By Jens Laage-Hellman, Associate Profesor, and Frida Lind, Professor in industrial marketing, Chalmers University of Technology
This case concerns Fabricomp, a young university spin-off commercializing a breakthrough carbon fibre composite (CFC) technology. CFCs are lightweight, strong, and thin materials used across industries as alternatives to steel, aluminum, plastics, wood, and concrete. Developed in the late 20th century, CFCs consist of carbon fibre fabric in a polymer resin, shaped according to the final product—ranging from sports equipment to automotive parts.
About the Teaching Tool
On a cold January day in 2004, the board of Fabricomp AB met at a university incubator near the Technical University of Western Sweden. Founded a year earlier to commercialize a novel carbon fibre weaving technology developed by PhD student Neil Cooke, the company was led by Cooke, two entrepreneurship students, and an experienced businessperson—now the board.
Since its founding, Fabricomp had been working to develop its manufacturing process, products, and customer applications. At the board meeting, after handling formalities, members focused on the need for external collaboration in upcoming development efforts—critical for entering the market and scaling the business. The student founders, now managing the company, recognized that strategic partnerships, especially in B2B markets, are essential for innovation.
The board concluded that Fabricomp needed a long-term collaboration strategy to support product development and market entry, given the radical nature of the invention and the expected 10+ year timeline. Anders Mattsson, a student founder and VP of marketing and sales, was tasked with drafting the strategy.
Eager to begin, Anders started reflecting on key questions: what types of partners to engage, when to involve them, and how collaboration should be structured. He realized this required analyzing what the team had learned so far about the composite industry and Fabricomp’s early contacts. With this foundation, he hoped to identify promising sectors, attract collaborators, and shape an effective strategy—starting the very next day.
This article outlines Fabricomp’s founding, early development, and key facts about the composite industry. As an educator, you can use this case as a teaching tool. The task for students is to propose a strategy for the company’s external collaborations one year after its launch, focusing on product development.
Appendix 19.1 explains how CFCs are manufactured and what types of companies make up the supply chain. Important abbreviations and some special terms and names used in this case are explained in Appendix 19.2.
The Invention
Neil Cooke completed his PhD at Western’s Department of Textiles in 1997, after years of research that blended traditional textile methods with new approaches to fabric formation—aimed at composite materials rather than conventional textiles. His dissertation led to seven inventions, each designed for different types of composites. To commercialize them, Neil partnered with a business associate to start a company.
After Neil left the university, his ties with Western weakened, especially since no one continued his research. That same year, Western shut down the entire department due to the decline of Sweden’s textile industry.
One standout invention was a radical weaving technology for producing reinforcement fabric made from tape rather than traditional yarn. Though more costly to produce, the fabric had exceptional potential—enabling thinner, lighter composites with greater strength and smoother surfaces. Demand for such advanced materials was expected to grow.
After several years working on his seven inventions, Neil shared one of his key product ideas with a professor at Western involved in research commercialization. This led to a business development project at the Western School of Entrepreneurship, using the idea and an existing demo unit as the foundation. Four MSc students took on the project, collaborating closely with Neil and his business partner. Their market research identified promising product opportunities, and they went on to win a regional business idea competition.
Building on the project’s success, the team decided to launch a separate company to commercialize the invention. To keep costs manageable, they focused on a new class of high-performance carbon fibre composites (CFCs) emerging in the market. The global market for CFCs alone was estimated at around USD 2 billion—double that if other composites were included.
To assess the idea’s potential, Lennart Ahlquist, a leading Swedish composites researcher and research manager at the Swedish Institute for Research on Composites (SIRC), was brought in. While cautiously optimistic, he saw promise in the tape-based fabric’s superior strength-to-weight ratio compared to existing CFCs. He noted that while the benefits would vary by application, further cost–benefit analysis—ideally with composite manufacturers—was needed to confirm its commercial viability.
The Founding of the Company
In early 2003, following the success of the business development project and a positive evaluation from Lennart Ahlquist, the decision was made to spin out the key invention into a new company—Fabricomp. The four founders were Neil Cooke, the businessperson, and two of the student project members, Hans Bohlin and Anders Mattsson. Hans became CEO, Anders took on the role of VP of marketing and sales, and Neil became R\&D manager while continuing work on his other inventions.
