Changing of the Guard: Structural Change and Corporate Science in the Semiconductor Industry

Abstract

This article documents a structural change in the production of science in the U.S. semiconductor industry over almost three decades. We observe a change in scientific productivity over time, where smaller firms publish more articles per dollar in R&D. Moreover, our results show a positive relationship between the value of intangibles and scientific publications, driven by basic research results. These effects are especially strong among Fabless 'design' firms and among firms in the post-PC era of semiconductor manufacturing, in line with a premium for smaller firms which invest in science in times of structural technological change.

Keywords: Corporate science, basic science, firm value, semiconductors

JEL Classification: O31, O33