JANUARY TO MARCH 2016
THE PERFECT BLEND EDINBURGH’S FLAT WHITE ECONOMY
ALSO INSIDE ISSUE 55 » 10 QUESTIONS FOR HARVEY WHEATON, CODECLAN » DELTADNA DOUBLES HEADCOUNT » EDINBURGH AND THE INTERNET OF THINGS » NEW LINKS TO CHINA AND GERMANY
IN THIS ISSUE 10
06
17 04 SNAPSHOTS
The latest news from around the city
07 NEW ARRIVALS
Edinburgh welcomes investment bank Cantor Fitzgerald
08 10 QUESTIONS FOR…
Harvey Wheaton, chief executive of CodeClan
10 (cover story)
FLAT WHITE ECONOMY:
A hub for digital and creative collaboration emerges
14 ROUND TABLE
What does Edinburgh’s Flat White Economy look like and what opportunities is it bringing?
16 MAKING IT HAPPEN
Strong demand fuels speculative office development
17 ADDED EXTRAS
A look ahead to a public art installation with a difference
18 INNOVATION FOCUS
How the Internet of Things is set to revolutionise society and the workplace
THE FIRST WORD
H
ello and welcome to the latest issue of Invest Edinburgh. 2015 has been another successful year for development in the city, with several ‘Edinburgh 12’ projects under construction. 2016 looks set to be another interesting year and will see the launch of the next 12 sites, which will offer additional prime development opportunities in the city. A number of these development opportunities will be amongst those showcased by the Council’s chief executive, Andrew Kerr, at the MIPIM real estate fair from 15 to 18 March in Cannes, France. Anyone interested in finding out more should make contact at invest@edinburgh.gov.uk. Our cover feature looks at the emergence of a “Flat White Economy” in Edinburgh that fuses digital media with creativity, underpinned by a community of skilled young workers attracted to Edinburgh by the city’s quality of life. The growth of the tech sector over the past few years has been a hugely exciting story for Edinburgh and one that shows every sign of continuing apace. In 10 Questions, Harvey Wheaton, chief executive of CodeClan, explains how the academy is equipping graduates with the skills needed for a career in Edinburgh’s booming tech sector. CodeClan is producing 20 new coders every 16 weeks, giving the city’s software firms access to a steady supply of highly-motivated talent. Capital Focus looks at the latest developments at Ocean Terminal. In addition to carrying out a major expansion, owner Resolution Property is engaging with emerging artists and boutique independent brands to provide a truly unique offer. 1 to Watch explores how deltaDNA is harnessing big data to provide insights to the world of gaming and New Arrivals welcomes investment bank Cantor Fitzgerald, while Made in Edinburgh looks at the Edinburgh Beer Factory, a new modernist craft brewery. Making it Happen provides a rundown of office development in the city centre, while Added Extras highlights the KEYFRAMES exhibition being held in St Andrew Square in February and March. Finally, we look at what the “Internet of Things” means for Edinburgh. Thank you for reading,
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COUNCILLOR FRANK ROSS, Convenor of the Economy Committee The City of Edinburgh Council editor@investedinburgh.com
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To find out more about how we can help you, please contact the Investor Support team at invest@edinburgh.gov.uk or on +44 (0)131 529 6600. SOFTWARE DEVELOPER VEHMET HAS RELOCATED ITS HEADQUARTERS TO EDINBURGH AS PART OF A GLOBAL EXPANSION DRIVE.
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The new H&M store
UNIQUE OFFERING AT OCEAN TERMINAL Resolution Property is undertaking a £6m expansion of Ocean Terminal, its retail and leisure centre on the Edinburgh Waterfront, delivering a 1,700m2 flagship store for Swedish fast fashion giant H&M. “We are delighted to be offering a larger, full concept store in Ocean Terminal,” said a spokesperson for H&M. “This is an exciting opportunity to expand our brand.” Ocean Terminal is anchored by retailers including Debenhams and British Homes Stores, along with a 12-screen Vue cinema complex. The 39,000m2 centre is also home to the Royal Yacht Britannia, the former private vessel of Queen Elizabeth II, voted the UK’s third best attraction in the latest TripAdvisor Travellers’ Choice awards. The expansion is the latest move by Resolution to expand the appeal of Ocean Terminal. In addition to attracting household names such as H&M, Resolution is working to showcase the finest Scottish independent brands. Last September, it introduced three new initiatives: The Facility, an innovative approach to
sustainable textiles micro-manufacturing, which brings the next generation of Scottish design to a local and international market; Limitless Scotland, a luxury department store offering a curated range of fashion, jewellery, toiletries and homeware brands from Scotland’s leading independent designers; and the Scottish Design Exchange, a showroom for artisanal products – from postcards to furniture.
“WE’RE WORKING TO CREATE A RETAIL, LEISURE, AND CULTURAL DESTINATION WHICH IS UNIQUE TO EDINBURGH” “Being able to meet an artist, handling unique products where there is only one of its kind in existence and discovering how they are made, is an experience that you
www.oceanterminal.com www.thefacilityproject.com www.dokartistspace.org
The Scottish Design Exchange
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don’t get from other retail environments,” said Subjit Jassy of Resolution. Resolution is also hosting a series of rolling art exhibitions for emerging talents such as pop artist Abi Baikie and working with DOK Artist Space, which is raising funding to convert shipping containers to provide new affordable studio and exhibition spaces next to Ocean Terminal. There are longer-term changes planned for Ocean Terminal. Proposals are afoot for a boardwalk running along the waterfront that would give pedestrians and cyclists access to restaurants and bars offering views over the River Forth, while Resolution is also considering the development of a hotel and apartment block next to the centre. Meanwhile, the Council is looking into the feasibility of extending the tram line to the Waterfront, directly linking Ocean Terminal to the city centre. “We’re working to create a retail, leisure, and cultural destination which is unique to Edinburgh,” said Subjit. “By combining major brands with exciting new pop-ups, food outlets and artists, we’re shaking up the mix and creating an experience you won’t find at other centres.”
DUTCH NAVIGATION TECHNOLOGY PROVIDER TOMTOM HAS OPENED A SOFTWARE DEVELOPMENT CENTRE AT THE EDINBURGH TECHNOPOLE SCIENCE PARK.
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1 TO WATCH
DELTADNA
WHAT DO THEY DO? deltaDNA specialises in using big data to analyse the behaviour of gamers. Its Player Relationship Management platform collects huge quantities of information from gamers around the world (capturing 20,000 pieces of data every second) and uses data mining and predictive modelling to segment them by behaviour. These real-time insights are used by game developers to offer the best possible experience, including dynamically altering difficulty levels to provide the right level of challenge and tailoring advertising strategies and in-game offers to maximise revenues. Clients of deltaDNA have seen gamer engagement rise by up to 50% and in-game purchases grow by up to 30%. WHERE HAVE THEY COME FROM? deltaDNA (formerly GamesAnalytics) was co-founded in 2011 by chief
STV Group and the Scottish Investment Bank, with a second round in November 2014 securing a further £1.9m. “Getting customers to engage with online content is the number-one business challenge right now and deltaDNA solves this,” said Mark Robinson. “We have launched a recruitment drive that will see the company double headcount next year [allowing] us to capitalise on our success in the USA since opening the San Francisco office and support further expansion into new markets in Asia and the Far East.”