Initial funding came from the founders, Western Invest (a VC firm linked to the incubator), and several business angels. Knowing more capital would be needed soon, they planned to approach additional VC firms. Ownership of the technology and patents was transferred to Fabricomp at its founding.
The company started operations in the business incubator, where a prototype weaving machine was installed. However, the space quickly proved too limited for scaling production, prompting a search for a better location.
To support brand-building efforts, Fabricomp registered the trademark *Hipercom®* for its fabric. Inspired by Gore-Tex, they envisioned letting customers use the Hipercom logo on their products as a mark of quality. As Anders Mattsson noted, “We hoped this could be seen as a quality mark and add value to our customers.”
Early Development Activities
Right after its founding, Fabricomp began intensive work on developing its manufacturing process, product, and applications. During this early phase, it became clear that the purchased carbon fibre tape didn’t meet quality standards. This pushed the company to start developing its own proprietary technology and machinery (step 1 in the supply chain). Fabricomp also began reaching out to potential equipment suppliers for future collaboration.
On the product side, the team worked on how to best use the new tape-based weaving method to create fabrics with desired properties. The aim was to offer a variety of composite solutions tailored to specific end-use applications. Much of this early work was done by MSc students from two universities, who conducted their theses in partnership with Fabricomp. Guided by experienced composite researchers, these students became a key resource before the company had its own R\&D team. One of them was later hired as product development manager, complementing Neil Cooke’s focus on process development.
It became clear that adapting the fabric for various industries would require flexibility in product design and application. A top priority was achieving proof of concept—data demonstrating that Hipercom delivered real performance and commercial potential.
To better inform product development, Hans Bohlin and Anders Mattsson spent much of the first year meeting potential customers across Europe, North America, and Asia. Though Fabricomp didn’t yet have a final product, they shared prototype samples, and the response was encouraging. Some manufacturers showed strong interest—one car maker even placed an order, although Fabricomp wasn’t yet ready to deliver.
Racing cars, particularly Formula 1, stood out as a promising segment due to the industry’s constant push for lighter and stronger materials. These manufacturers were seen as highly innovative, but also demanding and secretive.
These early customer visits provided critical market insights—not just technical feedback, but also a better understanding of how different parts of the composite industry operate. Bohlin and Mattsson learned that customer relationships could vary widely between industries and individual firms, especially in terms of openness to collaboration and willingness to engage in joint R\&D. This highlighted the need for a flexible, case-by-case approach to future customer partnerships.
Research Contacts
Fabricomp’s previous collaboration with Lennart Ahlquist had proven valuable. As research manager at SIRC—a state-owned trade research institute with three locations, including one near Fabricomp—Lennart had shown strong interest in the company. The relationship was mutually beneficial. Reflecting on the early interactions, Lennart noted:
“Hans and Anders were openminded and receptive to new knowledge and new ideas. Fabricomp was an interesting company from our point of view. They had a unique and promising technology that seemed to be useful in the development of the new ultralight and high-performing composites that were under way in many parts of the world.”
Fabricomp’s leadership also saw clear potential in working with SIRC. The institute had advanced lab facilities and experienced engineers. As a trade research institute, SIRC offered contract research services to industrial clients and took part in publicly funded national and international collaborative research projects.
It was soon agreed that SIRC could play a key role in supporting Fabricomp’s product development—particularly through advanced material testing and by facilitating Fabricomp’s participation in joint research initiatives. These collaborations wouldn’t just provide financial backing—they would also give Fabricomp access to cutting-edge scientific knowledge and help them build valuable relationships with other research institutions and companies.
Business Model
Another key decision involved choosing the right business model. Although Fabricomp specialized in weaving fabrics, the company deliberately chose not to operate as a converter (Step 2 in the supply chain; see Appendix 19.1), where fabrics are processed into intermediate products. This stage was already dominated by 10 to 15 major players worldwide, and competing with them directly would be difficult.
