High Tech
Industries Case Study
Cambridge
Science Park
Over half the employees have a degree
Seventy Organisations based at the park
Reasons for
Location
·
Prestige- worldwide reputation of Cambridge
University for excellence in Science and Technology
·
Links with University for use of technology and
the latest ideas
·
Highly skilled and quality workforce
·
Attractive and well landscaped site to create a
good image, impress clients and attract a workforce
·
Transport- motorway links for supplies and for
customers.
·
Agglomeration of ideas with other companies
located very close to eachother.
Because High Tech industries are
footloose there are also some unimportant factors
·
Access to Raw Materials and power/energy links
·
Railway Links
M4 Corridor
Advantages
1.
The
motorway system, which allows easy access to all parts of the United Kingdom.
2.
Easy
access, via the roads, to the Channel Tunnel and ports to allow export abroad.
3.
The close
proximity of Heathrow, Gatwick, Stanstead and Luton airports, all of which
could be used to export products.
4.
The
skilled workforce found in university towns of Oxford, Cambridge, Reading and
Bristol.
5.
Close
proximity and good access to London, where the major government functions and
financial trading occurs.
6.
The
concentration of other industries means that ideas and knowledge could be
shared, there will be a concentration of suitable skilled labour and transport
costs may be reduced between agglomerated industries.
7.
A very
attractive natural environment, which would provide a very pleasant place to live
for the workers. Areas such as the Cotswolds and the Mendip Hills are in easy
reach of the Sunrise Strip.
Vernalis
Vernalis is a British based biotechnology company. The head
office is based in Reading along the M4 Corridor but their R&D is based in
Cambridge Science Park.
Factors influencing the location
of bio-tech industry (globally; think: socio-economic & physical)
There are two main categories of factors affecting the location of
bio-tech industry
Socio-Economic
Capital- Biotech industries require a vast amount of money to actually
get started and set-up
Communications- Very important for biotechnology as most companies need
to not only be connected to the rest of the country but also the world. This
also includes access to the internet, fax and telephones
Government Policy- Governments can offer tax incentives, heap rent and
other benefits to try and attract companies to a location.
Labour Supply- This was very important to old labour industries as they
needed their workforce to be nearby. But with increased car ownership this is
not still the case. The biotech industry however tends to be located near
skilled workers, e.g. a University as they want to attract these intelligent
graduates.
Markets- Access to Market is Vital as every company needs consumers.
However the market for many companies is now global.
Physical
Accessibility- the site needs to be accessible so that imports and
exports are easy. Access is needed to transport routes
Land- Flat land is essential. Room for expansion is also suite
important so they do not tend to be in the city centre.
Climate - not so important but if the climate is good then it will
attract workers
Raw Materials- Heavy industry required a lot of raw material but the
new high tech industry is footloose and so does not need to be close to raw materials
Power- Originally industry had to locate next to a river as it was a
power source. But now as we have the national grid power is not so influential.
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