The Times Business Insight by Smith Design Solutions

Business Insight Tuesday March 27 2012

Big player Chris van der Kuyl on creating a bright future

On the waterfront Dundee gains a 21stÂ century reputation for fresh discovery

Tuesday March 27 2012 | the times

Business Insight

Welcome

City of recovery finds a new sense of optimism

Building BRICS of

With the Eurozone Welcome to the latest issue a great deal to recommend sickly, Scottish of The Times Business the city as a centre of excel- companies should Insight, this time focused on lence, with its emphasis on be cashing in on the City of Dundee, where a life sciences, the computer increased trade with new sense of optimism can games industry, renewable the world’s fastest be detected. In last week’s energy, and, most recently expanding economies Budget, covered in our special wraparound which looks at its more general impact on Scotland, the Chancellor selected Dundee as one of three enterprise centres here, making it immediately more attractive to potential investors. But as our Business Forum — held on board Captain Scott’s Discovery — quickly established, there is already

the announcement that the V&A is to establish an iconic new museum on the Dundee waterfront. On these pages, Peter Jones questions why Scotland’s exports do not go further afield and Ben Thomson looks at the power of art in stimulating economies — an argument that brings us firmly back to Dundee. Cover image by james glossop for the times

f your business had a very large customer with very modest growth prospects, another biggish customer whose prospects looked rocky, and a lot of small customers whose chances of growing fast looked very good what would you do? Of course, you would pray hard for the big fellows but you would be doing a lot of talking to the small guys. This, essentially, is the position that Scotland PLC finds itself in with exports. According to the Scottish government’s Global Connections survey, 67 per cent of Scottish exports go to the rest of the UK, 14 per cent to the EU, and 5 per cent to North America. That leaves just 14 per

Peter Jones at large

cent going to the entire rest of the world. Put this in population terms, and the concentration of exports in a few small markets becomes even more striking: Scotland sells 86 per cent of its exports to just 12 per cent of the world’s 7 billion people. You might reasonably argue that this is misleading, as that one-eighth of the world’s people produce about half of the world’s GDP and are therefore the world’s wealthiest folk. That’s true, but for how much longer? Ask what are the world’s largest economies and most folk would probably list the US, Japan, Germany, France and the UK as the big five. That was true just over a decade ago, but it ain’t so any more. In 2010, China rose to become the world’s second largest economy from sixth place just five years previously, while last year Brazil elbowed past us Brits to become the fifth largest economy. Russia and India are shooting up the rankings and, predicts the IMF, will by 2015 be in eighth and ninth place respectively, just behind the UK in seventh place. Indeed, the IMF predicts that Brazil, Russia, India, and China (the four BRIC countries) will account for half of world economic growth between now and 2020. Its predictions for growth in this and next year make it pretty clear

commercial report: Heriot Watt

Where have all the entrepreneurs gone?

e are a country of innovators. A list of Scottish inventors and entrepreneurs is readily available on the internet, from technology to medicine; aeronautics to sport. Some of the biggest names in history have been Scottish inventors – Bell, Watt, Baird, Fleming. So where are our modern day scientists and what is their world-changing idea? That’s the question set out by Converge Challenge, an opportunity for would-be entrepreneurs in Scottish Universities and Research Institutes to emerge from under the bushel and develop a business plan into a fully incorporated company. People commonly express their dream to be their own boss, or that they have a great new business idea but they just don’t know where to take it. Well, the chance is here to take one step towards that dream. Now in its third year, the 2012 Converge Challenge continues to inspire, promote and develop Scotland’s entrepreneurial spirit. Applications are now welcome from final year undergraduates, postgraduates and staff from every Scottish university, as well as all the Research Institutes. These hotbeds of innovative research are where many of the ideas of tomorrow are gestating. What Converge Challenge does is offer an opportunity not readily available elsewhere to develop business acumen. It trains scientists how to become more commercially focused and guides them on how to become suc-

cessful entrepreneurs. Ultimately, it offers them the chance to change the way we live through innovation and inspiration. Converge Challenge offers participants an opportunity to get a taste of what it means to run your own business. Through the support of competition organiser, Dr. Olga Kozlova and the Converge Challenge sponsors, like patent attorneys Murgitroyd & Company, participants develop a range of business and employability skills which will stay with them throughout their life. 2011 participant, Dundee University PhD student Nart Daghestani, undertook this training when he submitted his proposal surrounding new ways of generating radiation. Nart undertook training in pitching to ensure he could express his business idea concisely and clearly, under pressure. He also found great value in legal advice meetings set up for him by Converge Challenge. “I learned more about patents at one meeting than I did while co-authoring the ones submitted during my PhD,” he said after he collected £1,000 as a winner of the Principal’s Enterprise Award, which encourages companies not ready to incorporate to continue to develop their business idea. “If you have an idea, and you have the guts to strike out and begin your own research-led company, then entering Converge Challenge is absolutely the best thing you can do.” Other success stories are readily available. 2010 prizewinners, BryoActives, are now an incorporated company who design novel antibiotics to overcome

the dangers poised by hospital acquired infections, such as MRSA. 2011 winners, Bellrock Technology, are also incorporated, and are developing solutions for utility companies to ensure our power networks remain fit for purpose well into the future. Both companies have the potential to become a world-leading business in their field, and we are looking for others to follow in their footsteps. Converge Challenge is more than just a competition, but the prize fund is certainly something worth considering. The top selected business idea will receive £25,000 in cash to start their business – a huge cash injection at a vital stage in a young company’s development. Through the SMART Scotland scheme, this amount could be quadrupled, allowing for even greater potential in the company’s growth. Also included is a further £20,000 in business support. This is where the help and assistance for the selected company lies, as they will have access to marketing support, intellectual property advice, and a whole host of other vital business contacts. It’s easy to say you have a great business idea in you – now’s the chance to prove it. Applications are now open and can be downloaded from www.hw.ac.uk/convergechallenge. Support is welcomed from all corners of academia, business and the general public to encourage those who are eligible to apply and take their idea to the next stage. If you would like to keep up with what is happening, you can follow us on Twitter at @ConvergeC.

Dr olga Kozlova, enterprise creation manager

the times | Tuesday March 27 2012

Business Insight

export potential

REUTERS/PAUL HACKETT

(AP/Eugene Hoshiko

A TV camera man filming at the recent joint acquisition of Diana and Callisto

Miracles do happen but there’s an art to achieving them

R where world growth action is happening Some think there may an agreement is one way to quickly and where it isn’t with the Eurozone in be an over-estimation acquire know-how of the local market particular looking sickly (see chart). and surrounding political and regulatory of risk in undertaking And if Scotland, whether as part of business with burgeoning environment. the UK or not, is to export its way to economies such as China “I believe from the analysis we have prosperity, it is also clear what markets done that Scottish companies perform we should be looking at. Indeed, this is best in fast-growing markets where not just about selling things like power we are able to identify very specific equipment to meet the demands of a sub-sector opportunities that match our developing economy but also about companies’ strengths with niches in that selling consumer goods to a ballooning market as it grows,” she contends. market place. Thus, she argues that Scottish games A 2010 paper published by the OECD firms have big opportunities in the estimated that in 2009, Asia-Pacific Chinese digital media market, oil and countries had 525 million middle class gas equipment suppliers have a doorway people with 23 per cent of the world’s into Brazil’s offshore oil business, textile middle class spending power. It projected firms have a ready audience in Russia, that by 2020, the number of Asia-Pacific and educational institutions have an middle class consumers will have more open field in India. than trebled to 1.7 billion and their Some have already acted. Hydrasun, share of world spending power will an Aberdeen-based energy equipmenthave doubled. In contrast, middle class maker has bought a Brazilian firm which numbers in Europe and North America has a three-year contract with Petrobras, will be static and their share of world Strathclyde University has established a spending power will halve. campus in India, and about 40 Scottish This portends the biggest and fastest companies from distillers to oil and gas switch in global consumption patterns workforce trainers are active in China. ever seen, with dramatic effects on Where a few lead, many more can company fortunes. Seven years ago follow. And potential customers in the only 10 per cent of cars produced by BRICs are growing faster than you can America’s General Motors were sold to count them. China. Now more than 50 per cent are. Some Scottish companies, notably in the food and drinks sector, are cashing IMF predictions of economic 17.0 in. But many more are not. Some may be 15 growth rates 2012-13 (%) put off by general perceptions that China Source: IMF. WEO January 2012 14.3 has an incomprehensible language and impenetrable political controls; India at least speaks English but is mired in corruption; Russia crawls with gangsters; 10 and Brazil, well, what do we know of it apart from Pele and the nuts. 7.0 “I think that there is an over-estima6.8 5 tion of risk and an under-estimation of 5.7 opportunity,” says Anne McColl, chief 4.0 executive of Scottish Development 2.6 International (SDI). Partnering with 0.3 an established local business, whether 0 by acquisition, joint venture or simply China India Brazil Russia USA UK Eurozone World

