Case | HBS Case Collection | 2012

CSIRO: The Light Metals Flagship Decision

by Willy Shih, Margaret P. Pierson and Dawn Lau

Abstract

This case explores the challenge of investing in basic research as a public good. CSIRO was Australia's leading science and research agency, and it was chartered to enhance national prosperity through R&D. Its Flagships program was designed to align research interests with national priorities, with a strong focus on the adoption of research outputs. The Light Metals Flagship (LMF) was one of six flagships established in 2003, and its goal was to help the nation capture more of the added value of its resources by developing and commercializing downstream technologies in the processing and fabrication of products made from aluminum, magnesium, and titanium. While the LMF met with technical successes, Australian industry was reticent to co-invest. This lack of industry enthusiasm was in many ways unsurprising, as governments often found it important to fund long-term basic research that was outside of the horizon of firms. But what kind of a signal would stopping the program send? Was CSIRO prepared to let short-term thinking in light metals firms drive its agenda? The case examines the technical decision-making process.

Keywords: R＆D; basic research; government-funded research; public goods; extractive industries; metals; metals processing; Decision Choices and Conditions; Decisions; Globalized Markets and Industries; Growth and Development; Innovation Strategy; Technological Innovation; Research and Development; Science-Based Business; Technology Adoption; Technology Platform; Manufacturing Industry; Mining Industry; Oceania; Australia;

Language: English

Format: Print

23 pages

Purchase

Citation:

Shih, Willy, Margaret P. Pierson, and Dawn Lau. "CSIRO: The Light Metals Flagship Decision." Harvard Business School Case 613-029, November 2012.

Ulrich Simon, the head of the Microscopy business group at Carl Zeiss AG knew that his unit was facing a disruptive threat, so he chartered a special team to tackle the industrial segment. Given a high degree of autonomy, the project team developed an understanding of the marketplace challenge and proceeded to develop and execute on a new business plan. Simon gave the team ample freedom to develop new processes and priorities appropriate to the market segment needs, but he couldn't help but wonder whether it would continue as a stand-alone unit or he would need to reintegrate it into the mainline business. He also was nervous about the plan itself. The team had established timelines and milestones, but now they had to execute and deliver their first product next year.

Senior managers at the LEGO Group are faced with a quandary: Should they patent inventions coming out of their manufacturing process development work, should they keep them as trade secrets, or should they publish them so that they would go into the public domain and nobody else could patent them? They wish to preserve their freedom to practice, but they are very concerned about competitors' ability to benefit from LEGO Group's R&D investments or alternately interfere with its freedom to operate. The case frames important intellectual property issues around appropriability and strategy.

General Information

Academic Programs

Alumni

Faculty & Research

Recruit

Resources

Faculty & Research

CSIRO: The Light Metals Flagship Decision

Abstract

About the Author

More from the Author

Contact

Related Links

Resources