executive Mark Robinson and chief technology officer Chris Wright, combining expertise in software publishing and data mining. The firm, headquartered in the ‘Silicon Walk’ business centre on Greenside Place (also home to online booking software specialist Appointedd), employs 25 people including data analysts, software engineers and game designers. In January last year, deltaDNA opened an office in San Francisco, in the heart of Silicon Valley. WHY ARE THEY WORTH WATCHING? Since being founded, deltaDNA has built a global client base, with 90% of its turnover now coming from outside the UK. Customers include game industry giants such as Sony, Ubisoft and Sega. In the past year alone, registrations on its platform have grown by over 1,000%. A Series A funding round in summer 2013 raised £860,000 from Par Equity,
> Find out more: www.deltadna.com
Toby Jones as Adolf Verloc in The Secret Agent ©World Productions 2015
EDINBURGH SETS THE SCENE Filming has wrapped on two major BBC dramas shot on location in Edinburgh. The Secret Agent – an adaptation of Joseph Conrad’s seminal 1907 spy novel – depicts a plot by the Russian Embassy to bomb the Greenwich Observatory in 1886, with Edinburgh standing in for Victorian London. Directed by Charles McDougall, the thriller, starring Toby Jones and Vicky McClure, will air in three hour-long episodes on BBC One. Also filming in Edinburgh was One of Us, a crime drama and modern morality tale
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exploring the impact of a pair of murders on two rural Scots families. Director William McGregor shot the four-part BBC One drama in various locations in Edinburgh, including historic village pub the Sheep Heid Inn, and in the Scottish Borders. A collaboration between BBC Drama and Two Brothers Pictures, One of Us features an ensemble cast including Juliet Stevenson, Laura Fraser and Joe Dempsie. “The arresting Scottish landscape is the perfect setting,” said co-star Joanna Vanderham.
The two productions collectively spent over 100 days shooting in and around Edinburgh. A popular destination for location filming, the city region hosted over 350 productions last year, among them Walt Disney Pictures film The BFG, Italian romance The Correspondence and epic television drama series Outlander. > Find out more: www.filmedinburgh.org
INVESTMENT FIRM MERCIA TECHNOLOGIES HAS ESTABLISHED AN OFFICE IN EDINBURGH CITY CENTRE TO INVEST IN THE AREA’S EARLY-STAGE TECHNOLOGY COMPANIES. LAING EDINBURGH HAS OPENED THE UK’S LARGEST JEWELLERY STORE OUTSIDE OF LONDON ON GEORGE STREET.
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NEW CONNECTIONS TO GERMANY
*An unlisted company with a valuation of over $1bn USD (£664m).
The economic ties between Scotland and Germany date back at least as far as the 13th century, when Sir Andrew Murray and Sir William Wallace wrote to the authorities of the Free and Hanseatic cities of Hamburg and Lübeck to encourage stronger trading links. More than 700 years later, scores of German companies have a permanent presence in Edinburgh, with recent additions including renewable energy firms BayWa and Deutsche Windtechnik, retailers Lidl and Aldi, and logistics giant Deutsche Post. In 2014, Germans paid well over 200,000 visits to Edinburgh, more than any other country bar the United States. Edinburgh enjoys particularly strong ties with Munich, with which it has been formally twinned since 1954. The hi-tech heart of Germany, Munich is home to some of Europe’s most exciting young companies, including television analytics agency wywy and social finance app Lendstar. In December, technology giant IBM announced that its Watson Internet of Things division would be headquartered in Munich, bringing together 1,000 developers, designers and consultants on a single campus. Given the strength of its own technology scene – exemplified by home-grown unicorns* such as Skyscanner and anchored by Europe’s
largest school of computing – Edinburgh is working with export agency Bayern International, the Munich Technology Centre (MTZ) and business incubator BayStartUP to identify new areas of partnership. Economic links between Edinburgh and Germany are complemented by excellent air links, with well-established direct flights to Berlin, Munich, Frankfurt, Hamburg and Cologne. Last November, easyJet introduced a new four-timesper-week service between Edinburgh and Stuttgart. A major hub for Germany’s world-renowned automotive industry, Stuttgart is home to the headquarters of manufacturing giants such as Bosch, Stihl, Mercedes-Benz, Porsche and Daimler. Meanwhile, Eurowings – part of the Lufthansa Group – will launch new three-times-per-week direct flights to Düsseldorf this March, linking Edinburgh to the massive Rhine-Ruhr metropolitan region. These new flights will further strengthen Edinburgh’s ties to Europe’s largest economy. > Find out more: de.investinedinburgh.com www.baystartup.de www.mtz.de leon.johnson@edinburgh.gov.uk
FOCUS ON LANGUAGES WILL DELIVER SKILLS FOR LIFE All state school pupils across Edinburgh are to be taught two foreign languages by the time they leave primary school. The new scheme, called ‘1+2’, will debut in 2017. Core languages will include French, Spanish, Mandarin and German, while pupils will also have the opportunity to learn heritage languages such as Cantonese and Polish. Pupils will begin learning their first foreign language from the age of four– five, beginning a second by the time they reach eight–nine. “The cognitive, cultural and economic benefits of language learning are all key drivers in our commitment to their introduction from nursery across all our schools by the end of next year,” said Councillor Paul Godzik, education
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convener for the City of Edinburgh Council. “Languages are key in equipping our young people for a modern world in which they are global citizens.” Edinburgh is already at the forefront of Mandarin education, with more than 2,500 pupils currently learning the language. Over 30 schools now teach Mandarin, with a growing number of students taking formal examinations. Approximately 57,000 adult residents of Edinburgh are fluent in at least one foreign language, with the most widely spoken including French, Polish, Spanish and German. > Find out more: www.educationscotland.gov.uk
DANISH FOOTWEAR RETAILER ECCO HAS LAUNCHED AN OUTLET ON ROSE STREET IN THE CITY CENTRE. INTELLECTUAL PROPERTY AND TRADEMARK SPECIALIST IP PRAGMATICS HAS OPENED AN OFFICE ON RUTLAND SQUARE.
ScotRail has announced a £475m investment that will add 180 new train carriages. The World Duty Free Group has created 44 jobs with the opening of a revamped and expanded walkthrough store at Edinburgh Airport that includes an extensive beauty area; a luxury watch range; a ‘World of Whiskies’ featuring over 350 brands; and Armani and Michael Kors concessions. The Carlton Hotel on Edinburgh’s North Bridge is to be renamed the Hilton Edinburgh Carlton as part of a new franchise deal following a £15m investment by owner Amaris Hospitality. Amazon has begun offering same-day deliveries to customers in Edinburgh. The BenRiach Distillery has secured a national distribution deal with luxury retailer Harvey Nichols for Magnum, its Edinburgh-blended and bottled whisky cream liqueur. The number of social enterprises in Edinburgh has risen to over 200, with turnover trebling to more than £120m in the past two years. The Edinburgh Social Enterprise Network’s ‘Buy the Good Stuff’ campaign encourages consumers to make a difference through their shopping habits. Research by the University of Edinburgh into the growth of new motor neurons in zebrafish has offered fresh insight into the treatment of spinal cord injuries and neurodegenerative conditions. Artisan has launched The Arches, a collection of boutique retail and leisure units housed in 19 historic stone arches off the Royal Mile. Tenants include laser engraving studio Uncover Lab and football fashion store 6 Yard Box.
