Multiple Directorships in Cambridge Hi-tech Cluster Implications for policy and research

This paper explores the significance of individuals and their particular assets of experience and networks, as the key influence to the growth process of the high technology cluster in Cambridge. There is substantial evidence that serial entrepreneurs may develop a high level of social capital and play an important role in shaping the formation of clusters in which they operate. Their multiple roles in venture creation; identifying new business opportunities, investing, mentoring, connecting new entrepreneurs with venture capitalists or angels, recruiting senior management and directors – lower the barriers to entry for new companies within a cluster. These individuals establish links between companies through which information can flow and contribute to the structural and relational social capital of the cluster. This research is expected to contribute to a better understanding of social capital and a means of quantitatively measuring the strength of social networks within a cluster. Quantitative analysis has been carried out to explore multiple directorships supplemented with qualitative information from interviews. The observations in this paper have significant implications for policy and future research to explore how policy makers might take into account the human aspects of business formation and success in cluster development.