ecently I was standing on the steps of Modern Two at the Scottish National Gallery of Modern Art looking at the large sculpture by Nathan Coley which declares ”There Will Be No Miracles Here.” It immediately made me think about the acquisition of the painting Diana and Callisto by Titian, which was purchased earlier this month by the National Galleries of Scotland together with the National Gallery, London, for the sum of £45 million. This not only completes the acquisition for the public of a pair of Titians that have been together since 1559 but also secures on loan to Scotland the rest of the world-famous Bridgewater Collection of Old Master paintings. It is an amazing result. The purchase of the two Titians counts among the most significant acquisitions ever made by either gallery and it is remarkable that the most recent purchase was achieved without any direct funding from Holyrood or Westminster, and in a dire economic climate. So how does this magic work? How in five years has the National Galleries of Scotland managed to acquire more than 1000 works of art for the national collections, with a market value in the region of £350 million to £500 million, but at a cost to the Scottish government of less than 10% in direct acquisition grants? If only all public sector procurement could work in this way. There are many ingredients in this mix but here I will name three. First is that, although the government’s direct grants for acquisitions are relatively small, its ability to encourage philanthropic giving through tax reliefs from donations and legacies is enormously important. At present there are good schemes in place to provide tax benefits to donors of works of art — when they are dead. Obviously we would like to extend such reliefs to the living. The UK Government is currently consulting on its ‘Cultural Gifts Scheme’ which will provide tax benefits for individuals and corporations that wish to donate important objects for the public good. However, while the scheme is promising, there is potential to go even

Ben Thomson

further. If we could introduce a US-style system of tax reliefs with greater potential for lifetime giving then we could encourage even more philanthropists to gift and bequeath works of art. The second is that we have recognised the value of doing things in true partnership with other galleries around the world. Three good examples of this are ARTIST ROOMS (the contemporary art collection generously donated by Anthony d’Offay), the sculpture of the Three Graces by Canova, and now the two Titians, which are owned jointly with the Tate, the V&A and the National Gallery, London, respectively. These partnerships then expand far beyond the initial acquisition, with greater opportunities for sharing exhibitions, loans of works and curatorial skills. Last and most important is simply the wonderful generosity of individuals, trusts and corporations who recognise the huge importance that culture has in shaping our society. People will put their time, their money and their support into doing what they believe benefits everyone. Museums and galleries across the country have been successful in attracting significant donations in recent years and, from our experience at the National Galleries of Scotland, sellers have been prepared to reduce prices or in many cases gift us works of art. It is all these people who are the stars. Why do they do it? For most it is a recognition that art and culture are vital in shaping our society. In the words of the great opera singer Beverley Sills, “Art is the signature of civilization.” The passion and commitment of people who really care will ensure that future generations of Scots and the visitors who come to our galleries will have access to some of the best art in the world. It is their involvement in our community that makes miracles happen. Ben Thomson is Chairman of the National Galleries of Scotland

Tuesday March 27 2012 | the times

Business Insight

Business Forum

In the same boat and with high hopes for the voyage Our latest Times Scotland Business Forum on RRS Discovery found many reasons for optimism in Dundee’s regeneration, writes Mike Wade

board the Royal Research Ship Discovery, the atmosphere seemed almost as expectant as it might have been before Captain Scott set out on one of his great polar adventures. Gathered in the ship’s dining room for The Times Scotland Business Forum, Dundee’s senior civic and business leaders assessed the economic prospects of the city — and found that the future looked a good deal warmer than on any of Scott’s chilly destinations. The new lexicon of urban regeneration insists we attribute this optimism to “the Bilbao effect” — after the seismic impact that an outpost of the Guggenheim Museum is said to have had on the economy of a once-failing Basque city. But the phenomenon has been observed before in Britain: the 1990 City of Culture award catapulted Glasgow to worldwide attention, while the Opera House in Cardiff and a succession of investments in Manchester and Liverpool gave all three cities renewed international reach. Now, its supporters believe, a £45 million cultural investment in the V&A at Dundee points a route out of the economic downturn, raising the profile of this city, enthusing its people and providing both a focus and a generator for renewed growth. “The support for the project is extraordinary,” Philip Long, director of the V&A at Dundee, told the gathering. “When you put the two brands together, the V&A and Dundee, people see the change in the city’s ambition. We want to take people

on a journey, so they feel they can contribute, and we want to tackle inequalities in the city and build support in Scotland and also internationally.” These are large ambitions, but, as Mr Long pointed out, over the past three decades, cultural investment has raised morale in the city, and boosted Dundee’s profile. It began in the 1980s with the revival of Dundee Rep in a new building, continued on this ship, Discovery, which brought some sparkle to the Waterfront when it opened as a heritage attraction in 1993, and was consolidated when Dundee Contemporary Arts was established in 2000. The universal hope here, among the businessmen and civic leaders, is that the

Around the table The Business Forum was chaired by Magnus Linklater, editor of The Times Scotland, who was joined by: Philip Long, director, V&A Dundee George Rennouf, head of risk and strategy, Alliance Trust Allan Watt, project coordinator, Dundee Waterfront Rebecca Trengove, head of marketing and corporate affairs, Axeon Allan McQuade, business infrastructure director, Scottish Enterprise Craig Nicol, joint managing partner, Thorntons LLP John Reid, factory manager and head of operations, Michelin Dougy Agnew, tax partner, Henderson Loggie Pete Downes, principal, University of Dundee Chris van der Kuyl, chief executive of Brightsolid Tim Allen, director, Unicorn Properties. Mark Robertson, partner, Rydens

V&A at Dundee will finally give the city the pulling power to draw in large-scale investment and tourism, promoting a new age of prosperity. For Chris van der Kuyl, the chief executive of Brightsolid, and one of the first serious players in Dundee’s computer and gaming technology industries “everything comes at a critical pace”. He said: “It has taken 15 years to embed digital industries, to reach the point where the confidence is growing, where Dundee can step up and challenge on an international basis. The catalytic effect of the V&A has already generated interest.” Dundee stands on the brink of a new age of prosperity, insisted Mr van der Kuyl. The city was a wealth creator in the 19th century, he argued, but its financial institutions, such as Alliance Trust

and Flemings (the merchant bank was founded in Dundee in 1873) invested their money primarily in overseas projects, rather than in their own city. “Our own culture had become parochial and we tended to look to government for help,” said Mr van der Kuyl. “We are turning entrepreneurial again. We stand at the cusp; we are not going back to the 19th century model, but are looking forward to a knowledge-based economy ... We need to create a jewel on the Tay and to sparkle. Then all talk of parochialism will have gone.”

The panel agreed the city had reached a key moment in its history

There is widespread agreement that the city has arrived at a key moment in its history. For Allan Watt, project co-ordinator for Dundee Waterfront, decisions made five years ago have already put the city on the right road. “What we set out to do at Dundee Waterfront was to consider the wider offer,” said Mr Watt. “Part of the question we posed ourselves was: how do we transform Dundee? How do we make it punch above its weight rather than be a drag on the economy? “We looked at our assets and the ambition for the Waterfront, for the airport, for the country park to the west of the city. It was a powerful mix and we realised that if we could develop the Waterfront it could have that catalytic effect.” Remarkably, there has been a total investment in Dundee Waterfront of £1 billion since 2008, from a combination of public sector agencies and private companies. “That is a very powerful basis for change,” added Mr Watt. “We have an incredible offer, with a guarantee of £72 million to deliver the new infrastructure. And the scale of the city enables us to move quickly.” In these circumstances, you almost detect the mood of change on the Tayside air, sweeping along the public. Mr Watt added: “Public and private support for

