Supplementary report – Company Movements
Cambridge bucks national gloom as Government growth mission takes root
The UK Government’s bid to drive growth by doubling down on innovation hotspots is working – as a new study reveals Cambridge’s exceptional contribution to the national innovation economy. Green shoots of growth and market confidence seen in Cambridge contrast with the gloomier national outlook.
Today (Wednesday 27 May) Cambridge Ahead releases the Cambridge Economic Overview 2026 (CamEO26).
The first-of-its-kind study comes as Government backs the city region with proposals to create a Development Corporation and a doubling of infrastructure funding, within wider support for the Ox-Cam Growth Corridor.
CEO Dan Thorp argues that we now need to ensure that growth delivers benefits for all. The report sets out a series of recommendations, including accelerating infrastructure delivery plans in Cambridge.
The report draws on exclusive sources including the Centre for Business Research’s Cambridge Cluster Insights database and the Cambridge Ahead Pulse Survey of over 50 leading employers across the city region.
CamEO26 reveals Cambridge business sentiment is markedly more positive than national sentiment, and recent market signals suggest green shoots of higher growth are emerging.
- The quarterly Deloitte CFO Survey for Q1 2026 found that “business optimism among UK CFOs has fallen to a six-year low.” By contrast, the Cambridge Ahead Pulse Survey shows that 65%–75% of local respondents are likely or very likely to invest in R&D in Cambridge over the next 12 months.
- Local employers say Government policy is making a difference on the ground: over 80% felt that the UK Government’s commitment to the OxCam Growth Corridor has increased or maintained their business confidence.
- Analysis from JLL for Cambridge Ahead shows that office space values and take-up in Cambridge city centre have increased in late 2025 and early 2026 – with office take-up in Q1 2026 being the highest since Q4 2022.
The study demonstrates that Cambridge’s role as a national economic asset has become more pronounced.
- The Greater Cambridge economy has consistently outpaced national growth over the last decade. The local employment index of approximately 130 represents a lead of around 14 index points over the national average – a gap that has widened considerably since 2009.
- Analysis of equity investment in firms in UK cities shows that outside of London, Cambridge is by far the highest performing UK city for investment with 281 equity deals between 2020 and 2024.
- Station Road in Cambridge has more trillion-dollar tech companies than any other street in the UK, with NVIDIA, Apple, Amazon and Microsoft all now operating from this single road on the CB1 development.
The report also finds that Cambridge fuels knowledge economy growth in the East of England and beyond – with benefits felt beyond the Fens to Manchester, Sheffield and Bristol.
- In the decade to 2024 there were 54 knowledge-intensive firms that moved from Cambridgeshire and Peterborough to Suffolk, 51 to Hertfordshire, 37 to Essex, and 32 to Norfolk.
- Cambridge firms are expanding further afield as they grow – for example as firms like Pragmatic (headquartered in Cambridge) establish advanced manufacturing facilities for semiconductors in Durham, or firms like Arm (headquartered in Cambridge) establish further offices in Manchester, Sheffield and Bristol.
The findings emerge as Cambridge hits another growth milestone, creating its 27th unicorn company as battery technology start-up Nyobolt reached a $1bn valuation.
At the same time, several marquee global firms have announced major investment into the city recently. AVEVA announced the creation of 500 extra technology jobs in Cambridge in early May, AstraZeneca announced a £300 million UK investment including Cambridge, and it was confirmed that NVIDIA will be establishing a presence on Station Road in Cambridge.
Dan Thorp, CEO of Cambridge Ahead, said:
“Cambridge is the most intense innovation cluster in Europe, it is the UK’s most innovative city, it is a net contributor to the Exchequer, and so rightly Cambridge is a focal point for Government’s growth mission.
“The findings of our first Cambridge Economic Outlook show that the Government’s focus on innovation clusters such as Ox-Cam is paying off, creating a ripple-effect of innovation, jobs, and growth across the UK. Cambridge’s exceptional economic fundamentals, boosted by Government’s focus, have led to green shoots of the national growth mission showing up in Cambridge.
“The focus now must be on delivery and catalysing growth: turning ambition into action, investing wisely and at pace, and ensuring Cambridge remains a great place to do business, live and work. The Cambridge ecosystem is mobilised and ready to work with national and local Government to respond to these needs.”