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MADE in EDINBURGH
EDINBURGH BEER FACTORY The Edinburgh Beer Factory is an ‘unashamedly modern’ craft brewery brought to life by John, Lynne and Kirsty Dunsmore which is rapidly carving itself a niche via brewing expertise and sophisticated branding. John Dunsmore has an unrivalled record in the beverages industry. Following a stint as an equities analyst in London, he joined brewery giant Scottish & Newcastle in 1996, eventually rising to chief executive. After overseeing the company’s £7.8bn acquisition by Carlsberg and Heineken in 2008, John joined beleaguered drinks group C&C as a turnaround chief executive, restoring the firm to profitability before stepping down in 2011. In 2013 he co-founded the Hothouse Club, an investment syndicate focusing on emerging food and drink brands such as the award-winning English winery Chapel Down. “Innovation can happen in big companies, but it happens despite being big, not because of it,” said John. “I’ve been excited by the creativity and agility I’ve seen in the smaller companies I’ve been working with in the past few years. It’s spurred me on to create something from scratch.”
Paolozzi lager The Edinburgh Beer Factory’s distinctive branding has been heavily influenced by the pop art and post-punk movements. Its debut product, a 5.2% pale lager, is named after the late Edinburgh-born artist Sir Eduardo Paolozzi. A reproduction of Sir Eduardo’s screenprint Illumination and the Eye features on bottles and founts, with the Paolozzi Foundation receiving a share of proceeds. Paolozzi lager’s flavour and
image has been carefully cultivated to appeal to male and female drinkers alike. The Edinburgh Beer Factory has taken up residence in a converted warehouse in the industrial suburb of Sighthill near the tram stop. Since receiving the keys in April 2015, the Dunsmores have installed a high-specification brewing kit and bottling line and appointed David Kemp, a master’s student at Heriot-Watt University’s International Centre for Brewing and Distilling, as head brewer. Paolozzi lager was launched in Edinburgh and Glasgow on 16 October 2015 and will be rolled-out across the UK over the next year. The lager has met with an enthusiastic reception, with Time Out hailing it as one of Edinburgh’s top five craft beers and the Society of Independent Brewers naming it Scotland’s best packaged lager. In addition to building a national network of distributors and gradually adding new beers to the product line, the Dunsmores plan to cater to the growing interest in brewing by adding a café-bar, conferencing facilities and a visitor centre that will offer beer enthusiasts a bird’s eye view of the brewing process. > Find out more: www.edinburghbeerfactory.co.uk
TESLA SHOWROOM OFFERS NEW SHOPPING EXPERIENCE Multrees Walk, Edinburgh’s luxury shopping street, might seem at first glance to be an unusual location for a flagship car showroom. In reality, the decision reflects a move by California-based Tesla Motors, one of the world’s leading manufacturers of electric cars, to pioneer a novel approach to retailing. “Multrees Walk has been identified as an ideal location for such a concept store,” said a Tesla spokesperson. “It is an iconic retail destination with a genuine global reach.” Rather than operate as a traditional dealership, where all activity is focused towards sales, the new store
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aims to promote the Tesla brand by raising awareness of the technology involved in their vehicles through interactive displays, as well as sales staff. The new store is the company’s first showroom in Scotland and features an example of Tesla’s high performance Model S. The new store is the latest investment in Edinburgh by Tesla, which last year installed a supercharger at Edinburgh Airport capable of bringing a car up to 50% charge in 20 minutes. > Find out more: www.teslamotors.com www.the-walk.co.uk AMERICAN HOSPITALITY COMPANY THE ONE GROUP IS TO OPEN AN STK REBEL STEAKHOUSE WITHIN THE SOUTH ST ANDREW SQUARE DEVELOPMENT IN THE CITY CENTRE, ALONG WITH BARBECUE AND LOBSTER SHACK CHAIN BIG EASY AND INDIAN BRASSERIE CHAIN DISHOOM.
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CREATE IN SHENZHEN
NEW ARRIVALS CANTOR FITZGERALD
The launch of the Edinburgh-Shenzhen Creative Industries Incubation Centre It’s already eight months since the launch of the International Creative Industries Incubation Centre (ICIIC) in Shenzhen, a booming metropolis in southeast China. Located in F518 Idea Land, a purposebuilt creative complex in Shenzhen’s Bao’an district, the ICIIC gives Edinburghbased creative and tech small and medium-sized enterprises access to free office space for up to two years along with a one-stop consultancy service, helping them establish a physical presence in the massive Chinese market. Among the companies who have made use of the ICIIC to date are video surveillance firm IndigoVision, coding platform developer LiveCode, wearable sensor technology company Spot Sensors and architectural practice biomorphis. Meanwhile, the Edinburgh-Shenzhen Creative Industries Incubation Centre – which opened at the Creative Exchange on Edinburgh’s Leith Walk last September – has attracted interest from Chinese firms including the Shenzhen Creative Investment Group, arts company Blossom Haus and 3D animation studio
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Eagles-CG Software. These firms will also benefit from rent-free office space and a comprehensive suite of support services. The creation of the two incubation centres follows the signing of a memorandum of understanding between the Scottish Government and Shenzhen authorities in 2013. To mark the first anniversary of the International Creative Industries Incubator, the City of Edinburgh Council is staging ‘Create in Shenzhen’, a competition to select five innovative local companies interested in breaking into the Chinese market to join a visit to Shenzhen from 10 to 17 May 2016. The winning company will receive a return flight along with six nights’ accommodation, while four runners-up will receive six nights’ accommodation. Each company will be allocated a local partner to help them organise an event in Shenzhen to showcase their product. Interested companies should apply at the link below by 29 January 2016. > Find out more: www.bit.ly/Createinsz2016
AMERICAN TECHNOLOGY CONGLOMERATES APPLE AND BLOOMBERG HAVE EACH TAKEN SPACE AT THE EDINBURGH QUAY OFFICE DEVELOPMENT IN THE FOUNTAINBRIDGE NEIGHBOURHOOD.
WHAT DO THEY DO? New York-based Cantor Fitzgerald is a leading middle-market investment bank and brokerage. The firm provides debt and equity sales and execution services to over 5,000 clients worldwide and advises growing companies on capitalraising, along with providing investment management services for institutional and high-net worth clients. Founded in 1945, the privately-held firm now employs over 1,500 staff in more than 30 locations worldwide. WHY THE MOVE? Cantor Fitzgerald has launched an office in Edinburgh, headhunting four analysts and equity sales advisers from Shore Capital and transferring an equity analyst from its London office. The new office will focus on healthcare equities, building on Cantor Fitzgerald’s existing expertise in this area. WHY EDINBURGH? “[The Edinburgh office] will lead our efforts in developing a specialist healthcare franchise [and] greatly strengthen our sales platform,” said Gordon Neilly, co-chief executive of Cantor Fitzgerald Europe. “We intend to add further resource to our Edinburgh office in due course, taking advantage of the excellent talent pool there.” > Find out more: www.cantor.com
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Some of the first tranche of CodeClan students
Harvey Wheaton Chief Executive, CodeClan
IE> What is CodeClan and why choose Edinburgh? HW> CodeClan is Scotland’s first digital skills academy, offering an immersive 16week coding course to create a new pool of talented entry-level software developers. The need has arisen because of the growing demand for software developers in Scotland. There are an estimated 11,000 positions to be filled each year in Scotland’s digital industry. Edinburgh was chosen due to the concentration of tech companies based in the capital, particularly smaller companies and start ups.
the trade body representing technology companies in Scotland.
