Chapter 3 Linkages for Fostering Innovation Activities – Case ... - ERIA

good infrastructure have also played role for Kontron to continue and expand itsmanufacturing and R & D (product development).3.5.2. Types of Innovation and Motivations for InnovationThrough its continuous/incremental research and development process, Kontronmain motivation for Innovation is to create major competitive advantage for customersthrough a significant reduction of time to market and costs. Most of the innovations areto both improving the existing products and developing new products for its globalcustomers. The product innovations include to access new markets for the firm. Processinnovations such as those adhering to the ROHS (EU standards for use of hazardousmaterials) have also helped in innovation involving new materials. Process innovationsinclude those to cut operation costs – developing new business processes.3.5.3. Key Drivers and Support For InnovationA significant driver for Innovation at Kontron is the support from within theorganisation a supportive CEO for R&D activities is attributed. Specific requirementsunique to its global customers and compliance to new regulatory systems (such asROHS) in counties are other important source. At the regional level, PSDC, the clusteruniversity USM and its involvement with Rozattanet organisation are key institutionsthat have helped in move up from manufacturing to design activities. Kontron has morethan 1000 engineers across its R&D centres around the world with varyingcompetencies offering in-house capabilities and this link to its group R&D facilitiesaround the world is another important support element. Global customers and localsuppliers in the cluster are significant source of information for new design ideas atKontron.3.5.4. Linkages or Collaborations117