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

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.