Lockheed Martin and Goodrich. The UK aerospace industry has
strong ties with transatlantic partners, and according to the Society
of British Aerospace Companies (SBAC), these UK companies
employ over 35,000 in the US, generating revenues of over £5bn
annually. This transatlantic cooperation is further evinced in the
observations that one-fifth of all SBAC members are US owned
and that in the past year US companies have exported £3bn
worth of aerospace products to the United Kingdom.
The majority of activity in the aerospace industry is concentrated
predominantly within the South East, with other concentrations
in the South West and North West of England. In a recent report
by SBAC, it is estimated that over 2,500 SMEs are involved in
the UK aerospace industry, emphasising the importance of the
sector and its contribution to the national skills base. However, it
must be noted that although SMEs make up 45% of the number
of companies in the aerospace sector, they only make up
approximately 2% of its sales. In recent years a high percentage
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Innovation Interaction
of the continued growth of the UK aerospace industry has been
directly attributable to the resurgence of the maintenance,
repair and overhaul (MRO) sector. It is estimated that MRO was
responsible for revenues of £6.5bn in 2006, an estimated 8%
increase on 2005 figures, with aircraft manufacturers increasing
their MRO market share at the expense of independent operators
and of the commercial airlines.
5.5.2.4 Aerospace - Growth prospectus
The UK aerospace industry compromises five sectors, namely
aircraft systems and frames, aircraft equipment, aircraft engines,
missiles, and space, each accounting for 31, 28, 24, 6 and 3 %
of the industry turnover respectively. As discussed previously,
MRO accounted for 8% of the industries turnover in 2006. The
UK is considered to be a leader in many of these sectors, as it
is the home to some of the world’s leading manufacturers of
aircraft engines, avionics, and specialised products. However,
the UK has not focused on building whole civilian aircraft in the
past, but rather on airframe sections. Additionally, it has had
to transition advantages and experience in different areas of
the aerospace industrial process in order to achieve its current
success. This includes projects reflecting a growing expertise in
the utilisation of composites and specialist materials, which is
an area the UK government has determined as key to the future
competitiveness of the industry.
In addition to the core production side of the aerospace industry,
airport development is an important trend within the aerospace
sector. The expansion of airports has been shown to add to the
growth of both low cost carriers and a number of new regional
airlines, serving routes within the United Kingdom, to Europe
and to America. With the increase in volume of flights, the rate
of MRO is expected to increase, with a subsequent positive
contribution to the industry.
5.5.2.5 Aerospace in the South East
The aerospace industry has activities throughout the UK, though
much of the R&D is concentrated in the South East. One good
example of this is the space sub sector of aerospace where 90%
of activity is described as taking place between Stevenage and
Portsmouth, with companies like BAE, Rolls Royce, Honeywell,
Astrium, Logica, Vega and Qinetiq all running significant R&D
projects in the region.
The aerospace industry is by nature capital intensive, which often
results in collaboration between organisations and institutions.
Examples of this include the 15 Rolls Royce “University Technology
Centres”, whereby the universities taking part benefit from
commercially focused research funding, and Rolls Royce can take
advantage of high value skill sets. For large aerospace projects,
collaboration is often essential on an international level, due to the
array of skills, technology and infrastructure required to pull them
off, not to mention finance them. Many collaborative environments
have been created between South East HEIs and large corporations
which are discussed to a further extent in the model analysis.
Research intensity and the multi-disciplinary nature of the sector
means there is a high prevalence of technology transfer and
spill-over effects. Examples include composites and computer
chip technology transferred from aerospace to telecoms, to
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Innovation Campus in Communications Technologies and their Applications
Map 11:Location Analysis of the Aerospace industry in the South East
(Source: Companies House and Library House Analysis)
medical and to other industrial applications. Other examples of
aerospace research “over-spill” include the design of racing cars,
wind turbines, oil rigs and bridges
The president of the Association of Aerospace Universities
expressed enthusiastic support for an Innovation Campus,
adding a touch of anecdotal evidence to support the position
that aerospace is an important candidate for a sector focused
Innovation Campus. There are four major aerospace focussed
institutions in the region - Kingston, Imperial, Surrey and
Farnborough College of Technology.
One of the most significant regional players in aerospace is
the Farnborough Aerospace Consortium (FAC), which is one
of the largest and most established aerospace and defence
associations in the UK. It provides support to the 1200 related
companies located in Southern England, and would be a key
stakeholder in the development of an aerospace related campus
in the South East region. The FAC acts as a network and conduit
between academia, government organisations, and large and
small companies. FAC assists by identifying market opportunities
for and by supporting growth of the regional aerospace industry
(Source: SBAC 2008).
In conclusion, the South East is already home to a large number
of prominent national and international corporations within
the aerospace industry. Having one of the central consortiums
40
Map layers
Aerospace Companies
based at Farnborough, and also being home to two of the
largest airports in the world, has lead to the strong presence
of aerospace within the South East. Recently the Surrey Space
Centre has been acquired by Astrium, raising questions as to
the future of this park. As previously stated, it has a number
of KTPs active with universities, particularly those within the
Southampton, Guildford and Surrey areas. In short, the South
East has played an important role within the aerospace industry
and will continue to do so in the future.
5.5.3 Assisted Living
The Assisted Living industry is still in its infancy, and is
yet to take hold in any region within the UK. However, it is
unreasonable to assume that this is due to a lack of interest
in the type of solutions offered. In reality, there are very few
developers of this type of technology, and even fewer products
at a stage of commercial readiness. This, coupled with the
fact that Assisted Living solutions are most effective when
integrated into a residential building project from the blueprint
stage, helps to explain why we are yet to see an uptake of the
solutions offered.
Despite the infancy of the industry, Assisted Living is a priority
for the public sector, as the UK is seen to have a rapidly aging
society, with an estimated 16.8 million to be over 65s by 2051.

Currently within the South East, 14.4% of men and 18.5%
of the women are over 65, whilst, 1.4% of men and 3.0% of
women are over 85. Coupled with the fact that currently over
30% of the population suffers from a long-term condition which
accounts for 69% of the primary and acute care budget in the
UK, it is clear why Assisted Living is a concern for the public
sector. However from a business perspective, it can be noted
that up to 85% of the worldwide healthcare spend is centred
around chronic disease management. In addition to this, the
global healthcare market is worth nearly £400m, and predicted
to grow to £4bn in 2 years.
Many Assisted Living applications under development offer
communication-based solutions; remote control of some aspect
of the home, instant notification of an event or problem through
sensor systems, or perhaps direct automated communication
with a third party. These applications are generally found to be
bandwidth-heavy, and are therefore dependant on provision of
adequate broadband infrastructure in the region of development.
Broadband penetration is far from ubiquitous in the South East,
and even where uptake is high, bandwidth can be limited by
ISPs. The speed and reliability of broadband provision will
influence the location of Assisted Living projects.
5.5.3.1 Definition and Philosophy of Assisted • Business modelling
Living
The phrase “Assisted Living” conjures multiple ideas and
definitions depending on the context in which it is used. The
phrase has been used by states and governments, accrediting
organisations, researchers, consumer advocates, and the
providers themselves to mean a variety of different things.
The underlying philosophies of Assisted Living include meeting
the needs of those who need assistance, while maintaining
and maximising their independence, privacy and dignity.
The majority of definitions however have always included
various aspects but most importantly pertain to the 24 hour
supervision and assistance with other day to day activities of
those who are unable to adequately look after themselves.
The activities can include everything from housekeeping to
meal preparation.
The lack of agreement on a definition makes it difficult to
obtain consistent data on Assisted Living. Previous studies
have used varying definitions, some of which include a
broader range of general residential care services. Most of
the studies referred to in this report use a relatively narrow
definition of Assisted Living, consistent with the philosophy
and definition described above.
This report will look at the combination of communication and
Assisted Living in regards to the emerging areas of telemedicine
and telehealth. The terms telemedicine and telehealth are
used to encompass the larger picture from remote clinical
services and medical procedures to remote healthcare and
monitoring. Telehealth focuses predominantly on effectively
using communications technology, for the provision of pervasive
information, mainly for safety and central monitoring applications,
in line with the underlying philosophy of Assisted Living, much
akin to the dated in absentia care 10 system used in the past
centuries and can be used to include telecare. On the other hand,
10
in absentia care is commonly used in medical circles to describe clinical practice and healthcare in the absence of any personal contact
41
Innovation Interaction
though telemedicine can encompass the telehealth aspects, is
more clinician based, in some cases allowing remote medical
treatment via drug administration or even remote operations.
5.5.3.2 Public Policy
5.5.3.2.1 Technology Strategy Board as the
driving force behind Assisted Living
The TSB’s Assisted Living Innovation Platform, announced on
8 November 2007, aims to provide for the needs of society
by influencing Government policy in such a way as to drive
industrial innovation in the sector. Specifically, the platform
hopes to encourage significant advances in the technology
needed to enable the elderly and chronically infirm to support
themselves independently. A wide range of activity has been
proposed, including fairly conventional short term and long term
research and also development work. Due to the tendency for
an innovation platform to take on a wide brief, it was proposed
to concentrate on the following streams:
• Standardisation
• User-centred design
• Working towards a future technology demonstrator “suite”
The TSB will initially fund short term R&D projects in areas such
as home-based intelligent processing, value added services for
well-being, and health management. It has a budget of around
£6.5m for these projects.
5.5.3.3 Opportunities in Assisted Living
As previously discussed the UK’s Assisted Living industrial sector
is currently under-developed because it is still in its infancy. It
can therefore be said that an opportunity exists to set up a
structure representing the UK, be it through a trade body or
otherwise. There may be benefits to setting up a research
centre or “think tank” in order to investigate the sector further.
By employing the Fraunhofer-approach, the opportunity exists
to set up a European centre of excellence in Assisted Living,
providing facilities and support in order to:
• Provide training and qualifications across a variety of
applicable of sectors
• Connect the necessary skills across industries (technology,
design and management).
5.5.3.4 Assisted Living Technologies
Most Assisted Living solutions rely upon a range of technologies
which are readily available, and which have already seen good
uptake when applied to other applications; these include:
• Sensor Technologies
• Broadband Technologies.
• Mobile Communication Technologies: 3G, GPS
• Short range wireless (Bluetooth, Wi-Fi)
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Innovation Campus in Communications Technologies and their Applications
In order to integrate these technologies into various Assisted
Living projects and solutions, the technologies must be aligned
in terms of technical aspects such as standardisation, design,
and anticipation of future developments, and also in terms of
business-relevant aspects such as marketability, consumer
development and intellectual property.
A strategic roadmap for research and development has already
been drawn up by the European Ambient Assisted Living Alliance
(AALIANCE). It includes many of the requirements discussed above.
5.5.3.5 Supply Side Analysis
Partly because the exact definition of the sector remains
ambiguous, developers of Assisted Living technologies are
distributed across many industrial sectors. Because of this
distribution, it is not possible to analyse companies based on
standard industrial classification (SIC) codes; an analysis of 27
companies revealed that they are classified in 16 different SIC
codes. A larger sample size would be required before SIC codes
can be expected to be a useful basis for any meaningful analysis
of the sector.
Current companies developing the technologies include a number
of established providers working alongside new entrants to the
market:
• Established providers: Bosch, Phillips, Siemens, BT Group,
Pfizer Healthcare, IBM, Tunstall, Fujitsu
• Market entrants: Nokia, Vodafone, Intel
Existing collaborations within the industry tend to be split
between the fields of engineering, management and design.
These collaborations are dispersed throughout the UK, probably
due to the fact that the sector has no significant presence in any
single region.
5.5.3.6 Demand Side - The Customers of There is currently no strong case for private business to become
Assisted Living Products
Demand for Assisted Living products comes from the public
sector, from individuals and from private providers of Assisted
Living care.
The public sector market in the UK is dominated by the monopoly
of the NHS; whilst there are many levels of decision making in
such a large public body, any implemented technology roll-out
has the potential to be highly advantageous as it could be taken-
up by the whole of the health service simultaneously. The UK
is ahead of much of Europe in terms of public sector uptake
of Assisted Living products. Additionally, public bodies are
encouraged to justify their decisions based on a “costs vs. value”
approach, which encourages the uptake of effective products.
Individual consumers of Assisted Living technology will be of
a demographic with a good understanding of information
and communication technologies; they represent the largest
customer group, willing to spend money on Assisted Living
products and services if they are available.
Providers of Assisted Living care (i.e. residential homes, carers
and nursing for the elderly or infirm) are likely, as in the public
42
sector case, to focus on the value offered by products in terms
of the benefit to the business of care. In one notable example,
a US nursing service found that telemonitoring systems can
reduce the number of mandatory visits the staff are required to
make. In addition, the US is slowly shifting focus from nursing
homes to at-home residential care.
5.5.3.7 Market Summary
As mentioned above, a lack of clear definition leads to frequent
misunderstanding of the market. In particular, the perception
that Assisted Living deals primarily with residential care does not
fairly represent the wide variety of approaches within the sector,
nor the range of solutions offered.
It is worth noting that this is a sector in which the requirements
for research and development are low. Products and services
can be developed with existing technologies, most of which are
already mature and familiar to consumers.
There is a potential for a small number of UK companies
to become international technology and market leaders.
Internationally, the UK market already has a good reputation,
especially for telemonitoring. This promising market will
attract international companies in the mid-long term. Overall
the market suffers from a lack of critical mass, as there are
too few active companies.
5.5.3.8 Funding Summary
The majority of funding in the near future will be derived from
public sources. The NHS and various Primary Care Trusts (PCTs)
will continue to purchase products for public benefit. In addition
to purchases, the Department of Health plans to fund a whole-
system demonstrator program, and will continue to invest in
developing technologies as part of its “Preventive Technology
Grant”.
involved; the market push is anticipated to come from public
purchases, which in turn will encourage larger technology
providers to enter the market.
5.5.3.9 Case for the South East
The research suggests that the South East has the potential be a
region wherein Assisted Living technologies can be transformed
into products and services which will ultimately be of benefit to
ordinary people.
The region is attractive to the business community because of its
significant R&D capacity and interest with all the major technology
companies, including one major player in Assisted Living. In
addition, the South East’s existing design and security companies
offer overlap with developers of Assisted Living solutions.
The area has a number of “living labs”, located along the
coast, around Oxford and in the Reading area. These could
provide a real-life environment for testing products and
services, as well as encouraging purchasers to invest into the
technologies.
 Innovation Interaction

