The Many Faces of Absorptive Capacity: Spillovers of Copper Interconnect Technology for Semiconductor Chips

Abstract

A case study of copper interconnect technology suggests that absorptive capacity exist in three forms: disciplinary, domain-specific and encoded. Each depends upon distinct mechanisms and organizational tradeoffs. Disciplinary absorptive capacity requires a firm to actively engage with the scientific community, while protecting domain-specific knowledge. Domain-specific absorptive capacity depends upon influencing disciplinary research at universities and consortia, then capturing domain knowledge through collaboration and hiring. As a technology develops, it becomes encoded, and absorption depends increasingly upon supplier relationships. Hence, absorptive capacity is not simply a function of prior R&D and social networks, but heavily shaped by the type and maturity of technology absorbed.

Keywords: Absorptive Capacity, Knowledge Spillovers, Social Networks, Innovation, Semiconductors