IE> Who is behind CodeClan? HW> CodeClan is a major outcome of the Skills Investment Plan for Scotland’s ICT and digital technologies sector, created jointly by the Scottish Government, quango Skills Development Scotland and ScotlandIS,
IE> Late last year CodeClan announced the creation of the ScotlandIS Scholarship. How will this work? HW> The scholarship enables a talented student to come on the course with all of their course fees covered. Anyone applying
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IE> What will students gain from the programme? HW> Our students gain a wide range of technical skills in a variety of programming languages, in particular Ruby on Rails. The course is focused on software development but also covers communication, teamwork and Agile development. The aim is to provide business with readily employable people who have the skills and passion they need for the challenging roles on offer.
CodeClan, a groundbreaking digital skills academy, is delivering the next generation of software developers required to fuel Scotland’s digital future. for the course can also apply for the scholarship. There has been a scholarship for each of our two cohorts so far, and we have another lined up for our third cohort this February with support from the recruitment agency Be-IT Resourcing. Going forward, we hope to be able to offer a scholarship position for each new intake. IE> What engagement does CodeClan have with tech employers? HW> Since the aim of CodeClan is to create employable software developers, engagement with employers is totally integral to the programme. Employers can sign up to be part of the CodeClan programme and, in return, can work with us to shape the curriculum, meet the students on a regular basis and get to know them as they progress through the course.
BURGER RESTAURANT CHAIN BREAD MEATS BREAD AND PIZZA RESTAURANT CHAIN NY SLICE HAVE BOTH EXPANDED INTO EDINBURGH’S WEST END, WHILE BURGER CHAIN FIVE GUYS HAS ANNOUNCED PLANS FOR AN OUTLET ON PRINCES STREET.
<10QUESTIONS IE> How do you differentiate CodeClan from a traditional bachelor’s degree in software engineering? HW> CodeClan is a whole different experience and approach to learning. We are not positioning ourselves to compete with universities and indeed, many of our students already have a degree. Our students are expected to work around 60 hours per week, which equates to around 900 hours over the 16-week course. Working in small groups with a high instructor to student ratio (1:5) and in short, iterative cycles, means that learning is highly accelerated. The qualification that our students will earn from SQA will be a Professional Development Award at level 8 or 9, which is equivalent to a Higher National Diploma.
“SINCE THE AIM OF CODECLAN IS TO CREATE EMPLOYABLE SOFTWARE DEVELOPERS, ENGAGEMENT WITH EMPLOYERS IS TOTALLY INTEGRAL TO THE PROGRAMME.” IE> What’s a typical day for a CodeClan student? HW> It varies throughout the programme but follows a series of iterative cycles. On a daily basis they will be writing code along with their instructors in the morning as they learn a new concept or method. They will then put that into practice as a group for the afternoon and do further work on it individually over the evening. Each week they will consolidate the learning with a small project over the weekend and then Deputy First Minister John Swinney MSP with Codeclan scholarship winner Iwona Sztorc
“OUR SUCCESS WILL BE JUDGED ON PLACING OUR STUDENTS IN EMPLOYMENT AND WE EXPECT TAKE UP BY OUR EMPLOYER PARTNERS TO BE VERY STRONG.” every 4-6 weeks complete a larger project either individually or as a group. Of course like all students they also find time to socialise and have fun – pub quiz night is very competitive! There has been a lot of interest so far, with a steadily increasing flow of enquiries and students signing up. Cohort one and two have been full with students already signed up for cohort three this February and subsequent intakes. As our first graduates go out into the workplace we expect to see demand increase and a waiting list start to build. IE> What is the success rate for similar academies worldwide? HW> The model is well proven with over 100 similar academies around the world using the same immersive teaching style. Our success will be judged on placing our students in employment and we expect take up by our employer partners to be very strong. IE> What do you see as the key challenges for CodeClan in its first year? HW> Beyond ensuring the success of each cohort of students, we’re already planning for a second centre in Glasgow next year and looking at what other skills are being sought after by industry to add to our curriculum. We’re also launching an apprenticeship track next year. One of the largest challenges in all of this is attracting enough women into the industry. So far around 20% of our students are female but we are aiming for over 40% so we hope to launch various initiatives and events to support this. IE> What is the outlook for Edinburgh’s tech sector? HW> Very strong in my view. We have an amazing variety of companies in Edinburgh and indeed across the whole of Scotland. These days, it’s really not just about ‘tech’ companies, practically every company in every sector has tech at its heart. Provided we can keep up with the ever-increasing demand for skilled developers, the future is very bright.
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HSBC HAS LEASED A THIRD BUILDING AT THE EDINBURGH PARK BUSINESS PARK IN WEST EDINBURGH, CREATING HUNDREDS OF NEW BACK OFFICE JOBS.
Harvey Wheaton, Chief Executive With 25 years’ experience in software development, Harvey has worked in technology for multiple blue chip companies, among them ICI, AstraZeneca, JPMorgan Chase, Capgemini, and Electronic Arts. Most recently, Harvey has been coaching coding teams around the world to help them transform the way they develop, test and deploy their products and services. As a programmer who came into software development through a non-traditional route, he was quick to see the potential of CodeClan. Passionate about helping people realise their potential, Harvey thrives in a hectic start-up environment, making CodeClan the perfect choice.
www.codeclan.com
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WAKE UP AND SMELL THE COFFEE The phrase ‘Flat White Economy’, penned after the coffee of choice of young workers, describes the explosion of digital businesses in London’s EC1V postal district. The vital ingredients driving this phenomenal success story – technology, demand, and skills – are now having a profound impact on Edinburgh’s economy.
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ARCHITECTURAL PRACTICE ADP, ADVERTISING AGENCY HOME AND PROPERTY CONSULTANCY TUFFIN FERRABY TAYLOR HAVE ALL OPENED OFFICES IN THE CITY CENTRE.
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GetCommerce, one of many Edinburgh-based tech businesses to benefit from the city’s reputation as a world-class tech cluster
W
hen the Centre for Economic and Business Research (CEBR) set out in 2014 to explore the reasons behind a sudden and unexpected rise in train passenger numbers travelling into East London, it uncovered an incredible fact. In the previous two years, the EC1V postcode area had given rise to a phenomenal 32,000 new businesses. The underlying drivers of this explosion resonate strongly with Edinburgh, where a vibrant cultural scene and enviable quality of life continues to attract talented, creative young professionals from across Europe and beyond. A disparate collection of coders, marketing gurus and creatives would appear at first glance to have little in common, with the only obvious connection being a tendency to consume large amounts of coffee. Despite this, their distinct yet mutually complementary skill-sets are increasingly being blended together to produce disruptive technologies and life hacks that are having a profound impact on the business ecosystem. The CEBR has boldly predicted that by 2025, around one-third of the UK’s output will depend in some way on the digital economy. Every year, Edinburgh’s universities produce 1,200 highly skilled graduates with computing and software related qualifications, further complemented by the fact that Edinburgh Napier, Heriot-Watt and the University of Edinburgh operate dedicated incubation centres to support digital start-ups. The city’s strong performance in the new digital knowledge economy is borne out by business creation statistics. More than 6,000 new businesses were incorporated in
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THE SELECT PROPERTY GROUP HAS RECEIVED PLANNING PERMISSION FOR A 261 BEDROOM VITA STUDENT DEVELOPMENT IN EDINBURGH’S FOUNTAINBRIDGE NEIGHBOURHOOD.
