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Cooperation and collaboration in economic development : a case study of Massachusetts manufacturing centers

The economic rationale of cooperation and collaboration as strategic practices for companies to improve their competitiveness in today's competitive economy is examined. Based on that discussion, I conduct a case study of the Massachusetts Manufacturing Partnership (MMP) program, a center of the NIST Manufacturing Extension Program (MEP) in Massachusetts, as a public sector effort to promote cooperation and collaboration between small and medium-sized manufacturing firms and resources, i.e., universities, consultants, etc. The case study illustrates that small and medium-sized manufacturing firms have difficulties to cooperate and collaborate with resources, because of the lack of internal resources, awareness to the changes in the market and/or technology, and the information about the resources. The MMP is supposed to provide incentives, such as financial subsidies to projects, broad services including the initial diagnosis and problem identification, and the information and networks with resources, so as to remove these barriers and facilitate the cooperation and collaboration. Yet, the achievements of the MMP to date are limited and ambiguous. On the one hand, the MMP has difficulties in reaching companies in some of the industries and small companies. Moreover, the MMP may not be appropriate in such areas as product design and development, although these areas are critical in today's competition. On the other hand, the economic impacts on the company's profits to date are generally positive, although the data are limited. In addition, qualitative data indicate the MMP's role as infrastructure to remove the barriers for firms to cooperate and collaborate with resources. Finally, I discuss the policy implications for the MMP. Thesis Supervisor: Karen R. Polenske Title: Professor of Regional Political Economy and Planning Thesis Reader: Karl Seidman Title: Lecturer