National Technology Associations
Associations Overview
This
section is a general overview of the role of associations in business and
society in general, and of the technology sector in particular. The goal of this
section is to introduce the reader who may be unfamiliar with association to the
value and power of associations in the business sector in the United States and
many other nations. The American
Society of Association Executive (ASAE) and its Global Center is the primary
source for this overview with all source credits identified in the Sources and
Links section of this report.
Definition
of Associations
Associations
are a means of bringing together people voluntarily with a common purpose to
advance objectives that the individual could not accomplish without a larger
group. Associations are significant contributors to society and economies
throughout the world.[i]
The two most common types of associations are trade and professional. A
trade association is made up of business competitors in an industry sector who
join together for common needs. A professional association, known as
professional or individual membership societies provides the individual member
with services designed to advance the individual.[ii]
The
scope of association memberships can be geographically local, national, or
international with a headquarters located in one country with members from many
countries. Associations may also be truly global with multiple headquarters
throughout the world with no one country as the central focus.[iii]
Associations are typically governed by a volunteer Board and administered by
professional staff when the resources of the association can handle this
capacity. In the United States, associations operate as not-for-profit entities
governed by the laws of state and federal government.
According
to Gale Research, in 2003 there were approximately 22,200 national associations
and 115,000 associations with state, regional, or local scope in the U.S.
Another 22,300 multinational, binational, and non-U.S. national associations
operate internationally.[iv]
The culture of the U.S. breeds associations, as Americans are a nation of
joiners. This same view of the value of associations may not be shared across
cultures, or allowed by governments.
Founded
upon the principles of volunteerism and cooperation, associations nurture
involvement in society and community service. Association activities generate
social capital such as networks, norms, and social trust that facilitate
coordination and cooperation for mutual benefit. Critical to this report’s
discussion of national technology associations, social networks can increase
productivity by reducing the costs of doing business. There is increasing
evidence that shows that social cohesion is critical for societies to prosper
economically and for development to be sustainable.[v]
Role
of Associations
Education
Associations
develop educational programs for members and the public at large on issues
relevant to their constituents. For associations that represent a trade or
profession, especially those whose membership is businesses rather than
individuals, the educational components relate directly to the increasing
advancement and profits for the businesses in that industry.
For
example, the Software
& Information Industry Association (SIIA) fights intellectual property
piracy through the Certified Software Manager (CSM) program that educates on the
legal uses of content and code of third party products.
According
to the American Society of Association Executives (ASAE), education is often the
single most common association function. In many industries and professions,
associations are the only source of continuing education. Associations educate
their members on technical and scientific matters, business practices, and legal
issues; thereby elevating the quality of publicly delivered goods and services.
Associations may help a nation's work force to remain competitive and skilled in
the latest techniques, trends, and technologies.[vi]
Lobbing and Policy Tracking
From
a global perspective, associations are important, often indispensable,
intermediary organizations linking individuals and businesses with governments.
Associations serve as a dual gateway--both as a mechanism to convey their views
to government officials and a conduit through which government stays in touch
with constituents.
Government
relation’s activities conducted by associations give members a voice in
government decisions impacting their members, profession, trade, and cause.
Associations collect and disseminate information on public policy issues,
forecast how public policy issues impact members, and help members understand
and reach consensus for positions on issues. By educating legislators and
regulators about issues affecting members' businesses, professions, and causes,
associations help government officials make informed decisions.[vii]
For
example, the Information Technology Association
of America (ITAA) has a legislative "Must-Do" before Congress
right now with a 4-point plan covering approximately ten pieces of legislation
that congress is asked to pass by the end of the 2004 session. [viii]
Business Opportunities and New Products
Associations
contribute to the advancement of their member businesses by providing services
such as matching customers with vendors. In the technology industry, this can
take the form of brining together enterprise software development companies with
corporations seeking to purchase new systems. Associations create in-person and
virtual marketplaces for such introductions and potential business transactions.
The use of trade shows and conferences are typically the top-level income
producer for leading associations and the single best way to bring together many
buyers and sellers.
Associations
may also maintain relationships with venture capital firms and assist in
introductions of investors to the association’s member businesses. Membership
in an association may be a necessary credential for both the venture capitalists
and business-to-business consumers seeking validation about the technology
company.
A
powerful cross-nation association alliance is the Mid-Atlantic-Russia
Business Council’s Russian-American program. This program brought Russian
technology companies to one of the largest technology trade shows in the U.S.,
the CeBIT America Information and Communications Technology Trade show held in
May 2004 in New York City. Included in the program were members of the
Russian-based RUSSOFT association
of technology companies and the non-profit web portal www.outsourcing-russia.com.
While not a traditional association, www.outsourcing-russia.com is an online
B-to-B marketplace, which was founded by Star Software Corporation, for
companies seeking to outsource to Russian technology companies. The CEO of Star
Software was elected the President of RUSSOFT in September 2004.[ix]
Research
of Industry Issues and Trends
Associations
collect and disseminate information on industries, issues, and trends, providing
valuable background and context for legislative, regulatory, and policy
decisions. By informing the public about the efficiency, quality, and safety of
products and services, associations help bolster public confidence in the
businesses represented by the association.[x]
Additionally, associations directly serve their members with industry
reports that individual companies would not be able to afford to commission on
their own.
In
Brazil, the SOFTEX
association conducts market research and has produced studies in conjunction
with the U.S. Institution Massachusetts Institute of Technology (MIT). An
example of such research is the 2002 study, “Slicing
the Knowledge-Based Economy in Brazil, China and India,” which was funded
by the international companies IBM and Intel as well as the Brazilian
government, and is now freely available on the SOFTEX website.
Enforcement
of Standards and Ethics
Associations
play a prominent role in setting performance, technical, safety standards,
ethical codes, and professional certification programs. All of these efforts
help to reduce the risks that consumers face in the marketplace. Associations
also save taxpayers money by fulfilling these vital functions that the
government would otherwise have to fulfill. A key global issue in technology is
standardization which provides an international language to help shrink barriers
to trade. If adopted throughout the world, standards create a large market
instead of many fragmented markets, as currently experienced by the technology
industry.[xi]
Due to being the big voice of many, associations may play a watchdog and
enforcement role in the technology industry on behalf of members. Business
relationships could be hurt by direct confrontation and associations may play
the role of intermediary. In the case of intellectual property protections, the World
Intellectual Property Organization (WIPO) and the Software
& Information Industry Association (SIIA) both have anti-piracy programs
geared toward helping each member nation or organization combat intellectual
property theft.