IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v42y2013i1p1-14.html
   My bibliography  Save this article

The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors

Author

Listed:
  • Adams, Pamela
  • Fontana, Roberto
  • Malerba, Franco

Abstract

How relevant is innovation by demand compared to innovation by other actors in a sector? In quantitative terms, this is a yet unanswered question. The current study fills this major gap in the literature on industry studies. By taking a sectoral system perspective, this study is able to highlight the magnitude of innovation by intermediate user firms in a high technology sector: semiconductors. Using a combination of different datasets – patents, co-patents, R&D alliances and new ventures in semiconductors – this study proposes a novel quantitative approach to assessing the magnitude of innovative activity by user firms. The study reaches several findings. First, the magnitude of innovation by user firms, as measured by patents, is high in both absolute and relative terms compared to semiconductor firms and other actors in the sector. Second, the distribution of patents among different demand segments is highly uneven. Third, innovative user firms are highly heterogeneous in terms of size, diversification and vertical integration. Fourth, collaboration in R&D and co-patenting activity in semiconductors take place not just between user firms and semiconductor firms, but also among user firms themselves. Fifth, innovative user firms are quite active in entrepreneurial activity in semiconductors and their new ventures, on average, survive longer than spin-offs or other start-ups.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:1:p:1-14
    DOI: 10.1016/j.respol.2012.05.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733312001485
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2012.05.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Clair Brown & Greg Linden, 2009. "Chips and Change: How Crisis Reshapes the Semiconductor Industry," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013460, April.
    3. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    4. Popp David & Juhl Ted & Johnson Daniel K.N., 2004. "Time In Purgatory: Examining the Grant Lag for U.S. Patent Applications," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-45, November.
    5. N/A, 1968. "Chemical Process Plant : Innovation and the World Market," National Institute Economic Review, National Institute of Economic and Social Research, vol. 45(1), pages 29-51, August.
    6. onder Nomaler & Bart Verspagen, 2008. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 339-366.
    7. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
    8. Robert Evenson & Daniel Johnson, 1997. "Introduction: Invention Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 149-160.
    9. Lettl, Christopher & Rost, Katja & von Wartburg, Iwan, 2009. "Why are some independent inventors 'heroes' and others 'hobbyists'? The moderating role of technological diversity and specialization," Research Policy, Elsevier, vol. 38(2), pages 243-254, March.
    10. Wim Vanhaverbeke & Geert Duysters & Niels Noorderhaven, 2002. "External Technology Sourcing Through Alliances or Acquisitions: An Analysis of the Application-Specific Integrated Circuits Industry," Organization Science, INFORMS, vol. 13(6), pages 714-733, December.
    11. Malerba, Franco, 1985. "Demand structure and technological change: The case of the European semiconductor industry," Research Policy, Elsevier, vol. 14(5), pages 283-297, October.
    12. Ejermo, Olof & Karlsson, Charlie, 2006. "Interregional inventor networks as studied by patent coinventorships," Research Policy, Elsevier, vol. 35(3), pages 412-430, April.
    13. Roberto Fontana & Franco Malerba, 2010. "Demand as a source of entry and the survival of new semiconductor firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(5), pages 1629-1654, October.
    14. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
    15. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    16. Glen L. Urban & Eric von Hippel, 1988. "Lead User Analyses for the Development of New Industrial Products," Management Science, INFORMS, vol. 34(5), pages 569-582, May.
    17. Franco Malerba & Richard Nelson & Luigi Orsenigo & Sidney Winter, 2007. "Demand, innovation, and the dynamics of market structure: The role of experimental users and diverse preferences," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 371-399, August.
    18. Ludovic Dibiaggio & Maryam Nasiriyar, 2009. "Knowledge integration and vertical specialization in the semiconductor industry," Post-Print halshs-01948243, HAL.
    19. Henrik Glimstedt & Donald Bratt & Magnus P. Karlsson, 2010. "The decision to make or buy a critical technology: semiconductors at Ericsson, 1980--2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(2), pages 431-464, April.
    20. Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004. "Cooperative R&D and firm performance," Research Policy, Elsevier, vol. 33(10), pages 1477-1492, December.
    21. Frietsch, Rainer & Jung, Taehyun, 2009. "Transnational patents: Structures, trends and recent developments," Studien zum deutschen Innovationssystem 7-2009, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    22. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    23. de Jong, Jeroen P.J. & von Hippel, Eric, 2009. "Transfers of user process innovations to process equipment producers: A study of Dutch high-tech firms," Research Policy, Elsevier, vol. 38(7), pages 1181-1191, September.
