Cambridge becomes Bill Gates' showcase

Gates opens MS research in UK city of excellence to develop threat toSilicon Valley.

The UK IT industry has reacted positively to the news that Bill Gates is to set up a research centre in Cambridge to rival California's Silicon Valley.

"It's great news. It is a major endorsement of the capabilities of the IT industry in this country from the world leader in this field," said Bob Jones, networking entrepreneur and ex-3Com.

The news follows a slamming of the state of the UK industry by Robert Madge, who said the UK was "too small a market to set a new technology trend", and criticism by Jones that cynics should "stop putting the boot in and start putting the loot in".

Though it took an American to do it, Jones believes the move should not be dismissed. "Let's not be negative about it," he said. "We shouldn't look a gift horse in the mouth."

David Barrett, corporate communications director at UUnet Pipex, which is based in Cambridge Science Park, said: "If Microsoft is coming to Cambridge, it's to join the party - it's been rocking for some time.

"It's great news, because Cambridge will be further recognised as an important technology centre.

We'll be closer to bettering Silicon Valley rather than imitating it.

"We've heard that it will be a research and development centre focusing heavily on the Internet, so there is likely to be a lot of synergy with UUnet," he added.

Andrew Bryant, investment analyst at Natwest Securities, said: "Any cash injection in terms of technology research in the UK is a good thing - it has been quite starved."