Following the financial crisis of 2008, the UK government has set out new economic
priorities which include jobs and returns from investment in science and technologybased activity. In this paper we show that the Cambridge area already provides a
microcosm for such a future economy, one that it reveals both strengths and
weaknesses. Using longitudinal county-wide data on technology firms in Cambs, we
show that these firms have been resilient to recession over the past quarter century (as
compared with Silicon Valley) and achieved high survival rates until the past few
years. Cambridge tech firms are depicted in terms of size and sectoral distribution on
the eve of the credit crisis, using new data on serial spin out from the university as a
check on county-wide data. Larger firms showed a recent recovery in jobs and sales
after delayed impact from the technology slump of the new millennium. However a
fall in the number of start ups and firms in the smaller size groups is a cause for
concern, since it is from just such a pool that the more successful Cambridge firms
have emerged over the past three decades