Edinburgh in 2015, up 19% on the previous year. In fact, recent research from KPMG has found that the tech sector now accounts for one in every eight businesses in Edinburgh. That figure is reflected in the city’s emergence as the largest technology cluster outside London in terms of productivity. What’s more, it’s a cluster with a tangible sense of community. According to research by Tech Nation, Edinburgh’s tech businesses are more likely to collaborate than those found in any other tech cluster in the UK. It’s a success story that proves that the Flat White Economy, with its multifarious spinoffs – research and development, software development and coding, ecommerce and consultancy, TV and film production, analytics, online advertising, design and marketing – is thriving in Edinburgh. THE UK’S LEADING TECH INCUBATOR The success and growth of creative communities across the city speaks volumes about the potential of Edinburgh’s digital economy, with its many rising stars. One such example can be found at CodeBase, Edinburgh’s renowned tech incubator home to more than 60 of the country’s most exciting businesses.
EVERY YEAR, EDINBURGH’S UNIVERSITIES PRODUCE 1,200 HIGHLY SKILLED GRADUATES WITH COMPUTING AND SOFTWARE RELATED QUALIFICATIONS
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Talking Heads: one of Creative Edinburgh’s regular forums that brings tech and creative together © Clark James GetCommerce recently celebrated its fourth birthday. Founded by web developers Andrew Baker and Ross Knight in 2012, the business has established itself as one of Scotland’s preeminent developers of e-commerce websites using Magento software. “Magento is supported by a strong developer community, in which we play an active part developing tools, extensions and plug-ins,” says Andrew. “It was around that time that we realised we needed to be in Edinburgh. In order to target the type of client we wanted, and attract the right level of talent, we needed to be city centre-based.” Since joining the first wave of CodeBase tenants in early 2013, GetCommerce has grown to employ eight people servicing an expanding client base. “The market for skilled Magento developers is global. That’s where we benefit from being located in Edinburgh – a city with true international appeal,” said Ross. “One of our developers recently joined us from Italy; another, Laura, is Spanish.” “CodeBase gives us a real sense of community. There’s such a good mix of everything you need for success: an exceptional talent pool from Edinburgh’s universities; high profile success stories such as Fanduel, FreeAgent and Skyscanner to create a buzz around the city; and facilities like CodeBase with its creative mix of tenants forging a real ecosystem of innovation,” concludes Andrew.
12 INVEST EDINBURGH | JANUARY TO MARCH 2016 |
GetCommerce’s success has been repeated by numerous other technology-led businesses across Edinburgh. Intelligent Point of Sale, whose cloudbased application allows bars, restaurants and clubs to control and track sales and stock in real time, more than doubled its client base last year, with revenues already exceeding £1 million after just two years of trading. When it comes to life hacks, there’s Onyu, a new communications and organisational app for mobile devices that gives users complete control over their personal information and who its shared with. Part of the 2014 intake for Entrepreneurial Spark, the Edinburgh start-up has attracted online media interest around the world in 2015. BENEATH THE SURFACE Delve beneath the high profile, creamy surface of Edinburgh’s tech scene and you begin to discover a richer, complex aroma to the city’s Flat White Economy. It is here that you uncover the true scale of the digital economy, in particular an incredible diversity of small, independent creative businesses. Many of these are members of Creative Edinburgh, which was formed in 2011 to bring together Edinburgh’s creative entrepreneurs through networking and events. “Right now, creative space is a hot topic, with an ever increasing need for pop-ups, incubators and co-working spaces,” explains Janine Matheson, director of Creative Edinburgh.
“We recently took part in ‘Desire Lines’, a city-wide conversation to explore what was needed to make Edinburgh a culturallysuccessful city. “Since Desire Lines, Creative Edinburgh has been looking at ways in which commercial property can be used in new, innovative ways. Throughout 2015, we’ve been working with businesses across the city to offer ‘Hotdesk Hangouts’ – opportunities for our individual and freelance members to co-work and network for the day in places such as corporate boardrooms. Janine continues: ”One example saw us working with The Chris Stewart Group. CSG has two major developments under way across Edinburgh – they need photographers, graphic designers, social media strategists, art installations, all of which they could meet by simply opening their door to the city’s creative community. “A lot of the time, business might not know where to go in order to meet creatives – we help break down that barrier and bring the creative and corporate communities together.” Creative Edinburgh also hosts Creative Circles, a monthly coffee morning held at CodeBase designed to bring tech start-ups together with copywriters, user experience designers and graphic designers. It’s one of an increasing number of regular networking opportunities across the city now helping to foster ever-greater collaboration within and across the digital and creative space.
LUXURY CLOTHING BRAND JAEGER AND FINE FOODS RETAILER THE EAST INDIA COMPANY HAVE OPENED STORES ON GEORGE STREET IN THE CITY CENTRE.
<FEATURE <FEATURE THE MARKET FOR SKILLED MAGENTO DEVELOPERS IS GLOBAL. THAT’S WHERE WE BENEFIT FROM BEING LOCATED IN EDINBURGH – A CITY WITH TRUE INTERNATIONAL APPEAL Creative Edinburgh, Festivals Edinburgh and CodeBase also collaborated closely on the launch of Innovate UK Digital Media Launchpad – an opportunity for innovative digital media businesses across the city to secure investment of up to £1 million in support of commercialisation. “I see a creative network and community in Edinburgh, sharing a strong sense of optimism about the future,” adds Janine. “Creative minds tend to see opportunities and take risks. The boundary between the tech scene and creative scene is increasingly blurred – today’s businesses and individuals are less concerned by failure. You learn from it and move on.” It’s this sense of collaboration and community that transcends economic sectors and gives rise to the growth of incubator spaces seen across the city. It’s enabled sole traders and small businesses to move out of front bedrooms into tailor-made spaces designed to inspire and nurture talent. For cities such as Edinburgh, with its multi-cultural, global appeal, strong economic track record and vibrant talent pool, the emergence of a creative tech cluster at the heart of a Flat White Economy looks set to continue. That has to be good news for a diverse, forward-looking regional economy and good news for Edinburgh’s many artisan coffee shops.
+44(0)131 529 6600 invest@edinburgh.gov.uk investinedinburgh.com
www.investinedinburgh.com
A FRESHLY-MADE BREW Creative talent, young or old, is being drawn to Edinburgh’s increasingly bright light, yet one of the key characteristics of the Flat White Economy is its predominantly young workforce. It’s a workforce striving to mix work with play. Today’s Flat White worker is more likely to commute to work on a bike, wear casual clothes and seek out richer experiences that add greater value than simple cost. It’s an ethos captured by another local start-up – the Edinburgh Food Studio.
