‘Exploiting	
  the	
  Potential	
  of	
  Creative,	
  Digital	
  Business	
  Clusters:	
  a	
  
Strategic	
  Leadership	
  Challenge’	
  

by	
  Steve	
  Brewer	
  and	
  David	
  Rees	
  

(	
  S.Brewer@soton.ac.uk,	
  David.Rees@henley.reading.ac.uk)	
  

	
  

	
  

ABSTRACT:	
  	
  For	
  decades	
  Silicon	
  Valley	
  has	
  been	
  perceived	
  as	
  a	
  seed-­‐bed	
  of	
  enterprise	
  where	
  
digital	
  technology	
  and	
  creative	
  ability	
  combine	
  to	
  deliver	
  hugely	
  successful	
  products	
  and	
  
services	
  to	
  world	
  markets.	
  Inspired	
  by	
  a	
  plethora	
  of	
  Californian	
  business	
  success	
  stories,	
  and	
  
with	
  the	
  rapid	
  provision	
  of	
  digital	
  infrastructure	
  and	
  talent	
  pools	
  around	
  the	
  world,	
  a	
  
network	
  of	
  creative,	
  digital,	
  IT-­‐facilitated	
  clusters	
  is	
  emerging	
  that	
  could	
  bring	
  significant	
  
economic	
  growth	
  and	
  wealth	
  to	
  sector	
  participants.	
  	
  To	
  help	
  understand	
  this	
  phenomenon	
  
this	
  paper	
  presents	
  models	
  of	
  cluster	
  development,	
  identifies	
  cluster	
  stakeholders,	
  describes	
  
factors	
  that	
  influence	
  cluster	
  success,	
  and	
  proposes	
  a	
  programme	
  of	
  research	
  to	
  guide	
  future	
  
policy-­‐making	
  in	
  the	
  creative,	
  digital	
  sector.	
  Leadership	
  and	
  business	
  management	
  
challenges	
  are	
  set	
  out	
  that	
  digital	
  sector	
  policy-­‐makers,	
  government	
  agencies,	
  local	
  
authorities,	
  education	
  providers,	
  entrepreneurs,	
  business	
  owners	
  and	
  large	
  corporates	
  need	
  
to	
  address	
  with	
  coherent	
  strategies	
  in	
  order	
  to	
  capitalise	
  on	
  potential	
  business	
  development	
  
opportunities	
  fermented	
  by	
  cluster	
  formations.	
  

Key	
  words	
  

cluster,	
  convergent,	
  creative,	
  digital,	
  IT,	
  ICT,	
  information	
  technology,	
  start-­‐up,	
  SME,	
  district,	
  
transformation,	
  innovation,	
  digital	
  economy,	
  media,	
  co-­‐working,	
  	
  

	
  

	
   	
  



Introduction	
  

Based	
  on	
  findings	
  from	
  the	
  Tech	
  City	
  UK	
  Cluster	
  Alliance,	
  Baroness	
  Joanna	
  Shields1	
  stated	
  
that	
  “digital	
  companies	
  spring	
  from	
  collaborative	
  communities	
  of	
  entrepreneurs	
  supported	
  
by	
  established	
  businesses,	
  universities	
  and	
  government	
  all	
  working	
  towards	
  common	
  goals”	
  
(Tech	
  Nation	
  Report	
  2015).	
  
	
  
In	
  the	
  same	
  report,	
  CEO	
  at	
  Tech	
  City	
  UK,	
  Gerard	
  Grech,	
  adds	
  that	
  such	
  businesses	
  
increasingly	
  decide	
  to	
  locate	
  in	
  close	
  proximity	
  to	
  each	
  other,	
  thus	
  creating	
  dynamic	
  digital	
  
technology	
  clusters	
  throughout	
  the	
  UK.	
  
	
  
Our	
  paper	
  builds	
  upon	
  this	
  and	
  other	
  research	
  in	
  exploring	
  the	
  phenomenon	
  of	
  digital	
  
clusters	
  in	
  an	
  attempt	
  to	
  identify	
  the	
  salient	
  influences	
  and	
  factors	
  that	
  may	
  determine	
  their	
  
success	
  and	
  performance.	
  We	
  focus	
  primarily	
  on	
  what	
  we	
  term	
  as	
  ‘creative,	
  digital	
  clusters	
  
facilitated	
  by	
  IT	
  infrastructure’	
  where	
  there	
  is	
  a	
  high	
  degree	
  of	
  original	
  product	
  and	
  service	
  
design	
  capability.	
  	
  Broadly,	
  this	
  is	
  in	
  line	
  with	
  the	
  type	
  of	
  cluster	
  that	
  Shields’	
  Alliance	
  and	
  
others	
  have	
  investigated,	
  with	
  attention	
  to	
  the	
  ecosystems	
  of	
  small	
  enterprise	
  creation	
  and	
  
development.	
  Specific	
  aims	
  of	
  this	
  paper	
  are	
  to:	
  
	
  

• Describe	
  key	
  features	
  and	
  characteristics	
  of	
  creative,	
  digital	
  clusters	
  
• Identify	
  cluster	
  and	
  stakeholder	
  interests	
  and	
  influence	
  
• Determine	
  factors	
  that	
  stimulate	
  enterprise	
  start-­‐up,	
  growth	
  and	
  success	
  
• Evaluate	
  the	
  need	
  for	
  short-­‐term	
  and	
  longitudinal	
  digital	
  cluster	
  research	
  
• Propose	
  the	
  leadership	
  and	
  management	
  challenges	
  	
  that	
  lie	
  ahead	
  for	
  successful	
  

cluster	
  growth	
  and	
  development	
  
	
  
In	
  attempting	
  to	
  describe	
  and	
  make	
  sense	
  of	
  the	
  cluster	
  phenomenon	
  we	
  take	
  a	
  largely	
  
pragmatist,	
  exploratory	
  approach	
  to	
  our	
  research,	
  drawing	
  on	
  existing	
  published	
  and	
  non-­‐
published	
  sources	
  to	
  help	
  establish	
  a	
  general	
  overview	
  of	
  the	
  cluster	
  experience.	
  Four	
  case	
  
examples	
  are	
  used	
  to	
  facilitate	
  descriptions	
  and	
  explanations,	
  and	
  secondary	
  data	
  from	
  
existing	
  studies	
  enable	
  us	
  to	
  probe	
  the	
  research	
  gaps	
  that	
  we	
  suspect	
  exist.	
  In	
  order	
  to	
  limit	
  
the	
  scope	
  of	
  this	
  current	
  paper	
  we	
  concentrate	
  on	
  UK	
  creative,	
  digital	
  clusters	
  but	
  this	
  
should	
  not	
  be	
  interpreted	
  as	
  an	
  exclusive	
  domain	
  –	
  these	
  clusters	
  are	
  just	
  part	
  of	
  the	
  wider	
  
global	
  competitive	
  landscape.	
  As	
  the	
  Economist2	
  indicates,	
  the	
  label	
  ‘tech’	
  covers	
  a	
  wide	
  
spectrum	
  from	
  semiconductor	
  design	
  to	
  smartphone	
  apps	
  with	
  an	
  observation	
  that	
  ‘young	
  
software	
  firms	
  are	
  geekier	
  and	
  more	
  likely	
  to	
  be	
  found	
  in	
  a	
  Cambridge	
  research	
  lab	
  than	
  in	
  
Shoreditch’s	
  trendy	
  tech	
  quarter’.	
  Both	
  these	
  polar	
  extremes	
  come	
  under	
  the	
  ‘tech’	
  
umbrella	
  and	
  whilst	
  university-­‐based	
  centres	
  can	
  be	
  legitimately	
  embraced	
  within	
  the	
  
cluster	
  research	
  field,	
  this	
  paper	
  limits	
  investigation	
  of	
  academic	
  institutions,	
  exploring	
  the	
  
private-­‐led	
  business	
  sector	
  in	
  greater	
  detail.	
  	
  	
  
	
  
Various	
  speculative	
  estimates	
  of	
  how	
  valuable	
  this	
  sector	
  is	
  in	
  economic	
  terms	
  have	
  been	
  
offered3,	
  and	
  whether	
  we	
  take	
  the	
  highest	
  or	
  lowest	
  calculations,	
  the	
  significant	
  
contribution	
  that	
  this	
  hybrid	
  sector	
  delivers	
  to	
  an	
  economy	
  as	
  a	
  whole	
  can	
  be	
  recognised.	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1	
  Chair	
  of	
  Tech	
  City	
  UK	
  
2	
  Economist,	
  21st	
  Sept	
  2013,	
  p	
  30	
  
3	
  See,	
  for	
  example:	
  https//www.gov.uk/government/news/creative-­‐industries	
  	
  14	
  Jan	
  2014	
  



Thus,	
  this	
  is	
  a	
  highly	
  appropriate	
  moment	
  to	
  be	
  reporting	
  on	
  our	
  investigations,	
  particularly	
  
concerning	
  the	
  potential	
  roles	
  that	
  universities,	
  business	
  schools,	
  government	
  and	
  investors	
  
can	
  assume	
  in	
  supporting	
  cluster	
  performance.	
  	
  
	
  
	
  
Research	
  Motivation	
  and	
  Vision	
  
This	
  paper	
  follows	
  up	
  previous	
  work	
  undertaken	
  by	
  the	
  authors	
  in	
  this	
  field4.	
  	
  Convergent	
  
enterprises	
  –	
  the	
  hallmark	
  of	
  cluster	
  members	
  where	
  businesses	
  integrate	
  various	
  
disciplines	
  to	
  execute	
  their	
  vision	
  –	
  are	
  most	
  often	
  found	
  in	
  urban	
  high-­‐density	
  groupings	
  
which	
  bring	
  together	
  dynamic	
  start-­‐ups,	
  fast	
  growing	
  SMEs	
  and	
  various	
  types	
  of	
  incubators	
  
and	
  other	
  informal	
  co-­‐working	
  spaces	
  from	
  cafes	
  to	
  maker-­‐spaces.	
  
