Learning by Doing and Spillovers: Further Evidence for the Semiconductor Industry
Learning spillovers in the production of EPROMs are investigated. It turns out that spillovers are significant, even though internal learning is the predominant source of learning. Concerning external learning, it does not appear to particularly matter whether this comes from domestic rivals or foreign companies. There is some indication that Japanese companies have a steeper learning curve and with some generations are better able to appropriate external learning from foreigners. Intergenerational learning is pervasive, which seems to provide competitive advantages to first movers. It could explain the persistence of leadership of Intel in this industry across a series of generations. Moreover, it could deliver scope for policy intervention.
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