Industrial globalisation: the design of collaborative industry models for small economies

New Zealand is a small, relatively isolated economy with approximately four million people. Despite its size, it has launched a number of innovative products onto the world stage. The innovators behind these successful commercialisations have often come from engineering and manufacturing backgrounds. The supply of these innovators is now at risk. Globalisation has changed the game for New Zealand innovators. Manufacturing is experiencing a decline caused by competition from larger, lower wage economies. Many New Zealand innovators and entrepreneurs are now re locating offshore or dealing direct with offshore manufacturers. Although some argue that New Zealand can still survive as a design led economy, the reality is that much of our innovation base is linked to the knowledge that our engineers and manufacturers build over time through working in their respective industries. The objective of this research was to review the literature on collaborative business models and then apply some of the thinking to the New Zealand manufacturing sector. A series of qualitative interviews were undertaken with plastics manufacturers that serve the high growth sectors of marine navigation and healthcare. Brand owners and strategic suppliers were also interviewed. Initial interviews aimed at clarifying the concepts used in the industry and to establish a conceptual framework that could be developed and refined throughout each interview in an attempt to develop a common language and visual representation of the elements being discussed. The research resulted in the design of four new collaborative business models summarised as: 1. The Collaborative Brand Owner Model: driven by an established brand owner, focused on their end customer requirements; 2. The Collaborative Start Up/High Growth Model: driven by suppliers. This model requires an appointed co-ordinator to identify and organise a collaborative effort with emerging brand owners; 3. The Collaborative Technology Model: driven by an idea carrier (engineer, brand owner etc). It requires a coordinator to pull together project teams around technical innovations; 4. The Formalised Industry Collaboration Model: membership driven. Focussed on continual innovation across all areas, i.e. equipment, machinery, materials, process, product, distribution and service. This model is the most radical aimed at generating new wealth for an evolving membership base.