the times | Tuesday September the times | Tuesday March 27 201227 2011

Business Insight james glossop for the times

nity that excites me, to see how far we’ve come, and to see how far we can go over Michelin in Dundee the next ten years. has more to crow about — his tyres So, than is hemost worried thatfactory globalsells economic toslowdown the Chinese — but he stressed that the might blow those plans off city must“Every offer something to every course? company has to bememsensiber community. tiveoftothe thelocal economic environment around is itunusual, itMr andReid be sure is on topaofone-company any potential man who has lived in Dundee for 22 years. implications. Having said that, I would “ step Throughout people have back and that look period at our experience as talked about us closing,” he recalled. “We we went through 2008 and 2009, where have the critics and won the thereconfounded was a significant drop-off in activinvestment. There are ways We and were means of ity impacting on markets. very organising a workforce. It can we be done.” clear in terms of the action took: we Other figures also soundreset the industry base, looked forward. ed “Lots warnings. Axeon, a green of opportunities comebusiness out of manufacturing batteries, finds it these difficult lithium times but it doesn’t take easier to recruit staff from overseas than away from the mediumto long-term funfrom Scotland, Trengove, damentals acrosssaid our Rebecca markets. Mining, oil the head marketing andcompany’s gas resources are of finite and thereand is a corporate affairs. for Partthem. of that was growing demand Thattrend combinagood said, further becauseinvestment. it showed tion isnews, goingshe to drive international staff coming to theview: city He believes in were taking a positive without preconceptions about its past, but you can’t ignore the short-term environinstead with hopes for the ment, but you can look at itfuture. in the context she added, Dundee is still opporstrugofBut, a few years ago and the broader gling withinnegative perceptions at home. tunities the longer term, he says. “There is a danger in focusing on a narrow range industries,” she warned. ookingofforward, Cochrane stress“It is more to focus on skills, core es,sensible also means investing in talent, skills thatand are industries, heapplied is almostacross evangelical about that give encouraging the economyindividual traction.” potential. Dundee, in common most cities in “It’s our peoplewith at whatever level Europe, still has to contend withdifference, the dark they contribute who make the shadow of recession. Mr he Rennouf said who enable us to deliver,” says. “Look some pointed a five of oryears, tenat ourevidence growth in the pasttocouple year “It that is not a given that we bothdownturn. in achieving and moving ahead will zoom out of recession,” he warned. needs capability in our people. Tim director significant of Unicornsums Prop“WeAllen, are investing in erties disagreed. “We have sold more this, and have just kicked off a senior properties in the past six months than in management training programme. If we the previous three years,” he said. don’t have the people we will be held The key to recovery in the longer term, back. While investment and continued said Ms Trengove, was to invest in educafocus are very much at the forefront tion. “There remains a profound lackrole of of my priorities, in my leadership ambition among some parts of the popuas CEO it is also vital to make sure we lation,” she said. “You counter that in are building up the next generation of schools. You have to give kids ambition. managers. There has to be much greater focus on “It is back to building a sustainable kids to have that ambition.” long-term business. If we only wanted The economic conditions could ofsuccess for a year or two, we wouldn’t be fer opportunities as well as threats, said doing a lot of things we are very focused Pete Downes, the principal of the Union now.” versity of Dundee. “Uncertainty creates Despite that unrelenting focus, opportunity,” he argued. “Recession looks Cochrane having a goodthe life way ballike a massagrees, extinction, opening ance is crucial. “When I’m for other creatures. TheI’m factworking is, we are passionate about the business, I do thrive Foreground, left to in a very good position to grow as the the Waterfront peaked during the design past eight years. “What is significant here on it; I’mrecedes.” quite driven. However, I have a recession competition for the V&A. And remember, is the very real sense of Dundee getting right: Magnus Linklater, relatively family,said and working at weekends it’s such a great business that when the opalmost a new set of challenges. Keith Cochrane believes Professoryoung Downes in in this city, one in eight of the population things done,” he said. “In 2003, I came Philip Long, Mark I tend to focus on the kids — although portunity arose to become chief executive, “It’s back to that passion about doing in investing in talent that partnership would be a crucial generais a student. All of this gives us a tremen- here, and people asked: ‘Why?’ Now Robertson. Behind, myofwife would sayfornotboth always well, you just don’t turn down that down. you things our minds — and left willtohelp Weir Group right: Professor tor prosperity theexclusively! university just better, have toopening walk around the place. dous vibrancy. “I try hard to have a different “There is a great team of senior manour organisation’s mind. We operate in to build a sustainable, and the city. In key areas such assense the The city has reached a stage where this Dundee has been fleet of foot in facing Pete Downes, Rebecca of perspective. you have a senior agers and talentedcould people across the thehuge markets There but as isa aplayer we’re rela- Trengove, long-termDougy business biosciences, the When university had found a challenges. massive infrasense of momentum be “self-fuelmanagement role it can easilyintake over, organisation, so Rennouf, the opportunities to do structure tively small. way to move forward, working tandem project going on, of such a scale Agnew, John Reid, ling” said George head of risk so thescientists ability to in stepEdinburgh, back and have a dose quite areThe very that “Through strategic planning we’ve with Glasgow in most other cities would be seen as Allan Watt, Tim Allen, andsomething strategy for the special Alliancehere Trust. of reality, like taking your daughter to exciting. That’spresented what getsanme: I want to theidentified opportunities to broaden our George Rennouf, Craig and elsewhere. sole major project in itself. But here Olympic Games interesting a “We sports classact onalone,” a Saturday, is good“We for realisehethe potential of this business. The it’smarket productbigger.” portfolio, and our Nicol, Chris van der can’t he added. part of and something parallel, added. everyone.” group longsee way in the past geographic footprint, spirit partlypervaded, through Kuyl, Allan McQuade have to look to larger cities to be partWhile this optimistic “Everyhas fourcome yearsa you huge infraPerhaps most surprising discovery decade projects — now we’re next some organic growth and sounded partly through acners, to playthe to the strengths we’ve got.” round the table notes of structure rolledfocusing out, butonit the is the about Cochrane isexisted despite inhis offshore business stagethat and isbeing passionate about quisition. It’sReid, that real sense of opportuOpportunities John factory manager for legacy important,” said Mr what Ren- is caution. DNA, he’s not not just all about numbers. renewables, for thethe univerisity’s nouf. “Once the Games are finished, the Ultimately, school, of course, them to engineering buthe in wants law and other leftover bit can be a disaster. It is really add up, and then to multiply. thereheis areas. “We can influence these Yet things,” important for Dundee that there is a plan a strong sense he across is aware of his responmanufacture of pumping equipment for the Clyde North growing demand added. “We work disciplines, and beyond thisAmerica’s initial stage. There has toforbe“fracking” equipsibility as part of something shipyards. ment usedbetween in extracting and gas from shale is key that is what we must continue bigger, to do.” and a connection theoilcommunity wants to playthat his part. Cochrane, it seems, Today, Weir Group employs around 13,000 people in to Weir Group’s upbeat profitispredictions announced All agreed if there was a threat to and business: how they engage key.” is an architect. more than 70 countries, working in the minerals, oil during the summer. Dundee, it lay in a failure to be bold. Mr Craig Nicol, joint managing partner, “With it’s thatinrich heritage, the and gas, and power industries. Rapid growth continues This half-term income Reid, with Weir, two decades manufacturing, Thorntons LLP, andreport Allandetailed McQuade, busi-up 33 per cent tremendous track go record: I want build to be been driven by expanding into emerging markets £1.03 billion, orders soaring by 43 per cent to £1.2 has seen Dundee through badtotimes ness to infrastructure director for Scottish upon that,” says. quite rightly, and providing services globally. billion and boosted by 23 per cent to and good. Hehehad no“This doubtis,that the time Enterprise, bothpre-tax struckprofits optimistic notes, a very proud want to doand my Innovation driven by customer demands is central £178 million. had come for business, the city so to Ibe daring the latter taking inspiration from The small to in help to the company’s success, and earlier this year it the time“It Keith Cochrane commented take its bit place themove sun. it forward, help TimesAtmeeting. is very significant to see “The sustain it for the next 100 years. You announced the investment of £2 million in a dedicated group will to investround to grow “It has been a threadbare kinddon’t of the private andcontinue public sectors theahead of do that still. research facility. The Weir Advanced Research Centre end Mr markets and we now profits for place in by thestanding past,” he said. “We have to table,”oursaid McQuade. Theexpect public “It confidence requires initiative and abilityI’d to seek will be a central plank of Strathclyde full year be somewhat of our bring back to people. like sectorthe makes thetoinvestment to ahead give the andfactory take advantage of University’s recently established toout seeopportunities the guys in my looking out privateprevious sector expectations.” confidence to make things those opportunities — that the have broader Technology and Innovation Centre in Founded in 1871 and taking pride in the city.isWe to happen. Business andincommunity have to message that sits comfortably with what Glasgow. Cochrane said the partnerGlasgow G &city J Weir, the be bold, aggressive, forward-looking and engage to driveasthe forward.” the underlying themes our well, busiship would “continue to bring take risks. If you don’t are takefor risks, Mr company Nicol saidwas heresponsible had been conscious of ness atoday, it’s driving our teams breakthrough developments our for the invention and that’s risk inand itself.” a change in aspiration in the city over the Axeon’s Rebecca Trengove ponders the need for ambition intoyouth JAMES GLOSSOP for the times

