By E. Raymond Corey
E. Raymond Corey examines six of the oldest, biggest, and such a lot seen R&D consortia in the United States. 3 serve the semiconductor and computing device industries, the place interfirm and overseas rivalries are extreme; 3 draw their club from regulated industries only in the near past topic to festival. Corey's comparative examine sheds gentle at the dynamics of consortium administration, exploring such concerns as challenge, organizational constitution, strategic making plans, expertise move, and management. as well as interpreting consortia as a special organizational shape, Corey considers the social, monetary, and criminal impression of consortia as assets of worldwide competitiveness.
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Extra info for Technology fountainheads: the management challenge of R&D consortia
Electronics industry . . 9 Three governmental studies were commissioned, one from the National Science Foundation, another from Congressional Research Services, and a third from the Congressional Budget Office. All favored the consortium initiative. In addition, numerous government departments were consulted, and the issue was widely debated in Congress. Federal legislation to approve government funding of SEMATECH was introduced on March 23, 1987, approved on December 18, 1987, and signed into law by President Reagan on December 22, 1987.
Each tended to specialize in one or two products. Profits in this segment of the electronics industry are marginal, due in large part to the need for heavy expenditures on equipment improvement and development. Semiconductor manufacturing equipment becomes obsolete on a three-year cycle. Investment risks are great, and equipment development costs often exceed a company's net worth. In addition, the chance of timing new product development to coincide with a window of opportunity, when customers are building new plants or upgrading existing Page 7 ones, is slim at best.
The former went from an approximately 40 percent share in 1988 to an estimated 51 percent share in 1995. In that year, the world market for semiconductor manufacturing equipment amounted to $31 billion. S. semiconductor manufacturers, including companies such as IBM, Intel, Texas Instruments, and National Semiconductor, went from a 40 percent world market share in 1987, the year of SEMATECH's founding, to 46 percent of the 1995 world market, estimated at $152 billion. 1), an achievement for which SEMATECH could take considerable credit.