Paul Bristow, Mayor of Cambridgeshire and Peterborough, said:
“These findings come as Cambridge Science Park announces a £3bn expansion and homegrown business Nyobolt marks a billion-dollar valuation – our region’s 27th ‘unicorn’. Our economy is outperforming the country and that matters locally and nationally.
“But we can’t take it for granted. The report’s recommendations are clear: upgrade our infrastructure, make sure more people share in the benefits, and give us the local flexibility to fund our own growth ambitions.
“Mass rapid transit, East West Rail, a dualled A10, an upgraded Ely junction and Cambridge South opening next month are examples of the scale of investment we need. Without it, we risk holding back one of the country’s greatest economic assets.
“This is exactly why our Local Growth Plan sets my target to triple the size of the economy. We should be bold, we should be ambitious — and my job is to keep making that case locally and nationally to deliver the investment we need to keep that success story going.”
Cllr Lucy Nethsingha, Leader of Cambridgeshire County Council, said:
“The Quality of Life Survey helps us understand what matters most to residents and where we can make the biggest difference. It allows us to track progress, respond to emerging challenges, and focus our efforts where they are needed most.
We’re proud of what we’ve achieved so far, but we know there is more to do. By building on this strong evidence base, we will continue working towards safe, supportive communities and a healthier, fairer and more sustainable Cambridgeshire for everyone.”
Peter Freeman, Chair of the Cambridge Growth Company, said:
“Cambridge is one of the rare places where world-class science, industry, and talent sit within walking distance, creating an environment where collaboration is almost inevitable. Its intensity of research and openness to do business is extraordinary for its size.
The investor market is alive to opportunities in AI and deeptech, in which Cambridge has immense expertise. The city is in a unique position to lead the convergence of these disciplines, accelerating the kind of breakthroughs that have defined this city for generations.”
Paul Williamson, SVP Strategic Ventures, Arm said:
“Cambridge is one of the UK’s most globally significant innovation ecosystems. The Cambridge Ahead data highlights the strength of its knowledge-intensive sectors, advanced technology industries, and globally connected innovation economy.
“For companies like Arm, long-term success is closely connected to the long-term success of the wider Cambridge community. Developing Cambridge as a vibrant, inclusive and sustainable place to live, work and raise families is essential to attracting and retaining talented people from across the UK and around the world. Continued support for housing, infrastructure, education, transport and connected innovation clusters will help ensure Cambridge continues to create opportunity, prosperity and innovation for the UK as a whole.”
Kevin Lee, CEO Bicycle Therapeutics, said:
“Bicycle Therapeutics was founded in Cambridge. The city’s fundamental strengths create the perfect environment for innovation-led growth, showing remarkable resilience through economic shifts. We’ve leveraged its world-class talent, research intensity, and supportive ecosystem to scale our business. For a company looking to innovate and grow, Cambridge provides the ideal conditions for success.”
Henri Murison, Chief Executive, Northern Powerhouse Partnership said:
“The places in the country with the highest productivity growth, not least Greater Manchester, have had a consistent focus on developing their innovation ecosystems. The success of Cambridge in creating UK unicorn companies in frontier sectors and attracting global innovation giants to invest in the UK is not zero sum.
“The fact that government has chosen to back two major growth corridors in the UK is recognition of the fact that national growth policy needs to be led by how entrepreneurs and investors see it; improving the chances of creating high-value jobs in future-facing sectors through a concerted industrial strategy in places willing to do what is needed to grow, including deepening collaboration across clusters”.
Recommendations
The report puts forward a series of recommendations to unlock the good growth potential of Cambridge over the long term.
- Accelerate infrastructure delivery plans to unlock and accelerate strategic growth sites for housing and commercial space.
- Confirm powers and remit for the Development Corporation as soon as possible – including provision for the Development Corporation to raise private finance and reduce Cambridge’s reliance on the public purse to fund major infrastructure.
- Unite around and invest in pathways for young people from disadvantaged backgrounds into employment and fulfilling careers.
- Align infrastructure and spatial development plans for the region – led by the Cambridgeshire and Peterborough Combined Authority, working across authorities and providers.
- Include Cambridge in Government’s priority areas for fiscal devolution –fiscal devolution here would create a game-changing shift away from reliance on national Government to fund growth interventions and support local quality of life.
- Double down on national growth mission policies to enhance the competitiveness and global positioning of the UK, including setting and monitoring baseline expectations building on the Mansion House Accord, accelerating the delivery of Nova (the UK’s equivalent of the French Tibi investment scheme), and making the Global Talent Visa more workable for employers.