Innovation driven by customer demands

PROFESSIONAL BRIEF

Dundee Challenge of turning big Waterfront’s ideas into Transformation reality is key

D F

Tuesday March 27 2012 | the times

Business Insight

Cover story

When business is pleasure JAMES GLOSSOP for the times

Avid entrepreneur and champion of Dundee, Chris van der Kuyl explains his inspirations to Ginny Clark

You’re always a musician but I got into building technology businesses early on and that’s a different kind of fun

o you remember the summer of 1987? Those were the days when Rick Astley was Never Gonna Give You Up, The Pet Shop Boys were Always On My Mind, and Deacon Blue had Dignity. It rained a bit. Margaret Thatcher led the Tories to a third term in government, Sylvester McCoy became the seventh actor to play Doctor Who and Chris van der Kuyl was on keyboards for Big Blue 72, about to embark on a computer science degree at the University of Dundee. It would be a few years before van der Kuyl founded his first company, gaming business VIS, ultimately going on to become CEO at Brightsolid, by way of being one of the most successful entrepreneurs not just in Scotland but in the UK. This week, Brightsolid launched the new and revamped Friends Reunited, the business it acquired from STV in 2010. It was a move many believed had been prompted by Brightsolid’s interest in subsidiary company Genes Reunited, given its domination in the who-do-we-thinkwe-are sector. At the time, van der Kuyl dismissed this, insisting that Friends Reunited itself was a good buy. Now we can see why. This week’s announcement tags Friends Reunited as the place for ‘Remember when?’ moments, with site members encouraged to find, collect and share everything from personal experiences to major news events. Through a partnership with PA and an archive company, a ‘keep’ button allows members to build nostalgic collections that are saved in online ‘boxes’ along with personal memorabilia such as photos or scanned ticket stubs and receipts. Viewed together with Brightsolid’s work at the British Library, this project offers significant scope for the imagination. Fiction as science, it conjures echoes of the 10th Dr Who incarnation in the 2008 episode Silence in the Library. Time travel is not (yet) on Brightsolid’s agenda, but as van der Kuyl remembers, in 1987, another world had seemed possible to him. “Dundee was red hot. There were The Associates, Danny Wilson — these guys were all at school six years ahead of me,” says van der Kuyl. “I played in a number of bands but the biggest was Big Blue 72. We played locally and throughout Scotland, and we even headlined freshers week at Dundee uni on the same billing as Texas. CBS was going through the process of signing us up when Sony bought CBS and shut down on new talent. “By the early 1990s it was time for me to give it up — my business was taking off and I was trying to run it from a tour bus using a modem! I still love playing,

I’ve no time to be in a band, but any time I get a chance to play I do. You’re always a musician. Who knows, I might have been moderately successful but I got into building technology businesses early on, and that’s a different kind of fun but it’s still creative and all about working with a group of people I like. “Music and its community is one of reasons I’m still here in Dundee, and it’s one of the reasons I love this city.” It’s intriguing that, for a businessman whose significant achievements are all about the future — whether in technology or the education of the next generation — you cannot begin to measure the

success of van der Kuyl without looking back. He describes himself as a digital native, having grown up with computers, but says he is “second generation”, given the achievements of his late father, the renowned Tony van der Kuyl, an educational pioneer who ensured his school, and that of his son, was the first in the country to include computer studies as a formal subject. His father’s influence as a folk musician is also a matter of great pride to van der Kuyl. “It was amazing for me to read Lorraine Wilson’s book about Dundee’s music history, Take it to the Bridge, where a folk musician talks about my dad being an

Chris van der Kuyl says he collaborates with DC Thomson as part of a shared ambition on the global stage

The global outlook is bright Chris van der Kuyl is the chief executive officer of Brightsolid, the online innovation company owned by Scottish publisher DC Thomson. Brightsolid is headquartered in Dundee but the burgeoning business also has offices in Edinburgh, London, Dublin, Sydney and Los Angeles. With operations divided into the two main areas of digital publishing and technology provision, the company owns Friends Reunited and several internet family history companies including findmypast, runs ScotlandsPeople and is in a tenyear partnership with the The British

Library to digitise up to 40 million pages from the national newspaper collection. Brightsolid’s rise has been steady, growing the talented team from 50 to more than 200 in the past four years, along with the revenue, up 475 per cent over the same period to £28.5 million in 2011. van der Kuyl, the charismatic leader of this company, is also chairman of computer games development

company 4J Studios and is visiting professor of digital entertainment at Dundee’s University of Abertay. A great supporter of enterprise education, van der Kuyl was also chairman of Young Enterprise Scotland for seven years, is a member of the Entrepreneurial Exchange, left, and is involved in the Smith Group, advising the Scottish government on education policy, enterprise and youth employment issues.

inspiration to him, because he was the first guy he heard writing about his own town. I had played with my dad but I didn’t know how much he’d influenced others. That vibrancy, the excitement around good music venues and pub bands, that’s happening again.” There is nothing forced about the fact that van der Kuyl has assumed the role of ambassador for the place he grew up in and where he still lives with his family. With about 150,000 people here it is not just a city, it’s a big village,” he says. “That gives you an ability to connect to people but it’s not like a clique; Dundonians are welcoming and open to ideas, and that includes the people who have migrated here. “People settle and never leave; they love it, there is a great community with a good quality of life and they can have an impact on it. I used to play a wee game in which I could never walk through Dundee without meeting someone out of context. That’s what little villages are like. “However, Dundonians are also outward facing — you can’t do everything from here, you can’t be parochial as you won’t create that way. I think it goes back to the whaling fleets: whatever challenges us can make us strong. We took on the world at jute and won.”

ne thing he says that was revelatory in building Brightsolid was that shareholders DC Thomson, who had an aura of secrecy as a powerful private family-owned business, are the best shareholders in any business he has had. “Part of that is a shared ambition to do something in Dundee on a global scale, and we collaborate constantly. “I could never have approached the British Library without the heritage and gravitas of DC Thomson behind me. It’s not about money, but their standing in business, their values and ethics. “The key thing for me is that it’s never limiting. We opened a new publishing headquarters in London in an old church in Shoreditch — we know there’s a hotbed of digital media talent there, but that doesn’t lessen our ambition for Dundee. The whole idea is that we build a stronger business.” Still heavily involved in games, van der Kuyl is working with a business in partnership with Microsoft to bring Minecraft to Xbox. Considering the potential of the newly announced nostalgia project, he muses: “We can use the skills and capabilities in both games and memory, and see what happens.” For van der Kuyl, as for Friends Reunited — and for all of us — one thing is clear: memories are the future.

2011

the times | Tuesday March 27 2012

Business Insight

Tuesday March 27 2012 | the times

Business Insight

Special report: Dundee Main images courtesy dundee.com

The design for the showcase V&A at Dundee by Kengo Kuma and Associates

A city builds for the future 9

siness

Dundee’s hopes ONAL for a significant new economic transformation are well founded, hears Rob Stokes