Existing Assisted Living companies are fairly evenly scattered, 5.5.4.2 Major Players
and clusters exist around the urban centres of the South East;
Reading, Oxford, Brighton, Southampton and Portsmouth.
SIC Industry Description
744 Advertising
5.5.3.10 Existing Initiatives are mainly public
sector driven 362 Manufacture of jewellery and
related articles
All major Assisted Living initiatives are currently publicly
funded: 742 Architectural and engineering
activities and related technical
Ambient Assisted Living Joint Programme consultancy
• http://www.aal-europe.eu/
921 Motion picture and video
activities
Coordination Action AALIANCE
920 Recreational, cultural and
• http://www.aaliance.eu/public/ sporting activities n.o.s. (not
otherwise specified)
ICT enabled Independent Living for Elderly 924 News agencies
• http://www.ict-ile.eu/ 221 Publishing
925 Library, archives, museums and
TSB Innovation Platform – Assisted Living
other cultural activities
• http://www.innovateuk.org/ourstrategy/
innovationplatforms/assistedliving.ashx 72 Computer and related activities

923 Other entertainment activities

Telecare Knowledge Network – South East
• http://www.tkn.port.ac.uk/ 922 Radio and television activities

Table 21: SIC codes used to identify major players within the South East.
(Source: Library House)
5.5.4 Overview of Creative Industry within
South East
5.5.4.3 MediaTech
5.5.4.1 Definition MediaTech is a direct convergence of the Creative Industries
and the communication industry as shown in Figure 5. The most
Ever since the birth of the creative industry in the UK, there have successful and majority of definitions of the Creative Industries
been multiple attempts to find a definition to best describe include web design, software development and multimedia as
this space. One of the more popular definitions of the Creative core aspects of the industry.
Industry is from the Department for Culture Media and Sport
(DCMS), which defines it as those activities “which have their
origin in individual creativity, skill and talent and which have a
potential for wealth and job creation through the generation and
exploitation of intellectual property”. Through this definition it
has been able to identify thirteen differing sectors. A more robust
definition is one that includes industries that “focus on creating
and exploiting intellectual property products; such as music,
software and web development, design, multimedia, books, film,
and games, or providing business-to-business creative services
such as advertising, public relations and marketing.” From this
definition it is estimated that creative industries employment
accounts for approximately 7.1% of the total UK work force
(NESTA, 2008).

Due to the nature of its definitions, there has been much

debate on the true number of companies active in the
creative industry, and further discussion on how to identify
these companies. Also, in recent studies released by NESTA,
concerns have been raised about the definition and datasets
used to identify the strength of the creative economy.
Figure 5: MediaTech as Convergence of Creative
and Communications Industry
(Source: Library House)

43 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications
Library House taxonomy classifies MediaTech activities into two
separate sections; content & service providers and enablers.
Library House defines these distinct areas as:
Content & service providers create the content that consumers
read, watch, play or listen to. Service providers make that
content available to consumers. For example, it is content
provision when a studio films a television series, but service
provision when Apple’s iTunes sells a downloadable episode of
that TV series.
Enablers are companies whose products or services directly
assist content and service provision. A product or service that a
consumer uses to view or listen to content is a direct enabler, as
are products and services used by content and service providers
themselves. Library House’s definition of MediaTech excludes
indirectly-enabling technologies.
Both these areas heavily utilise communication technologies in
one form or another, be it from a software or hardware aspect.
Device
Service Platforms Distribution Retail
Creative Tools DRM Advertising
Community & Sharing Search & Directory Other Entertainment
Music & Audio Games Video
Text & Images
Figure 6: Library House MediaTech Classification
5.5.4.4 Public Policy
Within the South East, the MediaTech sector is a fast growing
industry, partially due to the long established rooting of the
creative industries to the region. The growth of the MediaTech
sector has arisen from development of communications, in
particular the internet, causing convergence between the
technologies (Figure 5). The strong creative talent within the
South East is now capitalising on this convergence, producing
some of the UK’s most innovative and disruptive MediaTech
44
companies. The growth of the MediaTech industry has not gone
unrecognised by either the public or private sectors, with both
investing heavily into the sector throughout the UK. Within the
South East a number of regional government initiatives have
been set up to promote the growth of sectors which come under
the MediaTech umbrella.
On a national level, the Technology Strategy Board (TSB) has
identified the Creative Industries as a key application area, noting
the role technology plays in driving and inspiring innovation
thought the UK. According to the TSB the sector accounts for over
7% GVA, and is growing at twice the rate of the UK economy. In
order to accelerate this growth throughout the UK, the TSB are
implementing a number of initiatives; the launch of a Knowledge
Transfer Network for the creative industries, promotion of
participation in multidisciplinary collaborative research, support
for innovation in small companies and encouraging SME
participation in public sector funded collaborative R&D.
Another governmental body supporting the growth of the
creative industries is the Department for Culture Media and
Sports (DCMS), who recently launched the Creative Economy
Program and published “Creative Britain: New Talents for the New
Economy” in February of 2008, outlining how the Government
will take action to support the creative industries.
On a regional government level The South East England’s
Development Agency’s (SEEDA) policy for the MediaTech sector
is set in their Regional Economic Strategy (RES) publication,
which covers all sectors. In response, The South East Media
Network (SEMN) was set up in 2005 by SEEDA to grow the global
market share of the digital content companies in the South East
of England. SEMN acts as an intermediate for communication
between businesses, policy makers and support organisations,
with the aim of improving the supply chain, and supporting
digital content companies within the region.
One of the drivers of the formation of the SEMN by SEEDA was
the understanding of the importance of the digital content sector
within the South East to the UK economy. The sector is currently
worth £8.7bn a year with an annual growth of 4% per annum,
and predicted to rise to £10.9bn by 2011.
On the regional level there are also a number of non-governmental,
non-profit organisations who promote the Creative industries,
these include WiredSussex and WiredWessex. Organisations like
these provide grass roots support and information about jobs,
office space, news and events run in the area via their online
portals and communities.
5.5.4.5 MediaTech Landscape
The nature of MediaTech (being predominantly internet based)
means that the industry is not as dependent on location and
clustering within the sector as older industries, which have
developed at a time were efficient knowledge transfer occurred
over a short geographical distances. More importantly, it has
been found that with companies which are not reliant on specific
loci, other factors play a more significant role in determining the
location of a business, including qualify of life and the creative
nature of the location. For example, Brighton is renowned thought
the UK as a cultural hub of the Creative Industries; according to
WiredSussex there are 915 digital media companies in Sussex,

Map 12: Concentration of MediaTech companies in the SE based on Library House MediaTech Tags
(Source: Library House)
of which 525 of these companies are located in Brighton. The
deep rooted tie of Brighton to the creative industries is clearly
visible when studying the facilities activities that have developed
to meet the industry’s needs; these include conferences, events
and interest groups related to the industry.
When benchmarking the growth and innovation of a particular
sector, nationally or on a regional basis, there are a number of
proxies that can provide a more quantitative view:
5.5.4.6 Venture Capital Investment
Data from Library House shows that within England the
MediaTech sector has 465 companies currently venture backed.
When broken down by region, 206 of these are located in
London. The South East performs well with 54 companies the
second highest number of any region in the UK.
The above map was generated from venture backed companies
within the South East that fall under the Library House’s
MediaTech tags. It seems that there is a strong concentration
of venture backed MediaTech companies between Reading,
Guilford and London. When taking into account London as
the major cluster, it can be said as a general rule of thumb
that with increasing distance from London there is an inversely
proportional number of venture backed companies. Interviews
carried out by Library House confirm these findings; a number of
interviewees believed that factors contributing to the strength
45
Innovation Interaction
of the MediaTech sector within the region are due to, the local
strength in the creative (Brighton) and communications sectors
(Reading), which over the last few years has seen considerable
convergence. Another reason for the success of the South East
can be put down to the proximity of the region to London, with
the South East seeing “spill-over” into the surrounding region.
5.5.4.7 Growth Prospects
The MediaTech sector has seen exponential growth since the
inception of the internet. Analysts believe that the sector will
continue its growth, especially in the developing nations and
in the Far East. As stated previously, this growth will continue
within the South East, where SEMN estimates value the market
for digital content companies at £8.7bn a year, with an annual
growth of 4% per annum to £10.9bn by 2011, which also
aligns with global growth forecasts. In order for this growth to
occur, the region must actively identify and commercialise new
technologies within itself, making it a national and internationally
recognisable location.
5.5.5 Security
The security sector is in many ways seen as a supporting industry,
crucial to a broad number of the industries providing underlying
technology. The general consensus is that security is generally
defined by people within the industry as “an area that is concerned
with protecting from manmade and natural threats”.
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Innovation Campus in Communications Technologies and their Applications
Like any other sort of industry, the security industry has a number
of activities that would be seen to be core. These activities
include services, consultancy, training, manufacturing, supply,
installation, research & development and software development.
The security industry can also be spit by technology areas such
as access control, alarm systems, biometrics, closed circuit
television, information security, sensors and systems.
5.5.5.1 Public Policy
On a national level the Technology Strategy Board (TSB) has
identified the network security industry as a particular area
of interest as a globally emerging industry. However, the TSB
has a more defined view on the security industry looking to
primarily focus on the confidentiality, integrity and availability
of network communications, infrastructure and the information
being transmitted across that network and the systems.
This is more precise and in many ways more inline with the
communications industry.
This national focus on network security has fed down to a
regional level. The South East region is no exception. SEEDA
and its Knowledge Network Programme (KNP) set up the
Security Knowledge and Innovation Network (Security KIN).
Map 13: Location of Security Companies in the South East
(Source: www.securitypark.co.uk)
46
The Security KIN commissioned a report by Paul Osborne of
Cranfield University as a proactive approach to understanding
the security industry landscape. The Security KIN now seek to
catalyse collaboration between representatives of the knowledge
base and businesses in order to bring new and innovative
security solutions to market. In order to achieve this innovation,
in the Security KIN are looking to integrate and mobilise the
region’s industry, and to link it to relevant regional knowledge
bases in order to create a new collaborative industry in which
members can draw on both national and European funding to
drive innovation.
5.5.5.2 Security Landscape
The UK Security Industry Mapping Study carried out by Paul
Osborne provides an in-depth mapping study of the security
industry within the South East. It identified the strength of the
region not only in terms of its knowledge base but also in terms
of company formation and the overall number of companies. The
region was found to have the highest concentration of security
industry organisations and sites, with 615 companies located in
within it, many of these located in Hampshire, Surrey, Kent and
Berkshire (Map 13, www.securitypark.co.uk).

