The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors
AbstractHow relevant is innovation by demand compared to innovation by other actors in a sector? In quantitative terms, this is a yet unanswered question. The current study fills this major gap in the literature on industry studies. By taking a sectoral system perspective, this study is able to highlight the magnitude of innovation by intermediate user firms in a high technology sector: semiconductors. Using a combination of different datasets – patents, co-patents, R&D alliances and new ventures in semiconductors – this study proposes a novel quantitative approach to assessing the magnitude of innovative activity by user firms. The study reaches several findings. First, the magnitude of innovation by user firms, as measured by patents, is high in both absolute and relative terms compared to semiconductor firms and other actors in the sector. Second, the distribution of patents among different demand segments is highly uneven. Third, innovative user firms are highly heterogeneous in terms of size, diversification and vertical integration. Fourth, collaboration in R&D and co-patenting activity in semiconductors take place not just between user firms and semiconductor firms, but also among user firms themselves. Fifth, innovative user firms are quite active in entrepreneurial activity in semiconductors and their new ventures, on average, survive longer than spin-offs or other start-ups.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 42 (2013)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/respol
Sectoral systems; Innovation measurement; User innovation; Patents; Semiconductor industry;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Schreier & Stefan Oberhauser & Reinhard Prügl, 2007. "Lead users and the adoption and diffusion of new products: Insights from two extreme sports communities," Marketing Letters, Springer, vol. 18(1), pages 15-30, June.
- Verspagen, Bart & Nomaler, Onder, 2007.
"Knowledge Flows, Patent Citations and the Impact of Science on Technology,"
MERIT Working Papers
022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- onder Nomaler & Bart Verspagen, 2008. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 339-366.
- Malerba, Franco, 1985. "Demand structure and technological change: The case of the European semiconductor industry," Research Policy, Elsevier, vol. 14(5), pages 283-297, October.
- Franco Malerba & Richard Nelson & Luigi Orsenigo, 2003.
"Demand, innovation and the dynamics of market structure: the role of experimental users and diverse preferences,"
KITeS Working Papers
135, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jan 2003.
- Franco Malerba & Richard Nelson & Luigi Orsenigo & Sidney Winter, 2007. "Demand, innovation, and the dynamics of market structure: The role of experimental users and diverse preferences," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 371-399, August.
- Dieter Ernst, 2005. "Complexity And Internationalisation Of Innovation — Why Is Chip Design Moving To Asia?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 47-73.
- Dieter Ernst, 2005. "Limits to Modularity: Reflections on Recent Developments in Chip Design," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 303-335.
- Robert Evenson & Daniel Johnson, 1997. "Introduction: Invention Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 149-160.
- Ejermo, Olof & Karlsson, Charlie, 2005.
"Interregional Inventor Networks as Studied by Patent Co-inventorships,"
CIRCLE Electronic Working Papers
2005/11, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Ejermo, Olof & Karlsson, Charlie, 2006. "Interregional inventor networks as studied by patent coinventorships," Research Policy, Elsevier, vol. 35(3), pages 412-430, April.
- Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
- Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
- Clair Brown & Greg Linden, 2009. "Chips and Change: How Crisis Reshapes the Semiconductor Industry," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013460, December.
- Hall, Bronwyn H & Jaffe, Adam B & Trajtenberg, Manuel, 2001.
"The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools,"
CEPR Discussion Papers
3094, C.E.P.R. Discussion Papers.
- Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
- Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
- Robert M. Grant & Charles Baden-Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, 01.
- Wesley M Cohen & Richard R Nelson & John P Walsh, 2003.
"Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not),"
Levine's Working Paper Archive
618897000000000624, David K. Levine.
- Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
- Henrik Glimstedt & Donald Bratt & Magnus P. Karlsson, 2010. "The decision to make or buy a critical technology: semiconductors at Ericsson, 1980--2010," Industrial and Corporate Change, Oxford University Press, vol. 19(2), pages 431-464, April.
- Riggs, William & von Hippel, Eric, 1994. "Incentives to innovate and the sources of innovation: the case of scientific instruments," Research Policy, Elsevier, vol. 23(4), pages 459-469, July.
- Glen L. Urban & Eric von Hippel, 1988. "Lead User Analyses for the Development of New Industrial Products," Management Science, INFORMS, vol. 34(5), pages 569-582, May.
- Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
- Ogawa, Susumu, 1998. "Does sticky information affect the locus of innovation? Evidence from the Japanese convenience-store industry," Research Policy, Elsevier, vol. 26(7-8), pages 777-790, April.
- Popp David & Juhl Ted & Johnson Daniel K.N., 2004. "Time In Purgatory: Examining the Grant Lag for U.S. Patent Applications," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-45, November.
- Oliveira, Pedro & von Hippel, Eric, 2011. "Users as service innovators: The case of banking services," Research Policy, Elsevier, vol. 40(6), pages 806-818, July.
- Lettl, Christopher & Rost, Katja & von Wartburg, Iwan, 2009. "Why are some independent inventors 'heroes' and others 'hobbyists'? The moderating role of technological diversity and specialization," Research Policy, Elsevier, vol. 38(2), pages 243-254, March.
- de Jong, Jeroen P.J. & von Hippel, Eric, 2009. "Transfers of user process innovations to process equipment producers: A study of Dutch high-tech firms," Research Policy, Elsevier, vol. 38(7), pages 1181-1191, September.
- Pamela D. Morrison & John H. Roberts & Eric von Hippel, 2000. "Determinants of User Innovation and Innovation Sharing in a Local Market," Management Science, INFORMS, vol. 46(12), pages 1513-1527, December.
- Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
- Roberto Fontana & Franco Malerba, 2010.
"Demand as a source of entry and the survival of new semiconductor firms,"
Industrial and Corporate Change,
Oxford University Press, vol. 19(5), pages 1629-1654, October.
- Roberto Fontana & Franco Malerba, 2010. "Demand as a source of entry and the survival of new semiconductor firms," KITeS Working Papers 031, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Apr 2010.
- John Hagedoorn, 2003. "Sharing intellectual property rights--an exploratory study of joint patenting amongst companies," Industrial and Corporate Change, Oxford University Press, vol. 12(5), pages 1035-1050, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.