TASTING EVENTS, MASTER CLASSES AND WORKSHOPS COMPLEMENT TANTALISING MENUS Established by Ben Reade and Sashana Souza Zanella last November, the Edinburgh Food Studio offers a unique environment in which to not only enjoy a communal dining experience on Thursday, Friday and Saturday evenings, but also to explore the traditions and connections between food and place. Focusing on Scottish cuisine, but also exploring world food influences, Ben and Sashana have set out to blend heritage, art, science, culture and anthropology to serve up an experience that invites customers to enjoy gastronomy in new ways. It was testament to the appeal of their concept that Ben and Sashana took to Kickstarter to partly crowdfund their business plan, exceeding their £10,000 target in just five days. “We wanted to explore food as a cultural phenomenon,” explains Sashana. “What started out as a research venture to explore food and drink heritage, has evolved into something else entirely.”
RESTAURANT CHAIN TRIBECA HAS OPENED AN 80-COVER BAR AND GRILL IN EDINBURGH’S AFFLUENT BRUNTSFIELD NEIGHBOURHOOD.
“We didn’t set out to open a restaurant, but eating the food, savouring the dining experience, seemed the logical place to end a story,” adds Ben, a veteran of the two Michelin Star restaurant Noma. “It’s the culmination of a long process where tradition and innovation can combine to bring people together.” An extensive programme of tasting events, master classes and workshops complements tantalising menus based on Ben and Sashana’s passion for gastronomic research. Henrietta Lovell of the Rare Tea Co. hosted the Studio’s first workshop, on organic tea production and its history, followed by a master class on making craft butters by Patrick Johansson and Maria Hakansson (aka the Butter Vikings). The result is a truly original gastronomic experience in which growers and producers are invited to collaborate on perfecting dishes; where artists enhance the food and drink offering through music, poetry and ceramics; diners can savour a shared experience and culinary stories, old and new, come alive.
Fine dining with a difference at Edinburgh Food Studio
www.edinburghfoodstudio.com
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ROUND TABLE: The term ‘Flat White Economy’ has been coined to describe the current digitial and creative boom in London being driven by coffee fuelled entrepreneurs. Is a Flat White Economy emerging in Edinburgh and what does this mean for the city? Nick Fannin, head of Bright Red Triangle, Edinburgh Napier University Something really exciting is happening here. We have had business incubators at Edinburgh Napier University for 10 years now, but when we opened a new space for our schools of computing and arts and creative industries three years ago things really took off. We support around 40 new start-ups each year and I sense an increasing curiosity among our students in the opportunities offered by the start-up community, both within the university and across the wider Edinburgh scene. It’s not just about developing the latest game or dating app, students want to solve real problems and have an impact on their community. Our focus is to ensure that they are investor-ready when they leave the university; whether it is an angel investing in their business or an employer investing in that individual. People can develop themselves and their ideas just by getting involved and that can only benefit the economy.
“IT’S NOT JUST ABOUT DEVELOPING THE LATEST GAME OR DATING APP, STUDENTS WANT TO SOLVE REAL PROBLEMS AND HAVE AN IMPACT ON THEIR COMMUNITY.”
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“THE EMERGING SIGNIFICANCE OF THE TECH AND CREATIVE SECTORS IS A WELCOME ADDITION TO THE MIX, FURTHER ENHANCING THE CITY’S WIDER APPEAL TO EMPLOYERS, EMPLOYEES AND STUDENTS.” Robin Blacklock, Planning and development director, Scotland, Grosvenor Edinburgh has always had a well-educated workforce built upon financial services, the civil service, and the education and health sectors. The emerging significance of the tech and creative sectors is a welcome addition to the mix, further enhancing the city’s wider appeal to employers, employees and students. It also places challenges on the city, not least in terms of places to live. With the city’s population expected to grow by 25% over the next 20 years, we need to think differently about housing. At our Springside development in Fountainbridge, Grosvenor is concentrating on building new apartments specifically for the rented sector, where the focus is not just on the individual home, but on accommodating a lifestyle. Shared spaces - including roof terraces and residents’ lounges - together with excellent cycle facilities and initiatives such as car-pools, mean that our residents’ space will go beyond the front door of their apartment. The emergence of the build-to-rent private rented sector in Edinburgh has the opportunity not only to accommodate the city’s growing population, but also to set a marker for a new type of city living.
Jim Duffy, chief executive, Entrepreneurial Spark At Entrepreneurial Spark we work with a large number of digital and creative entrepreneurs, which means we have a unique insight into the sector. There are an incredible variety of pioneering businesses appearing across the city, particularly within the tech and digital sector. Entrepreneurial Spark alumni from the technology industry have seen significant success in recent months, raising finance and winning large contracts. Businesses such as Mallzee and Clear Returns have secured significant profile and demonstrated the value the digital industry can bring. We will shortly be opening a new ‘Hatchery’ in Edinburgh within the Royal Bank of Scotland headquarters which will provide entrepreneurs with a fantastic range of facilities to help them scale and adapt. We even have a high profile and well-funded tech start-up relocating its tech team to Edinburgh to make the most of the opportunities we’re offering. It is up to us as the business community to embrace these revolutionary, fast-paced start-ups and help them grow and succeed
AMERICAN TECHNOLOGY FIRM DELL HAS OPENED A FULL-SERVICE SECURITY OPERATIONS CENTRE IN TANFIELD, NORTH OF EDINBURGH CITY CENTRE. ALL BAR ONE, BRORA CASHMERE, FATFACE, MAX MARA, MICHAEL KORS, AND NEXT ARE ALL TO OPEN OUTLETS AT EDINBURGH AIRPORT.
<INSIGHTS
“WE WILL SHORTLY BE OPENING A NEW ‘HATCHERY’ IN EDINBURGH ... WHICH WILL PROVIDE ENTREPRENEURS WITH A FANTASTIC RANGE OF FACILITIES...”
Harvey Wheaton, chief executive, CodeClan Certainly Edinburgh has a buzz around the technology community at the moment, which is fuelled by a diverse range of entrepreneurial startups, up and coming small and mediumsized enterprises and established larger companies. Confidence and vision abound in the city and what sets Edinburgh apart from South East England is a willingness to support each other to the benefit of the economy as a whole. To support this growth, two things are essential: access to funding at all stages of company growth and availability of talented people with the skills to innovate and drive product development. Victoria Arnold, co-founder, MuscleCake There has definitely been a noticeable rise in Edinburgh’s diverse workspace options available to the ‘Flat White Economy’. It’s been amazing to watch the transformation of disused and underdeveloped spaces. We have a unique ecosystem in this city. Having run a co-working space in Edinburgh, there’s no doubt that these kinds of workspaces are a hotbed for collaboration, serendipity and creating opportunities.
www.investinedinburgh.com
“EDINBURGH IS FAMOUS FOR EMBRACING NEW IDEAS, SO IT’S NO SURPRISE THAT IT IS WELCOMING DIGITAL TECHNOLOGY...”
“WE HAVE A UNIQUE ECOSYSTEM IN THIS CITY. HAVING RUN A CO-WORKING SPACE IN EDINBURGH, THERE’S NO DOUBT THAT THESE KINDS OF WORKSPACES ARE A HOTBED FOR COLLABORATION, SERENDIPITY AND CREATING OPPORTUNITIES.”
Quentin Ellis, user experience director, Cohaesus Our London office is at the epicentre of the city’s creative and digital hub, in the area known as ‘Silicon Roundabout’. There is no doubt that we get inspiration from being a part of the buzz of innovation and ideas that emanate from the vibrant and youthful cultural mix all around us. Opening an office in Edinburgh was the obvious next step for us. Edinburgh has an iconic reputation as a world centre of arts and culture. It’s already attracted the biggest global brands that want to set up shop in the UK’s largest financial centre outside London. It’s become a magnet to startups too, who bring their own fearless vitality to the mix. Edinburgh is famous for embracing new ideas, so it’s no surprise that it is welcoming digital technology and attracting the best and brightest talent in Europe.