	
  
We	
  want	
  to	
  understand	
  how	
  clustering	
  manifests	
  itself	
  in	
  cities	
  and	
  towns	
  across	
  the	
  UK.	
  
We	
  know	
  that	
  this	
  phenomenon	
  exists	
  in	
  many	
  places	
  around	
  the	
  world	
  too,	
  and	
  we	
  will	
  be	
  
addressing	
  this	
  in	
  a	
  subsequent	
  paper.	
  In	
  particular	
  we	
  aim	
  to	
  explore	
  and	
  understand	
  the	
  
complexities	
  at	
  the	
  heart	
  of	
  these	
  vibrant	
  communities.	
  In	
  this	
  paper,	
  however,	
  we	
  will	
  
develop	
  four	
  cluster	
  case	
  examples:	
  Bournemouth,	
  Bristol,	
  Salford	
  and	
  Shoreditch,	
  (inner	
  
London).	
  The	
  authors	
  have	
  been	
  observing	
  these	
  clusters	
  for	
  some	
  time	
  including	
  direct	
  
involvement	
  and	
  interaction	
  with	
  cluster	
  stakeholders	
  and	
  enterprises	
  themselves.	
  Hence,	
  
these	
  make	
  valid	
  subjects	
  to	
  draw	
  on.	
  	
  
	
  

Clusters,	
  hubs	
  and	
  collaborative	
  spaces	
  

What	
  do	
  we	
  mean	
  by	
  creative	
  digital	
  clusters?	
  Whether	
  large	
  or	
  small,	
  formal	
  or	
  informal	
  
we	
  are	
  referring	
  to	
  thriving	
  ecosystems	
  of	
  organisations	
  –	
  commercial,	
  not-­‐for-­‐profit,	
  
research-­‐led,	
  or	
  a	
  combination	
  of	
  these,	
  -­‐	
  in	
  close	
  physical	
  proximity	
  that	
  are	
  competing	
  and	
  
collaborating	
  in	
  ways	
  that	
  are	
  innovative,	
  creative	
  and	
  rewarding.	
  Eze	
  Vidra,	
  head	
  of	
  
Google’s	
  London	
  Campus	
  co-­‐working	
  space,	
  has	
  spoken	
  of	
  the	
  pivotal	
  role	
  of	
  London	
  with	
  
the	
  potential	
  to	
  become	
  the	
  leading	
  start-­‐up	
  hub	
  in	
  Europe	
  based	
  on	
  its	
  access	
  to	
  talent,	
  
capital	
  and,	
  crucially,	
  the	
  density	
  of	
  activity.	
  An	
  ever-­‐increasing	
  number	
  of	
  co-­‐working	
  
spaces	
  contribute	
  to	
  this	
  increase	
  in	
  density5.	
  

But	
  the	
  cluster	
  phenomenon	
  is	
  not	
  new.	
  Centre	
  for	
  Cities	
  and	
  McKinsey	
  &	
  Company	
  (2014)	
  
identified	
  31	
  economically	
  significant	
  clusters	
  across	
  the	
  UK	
  in	
  a	
  range	
  of	
  sectors	
  but	
  
recognised	
  that	
  whilst	
  an	
  agreed	
  definition	
  is	
  not	
  available,	
  evidence	
  of	
  impact	
  is	
  identifiable	
  
dating	
  as	
  far	
  back	
  as	
  1890.	
  Furthermore,	
  they	
  state	
  clusters	
  generate	
  a	
  disproportionately	
  
large	
  economic	
  impact	
  for	
  their	
  footprint	
  based	
  on	
  the	
  knowledge	
  sharing	
  amongst	
  workers.	
  	
  

	
  

Smart	
  spaces	
  and	
  cool	
  co-­‐working	
  

Underpinning	
  the	
  dynamics	
  of	
  clusters	
  are	
  novel	
  and	
  evolving	
  trends	
  in	
  environments	
  for	
  
working	
  that	
  are	
  emerging	
  around	
  the	
  world.	
  The	
  term	
  ‘smart	
  space’	
  is	
  typically	
  used	
  to	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
4	
  Brewer,	
  S	
  and	
  Rees,	
  D	
  ‘Bournemouth	
  Digital	
  Pier’,	
  an	
  ESRC-­‐funded	
  feasibility	
  study	
  examining	
  convergence	
  in	
  
organisations	
  that	
  combine	
  high-­‐tech	
  competences	
  with	
  creative	
  approaches	
  and	
  digital	
  processes	
  
5	
  http://www.standard.co.uk/news/techandgadgets/google-­‐chief-­‐london-­‐can-­‐be-­‐leading-­‐hub-­‐for-­‐europes-­‐
tech-­‐startups-­‐9234955.html	
  



refer	
  to	
  environments	
  that	
  have	
  been	
  designed	
  and	
  then	
  used	
  in	
  a	
  manner	
  that	
  enables	
  
flexible,	
  efficient	
  and	
  productive	
  usage.	
  Whilst	
  this	
  can	
  be	
  manifested	
  in	
  streamlined	
  
architecture	
  with	
  discrete	
  technological	
  facilities	
  it	
  can	
  as	
  easily	
  be	
  a	
  science	
  laboratory	
  or	
  
design	
  studio	
  with	
  the	
  traditional	
  paraphernalia	
  associated	
  with	
  those	
  communities.	
  

	
  
Historical	
  Evolution	
  of	
  Creative	
  Clusters	
  
	
  
‘Clustering’	
  is	
  a	
  term	
  that	
  can	
  be	
  applied	
  to	
  a	
  variety	
  of	
  human,	
  animal,	
  biological	
  and	
  
scientific	
  states.	
  	
  Humans	
  have	
  clustered	
  to	
  derive	
  synergistic	
  benefits	
  relating	
  to	
  hunting,	
  
defence,	
  exploration,	
  leisure	
  and	
  transportation,	
  for	
  example.	
  Our	
  interest,	
  here,	
  is	
  in	
  why	
  
and	
  how	
  individual	
  enterprises	
  in	
  the	
  creative,	
  digital	
  sector	
  come	
  together	
  in	
  well-­‐defined	
  
geographical	
  boundaries.	
  Thus,	
  the	
  search	
  is	
  for	
  explanations	
  that	
  reveal	
  mutual	
  benefits	
  to	
  
cluster	
  members	
  and	
  their	
  broader	
  stakeholders.	
  	
  
	
  
Whilst	
  creative,	
  digital	
  clusters	
  do	
  not	
  have	
  specific	
  size	
  parameters,	
  for	
  the	
  purposes	
  of	
  our	
  
discussions	
  we	
  are	
  considering	
  groups	
  of	
  enterprises	
  producing	
  a	
  critical	
  mass	
  of	
  business	
  
activity	
  that	
  have	
  significant	
  impact	
  on	
  the	
  local	
  economy	
  through	
  investment,	
  employment,	
  
infrastructure	
  and	
  profitability.	
  Cluster	
  members	
  will	
  often	
  trade	
  together	
  and	
  establish	
  
partnerships	
  but	
  they	
  also	
  interact	
  informally	
  through	
  socialising,	
  networking,	
  cultural	
  
activities,	
  leisure	
  and	
  simply	
  chatting	
  over	
  coffee.	
  There	
  may	
  be	
  common	
  heritages	
  amongst	
  
entrepreneurs	
  and	
  employees,	
  too	
  –	
  education,	
  interests,	
  personality,	
  and	
  their	
  journey	
  
through	
  life.	
  These	
  features	
  have	
  been	
  identified	
  by	
  many	
  observers6.	
  
	
  
Leicester	
  and	
  Sharpe	
  (2010)	
  point	
  to	
  the	
  growing	
  fascination	
  of	
  creative	
  regions	
  and	
  their	
  
characteristics,	
  ‘helping	
  a	
  shift	
  away	
  from	
  traditional	
  industrial	
  innovation	
  policy	
  of	
  the	
  
1970s	
  and	
  1980s	
  -­‐	
  picking	
  winners,	
  investing	
  in	
  specialist	
  entrepreneurs	
  and	
  improving	
  
training	
  –	
  towards	
  the	
  creation	
  of	
  enabling	
  conditions	
  for	
  innovation	
  in	
  particular	
  places	
  and	
  
spaces,	
  hotspots,	
  clusters	
  and	
  cities’.	
  They	
  suggest	
  this	
  is	
  all	
  about	
  fostering	
  creative	
  
ecosystems	
  and	
  we	
  can	
  observe	
  similar	
  policy	
  changes	
  in	
  other	
  parts	
  of	
  the	
  globe,	
  too.	
  	
  
	
  
	
  
	
  
Cluster	
  Types	
  and	
  Models	
  
	
  
Organic	
  Clusters	
  
	
  
Creative,	
  digital	
  clusters	
  often	
  emerge	
  in	
  an	
  organic	
  format,	
  a	
  type	
  of	
  grassroots	
  initiation	
  
and	
  evolution.	
  London’s	
  ‘Tech	
  City’	
  –	
  roughly	
  defined	
  as	
  the	
  square	
  mile	
  south-­‐east	
  of	
  Old	
  
Street	
  Roundabout	
  (‘Silicon	
  Roundabout)	
  –	
  is	
  a	
  contemporary	
  example	
  of	
  this	
  type	
  of	
  
bottom-­‐up	
  development	
  and	
  is	
  one	
  of	
  our	
  case	
  examples.	
  	
  As	
  a	
  work	
  study	
  analyst	
  in	
  the	
  
early	
  1970s	
  undertaking	
  projects	
  in	
  London	
  Telecommunications	
  Region,	
  one	
  of	
  this	
  paper’s	
  
authors	
  tramped	
  up	
  and	
  down	
  the	
  streets	
  of	
  Bethnal	
  Green,	
  Clerkenwell,	
  Hoxton	
  and	
  
Shoreditch	
  to	
  carry	
  out	
  his	
  work.	
  	
