[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v44y1998i11-part-1p1461-1477.html
   My bibliography  Save this article

Process Innovation and Learning by Doing in Semiconductor Manufacturing

Author

Listed:
  • Nile W. Hatch

    (Department of Business Administration, University of Illinois at Urbana-Champaign, Champaign, Illinois 61820)

  • David C. Mowery

    (Haas School of Business, University of California, Berkeley, Berkeley, California 94720)

Abstract
This paper analyzes the relationship between process innovation and learning by doing in the semiconductor industry where improvements in manufacturing yield are a catalyst for dynamic cost reductions. In contrast to most previous studies of learning by doing, the learning curve is shown here to be the product of deliberate activities intended to improve yields and reduce costs, rather than the incidental byproduct of production volume. Since some of the knowledge acquired through learning by doing during new process development is specific to the production environment where the process is developed, some knowledge is effectively lost when a new process is transferred to manufacturing. We find that dedicated process development facilities, geographic proximity between development and manufacturing facilities, and the duplication of equipment between development and manufacturing facilities are all significant in improving performance in introducing new technologies. Once in manufacturing, new processes are shown to disrupt the ongoing learning activities of existing processes by drawing away scarce engineering resources to "debug" the new processes.

Suggested Citation

  • Nile W. Hatch & David C. Mowery, 1998. "Process Innovation and Learning by Doing in Semiconductor Manufacturing," Management Science, INFORMS, vol. 44(11-Part-1), pages 1461-1477, November.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:11-part-1:p:1461-1477
    DOI: 10.1287/mnsc.44.11.1461
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.44.11.1461
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.44.11.1461?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ronald S. Jarmin, 1994. "Learning by Doing and Competition in the Early Rayon Industry," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 441-454, Autumn.
    2. Dudley, Leonard, 1972. "Learning and Productivity Change in Metal Products," American Economic Review, American Economic Association, vol. 62(4), pages 662-669, September.
    3. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    4. Martin B. Zimmerman, 1982. "Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 297-310, Autumn.
    5. Dick, Andrew R, 1991. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 133-159, April.
    6. Irwin, Douglas A & Klenow, Peter J, 1994. "Learning-by-Doing Spillovers in the Semiconductor Industry," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1200-1227, December.
    7. Ferdinand K. Levy, 1965. "Adaptation in the Production Process," Management Science, INFORMS, vol. 11(6), pages 136-154, April.
    8. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    9. Paul S. Adler & Kim B. Clark, 1991. "Behind the Learning Curve: A Sketch of the Learning Process," Management Science, INFORMS, vol. 37(3), pages 267-281, March.
    10. Marvin B. Lieberman, 1984. "The Learning Curve and Pricing in the Chemical Processing Industries," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 213-228, Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Besanko & Ulrich Doraszelski & Yaroslav Kryukov & Mark Satterthwaite, 2008. "Learning-by-Doing, Organizational Forgetting, and Industry Dynamics," GSIA Working Papers 2009-E22, Carnegie Mellon University, Tepper School of Business.
    2. Nadeau, Marie-Claude & Kar, Ashish & Roth, Richard & Kirchain, Randolph, 2010. "A dynamic process-based cost modeling approach to understand learning effects in manufacturing," International Journal of Production Economics, Elsevier, vol. 128(1), pages 223-234, November.
    3. Harashima, Taiji, 2009. "A Theory of Total Factor Productivity and the Convergence Hypothesis: Workers’ Innovations as an Essential Element," MPRA Paper 15508, University Library of Munich, Germany.
    4. Harashima, Taiji, 2011. "A Model of Total Factor Productivity Built on Hayek’s View of Knowledge: What Really Went Wrong with Socialist Planned Economies?," MPRA Paper 29107, University Library of Munich, Germany.
    5. Harashima, Taiji, 2012. "A Theory of Intelligence and Total Factor Productivity: Value Added Reflects the Fruits of Fluid Intelligence," MPRA Paper 43151, University Library of Munich, Germany.
    6. Apurba Shee & Spiro E. Stefanou, 2016. "Bounded learning-by-doing and sources of firm level productivity growth in colombian food manufacturing industry," Journal of Productivity Analysis, Springer, vol. 46(2), pages 185-197, December.
    7. Ralph Siebert, 2002. "Learning by Doing and Multiproduction Effects over the Life Cycle: Evidence from the Semiconductor Industry," CIG Working Papers FS IV 02-23, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    8. Liu, An-Hsiang & Siebert, Ralph B., 2022. "The competitive effects of declining entry costs over time: Evidence from the static random access memory market," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    9. Alvarez, F. & Cerda, E., 2003. "Learning by doing in a T-period production planning: Analytical solution," European Journal of Operational Research, Elsevier, vol. 150(2), pages 353-369, October.
    10. Levin, Mark (Левин, Марк) & Matrosova, K. (Матросова, К.), 2016. "Research, Modeling and Process Management Dissemination of Innovations in Socio-Economic Systems [Исследование, Моделирование И Управление Процессами Распространения Инноваций В Социально-Экономиче," Working Papers 1443, Russian Presidential Academy of National Economy and Public Administration.
    11. Demeester, Lieven L. & Qi, Mei, 2005. "Managing learning resources for consecutive product generations," International Journal of Production Economics, Elsevier, vol. 95(2), pages 265-283, February.
    12. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, vol. 52(C), pages 597-607.
    13. Siebert Ralph B, 2010. "Learning-by-Doing and Cannibalization Effects at Multi-Vintage Firms: Evidence from the Semiconductor Industry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-32, May.
    14. Guido Fioretti, 2007. "A connectionist model of the organizational learning curve," Computational and Mathematical Organization Theory, Springer, vol. 13(1), pages 1-16, March.
    15. Ron Jarmin, 1996. "Learning by Doing and Plant Characteristics," Working Papers 96-5, Center for Economic Studies, U.S. Census Bureau.
    16. Iyer, Gokul C. & Clarke, Leon E. & Edmonds, James A. & Hultman, Nathan E. & McJeon, Haewon C., 2015. "Long-term payoffs of near-term low-carbon deployment policies," Energy Policy, Elsevier, vol. 86(C), pages 493-505.
    17. Harashima, Taiji, 2014. "Division of Work and Fragmented Information: An Explanation for the Diminishing Marginal Product of Labor," MPRA Paper 56301, University Library of Munich, Germany.
    18. Carlos Ocaña Pérez de Tudela, 1993. "Modelos dinámicos de competencia estratégica y cambio técnico: una panorámica," Investigaciones Economicas, Fundación SEPI, vol. 17(1), pages 43-63, January.
    19. Anelí Bongers, 2017. "Learning and forgetting in the jet fighter aircraft industry," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-19, September.
    20. Greaker, Mads & Lund Sagen, Eirik, 2008. "Explaining experience curves for new energy technologies: A case study of liquefied natural gas," Energy Economics, Elsevier, vol. 30(6), pages 2899-2911, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:11-part-1:p:1461-1477. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.