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Sematech: purpose and performance

D A Irwin1, P J Klenow

  • 1Graduate School of Business, University of Chicago, IL 60637, USA.

Proceedings of the National Academy of Sciences of the United States of America
|November 12, 1996
PubMed
Summary

Semiconductor manufacturing involves a steep learning curve with knowledge spillovers. Government-funded consortia like Sematech may increase R&D efficiency but not necessarily overall research volume.

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Area of Science:

  • Economics of Technology
  • Industrial Organization
  • Semiconductor Manufacturing

Background:

  • Semiconductor production exhibits a steep learning curve.
  • Knowledge spillovers exist between firms, justifying government intervention.
  • Joint ventures can enhance learning curve efficiency.

Purpose of the Study:

  • To analyze the impact of the Sematech consortium on R&D spending and efficiency.
  • To evaluate the effectiveness of government subsidies in stimulating semiconductor research.

Main Methods:

  • Analysis of R&D spending patterns of Sematech member firms.
  • Estimation of knowledge spillover effects in semiconductor production.

Main Results:

  • Sematech has potentially reduced R&D spending among member firms.
  • This reduction may indicate increased research efficiency through knowledge sharing.
  • Government contributions might not lead to additional semiconductor research beyond what would naturally occur.

Conclusions:

  • Sematech may enhance R&D efficiency but not necessarily increase total research output.
  • Government funding might be better utilized if firms self-fund research post-subsidy.
  • Policy implications for R&D consortia and government support in high-tech industries.

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