  He	
  recalls	
  describing	
  the	
  area	
  as	
  “a	
  jumble	
  of	
  filthy,	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
6	
  See,	
  for	
  example,	
  Rees	
  &	
  Brewer	
  (2013)	
  



rubbish-­‐strewn	
  streets,	
  lined	
  with	
  bomb-­‐sites	
  and	
  dilapidated	
  buildings,	
  and	
  populated	
  by	
  
some	
  of	
  the	
  poorest	
  people	
  I’d	
  ever	
  seen”7.	
  	
  	
  
	
  
How	
  did	
  this	
  small	
  area	
  contained	
  within	
  the	
  EC1	
  V	
  postcode	
  transform	
  in	
  to	
  what	
  we	
  see	
  
today	
  –	
  15,620	
  enterprises	
  commencing	
  in	
  a	
  12-­‐month	
  period	
  leading	
  up	
  to	
  March	
  20148	
  
alone,	
  and	
  the	
  cluster	
  now	
  employing	
  251,590	
  people9?	
  	
  
	
  
Within	
  the	
  space	
  of	
  four	
  decades	
  a	
  series	
  of	
  transitions	
  occurred	
  that	
  saw	
  business	
  and	
  
residential	
  properties	
  vacated	
  by	
  people	
  in	
  search	
  of	
  more	
  attractive	
  places	
  to	
  live	
  and	
  work	
  
and	
  re-­‐occupied	
  by	
  new	
  tenants.	
  Property	
  values	
  and	
  rents	
  plummeted	
  and	
  empty	
  spaces	
  
were	
  occupied	
  in	
  the	
  1980s	
  by	
  the	
  poor	
  struggling	
  ‘performance	
  creatives’	
  –	
  actors,	
  
musicians,	
  artists,	
  and	
  a	
  whole	
  host	
  of	
  low	
  wage	
  or	
  unemployed	
  individuals	
  who	
  craved	
  a	
  
place	
  to	
  ‘hang	
  out’	
  with	
  people	
  holding	
  complementary	
  lifestyles,	
  ambitions	
  and	
  tastes.	
  
Some	
  of	
  these	
  went	
  on	
  to	
  fame	
  and	
  wealth,	
  eventually	
  moving	
  on	
  to	
  pastures	
  new,	
  but	
  
leaving	
  behind	
  an	
  aspirant	
  community	
  that	
  had	
  an	
  ability	
  to	
  attract	
  a	
  new	
  wave	
  of	
  creative	
  
talent.	
  By	
  the	
  late	
  90s,	
  with	
  the	
  propulsion	
  of	
  digital	
  technology	
  and	
  the	
  dot-­‐com	
  boom,	
  the	
  
fledgling	
  creative	
  digital	
  entrepreneurs	
  started	
  to	
  appear.	
  	
  Into	
  the	
  new	
  millennium	
  ‘Tech	
  
City’	
  has	
  now	
  emerged	
  into	
  Europe’s	
  biggest	
  creative	
  digital	
  cluster	
  and	
  is	
  expanding	
  into	
  
neighbouring	
  areas	
  as	
  growth	
  continues.	
  	
  	
  
	
  
This	
  type	
  of	
  cluster	
  development	
  is	
  captured	
  in	
  Figure	
  One,	
  below,	
  and	
  for	
  more	
  detail	
  of	
  
Tech	
  City’s	
  evolution,	
  see	
  Appendix	
  ‘A’.	
  	
  
	
  
	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
7	
  Rees,	
  D.	
  Personal	
  recollections	
  as	
  an	
  employee	
  of	
  UK	
  Post	
  Office	
  Telecoms	
  
8	
  http://techcitynews.com/2014/06/10/silicon-­‐roundabout-­‐tops-­‐uk-­‐startup-­‐chart-­‐with-­‐over-­‐15000-­‐new-­‐
businesses/	
  
9	
  Tech	
  Nation	
  Report,	
  2015	
  



Figure	
  One:	
  	
  Organic	
  Cluster	
  Development	
  Model

	
  

Inorganic	
  Clusters	
  

In	
  contrast	
  to	
  the	
  example	
  of	
  Tech	
  City	
  we	
  can	
  observe	
  a	
  different	
  type	
  of	
  cluster	
  
development,	
  one	
  which	
  is	
  the	
  result	
  of	
  strategic	
  leadership	
  from	
  private	
  sector	
  investment,	
  
central	
  government	
  initiative,	
  local	
  authority	
  economic	
  stimulation,	
  or	
  other	
  types	
  of	
  direct	
  
intervention.	
  Here,	
  the	
  protagonist	
  can	
  see	
  how	
  the	
  development	
  of	
  a	
  digital	
  local	
  economy	
  
could	
  respond	
  to	
  addressing	
  a	
  problem,	
  meeting	
  a	
  challenge,	
  or	
  exploiting	
  an	
  opportunity.	
  

We	
  could	
  see,	
  for	
  example,	
  how	
  a	
  local	
  university	
  may	
  wish	
  to	
  provide	
  enterprise	
  
opportunities	
  for	
  graduates	
  emerging	
  from	
  a	
  degree	
  course	
  that	
  has	
  nurtured	
  creative	
  
talent	
  suitable	
  for	
  the	
  digital	
  sector.	
  Or	
  perhaps	
  there	
  are	
  willing	
  investors	
  who	
  decide	
  that	
  a	
  
certain	
  geographical	
  location	
  has	
  commercial	
  advantages	
  such	
  as	
  transport	
  infrastructure	
  
which	
  could	
  underpin	
  technology	
  business	
  success.	
  Alternatively,	
  a	
  metropolitan	
  council	
  
may	
  view	
  the	
  development	
  of	
  a	
  creative	
  digital	
  industry	
  as	
  the	
  basis	
  for	
  urban	
  re-­‐
generation.	
  In	
  all	
  these	
  situations	
  the	
  cluster	
  is	
  being	
  formed	
  and	
  driven	
  by	
  an	
  external	
  
change	
  agent	
  rather	
  than	
  the	
  entrepreneurs	
  themselves,	
  and	
  often	
  anchored	
  by	
  one	
  or	
  a	
  
small	
  number	
  of	
  key	
  stakeholders.	
  	
  

A	
  good	
  example	
  to	
  consider	
  is	
  the	
  recent	
  re-­‐generation	
  project	
  in	
  Salford,	
  Greater	
  
Manchester.	
  Abandoned	
  docks	
  and	
  industrial	
  sites	
  had	
  decayed	
  into	
  tracts	
  of	
  wasteland	
  
breeding	
  poor	
  living	
  conditions,	
  crime	
  and	
  social	
  problems.	
  At	
  the	
  same	
  time	
  central	
  
government	
  was	
  keen	
  to	
  re-­‐distribute	
  employment	
  opportunities	
  and	
  cut	
  operating	
  costs	
  
through	
  relocating	
  public	
  services	
  outside	
  London.	
  The	
  BBC	
  was	
  such	
  a	
  public	
  organisation	
  
affected	
  by	
  this	
  policy	
  and	
  became	
  attracted	
  to	
  the	
  re-­‐generation	
  plan	
  being	
  offered	
  by	
  
Salford.	
  See	
  Appendix	
  ‘A’	
  for	
  the	
  story-­‐line	
  of	
  this	
  cluster’s	
  history,	
  and	
  the	
  modelling	
  of	
  
inorganic	
  clusters	
  can	
  be	
  seen	
  in	
  Figure	
  Two,	
  below.	
  

	
  



	
  
Figure	
  Two:	
  Inorganic	
  Cluster	
  Development	
  

	
  

Hybrid	
  Clusters	
  

Our	
  third	
  type	
  of	
  cluster	
  formation	
  brings	
  the	
  natural	
  street-­‐level	
  mutation	
  of	
  creative	
  
business	
  interests	
  together	
  with	
  strategic	
  initiatives	
  or	
  support.	
  In	
  most	
  of	
  the	
  cases	
  we	
  
have	
  observed10	
  an	
  informal	
  congregation	
  of	
  creative,	
  digital	
  enterprises	
  within	
  a	
  defined	
  
location	
  has	
  evolved	
  to	
  a	
  point	
  where	
  growth	
  is	
  no	
  longer	
  possible	
  –	
  or	
  is	
  difficult	
  –	
  without	
  
some	
  kind	
  of	
  strategic	
  initiative.	
  	
  Often,	
  the	
  external	
  input	
  comes	
  in	
  the	
  form	
  of	
  
infrastructure	
  development	
  –	
  co-­‐working	
  spaces,	
  transport	
  improvements,	
  broadband	
  
capacity,	
  etc.	
  The	
  Soho	
  area	
  of	
  London	
  is	
  a	
  long-­‐established	
  cluster	
  that	
  grew	
  out	
  of	
  a	
  small	
  
number	
  of	
  businesses	
  relating	
  to	
  the	
  film-­‐industry	
  established	
  early	
  on	
  in	
  the	
  development	
  
of	
  the	
  sector.	
  Soho	
  mirrors	
  this	
  hybrid	
  model	
  in	
  that	
  an	
  organic	
  cluster	
  has	
  been	
  supported	
  
but	
  not	
  led	
  by	
  a	
  series	
  of	
  initiatives,	
  both	
  technical	
  and	
  policy-­‐based	
  (Durmaz,	
  2010).	
  The	
  
concept	
  of	
  this	
  type	
  of	
  cluster	
  development	
  can	
  be	
  seen	
  in	
  Figure	
  Three,	
  below.	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
10	
  See,	
  for	
  example,	
  ‘Wired	
  Sussex’	
  (Brighton),	
  ‘Canary	
  Wharf’(London)	
  and	
  schemes	
  in	
  Barcelona,	
  Montreal	
  
and	
  Melbourne	
  	
  



Figure	
  Three:	
  	
  Hybrid	
  Cluster	
  Development

	
  

Bristol’s	
  ‘Watershed’	
  ecosystem	
  reflects	
  this	
  mix	
  of	
  grass	
  root	
  and	
  external	
  involvement	
  
where	
  the	
  focus	
  has	
  been	
  to	
  support	
  a	
  creative	
  arts	
  industry	
  with	
  a	
  policy	
  to	
  link	
  arts	
  and	
  
cultural	
  organisations	
  with	
  the	
  creative	
  economy	
  and	
  ecosystems,	
  and	
  is	
  our	
  third	
  case	
  
history	
  at	
  Appendix	
  ‘A’.	
  

