Why on earth would a hi-tech company consider moving from the epicentre of the world's technology industry to a quiet corner of the UK?

The convert's view

Bob Basore has a simple and unexpected answer.

“I believe there's nowhere better in the world for us to be. People here want to succeed, and they back up that desire with all the energy and drive we could wish for.”

Basore is CEO of Ealing Catalog, a specialist optical equipment firm based in Northern California.

In June 2005, the company opened its first overseas sales and distribution centre in rural North Wales.

The culture of clusters

Though rural, the area is a global centre of the niche industry of optoelectronics, aka optronics – around 40 companies are clustered there.

One of the big draws for Ealing Catalog, says Basore, is the business ethic of his new neighbours.

“All the companies here want to succeed together and so do the scientists. There's a solidity and thoroughness we've experienced in Wales, which is refreshing.”

“It's a different culture to what I'm used to, because in California business tends to be about going for the fast buck.”

A commitment to nurturing business

The UK's regional development agencies (RDAs) are committed to developing hi-tech clusters.

In Wales, a practical result has been the creation of eight business incubation centres called 'techniums'.

Ealing Catalog's new centre is based at OpTIC Technium in St Asaph, Denbighshire, which is near the heart of the cluster.

As well as business support services and affordable premises, companies have access to world-class R&D facilities – facilities which would be prohibitively expensive to develop themselves.

The right support

“When we first met the Welsh Development Agency, they were really enthusiastic about us being part of OpTIC Technium” says Basore, “and since then they've made things happen very quickly.

“We were totally taken by surprise. We've never had that level of support from the equivalent organisations in the US.”

What about the workforce?

Labour costs in the UK are generally lower than among its major competitors, but Basore stresses that it was attitude, rather than cost, that most attracted his firm.

“The workers we have met here are loyal to their companies. They want to help build successful long-term ventures, rather than looking for the next move.

“After California, that also took us by surprise.”

Europe's super-growth capital

Ealing Catalog's move to Wales coincided with an international survey by accountants Grant Thornton, which found that the UK has the highest proportion of 'super-growth' companies in the EU and the fourth highest in the world.

Basore believes the new opportunities will allow his company to join their ranks.

Working together to realise potential

It's already developing new products with one of its neighbour companies and with scientists at the local University of Bangor.

He predicts 300 to 500 per cent growth over the next two or three years, by which time the company should be employing up to 50 people in North Wales.

Ultimately, he may move the company HQ to the area.

With the zeal of a convert, he says, “This success story is not accidental. It's the result of everyone – the development agency, the local industry and academics – really pushing to be the best.”

UK Business Incubation

Welsh Development Agency