Instead, Fabricomp decided to focus on the next stage in the value chain: prepreg production, where fabrics are pre-impregnated with resin. This strategic move would bring Fabricomp closer to composite manufacturers and allow the company to better influence how its product was used. As Anders Mattsson explained:
“It was crucial for us to get in direct contact with the end users and make them interested in testing Hipercom and prepared to make modifications to their own products—so that the superior properties of Hipercom could be taken advantage of.”
However, Fabricomp had no plans to handle impregnation in-house. That part of the process would be outsourced, either to a prepregger chosen by the customer or to one with whom Fabricomp had built a long-term partnership.
This approach wasn’t without challenges. Some prepreggers were unhappy about Fabricomp’s desire to engage directly with end customers. In fact, one prepregger attempted to block Fabricomp by offering exclusivity deals to racing car manufacturers in an effort to limit Fabricomp’s access to their clients.
The CFC Industry and Its Applications
Fabricomp’s founders had learned a great deal about the CFC industry through their previous research and studies and their experiences during the first year. Here, we briefly present some of the information that was available to Anders Mattsson when he started to develop the collaboration strategy.
The Automotive Industry
The automotive industry was among the first to adopt CFCs, with their use dating back to 1971 when a rally car was equipped with CFC wheels. Over the following decades, CFC components became increasingly prevalent in high-performance racing vehicles, particularly in Formula 1. Around ten teams compete in the Formula 1 World Championship, including major names like Mercedes, Ferrari, and McLaren. In this environment, the extreme demands for strength, stiffness, and low weight justified the high cost of CFC materials.
CFCs have been used in a growing number of parts across the chassis, body, and engine. Technological advancement has played a key role in driving competition, with teams investing heavily in R\&D and rapidly adopting new innovations. Copying competitors’ breakthroughs was common practice, which made the teams extremely secretive about their own development efforts. This secrecy not only limited transparency among teams but also shaped the way they interacted with suppliers.
Beyond Formula 1, CFC-based components have also been introduced by manufacturers of passenger cars, trucks, and buses—especially in Germany, home to several pioneering companies in this field.
The Aerospace Industry
Manufacturers of aerospace products adopted CFCs early. These were used, for example, in the aircraft industry to make structural components in wings and fuselages. These were applications where high strength and low weight were desirable properties. CFCs were also used in seats and other interior components.
The aircraft industry was dominated by two giant original equipment manufacturers (OEMs)—Airbus and Boeing. But there were also other manufacturers specializing in small-size or special-purpose aircrafts and many small and large component suppliers using CFCs. The development and implementation of a new structural component was always—not least for safety reasons—a complex undertaking that tended to be costly and time-consuming. The material suppliers often had to be involved. The testing of a new component could take 1 to 2 years to complete.
Besides using CFCs in product development projects (e.g. a new airliner), the large OEMscarried out research projects aiming to develop new basic technologies. External actors from industry and/or academia were often involved. Both OEMs and component suppliers sometimes participated in cooperative research projects, co-funded, for example, by the European Union.
One defining feature of the industry was its typically long product life cycles. New aircraft models remained in service for many years, and altering the materials used in structural components was both challenging and rare. As a result, supplier relationships were typically built around large contract values and long-term commitments. This stood in stark contrast to industries like racing, where components often had short lifespans and development cycles were rapid.
These industry dynamics made it particularly challenging for small and newly established companies to break into the supplier base of major aerospace firms. Large manufacturers tended to be cautious about working with firms that lacked significant resources or a proven track record, often favoring partnerships with well-established suppliers. Even when a small company was given an opportunity, it had to be ready to engage in extended development projects, invest its own resources in collaborative R&D, and, if successful in becoming a certified supplier, commit to delivering consistent volumes over an extended period.
The Construction Industry
In civil engineering, CFCs have been used primarily for retrofitting purposes. Despite high cost, using CFCs to repair existing structures (e.g. a bridge) made of other materials could sometimes be economical.
CFCs were also sometimes used in new projects as a means to strengthen other reinforced materials. However, the high price of CFCs could be a barrier to usage in such cases.