	
  

	
  

University-­‐Based	
  Technology	
  Enterprise	
  Centres/Parks/Incubators	
  

Centres	
  of	
  academic	
  excellence	
  –	
  usually	
  universities	
  and	
  other	
  higher	
  education	
  
establishments	
  –	
  have	
  come	
  to	
  understand	
  how	
  their	
  intellectual	
  property	
  can	
  yield	
  value	
  
through	
  market	
  channels.	
  This	
  could	
  be	
  from	
  public/private	
  partnerships,	
  setting	
  up	
  
commercial	
  organisations,	
  non-­‐profit	
  mechanisms	
  and	
  support	
  to	
  aspiring	
  entrepreneurs.	
  	
  It	
  
is	
  the	
  last	
  of	
  these	
  that	
  brings	
  us	
  to	
  include	
  such	
  enterprise	
  centres	
  or	
  parks	
  in	
  our	
  
discussions	
  of	
  creative	
  clusters.	
  	
  

Often,	
  the	
  educational	
  body	
  acts	
  as	
  a	
  hub	
  for	
  driving	
  businesses	
  through	
  a	
  knowledge-­‐
sharing	
  partnership	
  or,	
  more	
  occasionally,	
  joint-­‐ventures	
  and	
  strategic	
  alliances.	
  	
  We	
  have	
  
observed	
  at	
  University	
  of	
  Bournemouth	
  and	
  the	
  Arts	
  University	
  of	
  Bournemouth,	
  for	
  
example,	
  the	
  emergence	
  of	
  a	
  film	
  industry	
  production	
  cluster	
  where	
  there	
  is	
  more	
  or	
  less	
  a	
  
direct	
  line	
  of	
  graduate	
  talent	
  creating	
  their	
  own	
  businesses	
  under	
  the	
  mentorship	
  or	
  
guidance	
  of	
  their	
  former	
  university	
  professors.	
  Agreements	
  are	
  reached	
  on	
  how	
  the	
  IP	
  is	
  to	
  
be	
  valued	
  and	
  realised,	
  the	
  creative	
  digital	
  enterprise	
  gets	
  off	
  the	
  ground,	
  and	
  the	
  business	
  
owners	
  retain	
  a	
  special	
  (but	
  not	
  necessarily	
  exclusive)	
  link	
  with	
  the	
  university.	
  	
  

Within	
  this	
  clustering,	
  the	
  university	
  and	
  business	
  enterprise	
  may	
  be	
  supplemented	
  by	
  an	
  
incubation	
  partner,	
  typically	
  separate	
  from	
  the	
  main	
  university	
  campus	
  and	
  on	
  the	
  outskirts	
  



of	
  the	
  university	
  town	
  or	
  city.	
  Both	
  of	
  the	
  authors’	
  affiliated	
  institutions,	
  Universities	
  of	
  
Southampton	
  and	
  Reading,	
  have	
  successful	
  examples	
  of	
  these	
  types	
  of	
  centres/parks11	
  

Increasingly,	
  such	
  partnerships	
  are	
  offered	
  by	
  large	
  digital	
  technology	
  corporates	
  and	
  the	
  
authors	
  have	
  witnessed	
  first-­‐hand	
  accounts,	
  presentations	
  and	
  discussions	
  with	
  companies	
  
who	
  recognise	
  the	
  value	
  of	
  raw	
  creative	
  talent	
  which	
  is	
  in	
  need	
  of	
  incubation	
  and	
  
acceleration	
  to	
  progress	
  as	
  a	
  mature	
  enterprise.	
  This	
  can	
  become	
  a	
  two-­‐way	
  street	
  where	
  a	
  
corporate	
  academy	
  or	
  internal	
  R&D	
  centre	
  can	
  support	
  a	
  new	
  creative	
  digital	
  enterprise,	
  
incubate	
  and	
  accelerate	
  its	
  growth,	
  and	
  then	
  monetise	
  financial	
  or	
  resource	
  investment.	
  	
  

Mike	
  Lynch	
  (founder	
  of	
  the	
  company,	
  Autonomy)	
  says:	
  “What	
  you	
  will	
  find	
  in	
  Cambridge	
  is	
  
something	
  which	
  is	
  fundamentally	
  clever.	
  	
  In	
  Tech	
  City	
  the	
  raw	
  science	
  isn’t	
  fundamentally	
  
clever	
  –	
  it’s	
  more	
  attuned	
  to	
  the	
  market	
  and	
  consumer.	
  The	
  government	
  has	
  realised	
  that	
  
the	
  economy	
  could	
  be	
  benefit	
  from	
  connecting	
  the	
  two	
  booming	
  clusters.	
  (Something	
  as	
  
basic	
  as	
  better	
  rail	
  connections	
  would	
  help!)”.	
  	
  (Economist,	
  21st	
  Sept	
  2013,	
  p30)	
  

Figure	
  Four,	
  below,	
  models	
  this	
  type	
  of	
  cluster.	
  

	
  

Multiple	
  Clusters	
  

Many	
  clusters	
  develop	
  a	
  strong	
  identity	
  with	
  a	
  specific	
  industry	
  –	
  educational	
  technology	
  in	
  
Birmingham,	
  Marketing	
  and	
  Advertising	
  in	
  Bournemouth,	
  and	
  Games	
  Development	
  in	
  
Liverpool,	
  for	
  example12.	
  This	
  is	
  often	
  the	
  result	
  of	
  a	
  historical	
  industry	
  legacy	
  –	
  aviation	
  in	
  
Derby,	
  film	
  in	
  Soho	
  and	
  creative	
  arts	
  in	
  Bristol.13	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
11	
  United	
  Kingdom	
  Science	
  Park	
  Association:	
  http://www.ukspa.org.uk.	
  
12	
  Classifications	
  from	
  Tech	
  Nation	
  Report	
  2015	
  
13	
  For	
  more	
  examples	
  see	
  Centre	
  for	
  Cities,	
  McKinsey	
  and	
  Company	
  2014	
  
	
  
	
  



We	
  now	
  observe	
  an	
  agglomeration	
  of	
  complementary	
  specialist	
  sector	
  capabilities	
  
developing	
  in	
  a	
  number	
  of	
  clusters.	
  	
  Taking	
  Bournemouth	
  as	
  an	
  example	
  there	
  are	
  ‘hot	
  
spots’	
  around	
  the	
  conurbation	
  that	
  have	
  a	
  particular	
  flair	
  for	
  UI	
  and	
  UX	
  design14,	
  for	
  special	
  
effects,	
  for	
  media	
  production,	
  and	
  for	
  visual/audio	
  design.	
  Mini	
  clusters	
  form	
  but	
  each	
  one	
  
is	
  intrinsically	
  linked	
  to	
  each	
  other	
  for	
  the	
  purposes	
  of	
  collaboration,	
  sharing	
  resources,	
  
exchanging	
  ideas,	
  and	
  buying	
  in	
  services.	
  The	
  historical	
  link	
  to	
  the	
  advertising	
  and	
  marketing	
  
industry	
  from	
  all	
  these	
  specialist	
  centres	
  can	
  be	
  clearly	
  seen.	
  	
  

Successful	
  clusters	
  such	
  as	
  Bournemouth	
  (see	
  Appendix	
  ‘A’)	
  and	
  Soho	
  are	
  taking	
  advantage	
  
of	
  linking	
  these	
  hotspots	
  to	
  produce	
  a	
  powerful	
  cocktail	
  of	
  related,	
  integrated	
  expertise	
  that	
  
further	
  marks	
  out	
  a	
  cluster’s	
  profile	
  and	
  reputation.	
  Durmaz	
  (2012)15	
  identified	
  this	
  type	
  of	
  
cluster	
  development	
  in	
  his	
  study	
  of	
  the	
  film	
  industry	
  in	
  London	
  and	
  Turkey,	
  terming	
  these	
  as	
  
‘creative	
  hotspots’.	
  Figure	
  Five,	
  below,	
  illustrates	
  the	
  concept	
  of	
  these	
  linked	
  specialist	
  mini	
  
clusters.	
  	
  

	
  

Figure	
  Five:	
  Multiple	
  Clusters	
  

	
  

Pru	
  Ashby,	
  Director	
  at	
  Tech	
  City	
  Investments,	
  articulated	
  the	
  competitive	
  advantage	
  that	
  
London	
  enjoys	
  as	
  a	
  leading	
  global	
  creative	
  cluster	
  comprised	
  of	
  these	
  ‘hotspots’.	
  	
  In	
  
comparing	
  UK	
  with	
  the	
  USA16	
  she	
  emphasised	
  the	
  proximity	
  of	
  several	
  specialist	
  clusters	
  in	
  
and	
  around	
  London	
  –	
  fashion,	
  film,	
  design,	
  music,	
  creative	
  arts,	
  finance,	
  advertising	
  –	
  
enabling	
  easy	
  face-­‐to-­‐face	
  contact	
  between	
  clients	
  and	
  firms.	
  	
