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The power of integrality: linkages between product architecture, innovation, and industry
, 2008
"... explicit permission, provided that full credit including © notice is given to the source. This paper also can be downloaded without charge from the ..."
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explicit permission, provided that full credit including © notice is given to the source. This paper also can be downloaded without charge from the
What Firms Make vs. What They Know: How Firms ’ Production and Knowledge Boundaries Affect Competitive Advantage in the Face of Technological Change
, 2007
"... Product innovations are often enabled by changes in components. We examine how firms ' ability to manage such changes depends on their governance strategies, their knowledge of components, and the nature of technological change. Using data on all firms in the DRAM industry across 12 technology ..."
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Product innovations are often enabled by changes in components. We examine how firms ' ability to manage such changes depends on their governance strategies, their knowledge of components, and the nature of technological change. Using data on all firms in the DRAM industry across 12 technology transitions from 1974 to 2005, we find that vertically integrating into component production improves firms ’ ability to manage technology transitions. Although non-integrated firms have lower performance, this effect is muted by the firms ’ component knowledge. Moreover, the relative advantage of extending production vs. knowledge boundaries is determined by two factors. The first is the nature of technological change – integrated firms have a greater advantage over non-integrated firms when innovation is architectural than when it is incremental. The second is the degree of integration – non-integrated firms derive greater benefit from their knowledge of external components than do integrated firms. Our results clarify the conditions under which extending knowledge boundaries can be a substitute for extending production boundaries in managing technological change.
The internationalization of industry supply chains and the location of innovation activities
"... ABSTRACT Current policy discussions on offshoring mostly focus on its impact on lower skilled manufacturing and services jobs, assuming that higher-value-added jobs and, especially, innovation activities are not affected by offshoring. Contrary to this view, we suggest that innovation activity will ..."
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ABSTRACT Current policy discussions on offshoring mostly focus on its impact on lower skilled manufacturing and services jobs, assuming that higher-value-added jobs and, especially, innovation activities are not affected by offshoring. Contrary to this view, we suggest that innovation activity will also move abroad as a result of offshoring. Yet, the movement of innovation activities abroad will be conditioned by the nature of knowledge, causing some innovation activities to remain in the US while driving other activities away. To explore this idea we analyze the quantity of and knowledge utilized by innovation activities over time in rare-earth catalyst and magnet technologies, showing how knowledge spillovers among different segments of an industry value chain can play a role in the movement of innovation outside the US. We then develop an innovation model to gain further insight into the characteristics of innovation activities that remain in the US.
THE EFFECTS OF INNOVATION ON VERTICAL STRUCTURE: A CONCEPTUAL COMPUTATIONAL MODEL
"... The usual caveat applies. ..."
Offshoring in the Semiconductor Industry:
"... Semiconductor design is a frequently cited example of the new wave of offshoring of service sector jobs. 1 It is certainly a concern to U.S. design engineers themselves. 2 The semiconductor industry already has rich experience with the offshoring of manufacturing activity. Semiconductor (or chip) co ..."
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Semiconductor design is a frequently cited example of the new wave of offshoring of service sector jobs. 1 It is certainly a concern to U.S. design engineers themselves. 2 The semiconductor industry already has rich experience with the offshoring of manufacturing activity. Semiconductor (or chip) companies were among the first to invest in offshore facilities to manufacture goods for import back to the United States. A review of these earlier manufacturing experiences and their impact on the fortunes of the domestic industry and its workers can help to illuminate the current debate over the offshoring of services. Because meaningful data about the impact of the offshoring of chip design (and even of manufacturing) are limited, we rely on a more qualitative analysis The authors would like to thank the Alfred P. Sloan Foundation; the Institute for Technology,
A Case Study of the Rare-earth Technology
"... Many US firms are improving their individual competitiveness by offshoring manufacturing operations, services and, increasingly, knowledge work. Although research to date has maintained that these practices are beneficial to the offshoring firm and national economies, by reducing costs and expanding ..."
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Many US firms are improving their individual competitiveness by offshoring manufacturing operations, services and, increasingly, knowledge work. Although research to date has maintained that these practices are beneficial to the offshoring firm and national economies, by reducing costs and expanding markets, little is known about the longer term effect of offshoring on the rate of innovation of home economies. This paper suggests that offshoring practices have adverse effects on innovation at the national home base. The analysis uses patents in the rare earth element industry, a high tech area which is among those that have evolved the furthest towards outsourcing and relocation away from the US and to developing countries. Looking at the rare earth industry can provide insights in identifying potential long term impacts of offshoring on innovation because many other US industries are likely to adopt similar offshoring strategies. 2 1.
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"... This paper reviews our recent work on integrating photonic devices and sub-systems onto a single photonic chip, by means of generic integration. 1. ..."
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This paper reviews our recent work on integrating photonic devices and sub-systems onto a single photonic chip, by means of generic integration. 1.
Towards fabless photonic integration by Pascual Muñoz, CEO of VLC Photonics
, 2012
"... Brief historical perspective Photonic integration allows to combine multiple optical functionalities into a single monolithic chip. Making this process generic allows a vertical specialisation through the value chain, by involving several spesialised partners at different stages of an optical system ..."
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Brief historical perspective Photonic integration allows to combine multiple optical functionalities into a single monolithic chip. Making this process generic allows a vertical specialisation through the value chain, by involving several spesialised partners at different stages of an optical system development. This compares to the traditional vertical aggregation model from a single device manufacturer. Such evolution mimics the case for the US semiconductor industry [1], where large corporations as AT&T and IBM, initially designed and produced their own components, and developed the fabs and processes required to manufacture them in house. In time, specialisation in two parts of the food chain: design and fabrication, lead to the appearance of fabless design houses and pure-play foundries. Considering photonics, the seed for generic integration appeared in Europe by 2007 [2], although some early work by HHI in 2000 already contains the spirit of generic photonic circuits [3]. Current state of the art An overview example of relevant photonic foundries offering generic integration manufacturing services has been summarised in Table I. Operationally, these foundries can be described as follows: some foundries are publicly funded
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"... Improve your products with photonic integrated circuits Learn how can you benefit from this technology www.vlcphotonics.com Summary Photonic technologies are enabling multiple applications nowadays, from optical telecommunications to biophotonic devices or precise fibre sensors. Still, optical comp ..."
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Improve your products with photonic integrated circuits Learn how can you benefit from this technology www.vlcphotonics.com Summary Photonic technologies are enabling multiple applications nowadays, from optical telecommunications to biophotonic devices or precise fibre sensors. Still, optical components tend to be bulky and expensive, and require complex stabilization and adjustments, especially when interfacing with electronics. Embedding some photonic functionalities into an integrated chip can simplify a system and dramatically decrease its costs. However, the cutting edge optical manufacturing technologies enabling such chip integration were traditionally affordable only by large corporations. Nowadays, generic photonic integration emerges as a new paradigm that provides cost-effective and high-performance miniaturized optical systems for a wide range of applications and markets. In this white paper we will highlight the advantages of using photonic integrated circuits, and we will give you a brief overview of the new integrated manufacturing models and how can you benefit from them. VLC Photonics whitepaper Improve your products with photonic integrated circuits
