EEDA - East of England Development Agency

An Agenda for Action for the Cambridge economy

8 April 2011

We must recognise the importance of the Greater Cambridge economy, celebrate its success but not be complacent about the challenges it faces in the future – that is the conclusion of a report, released today, which celebrates 50 years of the Cambridge Cluster.

‘The Cambridge economy: retrospect and prospect’ was commissioned by the East of England Development Agency (EEDA) and local partners to better understand the state of the economy in and around Cambridge, and the challenges and issues it faces, in order to inform future interventions and policy decisions to ensure it reaches its full economic potential.

The importance and relative strength of the Greater Cambridge economy, and its contribution to the national economy, is widely recognised. The UK Competitiveness Index identifies Cambridge as ‘One of the most competitive cities in the UK’, and in the Cities Outlook 2010, Cambridge was highlighted as one of the most recession-proof cities in the UK and one of the most likely places to lead Britain back to growth.

The growth in the high tech sector and knowledge based industries has contributed to much of this success over the last 50 years. But the continued success of the Cambridge Cluster and its contribution to the local and national economy cannot be assumed. The high tech sector is projected to grow more slowly than in the past and forecasts suggest that the Greater Cambridge area may not be making the best use of its knowledge-based assets.

An Agenda for Action
The report proposes an ambitious Agenda for Action in order to address the barriers to growth being faced by businesses in and around the city. It provides recommendations to central government and local private and public sector partners on the actions needed to ensure the high tech cluster can reach its economic potential, such as;

• improving connectivity between the city, key employment sites - such as the Science Park - and the railway station (and London)
• a change in approach to planning new developments outside the city centre – creating social spaces rather than locations for smart, new office buildings – recognising the important role networking has played and will continue to play in the Cambridge Cluster
• developing a strategy and masterplan for the city centre which recognises the changing nature of ‘doing business’ in the 21st century knowledge economy, whilst preserving the physical character of the city
• national policy changes on migration, healthcare regulation and access to finance which make it easier for high tech businesses to start-up, and access global talent and finance.

To view the report please click here.

Partner quotes:
Deborah Cadman OBE, Chief Executive of the East of England Development Agency (EEDA), said: “A successful future for the Greater Cambridge area is vital to the success of the wider regional and national economies. This report provides the evidence base and action plan for local partners and national policy makers to ensure the Cambridge area continues to be a global economic player.”

Neville Reyner CBE DL, Chair of the Greater Cambridge Greater Peterborough Local Enterprise Partnership, explains: "The Greater Cambridge area should be proud of everything it has achieved over the past 50 years, but we can't rest on our laurels. The report highlights a number of barriers to growth that reflect the views of the Enterprise Partnership, in particular the strengthening of key infrastructure. The report is timely, as it comes just as our Board meets for the first time. We will be considering how we can tackle the barriers identified to ensure continued and sustainable growth over the years to come."

Walter Herriot OBE said: “This is an extremely useful report and should be used to inform decisions and policies to help Cambridge better achieve its economic potential, whilst not compromising the quality of life for its citizens.”

Nigel Brown OBE, Chairman of the Greater Cambridge Partnership said: "The report is a useful benchmark for what Greater Cambridge has achieved to date, but also highlights that this is no time to be complacent, we must develop and support new technologies, such as Cleantech, as the next wave of the cluster."

Chris Green, Chief Executive of SQW Group, said: “The growth potential of the Cambridge high tech cluster is as good as ever, but firms have some serious concerns - for example, about access to investment finance, the Government's proposed restrictions on international migration, and the over-regulation of the healthcare sector, as well as long running worries about housing and infrastructure - including links to London, which are increasingly important. We are in a global market for the best people, and unless we address these issues Cambridge-born firms will choose to focus their growth elsewhere, and the continuing excellence of the research base and the people it produces will never be converted into major economic benefits for the UK economy.”

• An Agenda for Action for the Cambridge economy press release   (DOC 187KB)

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