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Demand as a source of entry and the survival of new semiconductor firms


  • Roberto Fontana

    () (KITeS - Bocconi University, Milan, Italy and Department of Economics, University of Pavia, Pavia, Italy)

  • Franco Malerba

    () (KITeS - Bocconi University, Milan, Italy)


The performance of new companies coming from the demand side of the semiconductor industry is examined and it is compared with the performance of entrants coming from the semiconductor industry itself and with other types of entrants. By using a dataset of more than one thousand start-ups founded between 1997 and 2007 around the world, the paper shows that start-ups with a background in application sectors perform survive longer than spin-offs from the semiconductor industry itself or than inexperienced firms founded by people previously active in university or services. These results point strongly to the major role of demand not just as a source of innovations, but also as a major driver of entry into an industry and of successful performance of new firms.

Suggested Citation

  • 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.
  • Handle: RePEc:cri:cespri:kites31_wp

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    Cited by:

    1. Antonelli Cristiano & Gehringer Agnieszka, 2013. "Demand pull and technological flows within innovation systems: the intra-European evidence," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201303, University of Turin.
    2. Peltoniemi, Mirva, 2013. "Mechanisms of capability evolution in the Finnish forest industry cluster," Journal of Forest Economics, Elsevier, vol. 19(2), pages 190-205.
    3. Triulzi, G., 2014. "Technology life cycle and specialization patterns of latecomer countries: The case of the semiconductor industry," MERIT Working Papers 012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. 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.
    5. Hafsi, Taïeb & Hu, Hao, 2016. "Sectoral innovation through competing logics: The case of antidepressants in traditional Chinese medicine," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 80-89.
    6. Lalit Manral, 2015. "The demand-side dynamics of entrant heterogeneity," Journal of Evolutionary Economics, Springer, vol. 25(2), pages 401-445, April.
    7. 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.

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