Radical Collaboration: IBM Microelectronics Joint Development Alliances

To maximize their effectiveness, color cases should be printed in color. IBM's "Radical Collaboration" model has been an innovative approach to meeting the challenges of the huge R&D and capital investments that are needed to stay competitive in the global semiconductor industry. This model has required a rethinking of what is proprietary, and what is shared, and where do the boundaries of cooperation end and competition begin. IBM and its partners have managed to stay competitive at, for example, the 45 nm node, at a far lower cost than firms that "go it alone," and there is a large benefit from a larger funnel of ideas and diverse points of view. It also reshapes what firms can use to build competitive advantage, or it necessitates a rethinking at least.