“Footloose” or Hi-Tech Industry • Returning to Manufacturing Industry Orientation: (1) resource - tr. costs - product < inputs (2) market - tr. Costs - product > inputs (3) “footloose” - two situations: (a) transport costs are a small share of value (b) they are balanced in
“Footloose” or Hi-Tech Industry. Returning to Manufacturing Industry Orientation: (1) resource - tr. costs - product < inputs (2) market - tr. Costs - product > inputs (3) “footloose” - two situations: (a) transport costs are a small share of value - PowerPoint PPT Presentation
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“Footloose” or Hi-Tech Industry
• Returning to Manufacturing Industry Orientation: (1) resource - tr. costs - product < inputs
(2) market - tr. Costs - product > inputs
(3) “footloose” - two situations:
(a) transport costs are a small share of value
(b) they are balanced in product & inputs
• Footloose at startup vs. later in firm life-cycle
• High-tech as footloose industry
• Alternative definitions of high-tech (coming)
“Industry” as a set of equivalent products versus similar productsExamples - Product - LocationBoeing aerospace Seattle area
PACCAR trucks Seattle area
Intermec bar-code equipment Mt. Terrace
Fluke Corp. measuring instr. Everett
Quinton Instru. Medical eq. Seattle
Micron chips/computers Boise
Physio Control medical electronics Redmond
Tektronix electronic eq. Portland area
Microsoft diversified CS Redmond
Columbia Machine concrete block eq. Vancouver
Attributes• Product Diversity
• Most are small firms• Many are indigenous, but in Oregon there is a significant
FDI presence• Role of incubators - existing firms & formal institutions (e.g. Fluke Hall on campus- UW Center for Commercialization’s New Ventures Facility & Washington Nanofabrication Facility)• Locational determinants - founders & employee preferences• University linkages
Rapidly Changing Product Cycles
• Frequently rapid changes in product and process technology
• One result - mergers, acquisitions, deaths, and new startups