Insight Business Insight

james glossop for the times

nity me,Dundee to see how far ‘ready we’ve mentthat hasexcites identified as the

BRIEF PROFESSIONAL BRIEF come, to for see fabricating how far we turbines can go over to go’ and place for

the ten planned years. off the east coast of windnext farms So, is heand worried that globalinspection, economic Scotland, for subsequent slowdown might blow work. those plans off repair and maintenance course? “Every to be sensiFifteen years company of public has sector planning tive the economicwork, environment around and to infrastructure and more than it andmillion be sure of it ispublic on topinvestment, of any potential £100 took implications. said that, I would the centre andHaving a beautiful stretch of the step lookpoint at ourwhere experience as Riverback Tayand to the the city we through 2008 where waswent ‘investor ready’ to and pitch2009, to offshore there was a significant in activwind developers and todrop-off secure the V&A ity impacting on markets. We were very at Dundee development. clear in terms of the action we took:Area we Renewable Energy Enterprise &A at Dundee, ith some innovative long term reset base, looked statusthe granted by theforward. Scottish governthe £45 million planning now paying dividends, “Lots of opportunities come out of ment to Dundee Port is the cherry on international Dundee’s future is looking these difficult times but it doesn’t take the cake, said Mike Galloway, director of centre of design away from the mediumto long-term fun- hugely encouraging. Dundee is already city development at Dundee City Council which is anticispotmany for video development damentals across our markets. Mining, oil the hotor ears, life years,game Scotland’s life (DCC), which partners enterprise agency pated to openScotland’s on forsector excellence in the life as and gas resources and there is a and a centre tor has been heralded science has been heralded as Scottish Enterpriseare in finite the Dundee WaterDundee Waterscienceone sector. The opening of Dundee growing demand for them. That combinanation’s rising stars. of the nation’s rising stars. front project. front in 2015 will Contemporary Artsa in 1999 was aopporhuge tion is going toArea drivestatus further a tremendous opporWe have tremendous “Enterprise is ainvestment. paramount catalyst assuredly be as for Dundee’s cultural revival He believes in taking a positive view: our resources including tunity to leverage our resources including part of the package,” he said. “It offers which, since then, has gone from strength emblematic as you ignore theand short-term environversities and our NHS, our universities excepand our excepfiscalcan’t advantages formalises our the the Guggenheim Bilbao is for the capito strength. Theforarrival of the V&A is ment, you can look at it inregime the context medical innovation, heritage medical innovation, ‘open but door’ consenting for tional tal of Spain’s Basque country. Along the the next step in that revival. of a few years ago and the broader opporucture to encourage talent and infrastructure to encourage and and Dundee Waterfront. We want to engage eight kilometer waterfront today, the “Dundee’s currentSo period of regenerain developers the longer on term, heto says. s. why tunities is big business. why it does is it that that now does with sites come on attract locally So built RSS Discovery, Captain tion isofanour exciting to be incompanies business g life science companies many young time life science stream within five years.” Scott’s Antarctic research ship, evokes a in the city. The urban landooking forward, Cochrane stress- are et off the ground? struggling to improving get off the ground? The scale of ambition is grand. Dundee scape will enhance the historic features of distant past to set alongside other induses, also means investing in talent, of turning ideas The challenge into of turning ideas into Waterfront is a £1 billion, 30-year project Dundee, while at the same time present trial ghosts such as jute. and he is almost evangelical about reality and companies nies of scale still seems of scale still seems (2001-2031) spanning 240 hectares of de- new business opportunities. ‘Discovery’ also symbolises the emerindividual potential.issue few, and isencouraging an to elude all, but a few, and is an issue that that velopment land (dundeewaterfront.com). gent Dundee, a 21st century economy Dundee a diverse business scene “It’s our people at whatever level needs ly addressed. to behas urgently addressed. Galloway promised flexibility to with lots of significant and cutting edge with an international reputation for comthey contribute who make the difference, industry is truly The life science industry global is truly global investors. “We are not a typical bureau- deals being done which would probably puter games, biotechnology and other who enable us to deliver,” he says. “Look and Scotland, as others, has identified it thers, has identified it cratic authority; we have a different clever stuff. Since 1997, employment in Fromto at our local growth in the past couple of years, surprise many outwith the as a key sector as a area. key sector to approach and culture.” manufacturing has slumped while the born out of wealth two solutions for their organisation. Clients both in achieving that and moving ahead the creative industries, drive drive future wealth future Validation of Dundee’s appeal for off- successful universities, and strongest gain has been in health and to the agricultural are much more questioning of the service needs capability in our people. and prosperity. prosperity. shore is significant evident insums DCC’s social work followed by wholesale and bothaspiration vital partsisn’t of they are receiving therefore we need “We renewables are investing in and renewables sector, But But aspiration isn’t Memorandum Understanding retail, education, and transport, enough storage locally to work harder than ever to create and this, and have of just kicked offand a (MoU) senior Scotland’s economy, businesses enough we and we with: SSE, thetraining Perth-based utilities giant and communication combined. need Wetocan develop excellent relationships. Transmanagement programme. If we need a specialist service. to act now need act deliver now whosehave Seagreen Wind we Energy Further transformation beckons. have the parencythe is crucial. don’t the people will partnerbe held that. Our lawyers and advisers to fully exploit to fully exploit the ship with Fluor is assessing oppor- skills and experience toopportunity Attracted by the tourism that V&A at rival many before other “Dundee has gone through several back. While investment andwind continued opportunity before tunitiesare in very Scottish waters; Forth Ports, central belt fibehind. Dundee will generate, the Malmaison rm. periods of change, all hugely positive, and focus much at the forefront we get left we get left behind. owners of Dundeein Port; with Scottish hotel chain owned by MWB Group Hold“We funding advise businesses of every size, at as the business landscape in Dundee conof my priorities, myand leadership role Lack of Lack of funding Enterprise. ings is to lease a new 91-bedroom is hotel in everyMcInnes stage in looks their evolution and in a di- tinues to change so will the requirement as CEO it is also vital to make sure we Neil s a vociferous is a vociferous MoU secures capacity for the city centre from spring 2013. lament verse range of sectors. lament One thing remains for professional services - we are here to areThe building up the strategic next generation of to ces pooling resources by those by those SSE, which sees Dundee as a prime op- constant however - value And — wonder of wonders — ain revival for money. meet that challenge. managers. the sector. in the sector. tion. hasbuilding fantasticafacilities, in- Scotland of large scale manufacturing is tantalisMore so than business owners are Craig Nicol, Managing Partner, “It “Dundee is back to sustainable rant business angel has aever vibrant business angel cluding deep water” said Jimonly McPhillimy, ingly within reach. The Scottish governlooking for cost andInvestment commercial Thorntons (pictured) long-term business. If we wanted community he Scottish Investment and effective the Scottish

enge Challenge of of Dundee an exciting ng big turning big placeintoto do business into ideas y is key reality W is key

The city has an international reputation for computer games and biotechnology

9 Tuesday March 27 2012 | the times

Tuesday March 27 2012 | the times

BusinessBusiness InsightInsight

PROFESSIONAL BRIEF

Dundee Challenge of Delivering turning big Waterfront’s Dundee’s ideas into Transformation business reality is key environment for renewables

