From Physics to Function: An Empirical Study of Research and Development Performance in the Semiconductor Industry

We present the results of an empirical study of research and development in the semiconductor industry. The study aimed to understand the drivers of innovation performance in an environment characterized by close links to science and a combination of technical novelty and manufacturing complexity. The data reveal substantial differences in research and development (R&D) performance, and R&D performance improvement, between firms. Analysis of our field observations suggests that these differences are associated with the use of experimentation and experience in guiding technology choices, matching options provided by scientific developments with the complex requirements of evolving production environments. We describe the technology choice process in some detail, and examine its nature in both U.S. and Japanese industrial settings.