BUSINESSWEEKLY September 20, 2012

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CLEANTECH Cambridge conference provides a showcase for technology opportunities between the cluster and Asia

China’s increasing demand for sustainability andbetter healthcare is an opportunity not to bemissed for UK companies wanting to tap intothese markets, a Cambridge conference was told.

Exploring the China opportunity wasorganised by networks One Nucleus andCambridge Cleantech in conjunction with theHong Kong Science & Technology ParksCorporation and brought together companiesfrom Hong Kong and China with UK counterparts.

Delegates were welcomed to the conferenceat Cripps Court, Magdalene College, by Sir PaulJudge, along with Johann Wong, DeputyCommissioner, innovation and TechnologyCommission, Hong Kong SAR Government andAnthony Tan, CEO of the Hong Kong Science &Technology Parks Corporation.

Johann Wong said that Hong Kong could offera bridge between East and West. “We speak yourlanguage, not just literally, but also in terms ofinternational standards of business and rule oflaw.” China, he said, was going at breakneck speedand sustainable growth was important to them.”

Anthony Tan said that there was atremendous opportunity for UK technologycompanies to tap into markets in mainland Chinaand Asia with the help of Hong Kong.

“China is already the largest consumer ofenergy and there is a huge demand for cleantechnology. Demand for healthcare is also goingup so the life science opportunities aretremendous.”

Hong Kong, he said, offered one country andtwo systems. It was part of China but at the sametime it was independent. “It’s a unique businessmodel that is world competitive.”

Nicholas Brooke, chairman of Hong KongScience & Technology Parks, said that China waslate in joining the sustainability club but was nowtaking it very seriously.

This included the development of the NormanFoster designed West Kowloon Cultural District,an entertainment and cultural development,where 23 of the 40 hectares were park, and amixed use development on the site of the formerKai Taka airport.

Phase three of the Hong Kong Science Parkwas underway and was full of sustainable andgreen initiatives. “We can help you identifyopportunities, access the market and find out howbusiness is done,” he said.

This includes a soft landing programme,allowing companies to plug into the Chinesemarket, meet people and judge for themselves ifthere is an opportunity. “And I can assure youthere is,” he said.

Jimin Peng, a senior economist at theAcademy of Macroeconomic Research of NationalDevelopment and Reform Commission (NDRC)China, spoke about exploring this opportunity.

He said the country was into its 12th five-yearplan and sustainability was very much part ofthat. The country’s energy consumption was high,a burden that the environment could no longersustain.

The goal was to reach a balance betweennature and mankind. To achieve this the key wasto transform China’s economic structure.

“China is determined to change. We are in themiddle phase of industrialisation but there arehuge differences within the country. Our highdemand for energy has led to environmentaldamage.”

Since the end of the 11th five year plan in2010, energy consumption had reduced by 15 percent (with the target being 20 per cent).

The 12th plan was even stricter and one thatmust be achieved, he said. China did, for example,waste 100m cell phones per year, anddevelopment was needed in this area.

Sustainable industries were emerging and

enterprises were being encouraged to invest andcooperate abroad. “We believe that foreigninvestment is positive and now encourage thatinvestment.”

There were plans for economic developmentzones and they had a designated ecological safetybarrier that couldn’t be developed on. Moving toclean energy and developing a smart grid werealso important.

On the life sciences side, Jeanette Evans, whois executive director for corporate businessdevelopment at AstraZeneca, said that China wascurrently the most important pharma growth areaat the moment.

The drivers were a rise in the 50+demographic, an increase in urbanisation and arise in the middle class demand and affordabilityfor healthcare. There had also been a largeexpansion of health insurance and medialinfrastructure.

AstraZeneca’s aim was to make all medicinesthat were available in other countries available inChina, deliver innovative and relevant medicinesand access China’s capabilities in R & D. AZ hadalready collaborated on a drug that was whollydeveloped in China.

China’s medical needs were different, withAsia accounting for 78 per cent of cases of livercancer and 74 per cent of gastric cancers, 92million cases of diabetes in China and 100+mcases of heart disease. In recent years China, shesaid, had improved its capabilities, expanded itstalent pool and also strengthened its IP process.

What surprised Tony Gale, director ofcommercial operations at General Electric UK wasthat China was still referred to as an emergingcountry.

At GE they had business units but China hada business all to itself. “China will be the catalystthat turns the cleantech evolution into arevolution,” he said. “China is doing exactly thesame as other countries and innovativecompanies should think what they want toachieve and how to deliver it.

“It has to have commercial benefit though.When solar subsidies went in the UK, for example,

the market dried up overnight.”On Monday night delegates had the

opportunity to network at a VIP reception at theVarsity Hotel followed by candlelit diner atMagdalene College where the guest speaker wasJudge Business School benefactor Sir Paul Judge,who spoke about innovation & entrepreneurship.