D FW

undee’s history and the development of the city have been shaped by its location and relationship with the or many years, Scotland’s River Tay. The citylife has science experienced sector has been heralded many periodsas one ofturmoil the nation’s rising stars. of economic but there has never ith abundant naturalofresources, a tremendous opporbeen suchWe an have intensive period change a strong company base, worldtunity to leverage our resources including as is now being experienced in Dundee. class academic expertise and theThe NHS, our universities and excepDundee Waterfront wasour where the ambitious renewable energy tional heritage for jute medical innovation, the most ships bringing for the city’s mills targets in the world, Scotland has thevestalent infrastructure to and would and anchor and where theencourage whaling potential tobusiness. become aalso world class centre attract bigbuilt. why it that sels were It wasSo ondoes this issite for renewable energy. many of our young life science shipbuilding was developed intocompanies a major Targeted are struggling to getCaptain off theinvestment ground? industry andinfrastructure where Scott’s shipin Scotland’s ports and surrounding areas, The challenge of turning ideas into Discovery was constructed. isreality critical we are to take full advantage andif companies ofBut scale seems as still Dundee of opportunities that to the elude all, but a few, andexist is anwithin issue that developed its city this potentially hugeaddressed. growth sector and needs to be urgently centre and its wafollowing planning work under The lifeintensive science industry is truly terfront grew global apart. the Infrastructure andNational Scotland,Renewables as others, identified Thehas roads takingit Plan, we have joined traffi forces with partners as ackey sector on and offto the to ensure Dundee is ideally placed to drive future wealth Tay Road Bridge serve the emerging renewables and prosperity. created ansector. unnatural Thanks to the deepbarrier water berths, availBut aspiration isn’t between the ability of developmentcitizens land and proximenough and we and their ity to the wind ‘fields’waterfront. off thetoForth and need actThis now Tay estuaries, the Portwill of fully Dundee and to exploit the all change with the wider City of Dundee, are keyWaterfor the opportunity before the Dundee David K Dorward, future development offront Scotland’s offshore we get left behind. project which Chief Executive wind industry. of funding reconnect the Dundee City Council will Lack Together our partners SSE, Forth Neil McInneswith looks is aand vociferous city its people Ports andriver. Dundee Council, to pooling resources by we those with the TheCity £1 lament billion transforare working to support investment in in the sector. mation of Dundee Waterfront, which the area to ensure it is fit for purpose Scotland has 240 a vibrant business angel to encompasses hectares of development sustain a thriving renewable supply community and8km the Scottish land stretching along theInvestment River chain to generate maximum economic andFunds Bank’s and and Venture Tay, is aCo-investment strategic, focussed forwardenvironmental play an important role. However,the there looking project benefit. that is propelling city public sector hasthat comis ainternational growingthe sense of foreboding this toAlready, acclaim. mitted improving accessattorenewables. the Port money could be redirected Workto has been progressing for several at Stannergate and is working actively Coupled our lack a strong active years but with the three yearofperiod from 2012 to create development ready sites for Venture Capital community, specialisto 2015, will see some of the most visible investment. ing in lifeoccuring. sciences in Scotland, growth changes This will involve theis In addition, the Port of Dundee was inevitably slow. demolishing of Tayside House, former recently awarded Enterprise Area status Thattosaid, life science is fundamenhome Dundee City Council, the Olymand negotiations are underway to estabtally a long Centre term, high-risk business. It of pia Leisure and the construction lish enhanced capital allowance benefits is expensive, instance, to take drugs a new railwayfor station. that, in addition to Dundee’s assisted area through clinical trials intoinvestment the market The site vacated by and the Olympia will status, will encourage further with no guarantee a return. ButDundee, if Scotbe renewables. transformed intoofthe V&A at in land is approach serious itsoflife science sector, theThe jewel in theabout crown Dundee’s to attracting investwe need to find get businesses Waterfront regeneration. The £45ofmilment to the Portways is antoextension theto a point where venture capital money is lion V&A at Dundee building, has been existing Dundee Waterfront Partnership forthcoming. designed by the Japanese architects that is delivering improvements in Kengo the While Scotland’s and life Kuma &Waterfront Associates isand duethroughout tosector open in Central areascience remains made up of many diverse small 2015 and will place Dundee fi rmly on the five development zones in the Dundee companies, there may also be an arguinternational cultural map. Waterfront. That work includes a comment for consolidation. Pooling investors resources Opportunities for developers, mitment to sustainable development that and include create critical mass acollaboration wide range oftobusiness ventures will not only renewable energy with otherinindigenous companies or still exist what is shaping up be partone generation but also improve thetoenergy nering withEurope’s organisations overseas isand one of Western most and extensive performance of buildings the creation route and may well prevent some compatransformative waterfront projects. of a Sustainable Community. nies from failure in these particularly The recent announcement that the As we move into the next phase ofhard detimes. Getting investor ready is another Malmaison Hotel Group has and signed a long velopment in offshore wind marine prerequisite, especially with major foreign term lease transform the Tay Hotel into energy, we to are confident that employorganisations looking a landmark hotel, is testimony ment levels waterfront will grow on. significantly, with has an exceptional pool of to Scotland increasing investor confidence in the the Port of Dundee estimated to support talent and ideas. Butjobs in today’s globalwind city. in the region of 700 in offshore competitive economy is not enough The city landscape changing. One manufacturing alone. isthat without the right incentives and the third the £1 billion investment hasbusiWeofare laying the foundations for ness infrastructure them. already been committed, jobs are those jobs now andtoassupport we7,000 continue to Neil McInnes, Head of partners, Technology, anticipated be created and it is work closelytowith our wealready will Grant Thornton Scotland clear that this ambitious continue to support this project growth,will cre-symbolise contribution a generation ate jobsthe and encourage of investment for to transform thewith city of Dundee- a city which Dundee. in association hasAllan a realMcQuade sense of ambition direction, - business and infrastructure and is defi for the future. director at nitely Scottishchanging Enterprise

Dundee’s on everyone’s radar for manufacturing sites. Facilities are good to go and there’s land for future development managing director of group services at SSE and chairman of Scottish Enterprise’s regional advisory board for Tayside. “It is perfect for offshore renewables development and maintenance in the east and north of Scotland. In a new industry, people who take strong, controlling positions tend to prosper. The MoU builds confidence throughout our supply chain.” It is widely held that some commitments must follow soon for developments to hit an expected surge in offshore wind manufacturing around 2014 to 2015. “We would expect some later this year or in early 2013,” said Stan Ure, head of economic development at DCC. The scale of developments proposed means many locations could benefit. Hence, East of Scotland Renewables, a promotional umbrella of ten local authorities including Dundee. “We’re very much a Scottish player,” Mr Ure said. “Everyone with decent facilities will share the action. We promote each other because we’re complementary.” “But Dundee’s on everybody’s radar for manufacturing sites. Our facilities are good to go. There’s land for future development at the port. The water’s as deep as most would need and we think we can do additional dredging if required. We’re relatively sheltered, not subject to big swells from the North Sea.” A new access bridge to the port has been completed across the adjoining main East Coast rail line and to the highest load bearing standards currently applicable. A new access road is near to completion and contingency plans for extra-long vehicles are under consideration. “We’re also looking at the potential for rail access from the port if a future investor needs it,” Ure added. “We’re putting our money where our mouth is. This could generate up to 1,000 direct jobs with another 1,500 to 2,000 indirect ones. It could be a springboard for large scale economic regeneration.” “Manufacturers Samsung (Korea), Gamesa (Spain) and Steel Engineering (Scotland) have committed to renewables activity in Scotland and we’re confident there will also be investment at Dundee Waterfront,” said Allan McQuade, business infrastructure director at Scottish Enterprise. “Relative to population, Dundee Waterfront will bear comparison longer term with the international financial districts in Glasgow and Edinburgh. It is a quality city location with a quality waterfront environment.” Scottish Enterprise’s sister agency, Scottish Development International, is promoting Dundee Waterfront to potential investors in key sectors including creative industries. Dundee is an international centre for digital games. “We’re here because of the talent pool and the forward looking city,” said Colin Anderson, managing director of Denki, the games company best known for Denki Blocks! and for Quarrel, which just launched successfully on Xbox360 and iPhone.

Denki has started recruiting for new games projects and has no problem attracting international talent to Dundee. Said Anderson: “Projects are talent magnets that create critical mass that generates more success and spinouts. Dundee’s had that cluster for nearly 20 years. It attracts people who probably would not have come for any other reason.” The University of Abertay Dundee (UAD) is world class for digital media and plays a key role in addressing the UK industry’s talent, skills and finance needs. Its £2 million Prototype Fund — sourced from UAD (£1 million), the Scottish and UK Governments, and the European Regional Development Fund — is now inviting applications for grants of up to £25,000 for small UK companies developing their own games or other interactive software products. The fund backed 24 companies from 150 applicants in three previous rounds. “Operating a UK fund reinforces Dundee’s importance in digital media,” said Paul Durrant, director of business development at UAD. “Scotland’s strengths are underlined by a third of previous applications coming from Scottish companies.” The grants support inclusion of talented graduates on funded projects to provide paid work experience and skills development. EMI, Tate, National Geographic, Turbulenz and Antix are among companies working with UAD and The Technology Strategy Board — the UK’s national innovation agency — to support smaller digital firms via the fund. “We play a key role in developing talent for the UK and our investment fund also helps with working capital, an issue for companies with big up-front development costs,” Mr Durrant explained. Dare to be Digital (daretobedigital. com), an industry-acclaimed challenge run by UAD is a video games development competition for talented students from universities and colleges of art, that

The £1 billion Dundee Waterfront is now one of the UK’s top 20 regeneration projects