  This	
  is	
  in	
  contrast	
  to	
  the	
  US	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
14	
  UI	
  	
  =	
  	
  User	
  Interface	
  	
  	
  	
  UX	
  =	
  User	
  Experience	
  
15	
  Durmaz,	
  D.	
  Creative	
  Clusters	
  and	
  Place-­‐Making:	
  	
  Analysing	
  the	
  Quality	
  of	
  Place	
  in	
  Soho	
  and	
  Beyoglu	
  	
  PhD	
  Thesis,	
  
Nottingham	
  July	
  2012	
  
16	
  9th	
  May	
  2013	
  presentation	
  to	
  a	
  group	
  of	
  MSc	
  students	
  from	
  University	
  of	
  Zagreb,	
  facilitated	
  by	
  David	
  
Rees,Henley	
  Business	
  School,and	
  CISCO	
  at	
  Google	
  Campus,	
  London	
  



where	
  centres	
  of	
  excellence	
  are	
  spread	
  out	
  across	
  thousands	
  of	
  miles	
  and	
  differing	
  time	
  
zones.	
  	
  

	
  

Cluster	
  Start-­‐Up	
  and	
  Growth	
  Factors	
  

From	
  their	
  previous	
  study	
  of	
  the	
  emerging	
  creative	
  digital	
  cluster	
  in	
  Bournemouth,	
  Brewer	
  
and	
  Rees	
  (2013)	
  identified	
  a	
  number	
  of	
  potential	
  characteristics	
  and	
  factors	
  that	
  could	
  
influence	
  the	
  development	
  of	
  creative	
  clusters.	
  Their	
  work	
  drew	
  on	
  other	
  studies,	
  including	
  
Durmaz,	
  B.,	
  Platt,	
  S.	
  and	
  Yigitcanlar.	
  T.	
  (2010));	
  Munn,	
  B.,	
  Baum,	
  A.,	
  	
  Boscherini,	
  G.	
  and	
  Perri,	
  
C.	
  (2013);	
  Bachmann,	
  B.,	
  ,	
  Dovey,	
  J.,	
  	
  Monaco,	
  J.,	
  	
  Sharpe,	
  B.,Reddington,C.,	
  	
  Alexander,	
  
V.,and	
  Penny,	
  D.	
  (2012);	
  Clare,	
  K.	
  (2013);	
  Docherty,	
  D.	
  (2010);	
  and	
  Sapsed,	
  J.	
  and	
  
Nightingale,	
  P.	
  (2013).	
  	
  These	
  can	
  be	
  summarised	
  as:	
  

§ Geographic	
  location.	
  	
  The	
  vast	
  majority	
  of	
  clusters	
  are	
  urban-­‐based	
  in	
  cities	
  or	
  large	
  
towns.	
  Physical	
  proximity	
  of	
  businesses	
  to	
  one	
  another	
  and	
  clients,	
  plus	
  integrated	
  
work/home/social	
  locations	
  are	
  important	
  factors.	
  	
  

§ Place.	
  This	
  refers	
  to	
  the	
  attractiveness	
  of	
  the	
  work	
  and	
  social	
  environment	
  in	
  which	
  
the	
  enterprise	
  is	
  located	
  and	
  reflects	
  the	
  atmosphere,	
  culture	
  and	
  sociability	
  of	
  the	
  
ecosystem.	
  

§ Infrastructure.	
  Transportation	
  facilities	
  (rail,	
  motorways,	
  airports),	
  broadband,	
  
schools,	
  leisure	
  and	
  culture	
  facilities	
  are	
  high	
  priorities	
  for	
  would-­‐be	
  entrepreneurs.	
  

§ Talent.	
  Availability	
  of	
  (largely)	
  graduate,	
  cross-­‐disciplinary	
  competence	
  and	
  capability	
  
for	
  both	
  entrepreneurs	
  and	
  the	
  talent	
  they	
  need	
  to	
  hire.	
  University	
  locations	
  with	
  
specialist	
  reputations	
  linked	
  to	
  clusters	
  are	
  especially	
  favoured.	
  

§ Investment.	
  Finance,	
  incentives	
  and	
  speed	
  of	
  response	
  are	
  strong	
  attractors.	
  
§ Business	
  Climate.	
  Optimism,	
  excitement,	
  peer	
  group	
  membership,	
  association	
  with	
  

success,	
  public	
  and	
  industry	
  profile,	
  recognition	
  –	
  all	
  factors	
  influencing	
  where	
  
entrepreneurs	
  and	
  employees	
  want	
  to	
  be	
  located.	
  

§ Business	
  complementarity.	
  Enterprise	
  owners	
  value	
  the	
  physical	
  closeness	
  and	
  
availability	
  of	
  services	
  from	
  other	
  companies.	
  
	
  

Stakeholder	
  Interests	
  and	
  Influence	
  

With	
  recognition	
  of	
  the	
  potential	
  economic	
  value	
  that	
  creative,	
  digital	
  clusters	
  can	
  bring	
  to	
  
local,	
  regional	
  and	
  national	
  economies	
  there	
  is	
  a	
  discernible	
  interest	
  by	
  various	
  stakeholders	
  
to	
  engineer	
  the	
  development	
  of	
  viable	
  and	
  sustainable	
  enterprise	
  ecosystems.	
  We	
  identify	
  
these	
  stakeholders	
  who	
  may	
  hold	
  an	
  interest	
  and	
  influence	
  in	
  the	
  development	
  of	
  a	
  
successful,	
  sustainable	
  creative,	
  digital	
  cluster.	
  

• Policy	
  makers	
  –	
  national	
  government,	
  industry	
  leaders,	
  EU,	
  WTO	
  
• Local	
  authorities	
  –	
  implementing	
  national	
  policy,	
  developing	
  local	
  policy,	
  

infrastructure	
  and	
  utility	
  provision,	
  work/living	
  and	
  socially	
  integrative	
  environments	
  
• Government	
  agencies	
  –	
  regional,	
  regulators,	
  industry	
  coordinators,	
  cross-­‐sector	
  

collaboration	
  
• Sector	
  bodies	
  –	
  trade	
  and	
  industry	
  reps,	
  grant/funding	
  organisations,	
  cross-­‐sector	
  

coordination	
  



• Think-­‐tanks/consultancies/research	
  organisations	
  –	
  gaining	
  insights	
  and	
  
understanding	
  

• Large	
  corporates	
  –	
  incubation,	
  internal	
  design	
  and	
  R&D	
  departments,	
  HR	
  
functions/developing	
  HR	
  strategies,	
  managing	
  creative	
  talent,	
  developing	
  
collaborative	
  organisational	
  cultures,	
  leading	
  business	
  transformation,	
  cross-­‐sector	
  
partnering,	
  physical	
  environment,	
  and	
  positioning	
  (location)	
  

• Entrepreneurs/owner-­‐managers	
  –	
  initiating,	
  growing	
  and	
  managing	
  the	
  enterprise	
  
• Investors	
  –	
  commercial,	
  private,	
  local	
  authorities,	
  foreign	
  investment	
  
• Financial	
  service	
  providers	
  –	
  banks,	
  providers	
  of	
  credit,	
  insurers	
  
• Talent	
  developers/universities	
  –	
  inter-­‐disciplinary	
  talent,	
  demand	
  for	
  

integrated/convergent	
  entrepreneurial	
  graduates	
  and	
  skilled	
  employees	
  
• Networking/partnering	
  organisations	
  –	
  networking	
  competencies,	
  partnership	
  

broking,	
  	
  
• Suppliers/enterprise	
  partners	
  –	
  aligning	
  to	
  client/partner	
  needs	
  (capacity,	
  resources,	
  

culture,	
  systems)	
  
• Media	
  organisations	
  –	
  investigating	
  and	
  reporting	
  on	
  sector	
  developments	
  
• Architects/urban	
  and	
  rural	
  planners	
  -­‐	
  creative	
  workplace	
  and	
  business	
  environment	
  

design	
  
• Industry-­‐specific	
  partnerships	
  –	
  identifying	
  partners,	
  implementing	
  partnerships	
  

	
  

Themes,	
  Issues	
  and	
  Challenges	
  

Our	
  investigations	
  suggest	
  that	
  the	
  UK	
  and	
  other	
  governments	
  recognise	
  the	
  potential	
  
economic	
  and	
  societal	
  benefits	
  that	
  a	
  successful	
  digital	
  industry	
  can	
  bring,	
  and	
  that	
  national	
  
policies	
  to	
  support	
  this	
  sector	
  are	
  emerging.	
  	
  A	
  major	
  challenge,	
  now,	
  is	
  cultivate	
  a	
  positive	
  
attitude	
  amongst	
  local	
  authorities,	
  local	
  enterprise	
  partnerships	
  and	
  private	
  sector	
  investors	
  
towards	
  the	
  development	
  of	
  viable,	
  successful	
  and	
  dynamic	
  businesses.	
  	
  

Strategic	
  interventions	
  by	
  public	
  authorities	
  to	
  stimulate	
  enterprise	
  growth	
  are	
  increasing	
  
through	
  a	
  variety	
  of	
  mechanisms.	
  	
  A	
  particular	
  strategy	
  that	
  we	
  have	
  observed	
  is	
  to	
  replace	
  
deteriorating	
  performance	
  in	
  traditional	
  industry	
  sectors	
  with	
  investments	
  to	
  promote	
  and	
  
support	
  the	
  creative	
  tech	
  sector.	
  Regeneration	
  projects	
  that	
  may	
  include	
  transforming	
  old	
  
work	
  sites	
  and	
  buildings	
  in	
  to	
  new	
  enterprise	
  space	
  are	
  gaining	
  pace.	
  Infrastructure	
  
development	
  and	
  urban	
  design	
  initiatives	
  are	
  crucial	
  to	
  facilitate	
  digital	
  sector	
  growth	
  and	
  
sustainability.	
  	
