A Perspective on Innovation Andy Hopper The Computer

A Perspective on Innovation Andy Hopper The Computer Laboratory University of Cambridge

What is innovation • New technologies • New business models • Explosive growth, winner takes all sectors

Universities • Academic professor, entrepreneur professor • Serving / disrupting / creating new industry • Becoming institutional and less flexible • Rather monolithic in UK

Broad Context • Innovation in Industry • Intellectual property • Capital • UK fiscal policies

1 – ARM • Micro-processor architecture - 30 years from first concept • Technology rooted in symbiotic industry/university/finance situation • Corporate spin-out • Innovative business model and relentless execution • Dominates low-power CPU architecture with 50 Bn+ instances made

2 - VNC Server Viewer • Remote graphical access • Technology based on long-term industry/university expertise • Open Source release • Real. VNC start-up organically grown

Real. VNC – new products “Help!” Fix Access from Tablet and Smartphone Access to Tablet and Smartphone Access through the cloud Access built into processor Automotive

Real. VNC • Any device, across any network, in any combination • Exists on over 1 Bn devices • The worlds most ported piece of software? • Profitable from day one, 90% of revenues from export • Business model to match unique circumstances

3 – Xen • Virtualisation software • Technology based on long-term university practical expertise • Xen. org open-source “hypervisor” developers platform • Xen Source Inc start-up with $6 M of US VC money • Sold after 3 years in 2007 for $500 Mio on small revenues • Now a widely used technology in the cloud

4 - Ubisense SENSOR Sensor Tag TAG • • • Real-time 3 D location system based on ultra-wideband radio Up to 15 cm accuracy at fully managed reliability levels Scalable in coverage and scope of application

Tag integrated with tool

BMW Car Plant, Germany (Final Assembly Tool Assistance) • Tracking tools on complex production line • Automatically programs tools for each car • Eliminates barcode scanning

O 2 Arena, UK (Entertainment) • Projection of sound image is based on every performers location

Ubisense Funding July : Founded June : IPO on AIM 2004 2002 2003 F&A £ 1. 6 m Equity 2005 A+ £ 1. 6 m Equity 2008 2006 A++ £ 1. 6 m Equity F – Friends A - Angels CL – convertible loan 2009 2007 A++ £ 2. 0 m CL 2010 A £ 1. 0 m CL HSBC £ 1. 0 m Loan 2012 2011 Pre-IPO £ 5. 0 m

Ubisense plc • Rooted in 25 years of Industry / University research • Setting standards for Real Time Location Systems • Sells to the largest manufacturing companies (BMW, Airbus) • Intersection of computing / manufacturing • 5% of passenger car production

5 – Raspberry Pi • Rooted in traditional capabilities of Computer Lab • Not inspired by immediate profit motive • Supported by Cambridge “plc” (CL, Angels, Broadcom) • Humongous success and ecosystem 17

The Bear Traps • IP ownership • Equity dilution • Funding • Science/technology is not good enough • Market not ready for technology • Management team

The University-Industry Interface • Barriers to collaboration • Where should the marketplace exist? • Universities to adopt a volume strategy (not picking winners) • Small shareholding in many ventures • An independent “Entrepreneurs Charter” to guide best practice • More nooks and crannies all round