Mike Ferguson is dean of research at CLS

feeds in exclusively to a BAFTA award. Said Durrant: “We have entries from more than 80 institutions internationally. The industry sees it as one of the best ways to judge talent. ” UAD’s course portfolio crosses science, technology, arts and creativity boundaries. It was acknowledged as the United Kingdom’s centre of excellence for computer games education in the Next Gen skills report from the independent National Endowment for Science, Technology and the Arts. NESTA applauded UAD’s workplace simulation methods, where students work in interdisciplinary teams as if in a commercial games studio. Most teaching staff have direct industry experience, and UAD has the highest number of games courses accredited by Skillset, the UK Creative Industries’ Sector Skills Council. Digital Dundee (digitaldundee.com) is a public-private partnership that works with small and medium sized enterprises to identify how they may harness technology to improve business processes and increase competitive advantage. It is backed by DCC, University of Dundee (UoD), UAD, University of St Andrew’s, NHS Tayside, and IT company NCR. Dundee is a world leader in life sciences research and development, a profile projected by BioDundee (biodundee.com) a partnership between DCC, Scottish Enterprise, UoD, UAD, and the private sector. Leading bioscience companies include Cellartis, CXR Biosciences, and Millipore (UK). Recent news underlining its stature included UoD winning £8.6 million from Wellcome Trust to fund collaboration between the Drug Discovery Unit (DDU) at the university’s College of Life Sciences (CLS) and pharma company GlaxoSmithKline (GSK) to work on new drugs for neglected tropical diseases. “It says much about the respect that GSK has for us in this area,” said Professor Mike Ferguson, dean of research at CLS. DDU is unique among UK Universi-

the times | Tuesday March 27 2012

Business Insight

Welcome to the new Dundee Many people have warm memories of Dundee as a city built on the famous trio of ‘jute, jam and journalism’, says Mike Galloway, City Development Director, Dundee City Council. Today, Dundee is a very different city — one that can be defined by the ‘investment, innovation and intelligence’ that is radically transforming the geography and economy of the city and the surrounding Tayside area. In terms of investment, the £1 billion Dundee Waterfront Development project is radically changing the city, reconnecting it with the River Tay for the first time in decades. Dundee Waterfront is now one of the UK’s top 20 regeneration projects, putting it into the same division as London’s Olympic Park, Greenwich

ties. It is akin to a fully fledged biopharmaceuticals company embedded in a university, an efficient way for establishing if basic research discoveries offer potential targets for drugs. “Doing professional drug discovery in-house adds value to basic science and allows us to show opportunities to such as GSK at a more advanced stage than other universities may,” Mr Ferguson said. Backed by a dedicated fund, DDU is working with Edinburgh-based TPP

Peninsula and Wembley City. The project is attracting major inward investment, new companies and new industries. These include the flagship V&A at Dundee project which, before construction has started, is already acting as a catalyst for economic development and is expected to draw up to half a million visitors a year. Major hotel groups are being attracted to the site, including Malmaison, which will soon open a 91-bedroom hotel in a landmark, listed building. The regeneration project is creating new opportunities for innovation on five distinctive development zones, stretching along five miles of Tay waterfront. Around the port area, international energy companies have been quick to grasp the potential for providing manufacturing, assembly and maintenance

Global Development to develop a portfolio of commercial opportunities based on research discoveries worldwide to put through early stage drug discovery in Dundee. CLS has strong relationships with local biotechnology companies. “It’s part of our mission to generate and support jobs,” said Mr Ferguson. CLS also hosts start-ups. A partnership between American biotech Stemgent and the Scottish Institute of CeLL Signalling

services to Scotland’s rapidly growing offshore wind industry. Dundee has long been recognised as a great city for education, learning and intelligence and was recently listed among the top ten ‘cleverest cities on the planet’. New industries in life sciences, biotechnology and video games are setting the pace for intelligence, both artificial and applied. These are attracting highly talented people from all over the world, many of whom are keen to pursue their careers in one of the most progressive and exciting cities in the UK, if not Europe. Dundee is a major engine of economic development and is making a dramatic and positive impact on the local and national economies. Together, our projects are predicted to generate up to 7000 jobs while creating Scotland’s first sustainable community. Come and share in our ambition — and our success.

at UoD saw the creation of biochemical reagents company Ubiquigent, which has based itself at CLS to be near the laboratory of Professor Sir Philip Cohen, a researcher of world stature. Said Ferguson: “We can pre-incubate companies. They pay a rental, but achieve a good return through access to technology, equipment and facilities.” Other star draws include Professor Dario Alessi at the Medical Research continued on page 11

commeRcial RePoRt: PoRt of DunDee

Port of Dundee is Quay in the Renewables Race

or over 800 years, the Port of Dundee has quietly gone about its business but this thriving port on the Tay is one of the largest economic generators in the City. Not only has the port been recognised as a key player in Dundee’s renewables future but it is Scotland’s main agricultural hub with over 250,000 tonnes of agricultural products moving through the Port annually. It is the key location for the inspection, repair and maintenance of Jackup and Semisubmersible drilling rigs and support vessels; and is home to Swedish giant Nynas, the world-leading manufacturer of specialty oils and Bitumen products, which annually processes 750,000 tonnes of product for the Scottish Market and wider export. The Port is one of eight owned by Forth Ports Limited including Leith and Grangemouth on the Forth and Tilbury on the Thames. Dundee, like its sister port in Leith, has been identified by Scottish Enterprise as one of Scotland’s top locations for renewables manufacturing under the National Renewables Infrastructure Plan and is within the Scottish Government’s recently-announced Low Carbon Renewables East Enterprise Area. To further add to Dundee’s renewables credentials, a Memorandum of Understanding between the port and SSE plc, Dundee City Council and Scottish Enterprise was signed in 2011 with the goal of supporting SSE in establishing a competitive supply chain for its offshore wind development programme. All these opportunities strengthens Dundee’s status as a key renewables hub which will bring significant economic investment and prosperity to the City. Charles Hammond, Chief Executive of Forth Ports says: “Our ports play a key role in supporting Scotland’s economy and we have had a remarkable

level of enquiries about the opportunities that the Port of Dundee presents for businesses involved in the offshore renewables industry. We are committed to making Dundee a success in this sector and we are working hard to bring businesses to the City.” Forth Ports and SSE also have a joint venture project, Forth Energy, which is charged with the development of three wood-fuelled combined heat and electricity plants at the Ports of Leith, Grangemouth and Dundee representing a £1.1billion investment generating a total of 300MW of electricity and 260MW of heat. The Dundee plant is currently progressing through the planning process and is expected to add £26million into the local economy, create 500 construction jobs and 70 permanent jobs. The heat and electricity output from the plant could provide the heat and power requirements for the City’s waterfront, thousands of homes and many port customers, including Nynas. Alongside the Port’s renewables activities, the port is recognised by the North Sea Oil and Gas industry as an important base for major rig construction and servicing. The Rowan Norway drilling rig recently left the City after five months of preparations for its first contract in the Bentley Oil Fields. The deep water facilities at the port make it attractive for the large jack-up rig and support vessel activity that the port regularly sees. Dundee is the major agricultural hub for the east coast of Scotland and handles a wide range of bulk materials including mineral salts, animal feeds and fertilizers for use across Scotland. The Port also plays its part in the whisky industry with its specialist in-port Grain Drying facility processing around 70,000 tonnes of local Scottish grain for the industry. The Port also hosts a range of offshore manufacturing businesses and is a strong player in the

Dundee’s Port provision of services for the Forest Products industries who utilise woodpulp for the paper sector and construction timber products. The Port has been the base for the oil refinery operated by Nynas for 20 years although there has been a refinery on site since 1931. The deep water quays easily accom-

modate the Large Crude Oil Carriers and other tanker vessels that the refinery needs to operate, managing hundreds of vessel movements per year. The future of the Port of Dundee looks bright and looks set to continue to play its part in the success of the City.

Tuesday March 27 2012 | the times

Business Insight commerciAl report: SDi

A new battery of ideas for trading in Africa

hen talking to a Dundee-based battery manufacturer, you don’t expect the conversation to turn to safaris in southern Africa, but then again Axeon is Europe’s largest independent designer and manufacturer of lithium-ion battery systems – the type of batteries that power everything from power tools to Land Rover Defenders that are used to drive tourists round game reserves. “The Land Rover was ordered by Jaguar Land Rover, South Africa, for the Londolozi game reserve in South Africa who not only wanted a vehicle with a minimal carbon footprint but also one that allowed the tourists to get close to the animals – and what better way to do that than in a vehicle that creates no engine noise,” said Rebecca Trengove, Axeon’s Head of Marketing and Corporate Affairs. “Although the Defender is only a prototype it is believed that there is a market for this type of vehicle within South Africa’s growing wildlife tourism market and we are anticipating further orders from Jaguar Land Rover” added Trengove.

It was working with Scottish Development International (SDI) that initially helped Axeon pursue the opportunity with Jaguar Land Rover, South Africa. “We have been working closely with SDI over the years,” said Trengove. She was also quick to point out that SDI had assisted Axeon not only with exporting but also with the company’s overseas supply chain management. SDI, which is a joint venture between the Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise was formed to assist in the growth of the Scottish economy by encouraging inward investment and aiding Scottish- companies create and develop international trade. Tony Baker of SDI reinforced what Rebecca Trengove had said about the organisation supporting Scottish companies with every aspect of its overseas business. “We help companies identify overseas markets, assist them in establishing contacts within these countries and stage regular trade missions for Scottish businesses to countries as diverse as the United States and Russia. Where we can also assist, as we did with Axeon, is support companies with their overseas supply management to help eradicate quality and other issues that can arise due to different working practices.”

