The Non-Globalization of Innovation in the Semiconductor Industry

California Management Review, Vol. 50, No. 1, 2007

Posted: 3 Mar 2008

See all articles by Jeffrey Thomas Macher

Jeffrey Thomas Macher

Georgetown University - McDonough School of Business - Strategy, Economics and Policy

David C. Mowery

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Alberto Di Minin

Istituto di Management - Scuola Superiore Sant'Anna; BRIE - University of California, Berkeley

Abstract

The global semiconductor industry is undergoing several forms of structural change simultaneously. The structure of market demand is shifting from one dominated by personal computers to a more diverse array of heterogeneous niches, largely resulting from global diffusion of the Internet and wireless communications applications. The structure of manufacturing activities is shifting from one dominated by integrated device manufacturers (IDMs) that both design and manufacture semiconductor components to one characterized by vertical specialization, where many firms specialize in either design and marketing (fabless firms) or manufacturing (foundries). Finally, market demand and technical expertise are growing in geographic regions (e.g., Malaysia, Singapore, the People's Republic of China, etc.) that formerly were much less prominent actors in the global industry. We examine the influence of these three overlapping trends on the geographic structure of R&D in this industry, using data on patenting and offshore investment by firms in development fabs from 1994 to 2004.

Keywords: globalization, semiconductor, multinationals, vertical specialization, patents

JEL Classification: o3, o32, f23

Suggested Citation

Macher, Jeffrey Thomas and Mowery, David C. and Di Minin, Alberto, The Non-Globalization of Innovation in the Semiconductor Industry. California Management Review, Vol. 50, No. 1, 2007. Available at SSRN: https://ssrn.com/abstract=1093277

Jeffrey Thomas Macher

Georgetown University - McDonough School of Business - Strategy, Economics and Policy ( email )

335 Hariri Building
Washington, DC 20057
United States
202-687-4793 (Phone)

David C. Mowery

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alberto Di Minin (Contact Author)

Istituto di Management - Scuola Superiore Sant'Anna ( email )

Piazza Martiri della Liberta 33
MaIn Lab
Pisa, PI 56127
Italy

HOME PAGE: http://www.diminin.it

BRIE - University of California, Berkeley ( email )

2234 Piedmont Ave
Berkeley, CA 94720
United States

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