Analyzing the Spillover Mechanism on the Semiconductor Industry in the Silicon Valley and Route 128
To understand the impact of science and engineering innovations on economic growth requires relating discoveries to products, and identifying the scientists and engineers who are responsible for the knowledge transfer. Studies reliant on geographic proximity alone can show only that economic activity varies positively with the amount of research being done at a university [David (1992), Nelson and Romer (1996), Jaffe (1989,93)]. These "geographically localized knowledge spillovers" have proved unable to explain what it is about research universities that is crucial for their local economic impact (training, the research findings?) and, therefore, are unconvincing both to policy makers and the public. This paper analyses the spillover mechanism identifying its main components by analyzing the effect of university-based star scientists through explicit and implicit ties, and the effect of other neighbor firms, on the performance of semiconductor enterprises measured with patents. Explicit ties are modeled by the full and part-time job mobility of scientists located in universities; and implicit ties, by the presence of positive externalities or spillover effects to the firms of untied scientists at Universities in the same economic area. Specifically, this study examines the Silicon Valley and Route 128 cases in detail identifying the differences and similarities between these two major semiconductor regions in their spillover mechanisms. Previous research on high-technology industries has demonstrated the importance of geographically localized "knowledge spillovers" by building specific links between university scientists and firms and estimating the local effects of different types of links. This research goes an step forward, by not only measuring the effect of University research through the direct ties to firms (Zucker, Darby, Armstrong; 1998); but also measuring the importance of the inside industry R&D spillovers in the growth of the region.
|Date of creation:||01 Aug 2000|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
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.:
- Jeffrey I. Bernstein & M. Ishaq Nadiri, 1988.
"Interindustry R&D Spillovers, Rates Of Return, and Production In High-Tech Industries,"
NBER Working Papers
2554, National Bureau of Economic Research, Inc.
- Bernstein, Jeffrey I & Nadiri, M Ishaq, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," American Economic Review, American Economic Association, vol. 78(2), pages 429-34, May.
- Jeffrey Bernstein & Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," Carleton Industrial Organization Research Unit (CIORU) 88-01, Carleton University, Department of Economics.
- Philippe Aghion & Peter Howitt, 1990.
"A Model of Growth Through Creative Destruction,"
NBER Working Papers
3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Zucker, Lynne G & Darby, Michael R & Armstrong, Jeff, 1998. "Geographically Localized Knowledge: Spillovers or Markets?," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 65-86, January.
- Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Gandal, N. & Scotchmen, S., 1991.
"Coordinating Research Through Research Joint Ventures,"
6-91, Tel Aviv.
- Gandal, Neil & Scotchmer, Suzanne, 1993. "Coordinating research through research joint ventures," Journal of Public Economics, Elsevier, vol. 51(2), pages 173-193, June.
- Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
- Combs, K. L., 1993. "The role of information sharing in cooperative research and development," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 535-551.
- Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
- Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
- Bania, Neil & Eberts, Randall W & Fogarty, Michael S, 1993.
"Universities and the Startup of New Companies: Can We Generalize from Route 128 and Silicon Valley?,"
The Review of Economics and Statistics,
MIT Press, vol. 75(4), pages 761-66, November.
- Neil Bania & Randall W. Eberts & Michael S. Fogarty, . "Universities and the Startup of New Companies: Can We Generalize from Route 128 and Silicon Valley?," Upjohn Working Papers and Journal Articles rwe1993, W.E. Upjohn Institute for Employment Research.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Anselin, Luc, 1990. "Some robust approaches to testing and estimation in spatial econometrics," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 141-163, September.
- Choi, Jay Pil, 1993. "Cooperative R&D with product market competition," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 553-571.
When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:0090. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.