  

Enterprise	
  structures	
  and	
  cultures	
  within	
  the	
  digital	
  sector	
  are	
  changing	
  dramatically.	
  	
  
Contrary	
  to	
  a	
  line	
  of	
  popular	
  argument	
  that	
  people	
  will	
  elect	
  to	
  work	
  more	
  from	
  home	
  our	
  
research	
  is	
  revealing	
  something	
  quite	
  different.	
  Studies	
  we	
  have	
  referred	
  to	
  in	
  this	
  paper	
  
indicate	
  a	
  strong	
  desire	
  among	
  the	
  new	
  creative	
  entrepreneurs	
  to	
  engage	
  socially	
  with	
  their	
  
peers	
  in	
  both	
  virtual	
  and	
  face-­‐to-­‐face	
  environments.	
  Employees	
  look	
  forward	
  to	
  interacting	
  
with	
  colleagues,	
  customers	
  and	
  partners	
  in	
  the	
  physical	
  work-­‐place.	
  Business	
  owners	
  have	
  
to	
  be	
  careful	
  to	
  ensure	
  that	
  the	
  free,	
  creative	
  spirit	
  of	
  their	
  workers	
  is	
  not	
  lost	
  or	
  diluted	
  as	
  
the	
  organisation	
  grows	
  –	
  this	
  is	
  an	
  immense	
  leadership	
  challenge.	
  

And	
  there	
  are	
  similar	
  challenges	
  for	
  the	
  big	
  corporates.	
  They	
  have	
  to	
  learn	
  how	
  to	
  interface	
  
and	
  work	
  effectively	
  with	
  their	
  creative	
  suppliers	
  and	
  partners.	
  Many	
  corporates,	
  especially	
  



those	
  outside	
  the	
  tech	
  sector,	
  have	
  little	
  idea	
  how	
  the	
  creative	
  digital	
  sector	
  operates.	
  	
  They	
  
need	
  to	
  understand	
  how	
  to	
  partner	
  effectively	
  as	
  a	
  customer,	
  taking	
  advantage	
  of	
  the	
  
opportunity	
  to	
  learn	
  from	
  their	
  fast-­‐moving	
  and	
  dynamic	
  suppliers/partners.	
  The	
  
organisational	
  learning	
  they	
  may	
  take	
  from	
  working	
  with	
  a	
  phone	
  app	
  development	
  
company	
  could	
  be	
  transferred	
  and	
  shared	
  elsewhere	
  in	
  their	
  business,	
  gaining	
  them	
  a	
  
competitive	
  edge	
  over	
  rivals.	
  	
  

For	
  educational	
  bodies,	
  particularly	
  business	
  schools	
  and	
  universities,	
  there	
  is	
  a	
  need	
  to	
  
develop	
  the	
  graduate	
  entrepreneurial	
  talent	
  required	
  for	
  the	
  tech	
  market	
  place.	
  Often,	
  the	
  
fledgling	
  enterprise	
  will	
  require	
  cross	
  disciplinary	
  talent	
  and	
  universities	
  may	
  consider	
  how	
  
they	
  best	
  respond	
  to	
  this	
  need.	
  Business	
  schools	
  can	
  certainly	
  offer	
  a	
  great	
  deal	
  in	
  providing	
  
executive	
  education	
  programmes	
  to	
  the	
  stakeholders	
  identified	
  above	
  and	
  to	
  support	
  
nascent	
  entrepreneurs	
  with	
  skills	
  and	
  development	
  courses.	
  	
  

Investors	
  are	
  becoming	
  aware	
  of	
  the	
  value	
  of	
  this	
  sector	
  on	
  a	
  long-­‐term	
  basis.	
  Investment	
  
decisions	
  need	
  to	
  be	
  based	
  on	
  a	
  full	
  understanding	
  of	
  the	
  culture	
  of	
  the	
  sector,	
  what	
  may	
  
account	
  for	
  enterprise	
  success	
  and	
  failure,	
  and	
  how	
  enterprises	
  look	
  for	
  guidance	
  from	
  
experienced	
  investors.	
  

	
  

Conclusions	
  

Our	
  paper	
  aimed	
  to	
  raise	
  awareness	
  of	
  the	
  role	
  that	
  clusters	
  have	
  in	
  exploiting	
  the	
  creative,	
  
digital,	
  IT-­‐facilitated	
  sector	
  and	
  we	
  conclude	
  that	
  engineering	
  such	
  business	
  ecosystems	
  is	
  
likely	
  to	
  encourage	
  faster	
  levels	
  of	
  growth	
  and	
  higher	
  rates	
  of	
  business	
  performance	
  than	
  
leaving	
  cluster	
  development	
  to	
  grassroots	
  and	
  market	
  influences.	
  However,	
  ecosystems	
  
engineering	
  is	
  tricky;	
  it	
  is	
  crucial	
  to	
  strike	
  a	
  balance	
  between	
  ‘wisdom’	
  and	
  ‘innovation’	
  
when	
  leading,	
  influencing	
  or	
  intervening.	
  	
  There	
  is	
  nothing	
  worse	
  than	
  creating	
  the	
  
‘distressed	
  furniture	
  look’	
  –	
  creative,	
  digital	
  clusters	
  have	
  to	
  be	
  authentic,	
  and	
  interventions	
  
should	
  avoid	
  disturbing	
  the	
  natural	
  habitats	
  and	
  cultures	
  of	
  urban	
  environments.	
  

There	
  is	
  still	
  a	
  lot	
  to	
  be	
  learned	
  about	
  the	
  intricate	
  nature	
  of	
  creative	
  clusters	
  –	
  how	
  
different	
  attraction	
  factors	
  rank	
  and	
  can	
  be	
  valued;	
  how	
  the	
  interaction	
  of	
  cluster	
  
participants	
  can	
  be	
  better	
  facilitated;	
  how	
  the	
  case	
  for	
  public	
  and	
  private	
  investment	
  can	
  be	
  
more	
  persuasive;	
  how	
  talent	
  flows	
  in	
  to	
  the	
  industry	
  can	
  be	
  broadened	
  and	
  managed;	
  how	
  
we	
  can	
  measure	
  and	
  track	
  performance	
  of	
  both	
  individual	
  enterprise	
  and	
  the	
  whole	
  cluster	
  
itself.	
  This	
  will	
  require	
  a	
  major	
  programme	
  of	
  research	
  that	
  is	
  best	
  conducted	
  through	
  a	
  
partnership	
  of	
  academic,	
  practitioner,	
  consulting,	
  private-­‐sector	
  and	
  governmental	
  
participants..	
  	
  

Whatever	
  stakeholder	
  position	
  the	
  reader	
  adopts,	
  the	
  development	
  of	
  successful	
  creative,	
  
digital	
  clusters	
  represents	
  a	
  major	
  strategic	
  leadership	
  challenge	
  to	
  ensure	
  that	
  the	
  
opportunities	
  for	
  high-­‐value	
  employment,	
  green	
  economic	
  growth	
  and	
  impressive	
  returns	
  in	
  
investment	
  are	
  not	
  lost.	
  

The	
  authors	
  are	
  keen	
  to	
  discuss	
  with	
  readers	
  how	
  the	
  research	
  agenda	
  can	
  be	
  progressed.	
  	
  

	
  



Recommendations	
  

Depending	
  which	
  side	
  of	
  the	
  ‘disruptive	
  innovation’	
  fence	
  you	
  may	
  be	
  sitting	
  on,	
  the	
  
leadership	
  challenges	
  could	
  be	
  perceived	
  as	
  either	
  threats	
  or	
  opportunities.	
  The	
  authors	
  are	
  
quite	
  clear	
  where	
  they	
  stand	
  –	
  this	
  is	
  an	
  opportunity	
  for	
  all	
  stakeholders	
  to	
  take	
  advantage	
  
of	
  the	
  benefits	
  that	
  these	
  clusters	
  bring.	
  	
  

To	
  help	
  leaders	
  develop	
  successful	
  businesses	
  and	
  successful	
  clusters	
  an	
  exemplar	
  
framework	
  that	
  can	
  model	
  cluster	
  characteristics,	
  behaviours	
  and	
  performance	
  has	
  to	
  be	
  
proposed.	
  This	
  would	
  be	
  the	
  first	
  stage	
  in	
  an	
  on-­‐going	
  programme	
  of	
  creative,	
  digital	
  cluster	
  
research.	
  The	
  measurement	
  of	
  cluster	
  success	
  is	
  not	
  yet	
  properly	
  defined.	
  	
  Plenty	
  of	
  
published	
  data	
  describes	
  size,	
  growth	
  rates,	
  specialisms,	
  successful	
  cluster	
  companies,	
  and	
  
many	
  other	
  features	
  but	
  this	
  doesn’t	
  necessarily	
  equate	
  with	
  defining	
  cluster	
  performance.	
  	
  	
  	
  

Second,	
  we	
  strongly	
  emphasise	
  the	
  need	
  for	
  research	
  that	
  can	
  uncover	
  the	
  secrets	
  of	
  
individual	
  enterprise	
  success	
  –	
  why	
  do	
  some	
  cluster	
  members	
  succeed	
  (and,	
  at	
  times,	
  
succeed	
  handsomely)	
  and	
  others	
  fail	
  (sometimes,	
  heroically)?	
  Whilst	
  there	
  have	
  been	
  
reasoned	
  propositions	
  relating	
  to	
  performance	
  cause	
  and	
  effect,	
  we	
  have	
  not	
  yet	
  found	
  an	
  
empirically-­‐based	
  study	
  using	
  valid	
  research	
  tools	
  and	
  techniques	
  that	
  could	
  claim	
  a	
  reliable	
  
confirmation	
  of	
  input/output	
  factor	
  correlation.	
  It	
  is	
  possible	
  that	
  such	
  correlations	
  cannot	
  
be	
  precisely	
  determined	
  but	
  this	
  needs	
  to	
  be	
  tested.	
  Importantly,	
  such	
  research	
  needs	
  to	
  
analyse	
  the	
  direct	
  and	
  indirect	
  effects	
  that	
  cluster	
  membership	
  –	
  whether	
  formally	
  
recognized	
  or	
  not	
  –	
  have	
  on	
  enterprise	
  performance.	
  An	
  expected	
  outcome	
  would	
  be	
  to	
  
propose	
  approaches	
  to	
  enterprise	
  design	
  –	
  its	
  architecture,	
  culture	
  and	
  leadership.	
  	
