Process Innovation and Learning by Doing in Semiconductor Manufacturing
This paper analyzes the relationship between process innovation and learning by doing in the semiconductor industry where improvements in manufacturing yield are a catalyst for dynamic cost reductions. In contrast to most previous studies of learning by doing, the learning curve is shown here to be the product of deliberate activities intended to improve yields and reduce costs, rather than the incidental byproduct of production volume. Since some of the knowledge acquired through learning by doing during new process development is specific to the production environment where the process is developed, some knowledge is effectively lost when a new process is transferred to manufacturing. We find that dedicated process development facilities, geographic proximity between development and manufacturing facilities, and the duplication of equipment between development and manufacturing facilities are all significant in improving performance in introducing new technologies. Once in manufacturing, new processes are shown to disrupt the ongoing learning activities of existing processes by drawing away scarce engineering resources to "debug" the new processes.
Volume (Year): 44 (1998)
Issue (Month): 11-Part-1 (November)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
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.:
- Dudley, Leonard, 1972. "Learning and Productivity Change in Metal Products," American Economic Review, American Economic Association, vol. 62(4), pages 662-669, September.
- Paul S. Adler & Kim B. Clark, 1991. "Behind the Learning Curve: A Sketch of the Learning Process," Management Science, INFORMS, vol. 37(3), pages 267-281, March.
- Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
- Martin B. Zimmerman, 1982. "Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 297-310, Autumn.
- Ronald S. Jarmin, 1994.
"Learning by Doing and Competition in the Early Rayon Industry,"
RAND Journal of Economics,
The RAND Corporation, vol. 25(3), pages 441-454, Autumn.
- Ron Jarmin, 1993. "Learning By Doing And Competition In The Early Rayon Industry," Working Papers 93-4, Center for Economic Studies, U.S. Census Bureau.
- Irwin, Douglas A & Klenow, Peter J, 1994. "Learning-by-Doing Spillovers in the Semiconductor Industry," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1200-1227, December.
- Dick, Andrew R, 1991. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 133-159, April.
- Marvin B. Lieberman, 1984. "The Learning Curve and Pricing in the Chemical Processing Industries," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 213-228, Summer. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:11-part-1:p:1461-1477. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
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.