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Measuring the role of technology-push and demand-pull in the dynamic development of the semiconductor industry: The case of the global DRAM marke

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Abstract

This paper reexamines and resolves the long dispute over the source of technological innovation by suggesting an integrated technology-push and demand-pull model. We derive an equilibrium model within the framework of differentiated product analysis and explain the dynamic interaction between these two sources of innovation. Based on the empirical analysis of the global DRAM market, we show that the relative importance of technology-push and demandpull in technological innovation is described by an L-type curve which describes the phenomenon where technology-push is greater than demand-pull in the early stages and then decreases as demand-pull becomes greater. Our finding suggests that the role of supply and demand is different in inducing technological change and their relative importance changes with product development over the technological life cycle; the marginal prices of products are an important factor in determining the principal forces of technological innovation between these two source s.

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  • Wonjoon Kim & Jeong-Dong Lee, 2009. "Measuring the role of technology-push and demand-pull in the dynamic development of the semiconductor industry: The case of the global DRAM marke," Journal of Applied Economics, Universidad del CEMA, vol. 12, pages 83-108, May.
    • Handle: RePEc:cem:jaecon:v:12:y:2009:n:1:p:83-108
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    Cited by:

    1. Sick, Nathalie & Preschitschek, Nina & Leker, Jens & Bröring, Stefanie, 2019. "A new framework to assess industry convergence in high technology environments," Technovation, Elsevier, vol. 84, pages 48-58.
    2. Kim, Wonjoon & Kim, Minki, 2015. "Reference quality-based competitive market structure for innovation driven markets," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 284-296.
    3. Kim, Wonjoon, 2015. "The current transition in management of technology education: The case of Korea," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 5-20.
    4. Kim, Namil & Lee, Hyeokseong & Kim, Wonjoon & Lee, Hyunjong & Suh, Jong Hwan, 2015. "Dynamic patterns of industry convergence: Evidence from a large amount of unstructured data," Research Policy, Elsevier, vol. 44(9), pages 1734-1748.
    5. Chi, Maomao & Wang, Weijun & Lu, Xinyuan & George, Joey F., 2018. "Antecedents and outcomes of collaborative innovation capabilities on the platform collaboration environment," International Journal of Information Management, Elsevier, vol. 43(C), pages 273-283.
    6. Kaldasch, Joachim, 2014. "Evolutionary Model of Moore’s Law," MPRA Paper 54397, University Library of Munich, Germany.
    7. Sanghoon Lee & Wonjoon Kim, 2017. "The knowledge network dynamics in a mobile ecosystem: a patent citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 717-742, May.
    8. Sergey A. Revyakin, 2022. "Personal privacy VS. public safety: A hybrid model of the use of smart city solutions in fighting the COVID‐19 pandemic in Moscow," Public Administration & Development, Blackwell Publishing, vol. 42(5), pages 281-292, December.
    9. Hossein Sabzian & Mohammad Ali Shafia & Mehdi Ghazanfari & Ali Bonyadi Naeini, 2020. "Modeling the Adoption and Diffusion of Mobile Telecommunications Technologies in Iran: A Computational Approach Based on Agent-Based Modeling and Social Network Theory," Sustainability, MDPI, vol. 12(7), pages 1-36, April.
    10. Hyeokseong Lee & Namil Kim & Kiho Kwak & Wonjoon Kim & Hyungjoon Soh & Kyungbae Park, 2016. "Diffusion Patterns in Convergence among High-Technology Industries: A Co-Occurrence-Based Analysis of Newspaper Article Data," Sustainability, MDPI, vol. 8(10), pages 1-18, October.
    11. Vahid Omidi & Abolfazl Shahabadi & Nader Mehregan, 2020. "Innovation Drivers in Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 707-720, June.
    12. Kaldasch, Joachim, 2015. "Dynamic Model of Markets of Successive Product Generations," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 10(3), pages 1-15.

    More about this item

    Keywords

    sources of technological innovation; technology-push; demand-pull; Nash equilibrium of technological innovation; DRAM;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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