“CONFIDENCE AND VISION ABOUND IN THE CITY AND WHAT SETS EDINBURGH APART FROM SOUTH EAST ENGLAND IS A WILLINGNESS TO SUPPORT EACH OTHER TO THE BENEFIT OF THE ECONOMY AS A WHOLE...”
CONTRACT RESEARCH ORGANISATION QUOTIENT HAS ANNOUNCED PLANS TO BUILD A £15M 8,900M2 PRODUCT DEVELOPMENT AND MANUFACTURING FACILITY AT THE BIOCAMPUS, NEAR ROSLIN TO THE SOUTH OF EDINBURGH.
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<MAKINGITHAPPEN Quartermile 4 and 3 (Agents: CBRE/Montagu Evans)
The Mint Building (Agents: CuthbertWhite / JLL)
Mainpoint (Agents: CuthbertWhite / Eric Young & Co)
SPACE TO GROW
With Edinburgh’s office market achieving record performance, a number of new developments are beginning to take shape in the city centre. A total of 68,700m2 (740,000 ft2) of office space was leased in 2014 – the highest take-up in a decade – with prime rents reaching £344/m2 (£32/ft2). Investor interest in the city is strong, with Port Hamilton, Scottish Widows’ head office on Morrison Street, selling last year for a record £105m. Construction is currently underway on three major office developments in Edinburgh’s city centre. Set for completion this April, Quartermile 4 by Moorfield will deliver 11,900m2 (128,600ft2) of office space, pre-let to the technology firms FanDuel and Cirrus Logic. Due for completion early next year, the South St Andrew Square development will deliver 10,000m2 (108,000ft2) of office space that has been fully leased by the developer, Standard Life Investments (the biggest pre-let in over a decade) along with a TK Maxx superstore and five upmarket restaurants on the ground floor. Finally, The Haymarket Edinburgh by Interserve will deliver three office buildings offering a total of 31,600m2 (340,000ft2) from the end of 2017, along with a 168-key aparthotel, 190-bedroom hotel and 321-space underground car park. Four more flagship office developments are set to commence this
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year. On Morrison Street, Capital Square by Hermes Investment Management will add a further 14,200m2 (152,600ft2) of office space and a 233-space underground car park by 2018. Following the completion of Quartermile 4, Moorfield will begin the delivery of Quartermile 3, bringing a further 6,800m2 (73,000ft2) of office space to the market by 2018. The Chris Stewart Group will deliver 5,600m2 (60,000ft2) of space in The Mint Building at West Register Street, while GSS has acquired a site on Semple Street with consent for a 4,200m2 (45,000ft2) office building. The longer-term pipeline includes New Waverley, which will deliver 16,400m2 (177,000ft2) of office space in the heart of the Old Town, and Fountainbridge, where the mixed-use regeneration of the former Fountain Brewery site by Grosvenor, EDI and Amco will deliver as much as 43,000m2 (462,800ft2) of new office space. In addition to new developments, there is rising interest in quality refurbished space. Cording is upgrading the newly-rebranded Mainpoint building in the Exchange District, with 2,100m2 (22,800ft2) of space available, while IVG has invested £5.5m in a refurbishment of the 5,000m2 (53,800ft2) 40 Torphichen
Street. Meanwhile, MacRoberts has brought 700m2 (7,700ft2) of space in Excel House on Semple Street to the market for immediate occupation. With demand rising and major investor interest, office developers in Edinburgh can take advantage of an exceptionally strong office market. Capital Square (Agents: CBRE/Montagu Evans)
invest@edinburgh.gov.uk
DANISH OFFSHORE WIND AND WAVE PROJECT DEVELOPER FLOATING POWER PLANT HAS ESTABLISHED A UK SUBSIDIARY IN EDINBURGH’S LEITH NEIGHBOURHOOD.
<ADDEDEXTRAS
LIGHT FANTASTIC AND THE ILLUSION OF MOVEMENT
Christmas in Edinburgh is a magical time of year. Yet, like all good things, the festivities must come to an end, decorations come down and lights get carefully stored until next year. But there’s plenty to look forward to in Edinburgh city centre – in particular an eye-catching exhibition of living sculptures. Having enchanted crowds from near and far throughout December and entertained tens of thousands of revelers during this year’s Hogmanay festivities, the centre of Edinburgh is looking more like its usual self again. Among many new highlights in 2015 was the sell-out Virgin Money Street of Light centerpiece on the Royal Mile, which entertained more than 120,000 people during its month-long spectacular light show. But there’s still plenty to look forward to – in particular an illuminating exhibition of public art running from 4 February to 29 March. Edinburgh’s city centre is set to become the focal point for KEYFRAMES – an eye-catching collaboration that combines light and music, helping mark the launch of 2016 as the year of innovation, architecture and design. Inspired by Scotland’s legacy of innovation, the installation in St Andrew Square will feature an army of
www.investinedinburgh.com
luminous figurines – the KEYFRAMES. Each wireframe figure is brought to life through animated lighting sequences, which break down human movement using the same principles as flip book animation. The soundtrack for the spectacle will be a specially written classical composition recorded by the Royal Scottish National Orchestra. The result is a standout display that blurs the boundary between sculpture and film.
“EDINBURGH’S CITY CENTRE IS SET TO BECOME THE FOCAL POINT FOR KEYFRAMES – AN EYE-CATCHING COLLABORATION THAT COMBINES LIGHT AND MUSIC “ The exhibition is the brainchild of Groupe LAPS, a collective of six French-based artists and designers who collaborate to produce multimedia applications. It has
CASUAL DINING CHAIN ASK ITALIAN HAS ANNOUNCED PLANS FOR A NEW RESTAURANT ON GEORGE IV BRIDGE IN THE CITY CENTRE.
been brought to Edinburgh by the artistic production company Curated Place in conjunction with Essential Edinburgh and the City of Edinburgh Council. “KEYFRAMES will bring the technique of chrono-photography* to life,” said Andy Brydon, director of Curated Place. “The installation will use lights, sculpture, and 3D simulated kinetic animations to offer a paradoxical vision between discontinuity and the illusion of movement. The bodies and their precise movements will create micro-stories that trace the drive for innovation throughout modern Scottish history – all set to an entirely new piece of music by a Scottish composer.” * Chrono-photography: a photographic technique that captures multiple frames of a movement and combines them into a single image.
www.curatedplace.com www.rsno.org.uk
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RESEARCH BY MCKINSEY & COMPANY PREDICTS THAT THE ‘INTERNET OF THINGS’ COULD BE WORTH £7 TRILLION PER YEAR BY 2025
INNOVATIVE EDINBURGH AND THE INTERNET OF THINGS It’s often the simplest things in life that give us the most satisfaction. That first cup of tea in the morning; sailing through a run of green traffic lights on your daily commute; coming home to a warm house after a hectic day.