    24. Pamela D. Morrison & John H. Roberts & Eric von Hippel, 2000. "Determinants of User Innovation and Innovation Sharing in a Local Market," Management Science, INFORMS, vol. 46(12), pages 1513-1527, December.
    25. John Hagedoorn, 1993. "Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 371-385, July.
    26. Oliveira, Pedro & von Hippel, Eric, 2011. "Users as service innovators: The case of banking services," Research Policy, Elsevier, vol. 40(6), pages 806-818, July.
    27. Ogawa, Susumu, 1998. "Does sticky information affect the locus of innovation? Evidence from the Japanese convenience-store industry," Research Policy, Elsevier, vol. 26(7-8), pages 777-790, April.
    28. John Hagedoorn, 2003. "Sharing intellectual property rights--an exploratory study of joint patenting amongst companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1035-1050, October.
    29. Mowery,David C. & Nelson,Richard R. (ed.), 1999. "Sources of Industrial Leadership," Cambridge Books, Cambridge University Press, number 9780521645201.
    30. Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December.
    31. Dieter Ernst, 2003. "Internationalisation of Innovation: Why Chip Design Moving to Asia," Economics Study Area Working Papers 64, East-West Center, Economics Study Area, revised Mar 2004.
    32. Martin Schreier & Stefan Oberhauser & Reinhard Prügl, 2007. "Lead users and the adoption and diffusion of new products: Insights from two extreme sports communities," Marketing Letters, Springer, vol. 18(1), pages 15-30, June.
    33. Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
    34. Dieter Ernst, 2005. "Limits to Modularity: Reflections on Recent Developments in Chip Design," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 303-335.
    35. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
    36. Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004. "Cooperative R&D and firm performance," Research Policy, Elsevier, vol. 33(10), pages 1477-1492, December.
    37. Riggs, William & von Hippel, Eric, 1994. "Incentives to innovate and the sources of innovation: the case of scientific instruments," Research Policy, Elsevier, vol. 23(4), pages 459-469, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arora, Ashish & Cohen, Wesley M. & Walsh, John P., 2016. "The acquisition and commercialization of invention in American manufacturing: Incidence and impact," Research Policy, Elsevier, vol. 45(6), pages 1113-1128.
    2. Pamela Adams & Roberto Fontana & Franco Malerba, 2016. "User-Industry Spinouts: Downstream Industry Knowledge as a Source of New Firm Entry and Survival," Organization Science, INFORMS, vol. 27(1), pages 18-35, February.
    3. José David Pinilla Manrique & Juan Carlos Martínez Torres & Juan Carlos Cabarcas Reyes, 2017. "Capacidades de innovación del sector salud en Barranquilla: Un análisis prospectivo a 2025," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 11(1), pages 127-154, June.
    4. Chila, Vilma, 2021. "Knowledge dynamics in employee entrepreneurship : Implications for parents and offspring," Other publications TiSEM a1f5d18c-783b-4af6-8414-6, Tilburg University, School of Economics and Management.
    5. Pamela Adams & Roberto Fontana & Franco Malerba, 2022. "Knowledge resources and the acquisition of spinouts," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 277-313, June.
    6. Pedeliento, Giuseppe & Bettinelli, Cristina & Andreini, Daniela & Bergamaschi, Mara, 2018. "Consumer entrepreneurship and cultural innovation: The case of GinO12," Journal of Business Research, Elsevier, vol. 92(C), pages 431-442.
    7. Anavir Shermon & Mahka Moeen, 2022. "Zooming in or zooming out: Entrants' product portfolios in the nascent drone industry," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2217-2252, November.
    8. Adams, Pamela & Bodas Freitas, Isabel Maria & Fontana, Roberto, 2019. "Strategic orientation, innovation performance and the moderating influence of marketing management," Journal of Business Research, Elsevier, vol. 97(C), pages 129-140.
    9. Triulzi, G., 2014. "Technology life cycle and specialization patterns of latecomer countries: The case of the semiconductor industry," MERIT Working Papers 2014-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. 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.
    11. Chong Yu & Masatoshi Kato, 2024. "Does user entrepreneurship matter for start-up financing? Evidence from Japan," Discussion Paper Series 275, School of Economics, Kwansei Gakuin University.
    12. Xueling Li & Xiaoyan Zhang & Yuan Liu & Yuanying Mi & Yong Chen, 2022. "The impact of artificial intelligence on users' entrepreneurial activities," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 597-608, May.
    13. Li, Daitian & Malerba, Franco, 2024. "Technological change and the evolution of the links across sectoral systems: The case of mobile communications," Technovation, Elsevier, vol. 130(C).
    14. Alex da Silva Alves & Antonio José Junqueira Botelho & Virgínia Duarte, 2018. "Business Modeling and Public Policy in High-Tech Industries: Exploratory Evidences from Two Brazilian Semiconductor Support Programs," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-25, August.
