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CROSS-PRODUCT SPILLOVERS IN THE SEMICONDUCTOR INDUSTRY: IMPLICATIONS FOR STRATEGIC TRADE POLICY

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Although the manufacture of semiconductor products has been alleged to create substantial benefits to the economy resulting from the spillover of knowledge, this claim, with the exception of Irwin and Klenow (1994a), has not been subjected substantially to empirical analysis. Our article extends the analysis of Irwin and Klenow and develops and tests a model of knowledge spillovers across several semiconductor memory products. The results indicate that cross-product spillovers from Dynamic Random Access Memories (DRAMs) the integrated circuit product often designated as a ''technology driver'' to other memory products were limited. We discuss the implications of these results for strategic trade policy.
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Document Type: Research Article

Publication date: April 1, 1999

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