The South East has the largest concentration of the Security
industry, accounting for over a fifth of the total UK sector. When
the South East is extended to include London the Greater South
East, it makes up half of the entire industry. Furthermore, 27%
of all UK R&D organisations whose primary objective is security
are based within the South East.
The regional strength of the sector within the South East is
complex but there are a number of key factors that can partially
explained the established nature of the sector. Within the South
East there are a large number of corporate bodies and government
agencies in fields including aerospace, communications and
defence who rely heavily on services provided by all sub-sectors
of the security industry. The region also has strong population
of graduates with qualifications suitable to the industry such as
engineering, computer science, mathematics and sciences. The
universities in the region understand the industry, and a number
of them cater specifically to it. The universities of Sussex, Surrey,
Southampton, Cranfield, Kent, Reading and Kingston are all
active in security related R&D, with Royal Holloway playing host
to the largest information security research group in Europe.
The industry as a whole has seen growth associated with increased
globalisation, and more recently with increased awareness of
terrorism. The South East provides an ideal location for the UK
industry due to its proximity to London, where the world’s largest
financial centre and its accompanying infrastructure (including
the two of the world’s busiest international airports) represents
a huge market for security solutions.
5.5.5.3 Growth Prospects
The South East was home to 18% of the security companies
formed between the years of 2000-2004.
The mapping study outlines the fact that the number of
knowledge-based security companies is disproportionately low
for the size of the industry at 10% on the national level. Whilst
this figure is low, the shortcoming is exacerbated by the nature
of the industry, which is traditionally a highly innovative sector.
The South East, however, is home to the largest share of these
knowledge-based companies (28%).
The South East is at the leading edge of a number of convergence
sub-sectors within the security industry, which are also set to grow.
The region hosts 38% of the UK’s information security companies
and 28% of its biometrics and patterning holding companies.
It is interesting to note that these sub-sectors of the industry
are fairly niche, and that this has helped clustering of these
companies within the region. ICT and software companies, for
example, are found in high proportions around the Berkshire
and the M3/M4 corridors, while the defence industry has grown
in Hampshire and Surrey.
5.5.6 Transportation
The transportation industry is a large, multi-discipline industry
which like the communication industry, can be considered
a platform technology. That being said, the transportation
industry is generally considered to cover the major sub-sets of
air, rail, maritime, motor freight and also warehousing/logistics
47
Innovation Interaction
provision. It can also be further divided into passenger travel
and cargo transportation, including both technology focussed
services and products.
5.5.6.1 Public Policy
One of the key convergence areas where transportation and
the communication industries meet is in those solutions commonly
referred to as vehicle telematics systems. These systems have a
wide range of applications, the majority of which are related to
management of road usage. There has been an increase of focus
on applications within the vehicle telematics sector, including
intelligent transportation systems, vehicle tracking, remote collision
notification and diagnostics, location-driven driver information
services, accident prevention systems through, and on demand
navigation and entertainment. Many of these technologies employ
dedicated short range communications (DSRC).
Apart from vehicle telematics, communication can converge
with the transportation industry in a number of other areas
such as IP telephony, airline self-service kiosks, automated
manifest systems, transportation routing and scheduling, cargo
portals, less-than-truckload package tracking, RFID tracking and
passenger in-flight electronic access. These convergences are
creating an ever-maturing market with a constant supply.
With the transportation industry encompassing such a wide variety
of disciplines, it is hard to define or place transportation directly
into one department within a higher education framework. From a
review of HEIs that are actively working within the transportation
industry, it can be stated that the main departments which are
concerned with transport include; the departments of mathematics,
civil engineering, built and natural environment, economics,
geography, mechanical engineering, electrical engineering and
aerospace. Common place topics within these departments include
environmental and ecological considerations, public transport
systems, road pricing, modality in freight and land use and transport
integration to name a few.
5.5.6.2 Landscape
On analysis of the region it was found that the industry has
over 7,000 transport related companies within the South East
(Map 14). The methodology to analyse this data was to look at
companies that fell within the manufacturing of motor vehicles,
trailers and semi-trailers, other transport equipment combined
with Land, water and air transport.
Companies which defined their specialisation as cargo handling
and storage tend to be supporting transport activities. (Note:
Taxi services and courier services were specifically removed.)
The major problem when identifying companies within the
transportation industry is the lack of clear definition of the sector
within SIC codes, and no real governmental definition or plan
for the industry, unlike the well defined plans for the creative
industry sector, for example. As a consequence a detailed
understanding of the state of the industry within the South East
is very difficult.
However, both the transport and communication sectors have
approximately 7,000 companies respectively each within the South
East, and are renowned to be industry hotspots within the UK. So
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Innovation Campus in Communications Technologies and their Applications
Map 14: Location of Transport Companies
(Source: Companies House)
it stands to reason that the South East is very well positioned
to take advantage of any convergence technology and has the
potential to deliver this new technology within the sector.
The South East has a particularly strong transport industry due
in no small part to the local automotive industry. As part of the
“Motorsport Valley”11 the South East plays home to over 500
companies, adding £640m to the UK economy. The area has
companies across the entire automotive spectrum from large
manufacturing, with BMW, Ford, Rolls-Royce and Aston Martin
located in the region. There are also a number of component
manufactures supplying the major vehicle manufactures, racing
teams and bespoke car manufactures within the area.
All of this has aided the growth of the telematics industry due to
the region’s strong ICT and electronics sectors converging with
automotive and transport technology. It is no surprise then the
region is home to the largest companies in the industry, including
Traffic Master, Mobile Tracking Systems, QUALCOMM and Paragon.
The importance of the industry is also reflected by the universities
within the region; Southampton, Cranfield, Oxford and Oxford
Brooks all tailoring courses to motor sport, and in the case of
11
Motorsport Valley is the name given to the UK’s motorsport cluster, straddles four regions - South East, West Midlands, East Midlands,
and East of England. (SEEDA & Motorsport Industry Association)
48
!
Oxford Brooks and Cranfield they have a joint MSc. in Motorsport
Engineering with an emphasis on Telematics and new technology.
5.5.6.3 Growth Prospects
When analysing the worldwide transportation sector in
more detail the first point of interest is most of the new
technology being developed is convergence technology.
However, when studying the Gartner hype cycle (Figure 7
and Figure 8) the technology being developed is past the
initial idea development and is in final stage development
or product stage.
This has a very positive potential impact for the South East
in terms of employment within in the region. However, the
downside is that there is less innovation within the sector;
because of the maturing nature of the technology, any
further R&D is likely to be carried out in-house. This is
supported by Library House data, as there are only three
active venture backed companies in the region involved
in this type of convergence technology. This trend is seen
throughout the UK, indicating that this area of technology
has already been significantly developed, and that the lack
of innovation in the South East is representative of the
entire country.
 Innovation Interaction

Figure 1. Hype Cycle for Transportation, 2007

visibility
Passenger In-Flight Electronic Access
Financial Import and Export Management
Biometric Identity Documents Transportation Routing
RFID (Item) and Scheduling
Cargo Portals Revenue Management
(Yield Management)
Transportation Industry RFID (Asset)
RFID (Warehouse) Call Centers
Maintenance, Repair and Overhaul
IP Telephony
Fleet Vehicle Tracking
Software as a Service Commercial Telematics
Micro Fuel Cells
Airline Self-Service Kiosks
RFID: Airline Baggage Tracking Driver Load Matching
Global Visibility Satellite Navigation Systems
Less-Than-Truckload Java Platform,
for TMS Enterprise
Package Tracking
Business Edition
Process Strategic Network Design
Outsourcing
Supply Chain Analytics
CRM
Fuel Management
RFID (Case/Pallet)
Multicarrier Parcel Manifesting
Digital Signage in Microsoft .NET Application Platform
Transportation
Passenger Services
Remote-Diagnostic Telematics
Automated Manifest System
TMS Multimodel/International
Loyalty Marketing
As of July 2007
Peak of
Technology Trough of Plateau of
Inflated Slope of Enlightenment
Trigger Disillusionment Productivity
Expectations
time
Years to mainstream adoption:
obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau
Source: Gartner (July 2007)

Figure 7: Gartner Hype Cycle for Transportation

Publication Date: 13 July 2007/ID Number: G00148732 Page 5 of 37
(Source: Gartner)
© 2007 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Figure 8: Gartner Transportation Matrix

(Source: Gartner)

49 w w w. l i b r a r y h o u s e . n e t
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5.6 Summary

Convergence
Innovation Regional
Status Outlook areas with other Feasibility
Landscape Concentration
Sectors
Strong technology Established Constant demand Basic technology Western SE Diversified sector
Communication sector in the SE standards for innovation for all other concentrated in
sectors developed areas
Strong, but small Mature industry, Continuous Demand Along the Several initiatives
market size, innovations demand in a for security Stevenage - already underway,
Aerospace
especially in space mainly in large competitive technology Portsmouth line small stakeholder
organisations environment group
Many companies Diversified Emerging industry Key component of Concentrated Lack of
which provide to landscape with with current focus all other sectors around defence applications
Security
larger companies many applications on the defence corporates
sector
Fragmented Lack of standards, Interest from all Convergence of Western SE Opportunity to
market, few larger based on older stakeholders communication, create impact,
Assisted Living
players technologies creative industry upside and risk
and social science
Biggest sector in High level activity Constant demand Permanent need Wide spread Several
Creative the SE for creative input across the SE opportunities,
into other areas limited in impact
Most active area Market is at its Declining role of Convergence of Oxford, Guildford, Opportunity to
behind London peak technology communication, Reading, Slough, create impact
MediaTech
security and Brighton
creative industries
Strong within the Established, High Strong Industry Strong Wide spread Mature Industry
Se but broad level activity with low demand convergence with across SE, mainly
Transportation
for innovation communication around cities and
and applications the London Orbital

Table 22: Summary of Communication Industry and their Applications

To summarise, the key findings are placed within Table 23. It can
be seen that there are already many levels of convergence within
all the sectors. It can also be seen in the differing status of each
area, and their respective outlooks. All innovation landscapes
for each are strong (apart from Assisted Living), the feasibility
for each area differs extensively. With all factors in review, it
is evinced that the areas that should be considered should be
inclusive of the traditional communication sector, assisted living
and creative industry (with a focus on MediaTech).

50

6 Innovation Campuses
6.1 Definition of concept
As earlier stated, an Innovation Campus is an umbrella term
encompassing the broader concept of collaborative networks
and the physical manner in which they are set up. This ranges
from large physically orientated science or technology parks, to
small physical footprint managed business incubators. Though
a physical presence is important in most cases, an Innovation
Campus can also include virtual campuses, or non-manned
skeletal technology test-beds, where actual location is not so
important.
As an Innovation Campus does not have a rigid definition and is
all encompassing as stated above. It is useful to look at all the
common characteristics within those models already found within
the spectrum of Innovation Campuses. These characteristics
include:
• Clusters of organisations with overlapping interests
• A level of collaborative activity between organisations,
with knowledge and/or technology transfer, and various
supporting mechanisms, such as physical or virtual
infrastructure
• Structures or a systems to administer activities
Each of these components may be present to differing degrees
in Innovation Campuses, but specific characteristics are likely
to differ as much as the individual campuses themselves. The
variation seen within different Innovation Campuses can lead to
categorisation; below is one interpretation of the way in which
Innovation Campuses can be sub categorised:
Figure 9: Categorisation of Innovation Campuses
(Source: EU Enterprise Policy Group)
51
Innovation Campuses
6.2 ICT Innovation Campuses
It has been found that the leading ICT readied markets benefited
from the formulation and execution of a framework that was
based on the four key factors: The current environment, the
readiness of the area, proposed usage and the overall impact.
For an ICT driven market to be successful it must have a relevant
environment to the market. Through analysis of the structures in
place it was found that the environment should include such aspects
as strong political leadership with complementary and enabling
regulatory and legal systems, strong educational infrastructure
with an overall strength of complementing IT skills, an acceptance
of innovation and the ease of access to an efficient and effective
infrastructure. There should also be an overall “ICT-readiness” on
not only the individual level but also upon the private and public
sectors; the core ICT tools and applications should be widely
available to all these interested parties.
In general, in creating an Innovation Campus that is suitable
to the region, one must focus on its intrinsic purpose. The
purpose must be articulated from the planning stages through
to implementation, and the planners must consider its direct
impact upon the surrounding environment, through its focus and
level of integration within the community. Innovation campuses
specialising in the ICT sector can focus on such aspects as
research and development, retention or promotion of skill-sets
within the region, an increase in the number of international
corporations within an area, or an increase in the success rate
of SMEs within the area and sector. In a recent Booz Allen
Hamilton report (2005), it was stated that successful ICT parks
generated growth rates exceeding 10% over the years in terms
of tenancy and number of employees, with 50% of this growth
being attributed to new companies and the remaining 50% to
the relocation of existing institutions.
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Innovation Campus in Communications Technologies and their Applications
In order to determine a suitable area for the placement of an
Innovation Campus it must be noted that a number of factors
have to be taken into account. First, there has to be adequate
infrastructure and services within the campus such as voice and
data communications and managed data services. Secondly,
the overall quality of life and physical location is intrinsically
important to the success of a campus. Analysis of Innovation
Campuses worldwide shows that the trend seems to be that
these campuses are located a short driving distance away from
a thriving metropolis, and that they are similarly placed with
respect to an international airport and prominent universities. In
fact, nearly 50% of campuses worldwide are located on or near
university-related premises.
It has been found that monitoring the impact of the campus is
essential to its success; feedback enables the campus management
to analyse which areas are being utilised effectively and to initiate
new programs to increase the productivity of the campus.
6.3 Model Analysis – A Theoretical and expertise are the main incentive mechanisms to join
Framework
Specific collaboration and networking models vary as much as the
individual networks themselves, meaning each model needs to
be developed to account for the individual collaborative context.
Collating from existing collaborative models, this context is likely
to include:
• Objectives of the collaborative network
• The nature of the collaborating organisations
• Level of sector / disciplinary focus
• Location factors
• Support structures and funding
Whilst it is the case that each model is different, consideration of
these contextual factors helps to outline the key factors specific
models are likely to contain. Considering these against the backdrop
of existing examples can help to draw a more detailed picture.
Whether or not a model is called an Innovation Campus, a
science park, an incubator or such like, is partly dependant upon
this collaborative make-up, but it is also a question of branding.
Often collaborative networks evolve to become very different
to how they were when originally established. Therefore a
branding which encompasses the broader ethos and objective
of the network is likely to remain more relevant over time.
A more detailed landscape of the contextual factors associated
with collaborative networks is outlined below. Establishing
the best model for an Innovation Campus will first require an
understanding of the following factors:
6.3.1 Objectives of collaborative network
A clear overview of the project’s objectives will act as the
cornerstone from which any model is derived, and is likely to
heavily influence all of the other factors, helping to determine
many of the details of the final model. Objectives may be multi-
fold and complex, but defining these is essential to identifying
the correct model.
52
Typically objectives are related to various components of local,
regional or national economic development such as increasing
competitiveness of sectors, increasing employment, increased
innovation and wealth creation.
6.3.2 Nature of collaborating partners
In the context of economic development, collaborative networks
are likely to include some or all of the following organisations.
• Private sector
• Start-ups and spin-outs
• SMEs
• Corporate
• Universities
• Government
Usually, the synergies brought about by the pooling of resource
collaborative networks, and there needs to be a clear benefit for
each collaborating party to ensure they remain engaged in the
longer term. Different groups will be seeking slightly different
things from the network. In some cases financial incentives may
also be used, particularly to stimulate early involvement.
From the point of view of start-ups and spin-outs, various
incubator schemes provides incentives for participation by
offering subsidised office facilities, access to business advice,
and ultimately access to investors and markets. Due to the early
stage of these organisations, they are the most likely to require
financial assistance or subsidy for some of these services. For
example, advice on intellectual property may be offered as
part of network membership for free, or below the commercial
rate; this service might otherwise be inaccessible to start-up
businesses due to prohibitive costs.
SME’s usually benefit from tapping into expertise and facilities
provided by the universities. This can be both at the level of
graduate exchange schemes, subsidised contract research or
shared use of facilities. In some instances network participation
may offer a “way in” for SMEs to corporations, where they seek
to do business with them.
Corporations are predominantly motivated by access to a pool of
innovation and ideas which can be taken on board by the organisation
for various commercial purposes. In this instance, activities of
start-ups, SMEs and universities are all relevant to corporations.
One important factor in incentivising corporations to participate
is ensuring a clear benefit to participation is communicated, and
channels exist which will facilitate their engagement.
Universities benefit from collaborating with the private sector
through increased private research funding, through improved
reputation and through improved graduate employment
prospects.
Government involvement is motivated by the positive influence
on economic development, as well as the opportunity to get
feedback from stakeholders, which may be helpful to the
development of policy.

