“Who even knew we had one?” The GTA’s microelectronics industry and the role of non- market governance Prepared for: The 7 th ISRN Annual Conference, Toronto,

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Presentation transcript:

“Who even knew we had one?” The GTA’s microelectronics industry and the role of non- market governance Prepared for: The 7 th ISRN Annual Conference, Toronto, May 5-7, 2005 Tijs Creutzberg Ph.D. Candidate, Department of Political Science, University of Toronto

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)

Two types of governance Framework governanceStrategic governance Primary actors National / regional governments Industry Associations Civic entrepreneurs Municipal / regional governments University 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

Two types of governance 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

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

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

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’

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

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

…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

Summary: A GTA Model? Observations Federal government less involved No local uptake – local strategic coordination is weak Governance network Weak linkages between various nodes of actors Multilevel – though little coordination No regional focus Localizing dynamics do exist: Engineering professors Municipalities Transition point?