  

Third,	
  it	
  is	
  imperative	
  that	
  we	
  establish	
  why	
  clusters	
  grow	
  at	
  the	
  speed	
  we	
  have	
  observed,	
  
how	
  sustainable	
  they	
  are	
  in	
  to	
  the	
  future,	
  and	
  what	
  impact	
  they	
  have	
  on	
  local	
  and	
  national	
  
economies.	
  Various	
  credible	
  sources	
  have	
  offered	
  data	
  and	
  insights	
  –	
  as	
  we	
  have	
  referred	
  to	
  
in	
  this	
  paper	
  –	
  but	
  we	
  confidently	
  speculate	
  there	
  remains	
  unconfirmed	
  relationships	
  
between	
  aspects	
  of	
  cluster	
  operation	
  and	
  economic	
  outcomes.	
  	
  

Fourth,	
  a	
  programme	
  of	
  training,	
  development	
  and	
  business	
  support	
  has	
  to	
  be	
  in	
  place	
  to	
  
capitalize	
  on	
  the	
  opportunities	
  of	
  clusters	
  and	
  their	
  membership.	
  Business	
  schools	
  are	
  
ideally	
  placed	
  to	
  deliver	
  these	
  services	
  that	
  could	
  include	
  workshops,	
  simulations,	
  think-­‐
tanks,	
  experiential	
  learning,	
  discussion	
  forums,	
  presentations,	
  research	
  and	
  networks.	
  	
  

	
   	
  



Appendix	
  A:	
  	
  

Vignettes	
  of	
  thriving	
  hubs:	
  Shoreditch,	
  Bristol,	
  MediaCity	
  UK	
  and	
  Bournemouth	
  

Whilst	
  much	
  change	
  and	
  many	
  new	
  technologies,	
  businesses	
  and	
  products	
  will	
  come	
  from	
  
established	
  global	
  and	
  multi-­‐national	
  companies,	
  there	
  will	
  nevertheless	
  be	
  considerable	
  
innovation	
  and	
  social	
  dynamism	
  coming	
  from	
  the	
  clusters	
  and	
  hubs	
  of	
  creative-­‐driven	
  teams	
  
and	
  individuals	
  in	
  the	
  hearts	
  of	
  cities.	
  The	
  reason	
  for	
  this	
  is	
  that	
  such	
  communities	
  are	
  far	
  
better	
  tuned	
  into	
  the	
  needs	
  and	
  desires	
  of	
  the	
  Millennial	
  Generation	
  who	
  will	
  be	
  the	
  
consumers	
  and	
  shapers	
  of	
  these	
  new	
  markets.	
  With	
  the	
  velocity	
  of	
  change	
  increasing	
  and	
  
swerving	
  to	
  the	
  eddying	
  currents	
  of	
  a	
  turbulent	
  planet,	
  large	
  companies	
  will	
  frequently	
  
collaborate	
  with	
  these	
  urban	
  superstars	
  to	
  tap	
  into	
  these	
  new	
  markets	
  as	
  they	
  grow	
  and	
  
evolve.	
  

	
  

Shoreditch	
  

Whilst	
  Shoreditch	
  itself	
  is	
  synonymous	
  with	
  Tech	
  City,	
  that	
  term	
  now	
  covers	
  a	
  broader,	
  fluid	
  
area,	
  and	
  indeed	
  is	
  also	
  used	
  to	
  categorise	
  other	
  similar	
  urban	
  clusters	
  elsewhere.	
  Whilst	
  
what	
  was	
  a	
  derelict	
  business	
  district	
  is	
  now	
  highly	
  desirable;	
  Shoreditch	
  has	
  an	
  interesting	
  if	
  
unglamorous	
  history.	
  Despite	
  a	
  thriving	
  Huguenot	
  silk	
  weaving	
  industry	
  in	
  the	
  17th	
  Century	
  
and	
  a	
  lively	
  -­‐	
  if	
  dissolute	
  -­‐	
  theatre	
  industry	
  before	
  that	
  in	
  the	
  Tudor	
  era,	
  the	
  area	
  remained	
  
largely	
  unknown	
  until	
  the	
  Young	
  British	
  Artists	
  (YBA)	
  movement,	
  with	
  Tracy	
  Emin	
  at	
  the	
  
vanguard,	
  moved	
  in	
  during	
  the	
  economic	
  downturn	
  of	
  the	
  early	
  1990s.	
  Once	
  colonised,	
  the	
  
advent	
  of	
  many	
  small	
  creative	
  businesses	
  and	
  venues	
  was	
  only	
  a	
  step	
  away.	
  Inspired	
  
perhaps	
  as	
  much	
  by	
  the	
  astronomical	
  sums	
  of	
  money	
  that	
  some	
  YBAs	
  were	
  enjoying	
  for	
  
their	
  creative	
  activities,	
  the	
  newcomers	
  to	
  what	
  was	
  at	
  the	
  time	
  an	
  affordable	
  entry	
  point	
  to	
  
central	
  London	
  began	
  to	
  establish	
  small	
  companies	
  that	
  were	
  both	
  creative	
  and	
  tech-­‐based.	
  
These	
  ranged	
  from	
  web-­‐site	
  and	
  similar	
  digital	
  agencies	
  to	
  more	
  technologically	
  advanced	
  
start-­‐ups	
  from	
  entrepreneurs	
  who	
  might	
  otherwise	
  have	
  headed	
  a	
  few	
  blocks	
  south	
  to	
  take	
  
up	
  the	
  much	
  higher	
  remuneration	
  on	
  offer	
  in	
  the	
  financial	
  institutions	
  of	
  the	
  City.	
  

So	
  what	
  does	
  Shoreditch	
  look	
  like	
  today,	
  in	
  early	
  2015?	
  A	
  cursory	
  stroll	
  along	
  Shoreditch	
  
High	
  Street	
  or	
  any	
  of	
  the	
  bustling	
  side	
  streets	
  reveals	
  the	
  striking	
  dynamism	
  of	
  a	
  city	
  in	
  a	
  
state	
  of	
  permanent	
  transition	
  and	
  growth.	
  Cranes	
  and	
  skips	
  indicate	
  the	
  new	
  builds	
  and	
  
conversions,	
  cafes	
  and	
  shops	
  are	
  ambiguous	
  in	
  purpose	
  with	
  steaming	
  coffee	
  machines,	
  
rows	
  of	
  clothes	
  and	
  people	
  at	
  laptops	
  going	
  about	
  their	
  business.	
  Go	
  back	
  a	
  week	
  later	
  and	
  
something	
  will	
  have	
  changed	
  in	
  any	
  vista	
  that	
  you	
  recall	
  from	
  your	
  previous	
  visit.	
  	
  

Indoors,	
  the	
  picture	
  is	
  just	
  as	
  frenetic	
  as	
  on	
  the	
  pavements	
  outside.	
  Whilst	
  a	
  few	
  studios	
  and	
  
offices	
  are	
  visible	
  through	
  street-­‐level	
  windows	
  most	
  of	
  the	
  activity	
  takes	
  place	
  on	
  different	
  
floors	
  and	
  behind	
  closed	
  doors.	
  Given	
  that,	
  for	
  now	
  at	
  least,	
  most	
  of	
  the	
  buildings	
  are	
  re-­‐
purposed	
  from	
  their	
  original	
  intent,	
  the	
  outside	
  view	
  is	
  typically	
  less	
  than	
  inspiring.	
  Inside,	
  
the	
  picture	
  is	
  very	
  different	
  with	
  ad	
  hoc	
  arrangements,	
  vintage	
  furniture	
  and	
  sleek	
  modern	
  
office	
  technology	
  crammed	
  every	
  which	
  way	
  into	
  cool	
  working	
  environments.	
  Within	
  this	
  
dynamic	
  ecosystem	
  companies	
  come	
  and	
  go	
  with	
  alarming	
  speed.	
  	
  Some	
  persist	
  and	
  evolve	
  
typically	
  with	
  business	
  visions	
  predicated	
  on	
  social	
  cohesion	
  as	
  much	
  as	
  financial	
  multipliers.	
  	
  

	
  



Bristol	
  

With	
  a	
  long	
  history	
  of	
  creative	
  technology	
  partnerships,	
  the	
  Bristol	
  City	
  region	
  is	
  now	
  
putting	
  a	
  commercial	
  framework	
  around	
  future	
  developments	
  with	
  the	
  launch	
  of	
  	
  ‘Bristol	
  is	
  
Open’,	
  a	
  collaboration	
  between	
  the	
  technology,	
  media	
  and	
  telecommunications	
  industry,	
  
formalised	
  by	
  a	
  limited	
  company	
  which	
  is	
  supported	
  by	
  the	
  University	
  of	
  Bristol	
  and	
  Bristol	
  
City	
  Council.	
  But	
  this	
  initiative	
  builds	
  on	
  a	
  forty-­‐year	
  history	
  of	
  innovation	
  and	
  creativity	
  in	
  
the	
  IT	
  age	
  although	
  long	
  before	
  that	
  the	
  city	
  was	
  at	
  the	
  heart	
  of	
  the	
  country’s	
  maritime	
  
industry.	
  The	
  current	
  thriving	
  convergent	
  interdisciplinary	
  cluster	
  has	
  its	
  origins	
  in	
  a	
  number	
  
of	
  significant	
  factors.	
  The	
  BBC	
  Natural	
  History	
  Unit	
  was	
  formed	
  in	
  1957	
  and	
  to	
  this	
  day	
  
produces	
  award-­‐winning	
  programs	
  filmed	
  around	
  the	
  world.	
  	