The Sporting Goods Industry
The exceptional strength-to-weight ratio of carbon fiber composites (CFCs) made them especially appealing for use in high-end sports equipment. As a result, CFCs were widely applied across various sporting goods such as tennis, squash, and badminton rackets, golf club shafts, surfboards, skis, canoes, and bicycle frames. In many of these products, CFCs outperformed traditional materials like steel and aluminum. The relatively short product life cycles in this sector, combined with frequent material upgrades, further reinforced the relevance of advanced composites.
In most cases, the actual manufacturing of the composite components was outsourced by the OEMs or brand owners to specialized subcontractors, often based in Asia. These subcontractors typically possessed extensive expertise in designing and producing composite materials tailored to specific applications.
The sporting goods industry was highly fragmented, encompassing numerous product categories—each with distinct performance requirements. Optimizing material properties meant that technical solutions had to be customized for each application. Still, within a single category, such as tennis rackets, the products were often quite similar. To differentiate themselves and strengthen brand positioning, OEMs focused heavily on material choices, product shapes, and visual design as key elements of their competitive strategy.
For suppliers of fabrics or prepregs, managing the production process often required engaging not only with the OEMs—the formal buyers—but also directly with the subcontractors. These manufacturers had detailed insights into product performance and frequently influenced material selection. To develop an optimal composite solution, suppliers often needed to provide technical data, support design calculations, and run simulations to assist in fine-tuning the final product design.
Other Industries and Applications
CFCs are to some degrees used in many other industries where certain products could benefit from CFC properties. For example pleasure boats, musical instruments, firearms, fishing rods, train bogies, and laptop shells.
The Swedish Environment
Sweden had a relatively modest presence in the field of carbon fiber composite (CFC) manufacturing. While the country was home to several technologically advanced firms in the automotive and aerospace sectors—such as AB Volvo, Scania, Volvo Cars, Saab Automobile, Saab AB, and Volvo Aero—these companies were not global leaders in CFC development. Nonetheless, some of them were significant end users of composite materials.
Since 1994, Sweden has also been home to a niche manufacturer of high-performance sports cars: Koenigsegg Automotive, known for its cutting-edge innovations.
The sporting goods industry in Sweden was limited. Although the country once had multiple manufacturers of products like ice hockey gear and skis, most had been overtaken by international competitors. One notable exception was STIGA Sports, a world-leading producer of table tennis blades. For STIGA, it was strategically important to provide elite players with high-performance blades that could help them achieve success in major tournaments, reinforcing the brand’s reputation.
Sweden also had several manufacturers of sailboats and motorboats that exported their products internationally. However, none of these firms specialized in boats designed specifically for racing, despite Sweden’s strong sailing heritage. Swedish teams had participated in prestigious events like the America’s Cup and the Volvo Ocean Race, highlighting the country’s tradition of excellence in sailing.
On the research front, SIRC stood out as a central player. It had substantial technical expertise, well-equipped facilities, and a strong international network spanning both industry and academia. In addition to SIRC, a few technical universities (excluding Western) were also involved in CFC research, contributing further to Sweden’s scientific capabilities in the field.
Developing the Collaboration Strategy: some theoretical insights
When Anders Mattsson began developing Fabricomp’s collaboration strategy, he drew on insights from his studies at Western. Academic research in B2B markets highlights that technological advancement is often a result of interaction and collaboration between various actors. In particular, relationships between sellers and buyers frequently serve as a hub for joint R\&D activities.
However, inter-organizational collaboration in innovation is complex and highly context-dependent. The intensity, structure, and outcomes of such interactions can vary greatly. Some partnerships involve close, long-term co-development, while others are more limited in scope and duration but still yield valuable outcomes. The distribution of roles, responsibilities, and resources can differ significantly, as can the level of communication and degree of formal or legal structuring. Collaborations might be one-on-one or involve multiple partners, each with distinct roles. The type of interaction most beneficial to a firm depends on both external market dynamics and internal strategic goals.
For a company developing a new product, involving customers—whether existing or new—is often essential. One major benefit is gaining a deeper understanding of customer needs, which is critical whether the goal is customization or standardization. This level of insight is typically difficult to achieve without a collaborative relationship that allows for open, two-way communication. Likewise, customers benefit by gaining a clearer picture of the supplier’s capabilities.
