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Transcript
SEMATECH & Semi-Gas Objectives: Explore Consortium criteria Examine Business R&D management practices Lessons for effective public influence Consortium Criteria Cost sharing - must motivate tradeoffs all qualified players must be admitted common objective - research - manufacturing long term objective -- Return on Investment Consortium Criteria Expectations - do all members have to have the same expectations? - it helps! Working relationship between members who are also market competitors targeted market: existing or expanding? Consortium Criteria Legal implications - patents & licenses - anti-trust considerations Consequences of Pooled R&D resources - collective investment has greater yield than the sum of the parts - or lowest common denominator Business R&D Management Focus on: - product innovation - product improvement - process innovation - process improvement Budgeting for R&D - % of sales; expenses; or revenue - apportioned to products or cost Business R&D Management Application to product/process National Semiconductor criteria - product must be #1 or #2 in market - gross margins of at least 40% - product needs to generate at least 15 times the R&D cost Business R&D Management Consequences of Consortium participation industry contribution based on: - number of members - % of sales - assignment of personnel (cost?) Public Influence Active participant: - Absent government involvement, what is the consequence? - will government involvement change market condition? Public Influence Active or passive participation: clearly establish goals define “success” what new market demand is expected to emerge or will longer term public financial support be required Public Influence Government as active or passive participant: how is the level of public support determined -- direct funding -- tax advantages -- regulated market Public Influence Active or passive participation: Contractual cost sharing membership exemptions/criteria define the government role consortium requires industry leader: how will the leader be selected? “Sun-set” clauses Conclusion Consortium criteria Business R&D Management implications Effective Public Influences SEMATECH Epilogue National Semiconductor and 2 other members discontinued financial support Consortium permitted them to stay anyway Goals changed in SEMATECH II to semiconductor manufacturing process improvements Public financial support ended in 1996