6.3.3 Level of sector / disciplinary focus
Most collaborative models involve some level of specialisation
in particular sectors or disciplines. This is usually defined early
on, although it may be the case that it evolves as the nature
of collaborative partnerships diversifies and expands over time.
Therefore, the level of focus may be anywhere within the
spectrum highlighted below:
• Focus on individual sector
• Focus on multiple over lapping sectors
• No specific sector focus
In practice, existing models demonstrate that most collaborative
networks have a tendency to cluster around particular sectors
or disciplines over time, whether initially focused or not. The
lesson taught by many models is that any sector focus should
be aligned with predominant skills base of the collaborative
partners. Focus allows the collaborative organisations to have
a sufficient amount of common ground to gain benefits from
working together.
Consideration of sector focus is likely to have an impact upon
the potential scale of the collaborative network. One of the
negatives of too much focus is to limit the growth and make the
collaborative network more of a niche network. In this sense the
right balance needs to be met in order to sufficiently incentivise
participation through common interests, whilst not inhibiting
future growth by excluding participants.
6.3.4 Location of collaborative networks
This includes a continuous spectrum spanning the parameters
outlined below:
• Concentrated in one specific location
• Regional collaboration cluster(s)
• National collaboration
• Global collaboration
As with the level of sector focus, the location of collaborative
networks may evolve over time, either by organic factors, or by
design. It may be the case that the collaborative network has
one or more central physical location.
In the cases where there is one specific location, such as a science
park, technology park or similar, the central issue is ensuring that
the park offers sufficient incentives for organisations to locate
there. A vast array of factors may influence these incentives,
including the cost of the premises, the type of tenants you wish
to attract, and the benefits offered by locating there.
A study by the UK Science Park Association12 (2008) concluded that
the most important single factor affecting the success of a science
park is the state of the sub regional knowledge economy within
which the science park is operating. In other words, the innovation
activity in the proximity of the science park, including universities,
and local businesses. In this sense, science parks tend be most
successful in areas already instigating high levels of innovation,
where they are an effect rather than a cause of innovation.
12
www.ukspa.org.uk
53
Innovation Campuses
Therefore examination of the local innovation landscape is essential
in determining whether a science park is likely to be successful.
Another factor determining the viability of a successful
collaborative network which adopts a single physical location is
so-called anchor tenants. These are desirable to help underpin
the development of an innovation park, and are typically big
names with high intensity research activity, such as the R&D
division of a large corporate, or a reputable tech focused SMEs.
They usually bring with them a number of positive attributes
which lend to the likely future success of an Innovation Campus.
Anchor tenants may bring some or all of the following:
• Shared facilities
• Credibility and reputation, helping sustain future growth
• Critical mass (in terms of bringing people and skills to an
area, and commercial viability of campus)
• Leadership in facilitating and enabling collaboration
• Reduced risk for investors
• Financial and administrative support to promote campus
success
6.3.5 Anchor Tenants
Anchor tenants are desirable to help underpin the development
of an Innovation Campus, and are typically big names with high
intensity research activity, such as the R&D division of a large
corporate, or a reputable tech focused SME. They usually bring
with them a number of positive attributes which lend to the
likely future success of an Innovation Campus. Anchor tenants
may bring some or all of the following:
• Shared facilities
• Credibility and reputation, helping sustain future growth
• Critical mass (in terms of bringing people and skills to an
area, and commercial viability of campus)
• Leadership in facilitating and enabling collaboration
• Reduced risk for investors
• Financial and administrative support to promote campus
success
6.3.6 Governance
Governance is largely dependent on the specific model used
to establish and maintain a collaborative network. Models
studied typically show that the level of governance and
leadership required is at its highest in the early days of
building the collaborative system, which often tails off
to simple administrative support once the framework is
well established. Therefore successful models are usually
characterised by reaching a certain critical mass, matched
with a need for them to continue.
A theme associated with establishing collaborative networks
is firstly the identification of a need, and secondly, gaining
sufficient buy-in from prospective collaborative partners,
(both commercial and academic), before moving ahead. This
ensures failure of the collaboration is de-risked, by evaluating
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Innovation Campus in Communications Technologies and their Applications

whether the aforementioned critical mass can be achieved
prior to putting the wheels in motion.
6.3.7 Support structures and funding
This is closely related to the operational business model, and
includes all of the specific ingredients to run and maintain
the collaborative network. This includes how to make the
collaboration sustainable which needs to be considered in
parallel with available funding, as well as all other factors.
The support structure may be physical, in terms of facilities
or office space, or it may be in the form of management and
coordinating structures. In most cases there is a combination
of both.
Models studied typically show that the level of governance
required is highest in the early days of building the collaborative
system, and often tails off to simple administrative support
once the framework is well established. Therefore, successful
sustainable models are usually characterised by reaching a
certain critical mass.
6.3.8.2 Traditional Campus
Traditionally the campus model has been real estate heavy, often
necessitating a multi-tiered approach to further property and
facility development. These real estate campuses are placed in
the vicinity of HEIs or research facilities with the aim of attracting
corporations and SMEs. In the majority of cases, a strong corporate
tenant or technologically advanced research facility is located on
the campus in order to attract individuals. However, the affiliation
with a prestigious university, perceived networking opportunities
and cheap tenancy are some of the other reasons why individuals
move towards the traditional campus model.
6.3.8.3 Urban Knowledge Centre
An urban knowledge centre (UKC) is a campus that is based upon the
“triple helix” often found in the science parks of Northern England. The
triple helix system is centred upon a facility whose major stakeholders
include academics, corporates and government. In most cases, the
UKC is set within an urban area and can be as small as a single
building. Like the traditional model, the UKC will have a presence of
corporations, SMEs and academics within the area.

6.3.8 Physical Manifestations

6.3.8.1 Virtual Campus

A virtual park is, as the name suggests, a park with no physical
location which exists as an internet entity. This model specifically
allows a portal to all the stakeholders from large corporations to
universities to the public sector. This enables the promotion of
activities occurring within the region. Latest news, online training,
facilitation of public forum conversations and sharing of ideas
between individuals or research partners intra/inter-regionally and
internationally would be made easy through this campus model.
This model allows so much freedom that it can be utilised for any
purpose and in most cases is believed to be most beneficial when
used in conjunction with a physical locality.

Pros Cons Pros Cons

Low overall implementation and No physical space provided Attract larger corporations with Large initial cost and
maintenance cost build to specificity maintenance

If used as addition to physical Lack of physical presence

location can be brand building by itself does not allow for Create cluster affect within the Large number of traditional
and enhances network clustering effect and the region and promote innovation campus parks around the South
promotion of innovation with smaller corporations East Region

Not location-centric Lack of tenants lead to lack of

self funding opportunity
Location-centric Location-centric
Helps with SE promotion of events
Helps with SE promotion of
Networking opportunities events
Provides platform to gauge response
to new initiatives (i.e. Location of
Networking opportunities
physical Innovation Campus)

Table 23: Summary Virtual Campus Table 24: Summary Traditional Campus

54
 Innovation Campuses

Pros Cons Pros Cons

Central city location leads more Large initial cost and maintenance High Profile for Innovation No concentrated focus, could just
communal mentality, ease of Campus and region become cheap offices with no
access collaboration if it isn’t focussed.
Attracts wider audience leads to
Creation of landmark and Expensive, and lack of space more funding
innovative site with central strong possibility
Brings larger number of
address attract more participation
consortiums together with
from all stakeholders
more emphasis on cross-sector
collaboration
Location-centric Location-centric
Table 27: Multi-Disciplinary Campus
Helps with SE promotion of Upkeep fees could exclude smaller/
events independent start-ups if funding
model not all encompassing 6.3.8.6 Multi-Centre Development
Multi-nodal development is one that would use smaller buildings
Networking opportunities and multiple locales to have an impact on the technology across
the region. Although the impact, branding and awareness might be
Table 25: Urban Knowledge Centre greater across the region, the increased cost related to this would
directly influence the impact and quality of support and activities
that each of these individual satellites could have on the industry.
6.3.8.4 Institutionalised Innovation Campus Depending on the availability of funds, building space and staff, the
An institutionalised Innovation Campus explicitly excludes model could potentially consist of multiple business incubators.
all other technologies or areas of interest in favour of one
“dominant” sector. Although this campus does lead to more Pros Cons
specialised clientele and subsequently specialised innovation, it
Regional high impact Possible high start up cost
excludes input from external unrelated areas. This addition to a
model can be implemented on top of the physical/non-physical Not location-centric/biased Areas might not develop equally
entities previously mentioned. as well

Deter corporates as seen as

Pros
Possible benefits from
collaboration exclusively
with like companies and
organisations
Cons
Excludes large proportion of
companies, R&D organisations
and SMEs
Heavily reliant on strength of
focus sector
Nullifies the cross-sector
innovative environment found
normally within an Innovation
Campuses
fragmented solution
Quality not consistent
Table 28: Multi-Centre Development
6.3.9 Cases
Analysis has been made of numerous collaborative models in
order to draw more specific lessons from existing Innovation
Campuses. The model collaborative campuses examined
include:

Table 26: Institutionalised Innovation Campus

• SETsquared Partnership
• MaRS Discovery District Toronto
6.3.8.5 Science / Knowledge / • Media Lab
Multi-disciplinary Campus • Fraunhofer Institutes
A multi-disciplinary campus considered fairly standard, allowing
the convergence of ideas, projects and companies of all sizes to 6.3.9.1 SETsquared Partnership
intermingle and transfer knowledge to a wider audience. It has
Set Squared is a research and enterprise collaboration between
been seen in previous cases that when an overarching theme
the Universities of Bath, Bristol, Southampton and Surrey.
is used within a multi-disciplinary campus, there has been a
The overall aim is to support all the prerequisites for further
stronger innovative and collaborative partnership, not only
collaboration and enterprise generation, including spin-outs
between the tenants, but also between corporations and the
from university-research discoveries and start-up activities.
inhabitants of the surrounding areas. In the past, this approach
The initiative was originally set up with £5m of funding for the
has also been considered to be one that has a large impact on the
first three years from the Higher Education Innovation Fund.
region as a whole. One of the big problems with this approach
At this time it was focused on supporting the incubation and
is the possibility of the lack of collaboration of active networking
collaborative activities of partner universities.
within the campus between individuals from differing sectors.

55 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications
The idea was that universities could pool resources to establish
a critical mass. This meant that there was sufficient support
to foster early stage businesses, and to attract interest from
investors, meaning businesses could be taken to the next
level. As a result, the partnership has helped support over 100
ventures, several of which have floated on AIM.
In some instances the partnership helped in the provision of
affordable office space to companies, although most of the
infrastructure already exists amongst the participating institutions.
Each participating university has a Business Acceleration Centre,
which serves to support activities of that institution, and acts as
an incubator for university associated start-ups.
The main activities of the partnership can be summarised as:
• Developing new spin-outs from university research and
supporting technology companies from the wider business
community
• Collaborating with industry to provide access to university
expertise and facilities
• Preparing new entrepreneurs with the business skills to
develop their enterprise
SETsquared was originally set up 6 years ago, and at that time
it was more centrally managed. Over time, institutions have
begun to function more independently now that networks have
been established, requiring less central coordination. The early
initiative has been credited with stimulating many continuing
activities amongst partner organisations, and it still plays an
important role. Since it was founded SETsquared has worked
closely with both the South East and South West Regional
Development Agencies, and it is funded by the universities
through the Higher Education Funding Council of England
(HEFCE) to an approximate value of £5m.
SETsquared’s most recent funding was a two year “Science Bridge”
grant of £1.5m in April 2006 from the former Department of
Trade and Investment (DTI). The grant was aimed at establishing
international links between SETsquared’s partners and research
groups at the University of California San Diego and the University
of California Irvine. Such international collaborations are inherently
limited in scope due to distances, but the SETsquared partnership
focuses on areas where there is particular synergy between research
areas. In this instance, the synergy has been identified in the area
of stem cell research, wherein the UK regulatory environment is
more favourable to this type of research, but where more funding
is available in the US. However, according to some qualitative
research, it was mentioned that there are some problems with this
arrangement, but no more was revealed.
6.3.9.2 Media Labs MIT and Europe
The MIT Media Lab is a department within the School of
Architecture and Planning at the Massachusetts Institute of
Technology, in Boston, US. Its primary technical focus is projects
developing the convergence of multimedia and technology and
is renowned worldwide for developing groundbreaking research.
It is considered that one of the greatest aspects of Media Lab
(MIT) is the hands on creative approach within the facility, with
all projects being live demonstrations. Both the funding of Media
Lab (MIT) and the intellectual property aspects are intertwined,
56
allowing for those that are consortium level sponsors of the lab,
having access to the discoveries. Media Lab (MIT) is considered
one of the key examples of a great innovation centre. This being
said, it is often considered that MIT is not as commercially
successful as some of its counterparts.
One of the most distinctive features of the MIT Media Lab is
that more than 90% of its funding is sourced from 170 private
corporations from all over the world. Until recently, there was
seen to be no influence from the sponsors to the direction of
the research, that is until this year when the Bank of America
became one of the major sponsors. In addition to this corporate
funding, specific projects and researchers can be funded
more traditionally through government agencies and through
consortia; some consortia are able to have money that does not
enter into the common pool.
However there is always the question of whether the Media Lab
(MIT) model can be carbon copied and placed within another
region. The latest attempt to do this was in Ireland, with Media
Lab Europe.
Media Lab Europe was founded in mid-2000 as a venture
between MIT and the Irish government. The Irish government
had agreed to provide the largest share of seed financing in its
early years, resulting in a first round of €35 million. At the same
time, it garnered €8 million sponsorship from such industrial
research partners as the Allied Irish Banks, BT, Ericsson,
Intel, and Orange. The plan focussed on the uptake of private
corporations who gradually take on a larger share of the funding,
following the model employed by MIT Media Lab. However, due
to the change in environment for corporations, support has
diminished as the technology business was considered to have
slowed down extensively. Soon after in 2004 Media Lab Europe
closed, after the Irish government and MIT could not come to
agreement on its future.
6.3.9.3 Fraunhofer-Gesellschaft
Fraunhofer-Gesellschaft is a German organisation with over
56 institutes spread throughout Germany, each focusing on
different fields of application based science. Overall it receives
an annual research budget of over €1.2 billion, and in 2006 the
funding breakdown took this form.
Overall, approximately one third of the Fraunhofer-Gesellschaft
is funded by the German public, through the federal government
together with the German federal states, with the remaining
Figure 10: Fraunhofer Funding Structure

