CPSA 2005 Scalar Dimensions of Non-Market Governance in Knowledge Economies A look at the microelectronics industry in the Greater Toronto Area Prepared for: 2005 CPSA Annual Conference June 2-4, 2005, London, ON Tijs Creutzberg Ph.D. Candidate Department of Political Science University of Toronto CONTEXT INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Theoretical Context Re-scaling of the economy (e.g. Swyngedouw 2003, Jessop 1994) Change in relative importance of economic institutions Subnational institutions more prominent Economic communities (e.g. Henton 1997) INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Two types of governance INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION Framework governanceStrategic governance Primary actors National / regional governments Industry Associations Civic entrepreneurs Municipal / regional governments Local professors Regional / technology associations Initiatives Trade agreements Innovation support programs Funding of basic research R&D tax credit Higher education Localizing R&D facilities & knowledge investments Strategic business recruitment / retention Curriculum development at local institutions Strategic planning Technology commercialization support Governance patterns Policy networks Policy communities Community-led, socio-economic governance networks

CPSA 2005 Two types of governance Framework governanceStrategic governance Primary actors National / regional governments Industry Associations Civic entrepreneurs Municipal / regional governments Local professors Regional / technology associations InitiativesTrade agreements Innovation support programs Funding of basic research R&D tax credit Higher education Localizing R&D facilities & knowledge investments Strategic business recruitment / retention Curriculum development at local institutions Strategic planning Technology commercialization support Governance patterns Policy networks Policy communities Community-led, socio-economic governance networks INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Geography of fabless microelectronics 1QualcommUS16Silicon LaboratoriesUS 2NvidiaUS17RealtekTaiwan 3BroadcomUS18SSTUS 4XilinxUS19PMC SierraCanada 5MediaTekTaiwan20ICSUS 6ATICanada21LatticeUS 7SanDiskUS22ZoranUS 8AlteraUS23Genesis MicrochipCanada 9MarvellUS24SMSCUS 10ConexantUS25ZarlinkCanada 11VIATaiwan26AliTaiwan 12QlogicUS27Cirrus LogicUS 13GlobespanVirataUS28ESSUS 14SunplusTaiwan29DSP GroupUS 15NovatekTaiwan30SemtechUS Leading Fabless IC Suppliers by revenue, 2003 Source: IC Insights, 2003 INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 The Greater Toronto Area at a glance Lake Ontario Source: GTMA Population:5.3 million Span:5 regions, 29 municipalities, ~7,000 Km 2 Gross regional product:$US109 billion Labour force:Over 2 million; 60% has completed some post- secondary education IT firms / facilitiesOver 3300 IT employment148,000 INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Early strategic efforts 1950s-1970s Key actors Federal government (DOD, DTIC) The University of Toronto Multinationals Initiatives – government partnerships with chosen firms Technology procurement Navy / Ferranti – DATAR tracking system Technology development DTIC / CDC - computers Multilevel dimension National engagement of local (Toronto based) actors National leadership – ‘moral persuasion’ INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Strategic initiatives in 1980s-1990s Key actors Federal (DTIC, Granting council) Provincial government The University of Toronto Initiatives – capability hubs Microelectronics Development Centre Canadian Microelectronics Corporation University based centres of excellence – Micronet / CITO Multilevel dimension Ad hoc, fixed-term support No long-term strategy A mix of local and supra-local leadership INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Contemporary strategic governance: more of the same only less… Retrenchment of the federal government – Micronet “the federal government thought microelectronics was done” Disengaged local associative system No strategic outlook Competitive Traditional – lobbying, information providers INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 …though with some signs of a strengthening local dimension Toronto City Summit Alliance Toronto Region Research Alliance Department of Electrical and Computer Engineering City of Toronto Toronto Competes Markham Innovation Synergy Centre INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION

CPSA 2005 Conclusion Strategic governance has been a key variable in explaining the GTA’s microelectronics industry Helps localize resources in the creation of knowledge assets Adapts infrastructure to evolving industry needs The organizational structure of this governance has changed significantly… …but is there a GTA model? No local uptake – local strategic coordination is weak Weak linkages between various nodes of actors Multilevel – though little coordination No regional focus Localizing dynamics do exist: Engineering professors Municipalities Transition? INTRODUCTION CONTEXT TYPOLOGY INDUSTRY STUDY REGION HISTORY CONTEMPORARY CONCLUSION