He continued, “In addition to this, we offer a package of free export training support to new and existing exporters to help them break into international markets. This support is delivered as part of the Smart Exporter programme; an international trade skills development initiative designed to improve the exporting performance of Scottish businesses. The programme is created through investment by SDI, Scottish Chambers of Commerce and the European Social Fund.” Many of the compothe battery powered Defender used to take tourists round a South African game reserve nents that Axeon uses in the construction of its batteries are produced in the Far East and Axeon has also established a strategic Germany, Switzerland and ScandiChina and to ensure that issues regard- partnership with America’s A123 Sysnavia. ing both the supply and quality of the tems, in the production of a battery for “Working with SDI has certainly components were minimised Axeon a hybrid European super car – details helped in the development of stratesought the assistance of SDI to allow a of which are still firmly under wraps. gic partnerships and the creation of supply chain manager to be employed “This is another partnership that was quality standards with our suppliers. in the Far East to work with suppliers developed with the assistance of SDI,” Within our business plan we had a in developing their quality standards. pointed out Trengove. clear vision of what we wanted to In addition to producing batteries In addition to exporting to the US, achieve and they helped us achieve that power Land Rovers in Africa, Axeon also has markets in Spain, that goal,” said Trengove.

Open doors to overseas markets NATIONAL CHALLENGE: EXPORTING FOR GROWTH 29th March, Radisson Blu, Glasgow (8.45-1.00pm) An important regional business event will take place in Glasgow to hear how the UK Government, Scottish Government, HSBC and PwC, as well as other intermediaries and agencies can help businesses to expand and encourage exporting and growth. You will hear first-hand from businesses who have successfully exported, and how they continue to grow and succeed in the current market conditions. Export help and advice will also be available to help your business break into new international markets. To register or for more info visit www.regionalexportforgrowth.com or contact the Event Support Team on +44 (0)115 947 5666

Closing date for registration is 24th March 2012 Smart Exporter is an international trade skills development programme designed to increase exporting skills and knowledge amongst Scottish businesses. This initiative is funded by Scottish Development International (SDI), Scottish Chambers of Commerce (SCC) and the European Social Fund (ESF).

the times | Tuesday March 27 2012

Futuristic museum a creative showcase

Professor Dario Alessi says his team at the Medical Research Council is a diverse talent pool from many countries

continued from page 9 Council’s (MRC) Protein Phosphorylation Unit (PPU) where 160 staff study the molecular basis of diseases including cancer and Parkinson’s disease. This generates ideas for drug companies “Some say we are a model for how academic research should interact with drug companies,” Prof Alessi said. “We do things more at cost. It’s an exciting way to translate our research and for recruiting talented people who want to work at the interface between industry and academic groups. My lab has 16 people and almost everyone comes from a different country. It’s a great strength of Dundee. We have 1,000 researchers in our building and they come from 70 nationalities.” Under the banner of the Division of Signal Transduction Therapy (DSTT), PPU’s collaboration with CLS and drugs companies — including GSK, Pfizer, AstraZeneca, and Boehringer Ingelheim currently — has been running since 1998 and is about to be renewed for another four years from July with more companies coming on board.” It is a remarkable length of time for

V Public art on Riverside Drive exemplifies the spirit of reinvention in Dundee such a collaboration to have run. “We were concerned that it might be hard to renew the agreement,” Alessi said. “So we were pleasantly surprised to find people queuing up.” One reason for drug company enthusiasm could be that each pays £500,000 a year but gets access to the technology and biochemical reagents stemming from 160 researchers as well as a response to requests for information. “It’s very good value for them,” Alessi said. “It’s a simple model. We just want to do science and help companies.” Scientists worldwide can also contact the PPU for technical advice. Alessi

hopes to set up a website making its reagents and expertise more readily available to not-commercial researchers worldwide if the paperwork involved in moving biological materials across relevant borders can be speeded up. “I think it would be good for Dundee. People would find out more about the science that we are doing and it might make them think about coming to work here in the future.” From a scientist who wants to be the Amazon.com of advanced drug research, to the prospect of offshore windmills being constructed along the waterfront, Dundee is changing for the future.

&A at Dundee is stepping up the pace of development as the dream museum moves towards reality. The core management team is in place. The business plan is being refined. In-house and outreach education programmes are under discussion. “In recent months we’re moved to implementation,” director Philip Long said. The futuristic museum will showcase Scottish design, creativity and innovation and generate commercial confidence and investment while underlining Dundee’s resources for developing business and for lifestyle. With £15 million committed by government, “significant progress” is being made toward achieving its £45 million target, he said. Other applications have been made to UK National Lottery and European Union funding sources. A campaign to raise funds from private sources, individual donors, trusts and foundations is developing. “Discussions are heartening,” Mr Long said. “There is real enthusiasm. Even in straitened

Philip Long says discussions over funds are heartening times, a project such as this can contribute to confidence and activity in many areas.” With an aspiration to open in 2015, regional business — retailers and wider industry — are being encouraged to consider how they can optimise the benefits. 500,000 visitors are forecast in the first year. V&A at Dundee and VisitScotland, the tourism agency, recently met local authority chief executives from neighbouring Perth & Kinross, Fife, and Angus to discuss those opportunities.

commErcial rEport: aBErtaY UNiVErSitY

Education for a global digital future With business opportunities and scientific challenges rapidly changing, the University of Abertay Dundee is taking a different approach to education

undee is transforming, driven by the ambitious V&A and Waterfront projects, a nimble and thriving computer games cluster, research excellence in life sciences, and a positive attitude of collaboration right across the city. Applied education, skills development and close links with the business community are at the heart of this progress, with the University of Abertay Dundee focused on giving graduates the ability to step straight into a business and be productive from day one. Increasingly, these graduates also look to start their own companies. One of Abertay’s core strengths is computer games education, with students travelling from across the world to study in Dundee. The university launched the world’s first Computer Games Technology degree in 1997, and today these students follow in the footsteps of the creators of Lemmings and Grand Theft Auto. “We’ve always taken a different approach to our education,” says Professor Louis Natanson, who leads

computer games education at Abertay University. “It started with the early courses, where we listened closely to what the local games companies needed. How they work really closely guided how we teach, and as the industry has changed so have our courses.” Abertay’s greatest claim to fame is that Dave Jones, who created global hits Lemmings and Grand Theft Auto, learned his programming skills there. Professor Natanson taught him and many of his contemporaries, who went on to change the world’s games industry from tiny offices in Dundee. Indeed, today many of those early pioneers now teach on the Abertay courses or mentor local young companies. “Computer games is a fascinating industry which is seeing major changes. In many ways, it’s coming back to its roots as a profession open to highly talented small teams,” Natanson adds. “Being able to build an iPhone or Facebook game and sell it yourself is an incredible shift in the market, which opens up huge new opportunities for start-ups – and for investors looking to

back the next Angry Birds.” That same technology is also being harnessed at Abertay to solve problems in cancer drug discovery, climate change and environmental science. Using high-powered games graphics lets scientists from different disciplines share their research visually, and engages policymakers by clearly communicating very complex data. Applied learning with a real social and economic impact doesn’t stop there. Local SMEs have been helped to cut their environmental impact through the ACE Eco-Partnerships initiative, which developed solutions to allow a company’s waste to be used for good by a neighbouring firm – such as for heat generation. Abertay is also home to the Urban Water Technology Centre, which carries out research and consultancy work on wastewater and environmental management, and the Food Innovation at Abertay service for food businesses looking to analyse and test products before they go to market. These centres are also complemented by the Scotland Food & Drink Skills Academy, which is hosted at Abertay. The academy was set up with the backing of the Scottish Government to provide the skills the nation’s multi-billion pound food and drink industry needs to keep growing. “Collaboration between different subject areas, and between the university and key industries like food and drink, has to be at the core of our

approach so we continue making a difference to our students’ lives and to the local and national economy,” explains Dr Nia White, Head of the School of Contemporary Sciences. “And to solve the serious scientific problems facing the world, we need creativity and experts from different disciplines all working together.”

Although a very modern university, Abertay’s roots lie back in the 1880s, when the then Dundee Technical Institute provided applied, industryfocused training for the local textiles industry. Today that same practical focus remains, even if the world has moved from jute to computer games. www.abertay.ac.uk