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A Model of Technological Progress in the Microprocessor Industry

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  • Unni Pillai

Abstract

This paper develops a model of technological progress in the microprocessor industry that connects the seemingly disparate engineering and economic measures of technological progress. Technological progress in the microprocessor industry is driven by the repeated adoption of higher quality vintages of capital equipment produced by the upstream semiconductor equipment industry. The model characterizes the optimal adoption decision of a microprocessor firm and the resulting rate of technological progress. In conjunction with parameters estimated using a new dataset of the microprocessor industry, the model suggests explanations for the acceleration in technological progress during 1990-2000 and the subsequent slowdown.
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  • Unni Pillai, 2013. "A Model of Technological Progress in the Microprocessor Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 61(4), pages 877-912, December.
    • Handle: RePEc:bla:jindec:v:61:y:2013:i:4:p:877-912
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    2. John G. Fernald, 2015. "Productivity and Potential Output before, during, and after the Great Recession," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 1-51.
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    4. Gilbert CETTE, 2015. "Which Role for ICTs as a Productivity Driver Over the Last Years and the Next Future?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 65-83, 4th quart.
    5. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013. "Is the Information Technology Revolution Over?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-36, Spring.
    6. Kenneth Flamm, 2019. "Measuring Moore’s Law: Evidence from Price, Cost, and Quality Indexes," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 403-470, National Bureau of Economic Research, Inc.
    7. Gilbert Cette, 2014. "Does ICT Remain a Powerful Engine of Growth," Post-Print hal-01463929, HAL.
    8. Marianna Epicoco, 2021. "Technological Revolutions and Economic Development: Endogenous and Exogenous Fluctuations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1437-1461, September.
    9. Zoltan Csefalvay, 2019. "What are the policy options? A systematic review of policy responses to the impacts of robotisation and automation on the labour market," JRC Working Papers on Corporate R&D and Innovation 2019-02, Joint Research Centre.
    10. Jorgenson, Dale W. & Ho, Mun S. & Samuels, Jon D., 2016. "The impact of information technology on postwar US economic growth," Telecommunications Policy, Elsevier, vol. 40(5), pages 398-411.
    11. Huang, Chien-Yu & Yang, Yibai & Zheng, Zhijie, 2018. "Monetary Policy in a Schumpeterian Growth Model with Two R&D Sectors," MPRA Paper 87462, University Library of Munich, Germany.
    12. Samuel Kortum & Unni Pillai, 2014. "Comment on "Productivity and Potential Output Before, During, and After the Great Recession"," NBER Chapters, in: NBER Macroeconomics Annual 2014, Volume 29, pages 52-59, National Bureau of Economic Research, Inc.
    13. Gonzalo Castex & Evgenia Kogan Dechter, 2014. "The Changing Roles of Education and Ability in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 685-710.
    14. Marianna Epicoco, 2021. "Technological Revolutions and Economic Development : Endogenous and Exogenous Fluctuations," Post-Print hal-03588838, HAL.
    15. Chien‐Yu Huang & Youchang Wu & Yibai Yang & Zhijie Zheng, 2023. "Monetary Policy in a Schumpeterian Growth Model with Vertical R&D Sectors," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(6), pages 1569-1607, September.
    16. Dale W. Jorgenson & Mun S. Ho & Jon D. Samuels, 2017. "Educational Attainment and the Revival of US Economic Growth," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 23-60, National Bureau of Economic Research, Inc.

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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