  

The	
  City’s	
  two	
  universities	
  provide	
  a	
  pipeline	
  of	
  talented	
  graduates	
  from	
  engineering	
  to	
  film	
  
special	
  effects	
  and	
  drama.	
  The	
  city	
  is	
  packed	
  with	
  a	
  vibrant	
  collection	
  of	
  arts	
  centres	
  and	
  
creative	
  companies.	
  Watershed,	
  established	
  back	
  in	
  1982	
  and	
  claiming	
  to	
  be	
  Britain’s	
  first	
  
creative	
  media	
  centre,	
  now	
  houses	
  a	
  thriving	
  arts	
  cinema,	
  conference	
  and	
  events	
  space	
  as	
  
well	
  incubation	
  space	
  for	
  start-­‐ups	
  and	
  also	
  the	
  stimulating	
  Pervasive	
  Media	
  Studio.	
  Award	
  
winning	
  film-­‐maker	
  Aardman	
  Animations	
  also	
  provide	
  office	
  space.	
  Engine	
  Shed	
  was	
  
established	
  in	
  2013	
  in	
  the	
  heart	
  of	
  the	
  Enterprise	
  Zone	
  for	
  start-­‐ups	
  and	
  others	
  requiring	
  
access	
  to	
  business	
  facilities	
  such	
  as	
  boardrooms	
  and	
  workshop	
  and	
  other	
  types	
  of	
  event	
  
spaces.	
  Engine	
  Shed	
  is	
  supported	
  by	
  Bristol	
  City	
  Council,	
  the	
  University	
  of	
  Bristol	
  and	
  the	
  
West	
  of	
  England	
  Local	
  Enterprise	
  Partnership	
  and	
  also	
  acts	
  as	
  a	
  home	
  for	
  Bristol’s	
  
component	
  of	
  the	
  regional	
  SETsquared	
  Partnership.	
  

	
  

MediaCity	
  UK,	
  Greater	
  Manchester	
  

MediaCity	
  UK	
  refers	
  to	
  a	
  unique	
  public-­‐private	
  initiative	
  to	
  create	
  a	
  new	
  media	
  district	
  that	
  
would	
  act	
  as	
  a	
  digital	
  hub	
  for	
  a	
  shared	
  creative	
  community	
  to	
  rival	
  similar	
  initiatives	
  in	
  Dubai	
  
and	
  Singapore.	
  Whilst	
  the	
  support	
  of	
  local	
  councils	
  and	
  redevelopment	
  agencies	
  together	
  
with	
  the	
  leadership	
  of	
  site	
  owner	
  and	
  developer	
  Peel	
  Group	
  was	
  important,	
  it	
  was	
  the	
  
confirmation	
  on	
  June	
  2006	
  that	
  the	
  BBC	
  would	
  relocate	
  a	
  number	
  of	
  their	
  key	
  departments	
  
there	
  that	
  sealed	
  the	
  success	
  of	
  the	
  initiative.	
  

Walking	
  across	
  the	
  landscaped	
  piazza	
  amongst	
  the	
  remodeled	
  waterways,	
  modern	
  
tramlines	
  and	
  imposing	
  tower	
  blocks	
  presents	
  a	
  very	
  different	
  experience	
  to	
  other	
  creative-­‐
digital	
  clusters	
  in	
  the	
  UK.	
  Nevertheless,	
  there	
  are	
  many	
  recognizable	
  sights	
  such	
  as	
  the	
  BBC	
  
logos	
  and	
  the	
  iconic	
  studio	
  signs	
  for	
  “The	
  Voice”.	
  For	
  those	
  able	
  to	
  gain	
  access	
  to	
  the	
  
interiors	
  of	
  the	
  buildings,	
  the	
  well-­‐planned	
  complementary	
  nature	
  of	
  occupancy	
  strikes	
  a	
  
healthy	
  chord.	
  The	
  substantial	
  BBC	
  teams	
  and	
  resources	
  are	
  augmented	
  by	
  a	
  tower	
  block-­‐
based	
  post-­‐production	
  facility	
  called	
  The	
  Landing.	
  Editors,	
  lab	
  services,	
  games	
  testing	
  
services	
  and	
  digital-­‐workflow	
  facilities	
  are	
  all	
  connected	
  across	
  the	
  top	
  five	
  floors	
  and	
  
connected	
  vertically	
  by	
  high-­‐speed	
  links.	
  

In	
  addition	
  to	
  the	
  major	
  broadcasters	
  and	
  their	
  supporting	
  businesses	
  there	
  is	
  the	
  newly	
  
housed	
  Salford	
  University	
  building	
  with	
  superb	
  facilities	
  to	
  support	
  the	
  talent	
  pipeline	
  that	
  
falls	
  at	
  the	
  feet	
  of	
  prospective	
  employers.	
  With	
  regular	
  transport	
  links	
  to	
  central	
  



Manchester,	
  the	
  new	
  media	
  community	
  that	
  straddles	
  the	
  City	
  of	
  Salford	
  and	
  the	
  Borough	
  
of	
  Trafford	
  will	
  continue	
  to	
  play	
  a	
  key	
  role	
  in	
  the	
  UK	
  and	
  beyond.	
  

	
  

Bournemouth	
  

Although	
  a	
  new	
  town,	
  founded	
  in	
  1810,	
  Bournemouth	
  has	
  recently	
  been	
  identified	
  as	
  having	
  
the	
  fastest-­‐growing	
  digital	
  cluster	
  in	
  the	
  UK.	
  This	
  success	
  is	
  indicative	
  of	
  a	
  trend	
  in	
  the	
  
conurbation	
  that	
  has	
  been	
  growing	
  steadily	
  for	
  a	
  couple	
  of	
  decades.	
  With	
  two	
  universities	
  
generating	
  a	
  pipeline	
  of	
  creative	
  and	
  technical	
  talent	
  and	
  a	
  desirable	
  coastal	
  urban	
  lifestyle	
  
it	
  was	
  only	
  a	
  matter	
  of	
  time	
  before	
  the	
  town	
  became	
  a	
  desirable	
  business	
  location.	
  The	
  
trend	
  is	
  fuelled	
  by	
  two	
  complementary	
  demographics:	
  new	
  graduates	
  choosing	
  to	
  stay	
  local	
  
and	
  create	
  their	
  own	
  opportunities	
  and,	
  mirroring	
  that,	
  a	
  trend	
  for	
  older	
  professionals	
  to	
  
relocate	
  or	
  return	
  to	
  the	
  town	
  for	
  family	
  or	
  other	
  reasons.	
  The	
  sub-­‐sectors	
  emerging	
  	
  
strongly	
  are	
  digital	
  marketing	
  agencies,	
  games	
  and	
  film	
  special	
  effects	
  with	
  others	
  buoyant,	
  
too.	
  Top	
  UK	
  special	
  effects	
  company	
  FrameStore	
  established	
  an	
  outpost	
  in	
  the	
  town	
  to	
  
attract	
  graduates.	
  In	
  addition	
  to	
  the	
  dominant	
  local	
  financial	
  industries	
  there	
  is	
  also	
  a	
  strong	
  
history	
  of	
  light	
  engineering	
  and	
  electronics	
  in	
  the	
  area	
  which	
  resonates	
  in	
  the	
  newer	
  maker-­‐
spaces	
  and	
  initiatives	
  such	
  as	
  the	
  Open	
  Device	
  Lab,	
  reportedly	
  the	
  largest	
  collection	
  of	
  
devices	
  available	
  for	
  testing	
  new	
  products.	
  

	
   	
  



Primary	
  References	
  

Economist,	
  21st	
  Sept	
  2013,	
  p	
  30	
  

Tech	
  Nation	
  ‘Powering	
  the	
  Digital	
  Economy’	
  www.TECHCITYUK.COM	
  

https//www.gov.uk/government/news/creative-­‐industries	
  	
  14	
  Jan	
  2014	
  

Industrial	
  revolutions:	
  capturing	
  the	
  growth	
  potential,	
  2014	
  link:	
  
http://www.centreforcities.org/publication/industrial-­‐revolutions/	
  by	
  Centre	
  for	
  Cities	
  and	
  McKinsey	
  
&	
  Company,	
  2	
  July	
  2014	
  

Brewer,	
  S.	
  and	
  Rees,	
  D:	
  	
  ‘Bournemouth	
  Digital	
  Pier’	
  ESRC	
  Report	
  Dec	
  2013	
  

http://www.standard.co.uk/news/techandgadgets/google-­‐chief-­‐london-­‐can-­‐be-­‐leading-­‐hub-­‐for-­‐
europes-­‐tech-­‐startups-­‐9234955.html	
  

Leicester,	
  G.	
  and	
  Sharpe,	
  B.	
  	
  ‘Producing	
  the	
  Future:	
  	
  Understanding	
  Watershed’s	
  Role	
  in	
  Ecosystems	
  
of	
  Cultural	
  Innovation’	
  	
  International	
  Futures	
  Forum	
  	
  2010	
  

Durmaz,	
  B.	
  Creative	
  Clusters	
  and	
  Place-­‐Making:	
  	
  Analysing	
  the	
  Quality	
  of	
  Place	
  in	
  Soho	
  and	
  Beyoglu	
  	
  
PhD	
  Thesis,	
  Nottingham	
  July	
  2012	
  

Durmaz,	
  B.,	
  Platt,	
  S.	
  and	
  Yigitcanlar,	
  T.	
  (2010),’Creativity,	
  culture	
  tourism	
  and	
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