Microsoft word - case sessi-12 ifc-acoplasticos-csem.doc

Institutions for Collaboration : Overview, HBS case : N9-703-436 Association Colombiana de Plasticos (Acoplasticos), HBS case : N9-703-437 Centre Suisse d’Electronique et de Microtechnique (CSEM), HBS case : N9-703-438 1. What role has the Association Colombiana de Industrias Plasticas (Acoplasticos) played in the competitiveness of the Colombian plastics and rubber cluster? How has the role of Acoplasticos changed since the early 1980s? Garay, executive director of Acoplasticos, articulated a new direction for Acoplasticos. First, the organization would expand the scope of its membership and activities to include additional industries associated with the plastics manufacturing value chain. Second, Acoplasticos would shift the nature of its activities toward improving the productivity of the entire chain, with particular emphasis on upgrading technology and human resources in the cluster. Acoplasticos has shifted its focus in early 1980s toward improving the productivity of the Colombian plastics and rubber cluster, encompassing not only plastics and rubber producers but also certain petrochemical, man-made fiber, paint, and ink industries. Acoplasticos spearheaded the creation of a nonprofit technology center, the Instituto de Capacitacion e Investigacion del Plastico del Caucho. (Institute for Training and Research in Plastics and As Acoplasticos was finalizing preparations for the ICIPC in 1992, it commissioned a strategic analysis of the international competitiveness of the Colombian plastics and rubber cluster. The project not only improved Acoplasticos ability to formulate appropriate activities for improving the cluster’s productivity and competitiveness, but also developed its skills in assessing changes in the cluster’s needs over time. During 1990s, Acoplasticos was considered one of Colombia’s most successful industry associations. Acoplasticos “active” affiliate members – firms that manufactured all or part of their production in Colombia – accounted for approximately 66% of national output of the plastics and rubber cluster. The association’s membership also included “adherent” affiliates that were suppliers of equipment, raw materials, or support services whose production facilities were located entirely outside Colombia. Acoplasticos membership did not include Colombian state-owned enterprises such as Ecopetrol. In 2002, Acoplasticos was engaged in a number of government forums. The Association worked to eliminate remaining tariffs on critical imports of equipment and raw materials, while at the same time seeking to reduce barriers to its exports in foreign markets. Acoplasticos was active in the area of environmental improvements without imposing undue hardships on firms in the cluster. Representatives from Acoplasticos had been appointed by the Colombian government to serve as members on the board of directors of a number of public institutions, including the Colombian Central Bank, the National Planning Council, Proexport (non-traditional export promotion agency), and the Bogota Regional Planning Acoplasticos had signed acuerdos de competitividad (Competitiveness Accords) with the Colombian government in 1998 and 2001. Acoplasticos maintained extensive databases on the plastics and rubber industry associations abroad to create cooperative programs in technology development, training, and environmental responsibility; represent common interest in global political forum ; and develop benchmarking and best practice programs. 2. What role has the Centre Suisse d’Electronique et de Microtechnique (CSEM) played in the competitiveness of the affected Swiss industries? CSEM’s primary mission at the time of its creation in 1984 was defined as promoting the sustained growth of the Swiss electronics and micro-technology industries through advances in new technologies and products CSEM shifted its focus to fields that leveraged its know- how in micromechanical engineering to develop miniaturized devices for non-watch products such as integrated systems and sensors. In addition, the center began to conduct research on new applications of micro-technology for microsurgical apparatus and instruments, micro- motor, plastic and machined component, altimeters, printer heads, electrical connectors, and How has CSEM’s role evolved? Is it effective? CSEM began to diversify its research activities. Research in mechanical watch-making had become increasingly irrelevant since Swiss manufacturers specialized in the premium segment using well established, traditional technologies. CSEM also diversified its revenue sources, to expand its overall financial resources and reduce its dependence on the Swiss federal What strategic recommendations would you make to CSEM leadership in early 2002? CSEM employed 270 people directly in its own facilities in 2002, while an additional 350 employees worked in the for-profit spin-off companies. CSEM maintained close links to several Swiss universities, including the Swiss Polytechnic Universities of Zurich and Lausanne and the University of Neuchatel, whose, Institute of Micro-technology was partially located on CSEM premises. Some of the center’s scientific staff held joint appointments at a partner university. CSEM and its affiliated researchers were publishing over 100 academic articles annually by 2000, and one of its recent engineering successes was reported as an important breakthrough in the respected British journal Nature. CSEM also participated in international research initiatives – in particular in EUREKA, the pan-European network for market-oriented, industrial R&D. CSEM’s employees often worked closely with R&D, production, and marketing teams from client firm. CSEM also produced specialized devices 3. Why do institutions for collaboration exist in market economies? Why can’t their activities be performed as effectively by firm or by government entities? Institution moved increasingly toward the commercialization of its applied research, it required significant capital infusions to finance investment in production, marketing, customer service, and on-going product improvements. Their activities can’t be performed as effectively by firm or by government entities because government entities, which focus on research support, were unlikely to provide capital for such investments. 4. Why might the incidence, role, and effectiveness of institutions for collaboration differ in advanced economies versus developing economies? The international environment was also highly uncertain as the advanced economies teetered on the brink of recession. In advanced economies the institution for collaboration, strategy is necessary, to developing economies, research activities is necessary.

Source: http://www.insteps.or.id/kuliah/Microeconomic%20for%20Competetiveness%20-%20Porter/Case%20Sessi-12%20IFC-Acoplasticos-CSEM.pdf