Adoption of a Process Innovation with Learning-by-Doing: Evidence from the Semiconductor Industry

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Abstract

This article analyzes the adoption of a new process technology in the global semiconductor manufacturing industry. The paper extends research on the relationship between learning-by-doing and technology adoption by examining the stability of learning effects across technological generations. While the results indicate that production experience with the immediately preceding technological generation is associated with a higher likelihood of adoption, we find no evidence that experience with older technologies or regional knowledge spillovers influence adoption. Finally, the results indicate that large firms and memory manufacturers have a higher likelihood of adoption than small firms and non-memory manufacturers, respectively.

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