E. Raymond Corey - Technology fountainheads: the management challenge of R&D consortia

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title	:	Technology Fountainheads : The Management Challenge of R&D Consortia
author	:	Corey, E. Raymond.
publisher	:	Harvard Business School Press
isbn10 | asin	:	0875847234
print isbn13	:	9780875847238
ebook isbn13	:	9780585164830
language	:	English
subject	Research, Industrial--United States--Management, Research institutes--United States--Management, Consortia--United States--Management.
publication date	:	1997
lcc	:	T176.C597 1997eb
ddc	:	658.5/7/0973
subject	:	Research, Industrial--United States--Management, Research institutes--United States--Management, Consortia--United States--Management.

Page iii Technology Fountainheads The Management Challenge of R&D Consortia E. Raymond Corey

Page iv Copyright 1997 by the President and Fellows of Harvard College All rights reserved Printed in the United States of America 01 00 99 98 97 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Corey, E. Raymond. Technology fountainheads : the management challenge of R&D consortia / E. Raymond Corey. p. cm. Includes index. ISBN 0-87584-723-4 (alk. paper) 1. Research, IndustrialUnited StatesManagement. 2. Research institutesUnited StatesManagement. 3. ConsortiaUnited StatesManagement. I. Title. T176.C597 1997 658.5'7'0973dc20 96-11016 CIP The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984.

Page v Dedication This book is dedicated to the Honorable Joseph C. Swidler, chairman of the Federal Power Commission from 1961 to 1965, whose vision inspired the founding of the United States' first R&D consortium, the Electric Power Research Institute; and to Dr. Chauncey Starr, EPRI's first chief executive officer, who laid the foundations for a technology institute of enduring value to the electric power industry and to the nation.

Page vii Contents Preface ix 1 SEMATECH's Success 1 2 Consortium Formation: Vision. Mission, and Leadership 29 3 The Politics of R&D Planning 57 4 Consortium Strategy 73 5 Technology Transfer as Marketing 93 6 R&D Consortia in the United States, Japan, and Europe 109 7 In Theory 129

Page viii 8 Conclusions 147 Appendix R&D Consortia: A Member's Perspective 161 Notes 165 Index 177 About the Author 187

Page ix Preface Recently, having devoted my career to teaching and writing about for-profit businesses, I became interested in learning about the management challenges of nonprofit organizations. I chose to focus on R&D consortia. Such institutions have played an important role in European economic development, and have contributed significantly to Japan's rise in the world market for semiconductors, starting in 1976. R&D consortia began to emerge in the United States in 1973, with the founding of the Electric Power Research Institute. These collaborative ventures took as their mission the advance of technology in entire industries. In a nation such as this, with an economy built on free market principles and competition, such a development seemed a departure from the tenets that have contributed to our high standard of living and our leadership role in world markets. A closer look, however, has persuaded me that the rise of R&D consortia in the United States signifies not the muting of interfirm rivalry, but progress toward a more sophisticated concept of global competition. It seems abundantly evident, too, that R&D collaboration among firms, with the government's participation, has accelerated market growth in the United States and added to our strength, if not supremacy, in global business competition. R&D consortia interested me in another respectthat is, the particular challenges of managing such institutions. What I have learned is that the problems and requirements of effective consortium management differ significantly in degree from those of private enterprise, for three reasons. First, each consortium has a plethora of internal and external stakeholders to satisfy. Second, most are deeply involved with government agencies, ranging from state and federal regulatory agencies and administrative departments to the United States Congress. Third, unlike private enter-

Page x prise, the owners of consortia are the clients. Taken together, these factors put constituency management at the very heart of the challenges confronting R&D consortia leadership.

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