Colin Barry

Intel in Costa Rica (MOC, Tuesday, Week 4)


Porter: clusters still need government policy IOT create positive externalities and reduce negative externalities.

San Diego biotech cluster: forty-something firms spun off from one anchor (Hybritech, 1978)

Clusters in developing countries
=> Often "seeded" by clusters in developed countries
=> Key challenge: moving from isolated firms to clusters, upgrading breadth/sophistication ====> Intel has been fabulous for Costa Rica, but related/supporting industries have been slow to develop

Why did Intel pick Costa Rica (versus Mexico, Brazil, Chile, etc.)
=> Cheap labor, stable government
=> Responsive national leadership (brutal truth)
=> Probably not because of super-favorable initial "diamond" for microprocessor assembling and testing plants (ATP)