Cambridge, he said, was already well known inChina – the city of Hangzhou was referred to asthe Cambridge of the East and Cambridge’sstanding as the city with the most Nobel Prizewinners carried a lot of weight. But it wasn’t’ allabout the past.

“We can do tradition but we can still doinnovation. Entrepreneurship is exciting; you needto take risk to succeed.” he said. The Judge itselfhad many Hong Kong and Chinese students andalumni, with 20 Chinese students taking its MBAeach year.

For the organisers of the event this was verymuch about how the countries could help eachother. “This is about two way collaboration,looking at the opportunities for Cambridgecompanies over there and Chinese and HongKong companies over here.

“Hong Kong very much sees itself as agateway to China for UK companies,” said PhilipKendall of One Nucleus.

This was echoed by Bjorn Segerblom, overseasrepresentative of the Hong Kong Science &Technology Parks. “Hong Kong is the best wayinto China because they know the Chinese but areon the same wave length as Europeans.

“If I was an SME I wouldn’t go directly toChina, but doing it through Hong Kong there ispotential for a deeper relationship with HongKong and China for mutual benefit. We can learnfrom each other and capitalise on each other’sstrengths.”

This was, said Martin Garratt of CambridgeCleantech, a relationship companies were keen toexploit: “With full capacity for the dinner andconference there is evidence of an appetite amongbusinesses and UK businesses are recognising theopportunities. It’s a win-win scenario.”

China, he said, was looking to grow rapidly,but increasingly in a cleaner way than the Westdid 100 years ago. “They have learnt from ourmistakes,” he said.

Alan Barrell, who is a Judge Business SchoolEntrepreneur in Residence as well as adviser toHong Kong Science & Technology ParksCorporation, believed that this type ofcollaboration was the way forward.

“My role is both to encourage overseasinvestment into our region but also to advise. It’sabout connecting science parks of today withscience parks of tomorrow – creating a worldwithout borders and breaking down barriers.”

UK businesses urged totap into China – with alittle help from Hong Kongby Judith Gaskell

'Exploring the China Opportunity' conference at the Cripps Court, Magdalene College. Photographs by: Alan Bennett/Media Imaging Solutions

Hong Kong science & technology pioneershave put out the welcome mat to Cambridgeand East of England companies keen to builda lasting relationship with the territory andbuild bridges with Asia.

Nick Brooke, chairman of Hong KongScience & Technology Parks Corporation,said that if, say, a dozen CambridgeCleanTech, BioMedTech, and ICT companieswanted to band together and embark on amission of discovery in China hisorganisation would be thrilled to host it.

He told Business Weekly: “Hong Kong hasalways been regarded as a stepping stone toChina but it represents a far greateropportunity. Hong Kong in its own right is afabulous place for UK companies to dobusiness.

“We can facilitate a soft landing byintroducing companies to contacts andnetworks, brokering partnerships andcollaborations, helping them find staff.

“The culture and laws here are verysimilar and the environment at the SciencePark alone stimulates business growth. Ofcourse there is the added advantage ofhaving access across the delta to China andalso to wider Asia.

“We don’t want to see this week’s eventin Cambridge become a one-off. There has tobe a legacy in terms of a deep, long andlasting relationship to leverage the clearsynergies.”

Phases I and II of the Hong Kong Science& Technology Park have been completed at acost of US £1 billion and that swells to$1.5bn with Phase III. There are now 400companies on the park and another 150 willbe accommodated by the new phase.

While 60 per cent of park tenants arehome-grown, the other 40 per cent comefrom all over the world – including

Cambridge via HiWave Technologies, theaudio technology trailblazer.

Continued expansion and diversificationcan be anticipated over the next 10 years.Brooke said HKSTPC had become far moreproactive in its international outreach inrecent years, basking in the autonomy it hadbeen granted by Beijing.

He urged Cambridge technology clustercompanies to engage with HKSTPC as itexploited what is being called ‘The Green

Decade’ – maximising CleanTech playsacross a broad spectrum from energy towaste and water.

He was interested to meet Michael Evans,CEO of tidal power pioneer Green-TideTurbines, over lunch on his Cambridge visit.The young Cambridge company is alreadybeing courted by global governments andeulogised by UK political leaders.

Further BioMedTech collaborationswould also be welcomed, he said.

Brooke said: “Our own science parkprides itself on its energy efficiency. We callit a living laboratory. We are not only turningthe park into a showcase of advanced,energy-efficient technologies but alsoauditing current buildings and retro-fittingthe latest techniques and products.

“We are keen to keep this momentumgoing and that means continuing to engagewith world-leading technology clusters suchas Cambridge.”

BUSINESSWEEKLY September 20, 2012

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Cambridge companies told they can thrive in Hong Kong

Exploring the China Opportunity', welcome reception and conference. Photo credit : Alan Bennett/Media Imaging Solutions

by Tony Quested