Intel has begun working with start-up companies globally in order to develop the next generation of wireless internet and additional services.

In 2004, Intel invested 1 billion dollars in Clearwire as part of an agreement to jointly develop WiMax and related products using global wireless broadband internet. Clearwire was started in 1998 as a spin off from Sierra Technologies, and started to offer wireless internet service in Dallas in 1999. In 2004, the company was acquired by serial entrepreneur Craig McCaw, and by the end of 2004 the company launched wireless internet to multiple cities. Today, the company has 400.000 subscribers in Europe and the US.

According to Intel, the aim of working together with Clearwire is to leverage an ecosystem around Wimax that in turn will make Intel’s own products more innovative and attractive. Therefore, Intel invests in other entrepreneurs who develop unique services for the WiMax standard, which Intel does not have the innovation capacity to develop on their own.

Intel uses start-up companies as a way of staying ahead and innovating within emerging industries . Today, Intel works with more than 400 companies in 20 countries.

Source: FORA, 2009

For more details on this case, contact FORA at FORA@newnatureofinnovation.org.