Demand as a source of entry and the survival of new semiconductor firms

Roberto Fontana and Franco Malerba

Industrial and Corporate Change, 2010, vol. 19, issue 5, 1629-1654

Abstract: The performance of new companies coming from the demand side of the semiconductor industry is examined and compared with the performance of entrants coming from the semiconductor industry itself and with other types of entrants. By using a dataset of more than 1000 start-ups founded between 1997 and 2007 around the world, the article shows that start-ups with a background in application sectors survive longer than spin-offs from the semiconductor industry itself or than inexperienced firms founded by people previously active in university or other industries. These results point strongly to the major role of demand not just as a source of innovations, but also as a major driver of entry into an industry and of successful performance of new firms. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Date: 2010
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