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

The absence of a centralized body/institute to promote innovation across allmanufacturing firms in the cluster is making innovation a firm specific activity –due toreasons such as specific requirements from the customers, expansion/growth plans ofthe firm and so forth. Reducing procedural delays to utilize existing grants andproviding more incentives will further develop the innovation. Creating increasedawareness programs about various grants and incentives available through governmentpolicies, both at the state and national level to all the manufacturing firms cansignificantly boost the innovation.3.5.6. ConclusionFrom the Kontron perspective current market situation is encouraging with stablevolumes across all its products and about 15% growth is expected in technologiescatering to automation and telecom industries. Key issues in Penang cluster that arehelpful for innovation activities are – participation of its global customers and localsuppliers in their innovation activities, and availability of highly skilled human capital,and good infrastructure. At the national level, provisions made by the MITI and MIDAministries and in general the stable political situation is deemed useful.3.6. Case #6 - XYZ (in SDD Sector)XYZ (SDD Sector) designs, develops, manufactures and markets custom andopen-standard memory solutions based on Flash memory and DRAM technologies, andexternal storage solutions. The company was founded in 1990 as XXX Technology andchanged its name in 2001. Further, it changed its name to XYZ (SDD Sector), Inc. inMarch 2007. The firm is headquartered in Santa Ana, California and set-up firstSouth-East Asian manufacturing site in Penang, Malaysia in 2006.XYZ (SDD TECH.) Penang has a new facility built on 10.5 acres of land, of which6 acres are currently utilized. The plant currently has a built-up area of 210,000 sq feet119