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

co-develops products and also uses academic journals in the area of its research. Asecond local player had developed linkages with independent / free lance researchers inEU as its important source in addition to their office in USA being a base forinformation for innovation. One of local firms which has internationalized - has regularintra-group seminars / conferences. All the firms depend heavily on customers as themajor source of information for driving innovation.4.3. Collaborations /Cooperation IssuesThere appears to be no explicit collaboration for innovation among most of thefirms. Most of these are ‘internal’ R&D centre set up specifically – collaboration ismore with suppliers or customers. One of the MNCs (A European one) mentions stronglinks with 4 key (Japanese and Taiwanese) suppliers – that they support and co-developkey components with these key partners. One of the large local firms mentioned thatmost of the design and development activity was not only for customer – but was alsodone as co-development with customers including signing deals for joint IP rights.Local firms talk about cooperation with suppliers or customers as they maincollaborative activities.4.4. Linkages (within Penang and outside Penang) for Innovation.One of the key institutions in Penang with which all the firms have some form ofassociation is the Penang Skills Development Corporation (PSDC) – which is creditedfor training operators needed for the manufacturing part of the firm and now traininghigher level skills personnel for the Design function also – and in addition providingsome facilities for testing. Linkages with universities within / near the cluster aregenerally for student internships and they are seen as suppliers of manpower. An MNC(involved in consumer electronics) has stronger links with the University for accessingservices (including testing and analysis work). Dispatching or acceptance of technical132