two thirds of the funding being earned from contract work.
The government places a high value on the institutes of the
Fraunhofer promoting enterprise within their respective sectors.
This is supported by the institutes’ work in actively encouraging
the formation of start-up companies from the institutes.
However, support activities vary depending upon the individual
institutions. The Fraunhofer institutes are regarded as the
epitome of applied research and consulting within Europe due
to their close relationships and alliances with universities.
It would be nonsensical to compare the entire Fraunhofer-
Gesellschaft against any single initiative, so the Fraunhofer
Institute for Communication Systems is taken into consideration
for purposes of comparison.
Started in 1999, the Fraunhofer Einrichtung Systeme der
Kommunikationstechnik (ESK) Institute undertakes research
and development work with a focus on communications. Its
mission is to “play a decisive role in simplifying the operation and
administration of complex communications system technologies
in the networked world of the future”. The activities of the
Fraunhofer ESK are segmented into the automotive industries,
carrier systems and enterprise communications businesses. The
funding model behind the ESK follows the form of the parent
model, therefore the ESK is funded through activities including
contract research (40%), public sector financing (30%) and
the Fraunhofer-Gesellschaft’s own finances (30%). The ESK’s
budget for 2004 amounted to €3.8 million, including €1.5 million
in contract research income.
This funding model applies not just to the central society itself,
but also to the individual institutes. It is therefore essential
that maximising commissions is driver behind the processes
of the society. The strategic direction of the ESK aims towards
its becoming the society leader in applied research, as well
as encouraging a flexible, autonomous and entrepreneurial
approach to the society’s research priorities.
One of the major criticisms of the Fraunhofer model is the breakdown
of the role of each individual Fraunhofer institute. In most cases, the
institutes are tied to an individual HEI and are responsible for the
technology transfer of what is developed within that HEI. However
there have been many occasions in recent times when the HEIs
are attempting to be independent technology transfer institutes
themselves, whilst taking advantage of Fraunhofer.
6.3.9.4 MaRS
The first phase of the MaRS facility opened in May 2005, consisting
of three buildings, including the “Heritage Building”, formerly a
wing of the Toronto General Hospital. The complex consists of
700,000 square foot of research facilities, office space and meeting
areas, and is situated in the wider “Discovery District” of Toronto.
The Discovery District itself is a 2 Km2 area of downtown Toronto
which incorporates the University of Toronto, along with two other
Universities (140,000 students in total), the General Hospital and
specialised hospitals, and a large number of innovative businesses.
Phase 2 of the project is due to be finished in 2008, and will add
another 800,000 square foot of space. Over 65 organisations are
based in the centre’s offices, 27 of which are in the MaRS incubation
facilities. Over 2000 people currently work in the complex, with
private sector tenants outnumbering those from the public sector
by three to one. The architectural design is said to maximise
networking and random collisions, in order to better fulfil MaRS’
mandate of “convergence innovation”.
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Innovation Campuses
Networking is an important part of what MaRS does, and this is
facilitated by the facility’s location in to be in the centre of urban
Toronto, allowing ease of access to related and supplier industries,
employees, amenities, and educational and training facilities.
In “Multimedia and Regional Economic Restructuring” (1999),
Shauna G Brail and Meric S Gertler (1999) say that whilst the
Canadian regulatory framework has had an important effect on
the development of the MediaTech sector in Toronto, simply
targeting MediaTech firms for assistance is not sufficient to help
the industry grow. Instead, the development has been shown
to be path-dependant, in that it relies on talent from a broad
spectrum of backgrounds, as well as continued dependence on
the skills and services of traditional media, programming and
arts fields. Proximity to local cultural amenities and educational
institutions is also an important attribute, and one which other
North American MediaTech centres seem to share (New York
City, LA, San Francisco). The conclusion drawn is that MediaTech
development alone cannot be a panacea for development of
the whole regional economy. The requirements of a successful
MediaTech industry are diverse, and run deeper than the
availability of technology and related infrastructure; industries
built upon communications and information technologies tend to
rely upon interpersonal (real-world) networking, and therefore
tend to agglomerate around urban centres.
Kutay (1989): ‘high tech economic development is not a solution
to the decline of mature industrial regions…. Policy would be
more realistic if economic development strategies are built upon
the stronger components of the existing regional economy’.
In short, the central urban location of MaRS, and the Toronto
MediaTech sector in general, is vital to its success. The networks
which firms rely upon are not networks of other similar firms, as
would be found in a development focussed on a single sector,
but rather the broader underlying base of loosely related firms
and institutions throughout urban Toronto.
MaRS itself is a not-for-profit corporation; the central building,
termed the “convergence centre”, occupies the site of Toronto’s
old general hospital. The main aim of the centre is to facilitate
the commercialisation of Canadian scientific and technological
innovation, with a focus on improvements to the health and
quality of life of “Canadians and others around the world”. The
Centre initially focussed on life sciences, hence the acronym
“Medical and Related Sciences”, but it has since broadened its
mandate to include all kinds of innovation.
Commercialisation is a large part of MaRS’ work, and the
ultimate desired result of more successful commercialisation is
for Canada to become a global leader in the innovation space.
MaRS approaches this goal through a range of programmes and
offerings which fall loosely into three categories: Networking
within the innovation community, advice and education for
entrepreneurs, and access to the centre’s specialised facilities
and equipment. The education programmes include a network
of experts and resources which can help with many of the
challenges young technology businesses face (IP, manufacturing,
sales strategies, etc), and also include an entrepreneur-in-
residence program and peer-to-peer monitoring programs.
MaRS’ outward reaching networking activities see the facility
playing host to business and academic conferences in a 15,000
square foot multi-purpose space within the complex. MaRS also
promotes its emerging companies to potential investors and
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Innovation Campus in Communications Technologies and their Applications
partners through communications and publicity initiatives. The
MaRS organisation is extensively and globally networked by way
of 11 strategic industry partnerships, as well as collaborations
with other research bodies and science parks around the world.
Facilities on offer for young businesses include scientific equipment
and services, often offered on a for-a-fee basis by other technology
companies within the “discovery district”; MaRS keeps a database
of which services can be offered by the companies in the area.
MaRS represents a significant public-private sector partnership.
The project was initially founded in 2000 by a group of 12
business leaders, led by John Evans, founding Dean of the
McMaster University Faculty of Medicine and former President
of the University of Toronto. These 12 founders raised an initial
$11m between themselves and other corporate donors added
a further $9m. At the end of 2000 they purchased the land in
downtown Toronto, and secured early and ongoing support
from all three levels of the Canadian Government (municipal,
provincial and federal).
A vast majority of the funding the centre has so far received has
come from public funds. The table below breaks down the funds
received prior to the centre’s opening in 2005:
The 12 Founders: $11m
Corporate donors: $9m
Ontario Innovation Trust: $10m
University of Toronto: $5m
Ontario Government: $35m
Mars issued bond: $100m
Industry Canada: $20m
Toronto Biotech Commercialization Consortium: $9m
The total cost of the facility is said to be $450m. Since the
centre opened in 2005, a further $15.5m has come from the
provincial government, bringing its contribution to $50.5m, with
a further $50m having been sourced from the city and federal
governments, and from both institutional and private sector
donations. A further $130m has been raised through debt and
credit-lease, bringing the total funds available to approximately
$250m. Ongoing funding comes from real estate revenues, fees
for services provided, and also from ongoing fundraising.
6.4 SEEDA Innovation Campuses
6.4.1 Harwell Campus Innovation Campus
The Harwell Science and Innovation Campus (HSIC) is located
on a 640 acre site in Oxfordshire, UK. The site was originally home
to RAF Harwell during the Second World War, after which the
newly formed United Kingdom Atomic Energy Authority (UKAEA)
redeveloped the site to be the home for the British nuclear program.
Diversification of the site developed throughout the 1980s and
1990’s with the decline of the nuclear program, and was renamed
the Harwell Science and Innovation Campus in 2007, with the then
named Harwell International Business Centre and the adjacent
58
Chilton/Harwell Science Campus combining. The site is now joint
owned and run by UKAEA, the Science and Technology Facilities
Council (STFC) and the Heath Protection Agency (HPA).
The vision for the development of the HSIC, and other campuses
was set in the Science and Innovation Framework 2004-2014,
Next Steps report, in which the government backed in the
March 2006 budget statement (Para 3.13). “…The Government
will look to develop these campuses so as to ensure that the
facilities located there are internationally competitive, support
world-class science, and maximise opportunities for knowledge
transfer...” Funding to meet the proposals laid out in the Science
and Innovation Framework Report is part of the government’s
expansion of the science budget. The budget currently stands
at £3.4bn (07/08), and is predicted to rise by 5.8% year on
year. Implementation of the HSIC vision started in April of 2006
when the STFC and UKAEA formed a public sector partnership.
These agencies were then joined by a number of private sector
partners in a 50:50 public-private partnership venture, allowing
accelerated development of the HSIC plan. To date the campus
has received over £500m of investment, and has developed
international reputation for scientific excellence. Currently the
campus has 100 companies located on site, employing over 4,500
people. Companies vary from small private businesses to large
public corporations, all within the field of science and technology.
The broad spectrum of cohabitating companies is made possible
by providing site flexibility from single serviced offices to plots
of land up to 40,000sqm for development of offices tailored to
a company’s specific needs. The campus is also home to the
Diamond synchrotron, the largest UK-funded scientific facility
for the last 40 years. The ISIS are also located on the campus
providing the worlds leading pulsed neutron & muon source for
research in physics, chemistry and materials science.
The site is ideally located within the region, with excellent
infrastructure providing access to not only London, but regional
centres like Oxford and Reading. As well as external infrastructure,
investment has allowed the park to develop an internal
infrastructure, providing a large number of amenities including
banks, childcare, conference facilities and accommodation,
resulting in a real and valuable community within the site.
Public Ratio Public-
Private Operational
(£m) to-Private
SETsquared
(South-East 11.5 0 Yes
England)
Media Lab Out of
35 8 4:1
Europe (Ireland) Business
Fraunhofer ESK
4.8 0.5 9:1 Yes
(Germany)
Mars Toronto
212.5 10 21:1 Phase II
(Canada)
Table 29: Overview of Public-Private-Funding Initiatives

