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The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors

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  • Adams, Pamela
  • Fontana, Roberto
  • Malerba, Franco

Abstract

How 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.

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  • Adams, Pamela & Fontana, Roberto & Malerba, Franco, 2013. "The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors," Research Policy, Elsevier, vol. 42(1), pages 1-14.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:1:p:1-14
    DOI: 10.1016/j.respol.2012.05.011
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    5. Joern H. Block & Christian O. Fisch & Mirjam van Praag, 2017. "The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 61-95, January.
    6. Goeldner, Moritz & Herstatt, Cornelius, 2016. "Are patients and relatives the better innovators? The case of medical smartphone applications," Working Papers 91, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    7. Pamela Adams & Roberto Fontana & Franco Malerba, 2016. "User-Industry Spinouts: Downstream Industry Knowledge as a Source of New Firm Entry and Survival," Organization Science, INFORMS, vol. 27(1), pages 18-35, February.
    8. José David Pinilla Manrique & Juan Carlos Martínez Torres & Juan Carlos Cabarcas Reyes, 2017. "Capacidades de innovación del sector salud en Barranquilla: Un análisis prospectivo a 2025," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 11(1), pages 127-154, June.
    9. Chila, Vilma, 2021. "Knowledge dynamics in employee entrepreneurship : Implications for parents and offspring," Other publications TiSEM a1f5d18c-783b-4af6-8414-6, Tilburg University, School of Economics and Management.
    10. Anavir Shermon & Mahka Moeen, 2022. "Zooming in or zooming out: Entrants' product portfolios in the nascent drone industry," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2217-2252, November.
    11. Triulzi, G., 2014. "Technology life cycle and specialization patterns of latecomer countries: The case of the semiconductor industry," MERIT Working Papers 2014-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Agarwal, Rajshree & Shah, Sonali K., 2014. "Knowledge sources of entrepreneurship: Firm formation by academic, user and employee innovators," Research Policy, Elsevier, vol. 43(7), pages 1109-1133.
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    15. Roberto Fontana & Franco Malerba & Astrid Marinoni, 2016. "Pre-entry experience, technological complementarities, and the survival of de-novo entrants. Evidence from the US telecommunications industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(6), pages 573-593, September.
    16. Enas Alhassan & R. Sandra Schillo & Margaret A. Lemay & Fred Pries, 2019. "Research Outputs as Vehicles of Knowledge Exchange in a Quintuple Helix Context: The Case of Biofuels Research Outputs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 958-973, September.

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    More about this item

    Keywords

    Sectoral systems; Innovation measurement; User innovation; Patents; Semiconductor industry;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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