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The value of knowledge spillovers in the U.S. semiconductor industry

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  • Deng, Yi

Abstract

This paper aims at quantifying the economic value of knowledge spillovers by exploring information contained in patent citations. We estimate a market valuation equation of the U.S. semiconductor firms during the 1980s and 1990s, and find an average value of $0.6 to 1.2 million "R&D-equivalent" dollars for knowledge spillovers embodied in one patent citation. For an average semiconductor firm, such an estimate implies that the total value of knowledge spillovers the firm received during the sample period can be as high as half of its actual total R&D expenditures in the same period. This provides a direct measure of the economic value of social returns or externalities of relevant technological innovations. We also find that the value of knowledge spillovers declines as the size of firm's patent portfolio increases, and that self citations are more valuable than external citations, indicating a significant amount of tacit knowledge or know-how spillovers that occur within the firm.

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  • Deng, Yi, 2008. "The value of knowledge spillovers in the U.S. semiconductor industry," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 1044-1058, July.
    • Handle: RePEc:eee:indorg:v:26:y:2008:i:4:p:1044-1058
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    Cited by:

    1. Monika Schnitzer & Martin Watzinger, 2022. "Measuring the Spillovers of Venture Capital," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 276-292, May.
    2. George Messinis, 2011. "Triadic citations, country biases and patent value: the case of pharmaceuticals," Scientometrics, Springer;Akadémiai Kiadó, vol. 89(3), pages 813-833, December.
    3. Dibiaggio, Ludovic & Nasiriyar, Maryam & Nesta, Lionel, 2014. "Substitutability and complementarity of technological knowledge and the inventive performance of semiconductor companies," Research Policy, Elsevier, vol. 43(9), pages 1582-1593.
    4. Chun-chieh Wang & Mu-hsuan Huang & Dar-zen Chen, 2012. "The Evolution of Knowledge Spillover and Company cluster in Semiconductor Industry," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(2), pages 109-124, June.
    5. Boeing, Philipp & Mueller, Elisabeth, 2019. "Measuring China's patent quality: Development and validation of ISR indices," China Economic Review, Elsevier, vol. 57(C).
    6. Chen, Jong-Rong & Kan, Kamhon & Tung, I-Hsuan, 2016. "Scientific linkages and firm productivity: Panel data evidence from Taiwanese electronics firms," Research Policy, Elsevier, vol. 45(7), pages 1449-1459.
    7. Antoine Dechezleprêtre & Ralf Martin & Myra Mohnen, 2014. "Knowledge Spillovers from Clean and Dirty Technologies," CEP Discussion Papers dp1300, Centre for Economic Performance, LSE.
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    9. Jorge Nogueira de Paiva Britto & Leonardo Costa Ribeiro & Lucas Teixeira Araújo & Eduardo da Motta e Albuquerque, 2019. "Patent citations, knowledge flows and catching-up: evidences of different national experiences for the period 1982-2006," Textos para Discussão Cedeplar-UFMG 606, Cedeplar, Universidade Federal de Minas Gerais.
    10. Christiaan Hogendorn, 2012. "Spillovers and Network Neutrality," Chapters, in: Gerald R. Faulhaber & Gary Madden & Jeffrey Petchey (ed.), Regulation and the Performance of Communication and Information Networks, chapter 8, Edward Elgar Publishing.
    11. Hosein Fallah, M. & Choudhury, Piyasi & Daim, Tugrul U., 2012. "Does movement of inventors between companies affect their productivity?," Technology in Society, Elsevier, vol. 34(3), pages 196-206.
    12. Femminis, Gianluca & Martini, Gianmaria, 2011. "Irreversible investment and R&D spillovers in a dynamic duopoly," Journal of Economic Dynamics and Control, Elsevier, vol. 35(7), pages 1061-1090, July.
    13. Yi Deng & Gabriel Picone, 2013. "Strategic Clustering and Competition by Alcohol Retailers: An Emperical Anlysis of Entry and Location Decisions," Working Papers 1013, University of South Florida, Department of Economics.
    14. Carlo Giglio & Gianluca Salvatore Vocaturo & Roberto Palmieri, 2023. "Patent Acquisitions in the Healthcare Industry: An Analysis of Learning Mechanisms," IJERPH, MDPI, vol. 20(5), pages 1-13, February.
    15. Carlo Giglio & Roberto Sbragia & Roberto Musmanno & Roberto Palmieri, 2021. "Cross-country learning from patents: an analysis of citations flows in innovation trajectories," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7917-7936, September.
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    17. Cristina Quintana-García & Carlos A. Benavides-Velasco & Vanesa F. Guzmán-Parra, 2016. "Science-based Firms Going Public: The Role of Patent Indicators and Top Management Teams," Industry and Innovation, Taylor & Francis Journals, vol. 23(3), pages 243-259, April.
    18. Yi Deng & Gabriel Picone, 2019. "An empirical analysis of entry and location decisions by bars and liquor stores," Empirical Economics, Springer, vol. 57(5), pages 1751-1782, November.
    19. Buhr, Helena & Funk, Russell J. & Owen-Smith, Jason, 2021. "The authenticity premium: Balancing conformity and innovation in high technology industries," Research Policy, Elsevier, vol. 50(1).

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