7 Interviews
Throughout the authoring of this report, a number of qualitative
interviews were undertaken. These interviews were conducted
at differing stages with a plethora of individuals ranging from
experts in the field of creating science parks and other innovation
campuses; independent game designers to CEO’s of multinational
telecommunication corporations; Vice Chancellors of prominent
South East HEIs to public sector authorities. The logic behind the
interviews was to firstly gain an understanding of what was needed
to develop an Innovation Campus and to gain insights into the
South East Region. After this was achieved, the interviews became
an exercise in understanding the communications industry and its
applications from experts in the field. This enabled potential models
to be developed. On developing these models, we did a qualitative
analysis to gauge people’s interest, or lack of interest and to
carefully wean out those that were dismissed by the majority. The
final round of interviews, involved in person interviews as well as
over the phone interviews with high level senior management in
corporates and HEIs. This allowed garnering buy in interest from
possible stakeholders. The following is a synopsis of the interviews
and the general views of those involved.
Type of Organisation Round of Interviews
First Round Second Round Total
Company 19 1 20
Innovation Campus 12 0 12
Private Sector 6 1 8 the UK. A senior manager of a large corporation stated that they
Organisation
Public Sector 17 2 19
Organisation
University 10 3 13
Total Number of 64 7 71
Interviews
Table 30: Overview of Interviews
7.1 Interview Conclusions
One overall thought from the interviews: a number of people
stated they believed any location outside of London would not
be as beneficial to any sector.
7.2 Gatwick Diamond
When interviewed regarding Crawley as a possible location for
the Innovation Campus there was a clear pattern regarding the
responses Library House received. A number of companies stated
that the lack of any University or Higher Education Institute had
a perceived effect on not only the graduates and talent within
the area, but also the potential innovation base. A number of
the interviewed senior management at corporates believed that
when given a choice within the region, there were locations in
close proximity to Crawley with a higher standard of living for their
employees, which is of paramount consideration when deciding
the location of their offices. This has a trickle down effect, with a
number of SME’s stating the lack of corporate within the region did
detract from the town. However, a couple of the SME’s stated that
Crawley did have one advantage, providing good infrastructure
links to the rest of the Gatwick Diamond.
59
Interviews
In conclusion, the definitive lack of corporate support for the
region, and some SMEs’ reliance on corporates presence, makes
Crawley the least favoured of the potential locations for an
Innovation Campus.
7.3 South Hampshire
Interviewees had a number of views regarding South Hampshire
as a possible location for an Innovation Campus. This sub-
region, unlike Crawley, is known to have a well developed
symbiotic relationship between its universities and corporations.
In addition to this, it was seen that the University of Portsmouth
has a number of assisted living initiatives which are seen as
catalysts for the young industry. One of these initiatives includes
the administration of a key knowledge portal for the industry,
the UK Telemedicine and E-health Information Service (TEIS).
Interviewees were aware of the region’s already established
collaborative networks and believed that Southampton/
Portsmouth would offer a good location for an Innovation Campus
in particular for companies within the telecommunication and
hardware sectors. When asked about the potential impact of
an innovation park they believed there was potential for a new
site within the area, however most stated there were already a
number of large science parks within the region.
The major drawbacks highlighted by people interviewed included
the belief that the location would not be ideal due to the lengthy
distances need to be travelled from most locations throughout
had conducted location studies and identified that crime within
Southampton was relatively high and the standard of living is
lower especially when considering family orientated factors;
which he stated, did impact on their company decisions.
In conclusion people were well aware of the potential of the
South Hampshire region for the location of an Innovation
Campus, predominantly due to the success of the collaboration
work and other schemes within the region. However, it was felt
by the interviewees that the South Hampshire region did have a
number of disadvantages.
7.4 Sussex Coast
When interviewed about Brighton as a potential location for an
Innovation Campus within the South East most of the responses
were very positive a number of people interviewed commented
on a number of corporate that has successfully located
themselves in the region like American Express. A number of
interviewees also commented on the strength of Brighton as
a hub for the creative industries with a number of companies
within the gaming sector including Second Life.
There was a lot of interest from smaller companies and groups
already located in the Brighton region saying that a location
providing showcase or office space for freelancers or small
companies. They also stated that the in Brighton creative
industries needed more space to capitalise in the interest groups,
events and conferences already located within the town.
However some smaller companies within the region stated that
if this was an Innovation Campus for the whole of the South East
then a location in Brighton would not service the region as well
w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications
as a more central point. There have also been comments that
Brighton was located too far from London. However there have
been counter arguments made by a Cambridge based company
that if the location serviced their needs, they would travel down
to Brighton to use it.
7.5 Reading
When asked about Reading as a possible location for an Innovation
Campus there were a mix of responses. All commented on
Reading as a location that was been successfully developed into a
home for larger national and international companies. A number
of senior managers questioned how much impact investment
into a new park would make and the amount of investment that
would need to make a significant impact. However a couple of
interviews stated that they thought investment into a test bed for
both corporates and SME’s would be beneficial for the city. SME’s
stated that setting such a location with or without corporate
sponsorship may potentially exclude them from its use.
7.6 Surrey
When interviewed about the Surrey region during our qualitative
analysis, people saw the reasons behind wanting to place a
campus there to take advantage of the University of Surrey’s
reputation and also the large concentration of Aerospace
industry. However, as one CEO put it, “isn’t this project about
regional development? I doubt if you will have any impact in this
area”. However, others saw the merits of placing a campus in the
Surrey area, especially if the campus involved taking advantage
of the “two regional powerhouses [Southampton and Surrey]”.
7.7 Conclusion
When carrying out the interviews regarding possible locations
for an Innovation Campus within the South East, all interviewed
believed that any investment in innovation within the South East
would be beneficial. However, there was no one location that
was universally agreed to be the best within the South East.
Library House believes that each group had an inherent bias
toward any location based on their needs.
60
8 Methodology
In order to garner a clearer picture on the possible locations
of the Innovation Campus, it was necessary to gain both a
qualitative, and then quantitative view of the South East.
Through the initial qualitative aspect of the location analysis,
Library House conducted a series of discussions with:
• Executives in SMEs and corporations
• Public sector organisations
• Private sector organisations
• Senior managements of universities
• Researchers
• Science park tenants and management teams.
This allowed a broad spectrum of understanding from both the
public and private sector with the onus on personal perspective.
It also helped identify key factors that would contribute in
making an Innovation Campus a success, by means of appeal
to corporates, universities and other private and public sector
organisations, whilst also meeting the quality of life aspect which
was a key factor for the majority of those interviewed.
We identified four “location factor groups” which influence the
location of an Innovation Campus:
• Quality of Life
• Overall Knowledge Capacity in Higher Education
• Knowledge Capacity in communication technologies and
their applications
• Knowledge Capacity in the communications, transport,
aerospace, Assisted Living, MediaTech, security and
transport related industry
The four “location factor groups” identified were found to have
a variety of indicators whose relevance directly relates to the
strategic focus of any Innovation Campus. Each collection of
indicators will be separately discussed in relation to the different
locations identified.
8.1 Identification of Preferred Location
Several interviews were undertaken, with experts who have
previously been involved in the identification of suitable locations for
research and development centres, incubators and science parks.
These experts have come from a number of differing backgrounds
including Higher Education Institutes, SMEs and Corporates.
Through these discussions and the following data analysis, five
possible locations were identified, each with their own merits
and appeal for different stakeholders. The five areas identified,
and researched in greater depth were the
1. Sussex Coast
2. Gatwick Diamond
3. Reading Area
4. South Hampshire
5. Surrey Area

The surrounding areas were identified by the postcodes of the
local governing bodies office. This allowed a central point for each
area to be stated, and from this, distances and concentration of
differing factors were determined. These focal points, from which
we drew a 20 mile radius, and their corresponding postcodes
are as follows:
1. Sussex Coast - BN3 2LS
2. Gatwick Diamond - RH10 1UZ
3. Reading Area - RG1
4. South Hampshire - SO14 7LY
5. Surrey Area - GU2 4BB
8.2 General Assumption
The following assumptions were made:
1. 20 miles (as the crow flies) was elected to be a crucial
distance, as it was seen as the desired and norm travel
distance for those willing to travel to work (Road Transport
Statistics for 2007)
2. When looking at which HEIs to include within each area, the
20 mile inclusion radius criteria were applied. The list was
then ratified by opinions of the universities, corporates and
SMEs to verify that the HEI was considered appropriate to
that area. This rationale gave the following results:
3. Sussex Coast
• University of Brighton
• University of Sussex
• University of Chichester
4. Gatwick Diamond
• None (note though the universities of Brighton, Surrey
and Sussex are in close vicinity to this area or within a
20 mile radius, it was considered not to be appropriate
to include any HEI within the Gatwick Diamond.)
5. Reading Area
• University of Reading
• Thames Valley University
6. South Hampshire
• University of Southampton
• University of Portsmouth
• Southampton Solent University
7. Surrey Area
• University of Surrey
• University for the Creative Arts
• Royal Holloway, University of London
8. When looking at the universities on communication related
issues, it is assumed that the definitions for the separate
areas – Engineering, Computer Science, Physical Science,
Biological Science, Design and those Allied with Medicine
– are the same throughout all definitions including student
numbers, KTPs and RAE.
61
Methodology
9. When looking at the RAE (2001) of HEIs in the area of
interest, the highest RAE-Ratio or score was taken into
account and not averaged out amongst the HEIs. We
consider the best performing university as the main point
of attraction for an Innovation campus.
8.3 Relevant Location Analysis Factors
8.3.1 Quality of Life
The quality of life index was created for this report by looking at
the following figures for the area:
• Economically active adults qualified to Level 4
(Source: Annual Population Survey 2006)
• Weekly Earnings Average
(Source: ONS)
• Unemployment claimant rate – residence
(Source: GO-SE)
• Change of Property prices January 2000 till January 2008
(Source: Land Registry)
• Number of Schools within area
(Source: schoolsfinder.direct.go.uk)
• The Boho Creative Index
(Source: Demos Think Tank)
• The number of events occurring within the area -
regardless if they are of a social or industry focused
(Source: www.Upcoming.org)
• The Student Experience ranking for universities
(Source: The Times Higher Survey 2007)
• Distance as the crow flies from:
• London City Centre (Charing Cross Westminster)
• Heathrow International Airport
• Gatwick International Airport
• The 2007 Halifax Ranking
(Source: Halifax)
• The net migration into the area was also taken into account
(Source: ONS)
• The number of parks within the region were considered to
be a factor of quality of life, showing the appeal to families
and individuals
(Source: Individual Council websites)
• The average weekly Hours of Sunshine
(Source: www.metoffice.gov.uk)
All these factors were explored – via qualitative research and
examining previous research articles - to be the underlying
factors which individuals perceived to be key deciding areas
when looking at a perceived quality of life in a region.
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Innovation Campus in Communications Technologies and their Applications
8.3.2 Knowledge Capacity of Higher Education
As stated previously under ‘general assumptions’, the knowledge
capacity of the region was determined by the HEIs located in the
five sub-regions.
The factors that were analysed were those determined in
Section 4.4 of the report. These factors were categorised into
two areas, those which determine the overall standing of the
campus, and those that determine the strength of the campus
in communications and related fields.
8.3.2.1 Standing of South-East HEIs
• Research Income (Source: HESA)
• (Note that research income was used as a scaling factor to
provide a reference point for all output activities. Areas which
extended beyond this blue area performed relatively better
than assumed on the basis of their research income.)
• Total number of students (Source: HESA)
• Number of post-graduate Students (Source: HESA)
• Number of Publications (Source: HE-BCIS 2006/07)
• Number of Patents (Source: HE-BCIS 2006/07)
• Collaborative Research Income (Source: HE-BCIS 2006/07)
• Contract Research income (Source: HE-BCIS 2006/07)
• Consultancy Income (Source: HE-BCIS 2006/07)
• Licensing Income (Source: HE-BCIS 2006/07)
• Licensing Contracts (Source: HE-BCIS 2006/07)
• Active Spin-Out Companies (Source: HE-BCIS 2006/07)
• Highest RAE-Ratio for Area (Source: RAE 2001)
• Total Number of KTPs (Source: Knowledge Transfer
Partnerships 2008)
8.3.2.2 Standing with regards to • MediaTech Related Venture Capital Backed Companies
Telecommunications and Applications:
• Total number of students in each of the following relevant
departments:
• Engineering
• Computer Sciences
• Physical Sciences
• Biological Sciences
• Design
• Allied with Medicine
• The total KTPS classified for each of the following areas:
• Engineering
• Computer Sciences
• Physical Sciences
• Biological Sciences
• Creative Courses
• Number of EPSRC Grants
(Source: EPSRC website)
• Total amount received in EPSRC Grants (Source: EPSRC
website)
62
These factors will firstly be able to identify the comparative HEI
prowess in each location. On a secondary basis, it will also allow
the comparative differentiation between these HEIs and their
focus on relevant research areas.
8.3.3 Knowledge Capacity in Businesses
To determine the knowledge capacity in businesses around
each of the locales, there had to be a focus on the current
concentration of relevant industries for the telecommunication
and its applications’ industries. The concentration of the number
of venture backed companies for each of the sectors was
determined as a good proxy for innovation. The information was
collated from a number of external sources as previously stated
in Section 5.
• Communication Related Companies
• Communication Related Venture Capital Backed Companies
• Aerospace Related Companies
• Aerospace Related Venture Capital Backed Companies
• Assisted Living Related Companies
• Assisted Living Related Venture Capital Backed Companies
• MediaTech Related Companies (see below)
• MediaTech Related Companies (SIC 72)
• MediaTech Related Companies (SIC 72.2 - 72.4)
• MediaTech Related Companies (SIC 72.2)
• MediaTech Related Companies (Library House
Definition)
• MediaTech Related Companies (SEMN Digital Media
Definition)
• MediaTech Ranking Areas
• Security Related Companies
• Security Related Venture Capital Backed Companies
• Transport Related Companies
• Transport Related Venture Capital Backed Companies
8.3.4 Notes on MediaTech Company analysis
In order to determine the number of companies within the
locales that have a focus on the MediaTech sector, a number of
alternate analyses had to be considered.
1. Firstly according to the Department of Culture Media and
Sport Creative Industries Mapping Document 1998, it
was determined that the SIC code 72 would be a good
representative of the computer related industry which is
synonymous with MediaTech.
2. In the review of current literature including the Mapping of
the Creative Economy of the United Kingdom, it was seen
that there was merit in narrowing the range of analysis to
the companies within the SIC 72.2 to 72.4 code range and
then narrowing it further to the SIC code 72.2. This method
does not give true value on the number of companies
within the MediaTech sector and should only be used as an
indicator of general company presence.
 Methodology

3. Another definition that was developed for the South East universities whereas another model with a focus on near-to-
Media Network (SEMN) document - “Growing Global Business, market collaborations would be more business-orientated
Evidence Base for intervention in the Digital Content Sector (Capron and Cincera 2006). An Innovation Campus which plans
– was the suggestion of a weighted approach that should be to attract significant involvement from corporates should be
implemented when analysing the SIC codes that refer to this located in an area which provides an excellent infrastructure
area. This approach looked at the following SIC codes and and a high quality of life in general.
gave them weightings that SEMN - through Experian - deemed
appropriate: Note that in all the graphs following, the data points with the
most desirable outcomes are those whose distance from the
centre is greatest.
SIC Code Weighting
22.1 100%
22.3 100%
8.4.2 Quality of Life
72.2 100% Quality of life plays a very important role in the development
of any new physically located entity. In the initial qualitative
92.1 100%
analysis it was the general opinion that the Sussex Coast, with
92.2 100% Brighton in particular, was seen as one of the best areas for a
74.81 50% great quality of life. It was stated by a senior official in the South
64.2 25%
East, “…it [Brighton] is one of the few places that a person can
finish in the office and go surfing”. It was also said that “the push
74.4 25% for creativity there [Brighton], was very much like San Francisco
92.31 25% and so is the lifestyle”. Though there is also the preconception
92.40 25% that there is a large influx of people migrating into the Brighton
area, higher than that of the entire South East region. With this
Table 31: SIC Code Weighting (Source: SEMN) being said, it is essential to compare Brighton against the other
areas chosen for the analysis.
4. This analysis provides a more precise overview but is quite
broad and should be considered as indicative only. No
It can be clearly seen that the Gatwick Diamond has a perceived
justification for the weightings were made, and the fact that
lower quality of life when compared to the other areas, with the
they still rely on the 2003 SIC codes causes problems with
lowest number of adults with qualifications of a level 4 standard.
the reliability of the data.
It can be said that both Surrey and the Sussex coast are on
par with each other in total quality of life, but each excel in
5. The final analysis of the MediaTech industry was done
different areas. One can deduce from the Sussex Coast graph
through the Library House MediaTech Database. Though
that though there is a large population of university educated
our database is not as comprehensive as that of Companies’
individuals within the area, the unemployment rate is one of
House, each of the MediaTech companies within the Library
the lowest in the region. This seems to parallel the qualitative a
House database has been verified to match within our
statement by a prominent member of the Brighton community,
definition, which has been outlined in previous chapters.
who commented that “…these students will take a lower wage,
or just stay here for the lifestyle… making Brighton one of the
The second qualitative round of interviews, verified by findings
most underpaid skilled workforces in the UK”. One of the notable
from our location analysis, afforded us more questioning about
aspects of the Sussex Coast is the large number of events that
appropriate models to these areas. It is the belief that this approach
occur within the area, this is an important aspect, especially
allowed the filtering of areas of interest and helped in the design
when looking to develop an event or showcase driven campus.
of a model that would hold appeal to possible stakeholders and in
turn benefit innovation within the South East.