N
ow imagine a world in which technology can deliver all these things on demand. Welcome to the “Internet of Things” (IoT). It’s a world we’re already part of, but many won’t realise it. If you’ve ever donned a FitBit, downloaded the Strava activity tracker app, or even simply used a Tesco Clubcard, you’re already a part of the Internet of Things. At its heart, the IoT is simple: it’s about connecting electronic devices – everything from humble household appliances such as toasters and kettles to massively complex systems such as energy grids – to the Internet, letting them send and receive data. This could have profound implications for the way we live. Currently, the Internet of Things is most prevalent in the home, with some modern houses enabling homeowners to remotely
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control heat and power via mobile devices. At the touch of the button, it’s now possible to turn on your lights, fire up the central heating and ensure a warm welcome awaits your arrival. Edinburgh-based companies Cleverhouse and Home Control Scotland are at the forefront of this movement, specialising in installing home automation systems that allow homeowners to control lighting, curtains, central heating, home entertainment systems and multiple other devices via a tablet. Another local business involved in the IoT is the aptly-named NetThings, which supplies sophisticated home energy management systems. Controlled via wallmounted displays, the systems are ‘selflearning’, profiling users’ average energy use patterns and providing suggestions that can help cut energy bills by up to 20%. Turnover
CONNECTED DEVICE EXPLOSION 1990s
1 billion devices connected to the Internet (mainly computers).
2000s
The introduction of mobile broadband and smartphones sees more than 6 billion devices connected.
2020
Research by Gartner predicts the rise of the IoT will see more than 26 billion devices connected.
SOFTWARE DEVELOPER COHAESUS HAS LAUNCHED AN OFFICE IN EDINBURGH OFFERING TECHNICAL SUPPORT TO THE ADVERTISING INDUSTRY.
<INNOVATIONFOCUS has tripled in the past year and the company recently secured £500,000 of funding from Barclays to support large-scale commercial trials of its ‘Click’ smart energy management system. Looking beyond the home, the IoT has the potential to completely revolutionalise business-to-business and business-toconsumer interactions. The distinction between products and services is already being blurred. Intelligent sensors are already able to offer real-time stock control solutions that can deliver significant supply chain efficiencies, while complex systems such as aircraft engines already monitor performance continuously, scheduling maintenance when needed. New products will be able to report to the manufacturer how they are actually being used, providing invaluable product development feedback. Connected products will increasingly be capable of adapting to their user’s preferences.
“TRYING TO DETERMINE THE MARKET SIZE OF THE INTERNET OF THINGS IS LIKE TRYING TO CALCULATE THE MARKET FOR PLASTICS, CIRCA 1940. IT WAS DIFFICULT TO IMAGINE THAT PLASTICS COULD BE IN EVERYTHING.” PROFESSOR MICHAEL R. NELSON, GEORGETOWN UNIVERSITY SOLVING THE SPECTRUM CRUNCH Connecting an extra 20 billion devices to the Internet is a daunting prospect, with the radio spectrum already under pressure due to the ever-rising demand for high-speed wireless connectivity. Professor Harald Haas of the University of Edinburgh has developed a simple yet elegant solution. His ‘Li-Fi’ technology transmits data using the visible light spectrum, which is 10,000 times larger than the radio spectrum. By attaching a chip to a simple LED bulb, the bulb can be made to flicker at speeds imperceptible to the human eye, enabling binary data transmission. During testing, Li-Fi has delivered speeds of up to 1 gigabit per second – more than 100 times faster than Wi-Fi. It’s also highly energy efficient, can be used in places where Wi-Fi is unusable (such as on aircraft or underground) and cannot be hacked in the same way as radio signals. It’s no surprise that the Li-Fi market is expected to be worth close to £6 billion by 2020.
www.investinedinburgh.com
©Home Control Scotland
Li-Fi has the potential to make a massive contribution to the IoT. There are billions of devices already fitted with LED bulbs, any one of which can in theory be Li-Fi-enabled at a far lower cost than equipping each with a traditional Wi-Fi connection. Professor Haas has suggested that Li-Fi could have a transformational impact on industries such as healthcare, with vulnerable outpatients wearing devices with embedded micro-LED bulbs capable of continuously transmitting data on metrics such as blood pressures to medical professionals for monitoring. PureLiFi, the company spun-out from the University of Edinburgh by Professor Haas to commercialise Li-Fi, has recently been valued at £14 million. In November, the company announced plans to partner with the French LED company Lucibel to mass manufacture Li-Fi-ready luminaires. The products will hit the market in the third quarter of this year.
Li-Fi in action ©Harold Haas REDEFINING SOCIAL NORMS Harnessing the massive potential of the IoT will require thinking in creative new ways. It’s not just about using smart technology to collect data – it’s about turning those insights into meaningful action. “[We are] exploring what might happen when the IoT lands on the high street,” said Professor Chris Speed, chair of the University of Edinburgh’s Centre for Design Informatics. “What happens to the ‘data shadow’ of retail products if they’re connected to the internet, and how might that change our shopping habits?” The University of Edinburgh is a founding member of the national Internet of Things THE G1 GROUP HAS PURCHASED THE FORMER ODEON CINEMA ON CLERK STREET AND PLANS TO REFURBISH IT AS A THEATRE AND RESTAURANT.
Well Cow, an offshoot of animal bioscience charity the Roslin Foundation, has developed a pill-sized sensor that can rest inside a cow’s stomach for up to 100 days, collecting and wirelessly transmitting data on the temperature and acidity. The data helps farmers remotely monitor the health of their herds, adjusting feed to optimise diets and improve welfare and milk production. www.wellcow.co.uk Research Hub, a consortium of nine of the UK’s top research universities formed at the beginning of the year. The Hub has been awarded £23m of funding to tackle barriers to the adoption of the IoT such as concerns around security, resilience, privacy and data overload, helping the UK emerge as a world-leader. Initial projects will include enhancing the cyber-security of body implants and exploring options for ‘smart’ road maintenance. It’s clear that the Internet of Things has huge implications for households, business, healthcare, education, cyber security – human society in general. It can be the driver behind new products and services, a step change in how we approach sustainability, how we interact with one another. One thing is certain – of all today’s technology trends, the Internet of Things looks set to be the most disruptive. A humorous, but thought provoking look at Brad the Toaster’s story: www.vimeo.com/41363473
www.cleverhouse.co.uk www.homecontrolscotland.co.uk www.netthings.co.uk www.purelifi.com www.designinformatics.org
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A RECORD BREAKING YEAR FOR
> 6,800
new businesses founded – up 30%
10,000
new jobs created
> 90,000m2
of office space leased
FDI
City of the Year (The European’s Global Banking and Finance Awards)
5 million
tram passengers – up 12% Hotel occupancy of
> 80%
The UK’s
best place to live
(uSwitch Quality of Life Index)
ALL RIGHTS RESERVED. MATERIAL CONTAINED IN THIS PUBLICATION MAY NOT BE REPRODUCED, IN WHOLE OR IN PART, WITHOUT PRIOR PERMISSION OF THE CITY OF EDINBURGH COUNCIL (OR OTHER COPYRIGHT OWNERS). WHILST EVERY EFFORT IS MADE TO ENSURE THAT THE INFORMATION GIVEN HEREIN IS ACCURATE, NO LEGAL RESPONSIBILITY IS ACCEPTED FOR ANY ERRORS, OMISSIONS OR MISLEADING STATEMENTS.
2.3 million
Edinburgh Festival Fringe tickets sold – up 5%