    15. Joern H. Block & Christian O. Fisch & Mirjam van Praag, 2017. "The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 61-95, January.
    16. Goeldner, Moritz & Herstatt, Cornelius, 2016. "Are patients and relatives the better innovators? The case of medical smartphone applications," Working Papers 91, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    17. Roberto Fontana & Franco Malerba & Astrid Marinoni, 2016. "Pre-entry experience, technological complementarities, and the survival of de-novo entrants. Evidence from the US telecommunications industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(6), pages 573-593, September.
    18. Enas Alhassan & R. Sandra Schillo & Margaret A. Lemay & Fred Pries, 2019. "Research Outputs as Vehicles of Knowledge Exchange in a Quintuple Helix Context: The Case of Biofuels Research Outputs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 958-973, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sánchez-González, Gloria & González-Álvarez, Nuria & Nieto, Mariano, 2009. "Sticky information and heterogeneous needs as determining factors of R&D cooperation with customers," Research Policy, Elsevier, vol. 38(10), pages 1590-1603, December.
    2. Aaron K. Chatterji & Kira Fabrizio, 2012. "How Do Product Users Influence Corporate Invention?," Organization Science, INFORMS, vol. 23(4), pages 971-987, August.
    3. Arora, Ashish & Cohen, Wesley M. & Walsh, John P., 2016. "The acquisition and commercialization of invention in American manufacturing: Incidence and impact," Research Policy, Elsevier, vol. 45(6), pages 1113-1128.
    4. Schweisfurth, Tim G. & Dharmawan, Magha P., 2019. "Does lead userness foster idea implementation and diffusion? A study of internal shopfloor users," Research Policy, Elsevier, vol. 48(1), pages 289-297.
    5. Preißner, Stephanie & Raasch, Christina & Schweisfurth, Tim, 2017. "Is necessity the mother of disruption?," Kiel Working Papers 2097, Kiel Institute for the World Economy (IfW Kiel).
    6. Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December.
    7. Franco Malerba, 2006. "Innovation, Industrial Dynamics and Industry Evolution: Progress and the Research Agendas," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 21-46.
    8. Oliveira, Pedro & von Hippel, Eric, 2011. "Users as service innovators: The case of banking services," Research Policy, Elsevier, vol. 40(6), pages 806-818, July.
    9. van der Boor, Paul & Oliveira, Pedro & Veloso, Francisco, 2014. "Users as innovators in developing countries: The global sources of innovation and diffusion in mobile banking services," Research Policy, Elsevier, vol. 43(9), pages 1594-1607.
    10. Maria Roszkowska-Menkes, 2017. "User Innovation: State of the Art and Perspectives for Future Research," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(2), pages 127-154.
    11. Philipp Alexander Ebel & Ulrich Bretschneider & Jan Marco Leimeister, 2016. "Can The Crowd Do The Job? Exploring The Effects Of Integrating Customers Into A Company’S Business Model Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-24, October.
    12. Malerba, Franco, 2007. "Innovation and the dynamics and evolution of industries: Progress and challenges," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 675-699, August.
    13. Isabel Freitas & Tommy Clausen & Roberto Fontana & Bart Verspagen, 2011. "Formal and informal external linkages and firms’ innovative strategies. A cross-country comparison," Journal of Evolutionary Economics, Springer, vol. 21(1), pages 91-119, February.
    14. Alexander Brem & Volker Bilgram & Adele Gutstein, 2021. "Involving Lead Users in Innovation: A Structured Summary of Research on the Lead User Method," World Scientific Book Chapters, in: Alexander Brem (ed.), Emerging Issues and Trends in INNOVATION AND TECHNOLOGY MANAGEMENT, chapter 2, pages 21-48, World Scientific Publishing Co. Pte. Ltd..
    15. Andrew Eckert & Corinne Langinier, 2014. "A Survey Of The Economics Of Patent Systems And Procedures," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 996-1015, December.
    16. Mahka Moeen & Rajshree Agarwal & Sonali K. Shah, 2020. "Building Industries by Building Knowledge: Uncertainty Reduction over Industry Milestones," Strategy Science, INFORMS, vol. 5(3), pages 218-244, September.
    17. Segarra-Blasco, Agusti­ & Arauzo-Carod, Josep-Maria, 2008. "Sources of innovation and industry-university interaction: Evidence from Spanish firms," Research Policy, Elsevier, vol. 37(8), pages 1283-1295, September.
    18. Markus Ernst & Alexander Brem, 2017. "Social Media for Identifying Lead Users? Insights into Lead Users’ Social Media Habits," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-21, August.
    19. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    20. Hua Liang & Zongyi Zhang, 2012. "The effects of industry characteristics on the sources of technological product and process innovation," The Journal of Technology Transfer, Springer, vol. 37(6), pages 867-884, December.

    More about this item

    Keywords

    Sectoral systems; Innovation measurement; User innovation; Patents; Semiconductor industry;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:42:y:2013:i:1:p:1-14. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.