8.4 Results from the Analysis

8.4.1 Introductory Comments
For the purposes of analysis each location factor and location factor
group was weighted equally. Although certain types of Innovation
Campus require that certain conditions have to be in place, we felt
that introducing this assumption into the analysis at this level would
only add complexity to the analysis. Furthermore, any weighting of
location factors will be heavily dependent on political decisions that
cannot be assessed at the current stage. Nonetheless, any future
analysis should bear in mind that some location factors are more
important than others.

For example an Innovation Campus with a focus on pre-

competitive collaborations requires a strong presence of

63 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

Reading - Quality of Life

Adults qualified
to Level 4
Hours of Weekly Earnings
Sunshine (Average)

Unemployment
Parks
Rate

Crime Property Prices

(per thousand) Change

People
Schools
Movement

Boho Creative
Halifax ranking
Index

Closeness to
Events
Heathrow (mi)

Closeness to Social Aspect

Gatwick (mi) of University
Closeness London
City Centre (mi)

Figure 11: Reading – Quality of Life

Sussex Coast - Quality of Life

Adults qualified
to Level 4
Hours of Weekly Earnings
Sunshine (Average)

Unemployment
Parks
Rate

Crime Property Prices

(per thousand) Change

People
Schools
Movement

Boho Creative
Halifax ranking
Index

Closeness to
Events
Heathrow (mi)

Closeness to Social Aspect

Gatwick (mi) of University
Closeness London
City Centre (mi)

Figure 12: Sussex Coast – Quality of Life

64
 Methodology

South Hampshire - Quality of Life

Adults qualified
to Level 4
Hours of Weekly Earnings
Sunshine (Average)

Unemployment
Parks
Rate

Crime Property Prices

(per thousand) Change

People
Schools
Movement

Boho Creative
Halifax ranking
Index

Closeness to
Events
Heathrow (mi)

Closeness to Social Aspect

Gatwick (mi) of University
Closeness London
City Centre (mi)

Figure 13: South Hampshire – Quality of Life

Gatwick Diamond - Quality of Life

Adults qualified
to Level 4
Hours of Weekly Earnings
Sunshine (Average)

Unemployment
Parks
Rate

Crime Property Prices

(per thousand) Change

People
Schools
Movement

Boho Creative
Halifax ranking
Index

Closeness to
Events
Heathrow (mi)

Closeness to Social Aspect

Gatwick (mi) of University
Closeness London
City Centre (mi)

Figure 14: Gatwick Diamond – Quality of Life

65 w w w. l i b r a r y h o u s e . n e t
 Innovation Campus in Communications Technologies and their Applications

Surrey - Quality of Life

Sussex Coast - Overall Standing

Adults qualified Research
to Level 4 Income
Hours of Weekly Earnings
Sunshine (Average) Total number of KTPS # of students

Unemployment
Parks
Rate
Ø RAE Ratio for Area # post-graduate students

Crime Property Prices

(per thousand) Change

Active Spin-Out Number of

Companies Publications
People
Schools
Movement

Licensing Number of
Boho Creative Number Patents
Halifax ranking
Index

Closeness to Licensing Collaborative

Events
Heathrow (mi) Income Research

Closeness to Social Aspect Contract

Gatwick (mi) of University Consultancy
Research
Closeness London
City Centre (mi)

Figure 15: Surrey – Quality of Life Figure 17: Overall Standing of Sussex Coast HEIs

Reading - Overall Standing

Research
Income
8.4.3 Higher Education Institutes analysed
Total number of KTPS # of students
Though the South East Region is known to have a rich
tapestry of Higher Education Institutions (HEI), with particular
emphasis on the Oxford region, there were many instances
Ø RAE Ratio for Area # post-graduate students during the interviews, when corporates expressed interest in
the Southampton region. Interviewees generally felt that this
region provided a good collaborative environment due to the
prowess of the Southampton HEI landscape coupled with its
Active Spin-Out Number of
Companies Publications already strong computing and components sectors. The South
Hampshire area has four universities of good repute, as outlined
in section 8.2, with strengths in different areas with a strong
collaborative backbone. Despite this, it only has the second
Licensing Number of
Number Patents strongest creative design student numbers and second strongest
consultancy income when compared to the Surrey sub-region
with three HEIs, outlined in section 8.2. The other HEIs listed
Licensing Collaborative in section 8.2 were analysed comparatively, and though some
Income Research
excelled in particular areas – i.e. KTPs within the Reading sub-
Consultancy
Contract
Research
region – it was felt that in regard to analysis, South Hampshire
and Surrey sub-regions were of the most interest.

Figure 16: Overall Standing of Reading HEIs In the qualitative interviews it was mentioned that all the other
areas were said to be favourable over an area in the Gatwick
Diamond not only due to its lack of any associated HEI, but also
due to the quality of life and the general stigmatism of the area.
This was again verified through secondary interviews.

66
 Methodology

South Hampshire - Overall

Standing
Research
Income

Total number of KTPS # of students

Ø RAE Ratio for Area # post-graduate students

Active Spin-Out Number of

Companies Publications

Licensing Number of
Number Patents

Licensing Collaborative
Income Research

Contract
Consultancy
Research

Figure 18: Overall Standing of South Hampshire HEIs

Surrey - Overall
Standing
Research
Income

Total number of KTPS # of students

Ø RAE Ratio for Area # post-graduate students

Active Spin-Out Number of

Companies Publications

Licensing Number of
Number Patents

Licensing Collaborative
Income Research

Contract
Consultancy
Research

Figure 19: Overall Standing of Surrey HEIs

67 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

Reading - HEI Telecommunications and Applications

Students in Dpt. - Engineering

Total amount in EPSRC Grants Students in Dpt. - Computer Science
Students in
# EPSRC Grants
Dpt. - Physical Science

# KTPs Creative Courses Students in Dpt. - Biological Science

#KTPs classified
Students in Dpt. - Allied with Medicine
for Mathematical Science

#KTPs classified
Students in Dpt. - Mathematical Science
for Allied with Medicine

#KTPs classified
Students in Dpt. - Creative Courses
for Biological Science

# KTPs Ø RAE Dpt. Rating

Physical Science - Engineering

# KTPs Ø RAE Dpt. Rating

Computer Science - Computer Science
# KTPs Ø RAE Dpt. Rating
Engineering - Physical Science
Ø RAE Dpt. Rating - Creative Courses Ø RAE Dpt. Rating - Biological Science
Ø RAE Dpt. Rating - Mathematical Science Ø RAE Dpt. Rating - Allied with Medicine

Figure 20: Reading – HEI Communications and Applications

Sussex Coast - HEI Telecommunications and Applications

Students in Dpt. - Engineering

Total amount in EPSRC Grants Students in Dpt. - Computer Science
Students in
# EPSRC Grants
Dpt. - Physical Science

# KTPs Creative Courses Students in Dpt. - Biological Science

#KTPs classified
Students in Dpt. - Allied with Medicine
for Mathematical Science

#KTPs classified
Students in Dpt. - Mathematical Science
for Allied with Medicine

#KTPs classified
Students in Dpt. - Creative Courses
for Biological Science

# KTPs Ø RAE Dpt. Rating

Physical Science - Engineering

# KTPs Ø RAE Dpt. Rating

Computer Science - Computer Science
# KTPs Ø RAE Dpt. Rating
Engineering - Physical Science
Ø RAE Dpt. Rating - Creative Courses Ø RAE Dpt. Rating - Biological Science
Ø RAE Dpt. Rating - Mathematical Science Ø RAE Dpt. Rating - Allied with Medicine

Figure 21: Sussex Coast – HEI Communications and Applications

68
 Methodology
South Hampshire - HEI Telecommunications and Applications

Students in Dpt. - Engineering

Total amount in EPSRC Grants Students in Dpt. - Computer Science
Students in
# EPSRC Grants
Dpt. - Physical Science

# KTPs Creative Courses Students in Dpt. - Biological Science

#KTPs classified
Students in Dpt. - Allied with Medicine
for Mathematical Science

#KTPs classified
Students in Dpt. - Mathematical Science
for Allied with Medicine

#KTPs classified
Students in Dpt. - Creative Courses
for Biological Science

# KTPs Ø RAE Dpt. Rating

Physical Science - Engineering

# KTPs Ø RAE Dpt. Rating

Computer Science - Computer Science
# KTPs Ø RAE Dpt. Rating
Engineering - Physical Science
Ø RAE Dpt. Rating - Creative Courses Ø RAE Dpt. Rating - Biological Science
Ø RAE Dpt. Rating - Mathematical Science Ø RAE Dpt. Rating - Allied with Medicine

Surrey - HEI Telecommunications and Applications

Figure 22: South Hampshire – HEI Communications and Applications

Students in Dpt. - Engineering

Total amount in EPSRC Grants Students in Dpt. - Computer Science
Students in
# EPSRC Grants
Dpt. - Physical Science

# KTPs Creative Courses Students in Dpt. - Biological Science

#KTPs classified
Students in Dpt. - Allied with Medicine
for Mathematical Science

#KTPs classified
Students in Dpt. - Mathematical Science
for Allied with Medicine

#KTPs classified
Students in Dpt. - Creative Courses
for Biological Science

# KTPs Ø RAE Dpt. Rating

Physical Science - Engineering

# KTPs Ø RAE Dpt. Rating

Computer Science - Computer Science
# KTPs Ø RAE Dpt. Rating
Engineering - Physical Science
Ø RAE Dpt. Rating - Creative Courses Ø RAE Dpt. Rating - Biological Science
Ø RAE Dpt. Rating - Mathematical Science Ø RAE Dpt. Rating - Allied with Medicine

Figure 23: Surrey – HEI Communications and Applications

8.4.4 Industry Landscape
When talking about the communications industry, the Reading
belt is considered to be the central point for this industry within
the UK - with some of the largest multinational communication
corporations located within the area. Through the analysis, it
was shown that not only is this area the strongest for already
established corporations, but also the strongest in terms
venture capital backed companies. The only industry areas
where Reading is not the strongest are both the transport
and aerospace sectors. The strongest regions for these two
industry areas are the Surrey and South Hampshire areas –
which reiterate their respective strengths in regards to their
HEIs and their collaborative work with the likes of SST and
Rolls Royce.

69 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications
Reading - Knowledge Capacity in Businesses

Communication
Companies

Transport Communication
VC Companies VC Companies

Transport Aerospace
Companies Companies

Security Aerospace
VC Companies VC Companies

Security Assisted Living

Companies Companies

Mediatech Assisted Living

VC Companies VC Companies

Mediatech
Ranking Areas

Figure 24: Reading – Knowledge Capacity in Business

Sussex Coast - Knowledge Capacity in Businesses

Communication
Companies

Transport Communication
VC Companies VC Companies

Transport Aerospace
Companies Companies

Security Aerospace
VC Companies VC Companies

Security Assisted Living

Companies Companies

Mediatech Assisted Living

VC Companies VC Companies

Mediatech
Ranking Areas

Figure 25: Sussex Coast – Knowledge Capacity in Business

70
 Methodology
South Hampshire - Knowledge Capacity in Businesses

Communication
Companies

Transport Communication
VC Companies VC Companies

Transport Aerospace
Companies Companies

Security Aerospace
VC Companies VC Companies

Security Assisted Living

Companies Companies

Mediatech Assisted Living

VC Companies VC Companies

Mediatech
Ranking Areas

Figure 26: South Hampshire – Knowledge Capacity in Business

Gatwick Diamond - Knowledge Capacity in Businesses

Communication
Companies

Transport Communication
VC Companies VC Companies

Transport Aerospace
Companies Companies

Security Aerospace
VC Companies VC Companies

Security Assisted Living

Companies Companies

Mediatech Assisted Living

VC Companies VC Companies

Mediatech
Ranking Areas

Figure 27: Gatwick Diamond – Knowledge Capacity in Business

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Innovation Campus in Communications Technologies and their Applications

Surrey- Knowledge Capacity in Businesses

Communication
Companies

Transport Communication
VC Companies VC Companies

Transport Aerospace
Companies Companies

Security Aerospace
VC Companies VC Companies

Security Assisted Living

Companies Companies

Mediatech Assisted Living

VC Companies VC Companies

Mediatech
Ranking Areas

Figure 28: Surrey – Knowledge Capacity in Business

8.4.5 Overall Findings

When looking at all areas combined together in one graph,
it can clearly be seen that the Gatwick Diamond is the least
attractive of places, predominantly due to its lack of an HEI
– this however should be seen as an opportunity for SEEDA
to increase the overall status of the area by building a HEI in
this region. The sub-region that appears by far to be the most
desirable is South Hampshire; however, this location is obviously
more skewed towards a HEI research orientated facility. The
other two areas of equal standing would be the Sussex Coast
and Surrey, with both of them averaging out to be relatively
equal. However, due to the slightly better quality of life, strong
creative industry presence and its established reputation for
events; it would better to place a more demonstration and
development orientated campus in the Sussex Coast region.

72
 Proposed Cases

9 Proposed Cases
From the analysis and the determination of an appropriate
model the framework below was developed by Library House.
This places risk against the technology readiness level, whilst
also comparing the factors of the time it would take to make an
impact on the landscape to the potential the selected industry
has to become an industry leader. From the analysis, we believe
that the ideal model would be a convergence Innovation campus,
as though it has a relatively long time to impact, it still has the
potential to allow the UK to become a global leader within the
MediaTech and Assisted Living sectors.
It is our belief that the traditional applications, despite having a
relatively low investment risk, would be unable to contribute to
industry leadership – resulting in a low short term impact on the
general business community – contrary to the initial remit for
the Innovation Campus. This entity would more than likely be
unable to warrant investment by any stakeholder.
It is suggested that the combination of the MediaTech and Assisted
Living sectors in one Innovation Campus would allow for a decrease
in overall investment risk. It is clear that the impact time would be
shortened, however the amount is not determinable at this time.
The impact, however, would be significant and of a scale large
enough to enable both applications to become leaders within their
respective fields. It is also perceived that due to the nature of the
ICT industry and the relative “newness” of the fields, there will be a
spill-over effect through the geographical distribution of companies
(Kolko 2002).

