Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Key factors for R&D development : The role of Catania University and STMicroelectronics

Carmelo PapaCarmelo PapaCorporate Vice PresidentCorporate Vice President

Emerging Markets General ManagerEmerging Markets General Manager

20 March 2004

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

International Workshop

•Introduction

•Key factors for development

•The case of South Korea

•Public and private research

•ST at a glance

•ST in Catania

•Conclusions

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

STMicroelectronicsa global semiconductor company

14 %North

America

27 %Europe

5 %Japan

44 %Asia Pacific

10 %Emerging Markets*

2003 Sales : US$ 7.24 billion

2002 Sales : US$ 6.32 billion

over 44,500 employees

17 main production sites

16 advanced R&D centers

39 design and application centers

88 direct sales offices in 31 countries

* Eastern Europe, India, Africa, South America, Middle East

Sales by region % of 2003 sales

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Key Factors for development

• Infrastructures Airports, roads, ports

• Government policy Financial support, availability of investment agency

• Local R&D activity Universities, Research Entities

• Human resources Education system

• Local specialization Presence of small, medium and large enterprises

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

THE PROGRESS OF THE NATIONS

GNP / Pro Capite (US $)

1998 Index

1963 1988 2002

Italy 860 $ 48 13330 $ 100 25000 $ 123

USA 3280 $ 67 19840 $ 100 37600 $ 125

Singapore 291 $ 18 9070 $ 100 24000 $ 174

South Korea 127 $ 19 3600 $ 100 19400 $ 350

GNP Pro Capite is in current dollars.The index takes into account the inflation, therefore it gives a better indication of the welfare of the nations than the GNP / pro capite

Source: 2002, 1988 : The world Almanac; 1963 : Enciclopedia Geografica Garazanti ; Inflation : Financial Times

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

3,50%

Svezia

Finland

ia

Giappo

neUSA

German

ia

Belgio

Danimarc

a

Austria

Franc

ia

Olanda

Eu (15) UK

Irland

a

ITALIA

Grecia

Spagna

Portoga

llo

0,00%

0,20%

0,40%

0,60%

0,80%

1,00%

1,20%

Finland

ia

Franc

iaUsa

German

ia

Olanda

Svezia

Danimarc

a

Eu-15

Spagna Uk

Giappo

ne

Portoga

llo

Austria

ITALIA

Belgio

Grecia

Irland

aLu

x

Public R&D ExpensesGNP/HEAD

Private R&D ExpensesGNP/HEAD

Source: Eurostat 2002

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Source: ISTAT 1997

(M€)

Private Public

NORTH 5701,68 3181,37SOUTH 495,80 2096,81

SICILY 30,47 294,38

Research in Italy

SARDINIA 14,4 148

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Permanent Effort for R&D

CR&DLocal center

Berkeley

San Diego Phoenix

Ottawa

Carrollton

BristolTours

RoussetNoidaCatania Agrate

Castelletto

Crolles, GrenobleGeneva

Brussels

ST R&D at a glance• 1022 M$ in 2003 (16 % of sales)• 7500 people worldwide• 3800 people in Central R&D• 3000 CAD seats• 2 main VSLI development centers• 14 local technology/design dedicated centers

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Research activity in Catania43 projects with Universities and others entities

(L.297/99 ; L.488/92 ; 5°- 6° FW EU)

ST 142 M€

extra-muros 6 M€

Others enterprises 39 M€

Universities and other public entities 25 M€

TOTAL COST 206 M€

Universities, CNR, etc

Enterprises

ST extra-muros

ST YTD: December 2003

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

IMM Cataniaex IMETEM

IMM Lecce ex IME

IMM Romaex PSM

IMM Bolognaex LAMEL

IMM Napoli ex IRECE

Academic Research inside ST Catania

CNR IMMCNR IMM

SUPERLABSUPERLAB

CATANIA UNIVERSITYCATANIA UNIVERSITY• DIEES DIEES AutomationAutomation• DIEES DIEES RF ADGRF ADG

I.M.M. Headquarters Catania coordinates- Ex IMETEM Catania- Ex IME Lecce- Ex PSM Roma- Ex LAMEL Bologna- Ex IRECE Napoli

I.M.M. Headquarters Catania coordinates- Ex IMETEM Catania- Ex IME Lecce- Ex PSM Roma- Ex LAMEL Bologna- Ex IRECE Napoli

Total floor area over 1000 m2

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Employees with a Degree STMicroelectronics Catania

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 TOT

Electronic Engineering

29 42 61 51 29 67 80 170 184 112 143 98 1066

Physics 5 8 17 24 13 29 31 49 59 35 19 11 300

Chemistry 1 2 2 4 3 4 12 29 30 15 22 1 125

Computer Science

0 0 2 2 0 8 8 57 80 35 51 42 285

Other 5 7 18 17 6 4 7 20 48 34 23 15 204

TOTAL 40 59 100 98 51 112 138 325 401 231 258 167 1980

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Imprese del settore microelettronico

Materie prime Servizi

DistributorsDealersRetailers

Original Equipment

ManufacturesManufactures

Prodotti di consumo

Computer AutomobileApplicazioni industriali

CONSUMATORE FINALE

Microelectronics Industry

Raw Materials Services

DistributorsDealersRetailers

Original Equipment

Manufacturers

EMS(Contract

Manufacturers)

Consumer Telecommunications Computer Automotive Industrial

END CONSUMER

Equipment

Microelectronics Industry Structure

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

STMicroelectronics impact effect on Catania development

• Attracting international suppliers

• Contributing to local suppliers growth

• Spinning off new entrepreneurial ventures

• Attracting new hi-tech ventures in other technology - based industries

Alcatel, Applied Materials, Canon, Olin, Submicro-System, Tegal, Watkins-Jonson … Total 22 TNC

Elmec, E.T.C., Marconi Impianti Meridionale Impianti, Phoenix Elettronica, ...

Advice Hitec, Ion Beam, S.A.T., Tecnos Media-Dintel, ...

Accent, CRF, Nokia, Magneti Marelli (Power Train), Maxim

Public Research Institutions, International Business and Technological and Economic Catch Up in Developing Regions T.Campagna

Conclusions

•The presence of a good University is essential for the location

of High-tech Companies

•Good laws should be applied to foster the collaboration

•Quite quickly the High-tech Companies exceed the capabilities

of the public entities whose bottle neck can stop the development

•The national competitiveness becomes eventually the limit for

further developments