The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors
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.
If 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.
References listed on IDEAS
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.:
- Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
- 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.
- 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, July.
- Ejermo, Olof & Karlsson, Charlie, 2006.
"Interregional inventor networks as studied by patent coinventorships,"
Elsevier, vol. 35(3), pages 412-430, April.
- Ejermo, Olof & Karlsson, Charlie, 2005. "Interregional Inventor Networks as Studied by Patent Co-inventorships," Papers in Innovation Studies 2005/11, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
- Belderbos, Rene & Carree, Martin A & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2003. "Heterogeneity in R&D Cooperation Strategies," CEPR Discussion Papers 4021, C.E.P.R. Discussion Papers.
- Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
- 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.
- 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.
- 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.
- Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
- 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.
- 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, 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.
- 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.
- 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.
- 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.
- N/A, 1968. "Chemical Process Plant : Innovation and the World Market," National Institute Economic Review, National Institute of Economic and Social Research, vol. 45(1), pages 29-51, August.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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).
- 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.
- 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.
- 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.
- 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.
- Robert Evenson & Daniel Johnson, 1997. "Introduction: Invention Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 149-160.
- 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.
- 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.
- 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.
- 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.
- 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. Full references (including those not matched with items on IDEAS)