Potential for Technology

Industry Time to Development Level of
Location Risk Technology Readiness Type Funding
Focus Impact Type Convergence
Leadership Level
Low Test Bed Traditional
Traditional
Reading Investment Short Low High Technology High Economic Limited
Applications
Risk Heavy Development

Demonstration
Medium Showcase Innovation–led
Medium to Medium –
Sussex Coast MediaTech Investment Medium Medium Education Economic High
Strong Low
Risk Collaborative Development
Zone

Demonstration
South
Hampshire/ High Showcase Innovation–led
Assisted Medium –
Surrey Investment Long Strong Low Education Economic High
Hampshire/ Living Low
Risk Collaborative Development
Surrey
Zone

Table 31: Overview Proposed Cases

Figure 29: Analytical Summary for Innovation Campus

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Innovation Campus in Communications Technologies and their Applications
10 Outline Business plan
10.1 Executive Summary
To quote Michael Porter, “In a world of global competition, sources
of competitive advantage are becoming increasingly localized…
true competitive advantage is found within our communities”, this
statement holds merit when taken into context with the current
Regional Economic Strategy of the South East of England.
The South East possesses many of the strengths necessary for
this type of competitive local community. In order to enhance
the area’s global competitive potential through the development
of clusters or an innovation environment, government initiatives
must have relevance to, and run in parallel to the existing dynamic
knowledge economies of the local and greater community.
The prospective convergence-based Innovation Campus
converges on multiple levels, not only with the foundations of
technological strength and notable creativity already present in
the South East, but also with the area of applied communications
technologies, particularly the Assisted Living and MediaTech
industry sectors.
It is our belief that the prospective Innovation Campus would
enhance the quality and number of collaborations within the
South East, and would also precipitate development of globally
impacting technologies and industries.
10.2 Introduction
The 2006 Regional Economic Strategy Implementation Plan
(RES) calls for an increase in economic impact of the South East
as one of its key goal. It is believed that one component that
will be essential in realising this goal is that of the introduction
of Innovation Campuses in the South East. HESE, SESETAC and
SEEDA have decided to develop an Innovation campus around
the communication industry, with particular focus on its sector
applications such as Assisted Living and MediaTech. The inherent
belief is that this approach will build upon the existing strengths
within the South East, allowing the area’s already-strong
communications industry to become more globally recognised,
and thus raising the area’s economic profile.
10.3 Innovation Campus
An essential aspect of the Innovation Campus is its flexible
nature, with the ability to adapt to address key challenges to
growing businesses, ventures or projects, such as physical location
of headquarters or offices, funding requirements, or knowledge
transfer constraints. An important benefit of the Innovation
Campus model is the way in which campuses directly influence the
performance of SMEs; one way in which they accomplish this is by
supporting knowledge transfer between SMEs and Higher Education
Institutes (HEI), aiding SMEs in becoming substantial generators of
employment and wealth on a regional and national scale. Innovation
campuses should also provide advanced business support and best
practices for knowledge transfer initiatives. Essentially, Innovation
Campuses should be proactive in the support and promotion of
growth in all facets of the innovation landscape, from start-ups to
large corporations.
74
10.3.1 Vision
This Innovation Campus envisions a United Kingdom that
is renowned for its leadership in the areas of MediaTech and
Assisted Living through its convergence of creativity, design,
science and technology. In order to realise this, this Innovation
Campus strives to promote, educate, collaborate and showcase
the UK’s communication industries on a global scale.
10.3.2 Mission
Our mission is to aid innovative UK companies – in the
communication industry - in becoming successful global
businesses. We aid them through the emphasis of collaboration,
education, promotion, and showcasing of the whole spectrum
of companies, higher education institutes and public sector
bodies.
10.3.3 Development Plan
The aim of the campus is not only to improve the global outreach
and competitiveness of the South East and UK’s communication
industry, but also to give the UK the opportunity to take the
lead within a number of emerging industries, in time becoming
the global leader these new sectors; i.e. Assisted Living and
MediaTech. In order to achieve this, an underlying set of
goals have to be determined. The primary set of goals should
include:
1. Enhance profile of sectors
It is essential that all activities must in some way increase
the profile of companies and technologies within the
South East’s communications industry in such fields as
Assisted Living and MediaTech.
2. Increase calibre of Industry Landscape
The retention and attraction of international companies
should be a goal of the Innovation Campus. These
international corporations will gain more exposure for the
local companies and HEIs, and also allow a springboard
effect to take place, whereby new international
technology, capital and exposure will lead to a more
vibrant landscape.
3. Increase Collaboration
Economic growth of an area is seen to accelerate
proportionally to the amount of collaboration within the
area, be that collaboration between individual businesses,
or the merging of previously separate industries. It
is therefore important that the Innovation Campus
facilitates increased collaboration between all those
within the industry, inclusive of corporations, SMEs,
HEIs, government agencies and any other stakeholder or
relevant body.
10.3.4 Location
Through the preceding sections, three regions were identified as
regions of interest in which to build a convergence Innovation
Campus. These areas were the Sussex Coast region, the
Surrey region and the South Hampshire region, with particular
emphasis placed upon the urban areas of Brighton, Guildford
and Southampton respectively.
 Outline Business plan

Industry Region Location the model foresees a large volume of buy-in from corporations,
universities and local governments, although the initial funding
Assisted Living South Hampshire/ Southampton
and initiative will have to be led by SEEDA.
Surrey
MediaTech Sussex Coast Brighton
10.3.6 Key Personnel
Convergence Sussex Coast Brighton
(AssistedLiving & As suggested in the recommendations made in the report, the
MediaTech) first step in the development of this Innovation Campus is to
recruit a world class management team, the primary task of
Table 32: Recommended locations and respective industry focus which would be to create awareness of the project and to gain
interest from corporate bodies, both nationally and internationally
based. This should set a precedent for the direction and scale of
the convergence Innovation Campus.
Local
Location Public HEIs Corporate
Interest
Brighton ++ + ++ ++ 10.3.7 Main Funding and Investment Sources
Crawley -- -- o o Due to the constraints of the initial investment by SEEDA, a
South o ++ ++ o
tiered approach to the funding has to be developed in order
to maximise use of funds, whilst maintaining alignment with
Hampshire
the RES by creating the largest possible economical impact. If
Surrey ++ ++ o o the recommendations are taken into account, the first step will
be recruitment of a world-class management team in order to
Table 33: Results and Interest shown through studies manage the project, to approach possible stakeholders and to
begin branding. Once this team has been created, the second
Though all three locations have their own merits (refer Table 33, step involves inviting those areas identified above to tender and
Table 34 and Section 1.10 Location), in our view it is recommended make their case. These initial steps are not seen to be capital
that due to the vision, the mission and the particular focus of this intensive and would allow for a re-evaluation with respect to
campus – that is the promotion of the UK companies on a global SEEDA’s budget. If the ceiling amount for the budget is still
level - it is essential that the location already has global presence within the range of £4m to £5m, it is likely that a new build site
or branding. This being the case, Brighton would appear to be would be out of the question. In this case the project would rely
an ideal location, as it already has the national and international upon the willingness of the area tendered to donate a site or
preconception of being a hub for the creative and multimedia upon major investment by national or international bodies. The
industries, (second only to London). It is also the home of many continued investment by SEEDA is expected to last for up to five
independent gaming companies, as well as studios run by larger years dependant on project milestones; this will allow continuous
corporations and global software developers. appraisal and management of the project to be maintained.

Due to the good quality of life, strong university presence, and
the willingness shown by the council and universities in aiding
the foundation of this Innovation Campus, coupled with the
strong positive opinions of the area by large corporations, by
SMEs and by other interested parties, this area becomes an
obvious choice for an Innovation Campus.
As with any location there are detracting factors against the
Brighton choice, however, it seems that these detractions are
not detrimental to the entire success of this campus. One key
concern, highlighted by a minority of individuals, is the distance
between Brighton and London. Whilst in some instances it is
beneficial to be London-centric, in this case, interviews suggest
that many representatives of corporations and HEIs would be
willing to travel to such a campus if it offered the right educational,
collaborative, showcasing and networking opportunities.
10.3.5 Stakeholders
As with any collaborative focussed entity, there will be a number
of stakeholders whose interests must be aligned with the vision
and mission of the Innovation Campus. As with many successful
models, there has to be a blend of public, private and academic
stakeholders, ideally without bias or alternate motives. Though
this statement may seem self-evident, many prominent models
have had stakeholders whose interests contravene the very nature
of a collaborative arena. The selection of the stakeholders will
be dependant on the model decided upon. However, in this case
It is believed that due to the focus of the Innovation Campus, it
will be possible to source funding from public sources in order to
support its sustainability. As Assisted Living focuses on societal
change and is set up as an innovation platform created by the
Technology Strategy Board (TSB), there will be a strong case for
funding by the TSB on projects within the Innovation Campus. It
is also believed that the MediaTech sector’s standing within the
creative industries will mean that it is of technological interest to
the TSB. Depending on the model chosen, there could also be
funding allocated to campus projects and activities from various
other public bodies, including Research Councils and the Higher
Education Funding Council for England (HEFCE).
10.3.8 The Model
By using the process visualisation chart, pictured in Figure 30,
one can clearly see the steps involved in the creation of this
Innovation Campus. In addition to the step process detailed in
the diagram, the perceived amount of investment that needs
to be provided by SEEDA is outlined. The rise in the amount of
funding needed is in line with the advancement of the project,
with the first initial large outlays of cash to be spent when the
location has been decided upon and the hiring of the initial
management team is made. It is the belief that the convergence
aspect of the model will allow a multilayered approach when
attracting clientele, sponsors and the like, and hence allow for a
lower amount of funding by SEEDA.

75 w w w. l i b r a r y h o u s e . n e t
Innovation Campus in Communications Technologies and their Applications

Figure 30: Process visualisation chart with Perceived Funding required over Time (Source: Library House)

The model for this convergence Innovation Campus Strengths Weaknesses

is based upon that of the MaRS campus, the
leading convergence campus located in the Toronto • Innovative Capacity in University
“Discovery District”. As shown in the case study in and Business • Dependency on public
the accompanying document, the Mars campus is • Business – University Interaction funding
centrally located in a start of the art building complex
which acts as a networking, showcasing, collaborative • Regional innovation enhanced • Commitment from
and educative environment, as well as providing office • Industry leadership in Europe corporates unclear
space for supporting staff, technology transfer offices, • Agreement on industry focus
incubated businesses, etc. The central location within
• Agreement on Innovation Campus
a vibrant urban area has been found to add to the
appeal of the model, as it facilitates interaction and
networking between individuals from various parts of Opportunities Threats
the campus and surrounding businesses. This model
allows for open creativity, innovation and “random • First mover advantage
collaboration” – coined to mean “where individuals • Growing policy awareness • Global and national
from differing technical backgrounds are able to meet initiatives
and collaborate”. • Building of global players
• New Competitors
• Growing international status of SE
• Venturesome-consumption
Through a SWOT analysis of the proposed • Increasing public and private from international
convergence model, it can be seen that the demand for products and services corporates
perceived strengths and opportunities outweigh the • Branding South East UK
weaknesses. Though the threats are limited, they • Loss of IP
are threats that show a healthy competitive joint • Increase overall investment • Complacency
industry, which is expected when the industries are potential of South East region
as young as both Assisted Living and MediaTech. • Increase Innovation in UK

Figure 31: SWOT-Analysis for Innovation Campus

76
 References

11 References
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OECD (2003): Seizing the Benefits of ICT in a Digital Economy, Paris

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Innovation Campus in Communications Technologies and their Applications

12 Used Abbreviations
AeIGT Aerospace Innovation and Growth Team RES Regional Economic Strategy

AIN Aerospace Innovation Network SBAC Society of British Aerospace Companies

ATVP Aerospace Technology Validation Programs SKIN Security Knowledge and Innovation Network

BERR Department of Business, Environment and
Regulatory Reform
CEO Chief Executive Officer
DCMS Department for Culture Media and Sport
SEEDA South East England Development Agency
SEMN South East Media Network
SESETAC South East Science, Engineering and Technology
Advisory Council

DEFRA Department for Environment, Food and Rural Affairs SFC Scottish Funding Council

DEL Department for Employment and Learning, SIC Standard Industrial Classification
Northern Ireland
SMEs Small and Medium Enterprises
DIUS Department for Innovation, Universities and Skills
STFC Science and Technology Facilities Council
DTI Department of Trade and Industry
TKN Telecare Knowledge Network
EPSRC Engineering and Physical Sciences Research Council
TRL Technology Readiness Level
EU ETS European Union Emissions Trading Scheme
TSB Technology Strategy Board
FAC Farnborough Aerospace Consortium
UCCA University College for the Creative Arts
GVA Gross Value Added
UKAEA United Kingdom Atomic Energy Authority
HE-BCI Higher Education-Business and Community
Interaction UKC Urban Knowledge Centre

HEFCE Higher Education Funding Council England

HEFCW Higher Education Funding Council for Wales

HEI Higher Education Institute

HESE Higher Education South East

HPA Heath Protection Agency

HSIC Harwell Science and Innovation Campus

IC Innovation Campus

ICT Information and Communication Technologies

KTP Knowledge Transfer Partnership

LSE London Stock Exchange

MRO maintenance, repair and overhaul sector

(aerospace industry)

NATS National Aerospace Technology Strategy

ONS Office for National Statistics

PCT Primary Care Trust

R&D Research and Development

RAE Research Assessment Exercise

RDA Regional Development Agency

78