We need more 'Imagination'

(By Richard Holway 9.00am 23rd June 09) If you need cheering up about the state of our nation right now, you should read Apple and Intel buy Imagination stakes in today’s FT. Here is a story about a British company producing a world-leading product – graphics chips for smartphones, TVs and iPods. Their customers include Nokia, Samsung, Sony and Motorola. Indeed its two biggest customers – Apple and Intel – have just taken small stakes in Imagination Technologies in order to safeguard future supply. Neither company said they were considering an outright bid as they recognized that Imagination both wanted and would operate better with its independence intact.

The UK really does have a great record in this kind of innovation (eg ARM – with which Imagination has similarities) In the past, we seem to get to this stage and then the company gets bought. First step after that is the R&D gets switched to the US or Japan or wherever. I have bored you many times with my plea that where a company is HQed really matters. Like a honeypot, it draws in everything from university research, graduate jobs and venture capital through to legal and accounting services.

I suppose you could say that what the UK needs right now is more ‘Imagination’.