Another advantage of customer collaboration is the opportunity to share and combine both tangible and intangible resources through joint development efforts. It is common for customers to test new technologies—ranging from concepts and prototypes to near-final products or applications—in real-world settings. In some cases, ‘lead users’ can play a crucial role. These customers are often ahead of the market and actively develop their own solutions before they become commercially available. Engaging with lead users can accelerate product development and reduce costs.
Additionally, collaborating with customers can result in early sales, foster loyalty, generate valuable references, and provide legitimacy—factors that are particularly important when seeking funding or attracting new partners. In many instances, customer collaboration is not just beneficial but essential for successful commercialization.
Timing is also critical. Involving customers early—during the need-identification and product-specification stages—can significantly enhance product relevance. While detailed design work may often be done internally, testing and final adjustments typically require customer input. For highly customized products, close collaboration throughout the entire development process may be necessary. Furthermore, deciding which application areas to target and when depends on market characteristics and the firm’s internal needs.
There are many ways to engage with customers, such as needs-mapping techniques, surveys, workshops, and user testing. The nature of the collaborative relationship—its communication style, resource-sharing structure, and timeframe—should be tailored to the specific context. Selecting the right partner is also crucial and depends on what the firm aims to achieve and which partners are available. While it is often logical to work directly with buyers, end users or other suppliers in the customer’s ecosystem might be more relevant for product development. Lead users are especially valuable in early stages, while more typical customers may be better suited for later-stage validation. Importantly, these relationships must be mutual—both sides must see value in the partnership.
Anders had also learned that the joint development of radically new products often occurs between firms located in the same country. For smaller or younger companies, collaborating domestically is typically more feasible and less resource-intensive due to closer geographical, cultural, and linguistic ties. Domestic partnerships can be especially important in early stages. However, in a small market like Sweden, companies often need to enter international markets early, particularly in niche industries. Many Swedish high-tech start-ups have done this successfully, becoming ‘born globals.’ The limited size of the local market also means that finding the right partners domestically is not always possible—sometimes, international collaboration is the only option.
Anders recognized that these lessons were highly relevant for Fabricomp. He understood the need to identify appropriate collaboration partners, define the purpose and timing of these partnerships, and determine the most effective types of relationships to support Fabricomp’s innovation and market strategy.
Board Meeting 3 Months Later
The development of a collaboration strategy for product development was the main topic on the agenda, and all board members were eager to hear the proposal. Over the past three months, Anders had dedicated significant time to formulating the strategy. He had gathered and organized existing knowledge within the company while also collecting new insights.
Anders felt confident that he had a clear vision for the strategy. Although he believed his ideas and recommendations would be well received, he recognized the importance of fostering a critical discussion—particularly about the key assumptions and the feasibility of successfully implementing various aspects of the proposed plan.
One topic Anders chose to exclude from the agenda was the involvement of equipment suppliers in the process development. While important, he felt it was best addressed in a future meeting.
Anders’s presentation had the following headings:
1. Need for a collaboration strategy
2. Content of the collaboration strategy and expected results
3. Internal prerequisites for a successful implementation of the strategy.
After the presentation, the board was expected to discuss the proposal and make decisions on how to proceed.
Task
Prepare Anders Mattsson’s presentation in the form of PowerPoint slides. Be prepared to discuss the strategy in the following board meeting.
Appendices
Based on
REFRAMING THE CASE METHOD IN ENTREPRENEURSHIP EDUCATION,
Karin Wigger, Lise Aaboen, Dag Haneberg, Siri Jakobsen, and Thomas Lauvås –
9781800881150
Downloaded from https://www.elgaronline.com/ at 05/28/2024 10:07:23AM
via Open Access. This work is licensed under the Creative Commons
Attribution-NonCommercial-No Derivatives 4.0 License
https://creativecommons.org/licenses/by-nc-nd/4.0/
Chapter 19: Fabricomp AB: developing a collaboration strategy for a newly started university spin-off company in Sweden