Championing tech-led economic development – lessons from Cambridge Ahead

In an insight-packed episode, David and Mike chat to Dan Thorp, CEO of Cambridge Ahead - a network of major employers across business and academia in the Cambridge city region (UK) and a powerful champion for its economic success. They explore what it takes for a non-governmental organisation to be an effective place champion; the opportunities and risks that come from attracting the attention of a government that sees the city as central to its plans for economic growth; and what other places can learn from Cambridge’s experience with tech-led development and its record in attracting and spawning some of the world’s most dynamic businesses.

LEDC's top takeaways on championing tech-led development in Cambridge, UK

Cambridge's tech-based economy has proved resilient in the face of shocks

In the episode Dan expands on Cambridge's status as the most intense science and tech cluster globally, emphasising its resilience and diverse economy. We’ve touched on Cambridge’s economy before: in the follow-up to an episode on greenbelt restrictions on housing growth, we noted that:

As one corner of the Golden Triangle (with Oxford and London) the city and its hinterland have a strong claim to being the country’s tech capital with nearly 3,000 ICT employers and over 600 life sciences companies. UK tech champion ARM is based there, along with many other leading players of global significance, such as Apple, Microsoft, and AstraZeneca. According to the UK government Cambridge is the leading UK city outside of London for ‘new economy’ activity due to its ‘high levels of VC funding, venture capital rounds, advertised tech salaries, number of unicorns …and futurecorns’.

Despite macroeconomic shocks like the Great Financial Crisis, Brexit, and the COVID pandemic, Cambridge has continued to thrive, creating jobs across fast growing sectors, including life sciences, digital technology, and advanced manufacturing. You can access the full range of data and analysis published by Cambridge Ahead on their website here.  According to their research, corporate employment in Cambridge grew by 4.5% per annum over the past six years, significantly outpacing the national average of 0.9% per annum. And growth has been driven by knowledge-intensive (KI) sectors, which grew by 6.2% per annum. Non-KI sectors also showed robust growth at 3.0% per annum.

This indicates that the success of the knowledge economy has positively impacted the wider economy. Cambridge is characterised by a culture of ‘outrageous ambition’ with high levels of collaboration across business, academia, and the public sector. This collaborative spirit is seen as a driver of innovation and problem-solving within the city.

Effective place champions leverage a detailed, and current understanding of their economy

Dan emphasises the importance of evidence-led advocacy and active engagement with national and local governments, industry, and academia. He stresses the need to identify and champion strategic interventions that can unlock future economic growth, and the value to this of consistent, clear messaging to navigate changing political winds. (Cambridge saw a change of government at the national level in 2024, will see a new Mayor of Cambridgeshire & Peterborough Combined Authority in 2025, and will be impacted by Local Government Reorganisation from 2026). 

Ambitious places build partnerships with many types of places, near and far

Cambridge's success is intrinsically linked to its connections with surrounding areas and other cities. In the episode Dan covers Cambridge’s partnerships with Manchester and international peers like Boston and Silicon Valley. He also describes the symbiotic relationship between Cambridge and its neighbouring market towns.

Like most tech centres globally, addressing infrastructure and housing challenges will be crucial to the city’s future economic success

A recurring theme is the need for infrastructure to keep pace with economic growth. Dan points out that while Cambridge is making some bold moves to deliver new housing at scale, it struggles with transport and other infrastructure needs, such as water supply. He advocates for fiscal devolution to give local leaders more control over managing growth and investing in public services.

Cambridge Ahead sees quality of life as the ‘North Star’ of the city region’s development

Dan emphasises that quality of life should be the guiding principle for Cambridge's development. This includes balancing social, environmental, and economic needs for sustainable and inclusive growth. He highlights initiatives like the Annual Quality of Life Survey and collaborations with the Bennett Institute for Public Policy.#

Concluding remarks

This episode provided a comprehensive look at Cambridge's economic landscape and the role of non-governmental organisations in championing local development. Dan Thorp's insights offer valuable lessons for other cities and regions looking to navigate the complexities of tech-led growth and placemaking. As Cambridge continues to evolve, the principles of collaboration, evidence-led advocacy, and a focus on quality of life will be crucial in shaping its future.

Further reading

Economic development of Cambridge

• Cambridge Growing Faster Than UK Economy: this article from Cambridge Ahead provides insights into how Cambridge's economy has outpaced the UK’s national economy, driven by knowledge-intensive employment. It highlights the need for targeted investment in infrastructure to support sustainable growth. Read more

• Cambridge's role in national economic growth: this open letter to the UK Government from the University of Cambridge and local businesses outlines the region's contributions to national economic growth and the potential for future development. Read more

• Cambridge as a role model for other places: this article from the FT (£) asks, Can Cambridge be a model for kick-starting the British economy?

Oxford-Cambridge Corridor

• Lord Vallance on Oxford-Cambridge Corridor ambitions: the UK’s Science Minister discusses the potential of the Oxford-Cambridge corridor to boost the UK's economy, emphasising coordinated efforts to drive investment and innovation. Read more

• Europe’s Silicon Valley: a BCC article covering government ambitions to develop the area between Oxford and Cambridge into ‘Europe’s Silicon Valley’, focusing on economic and research opportunities. Read more