Abstract
In this paper, I set out to review the history of Japanese and U.S. semiconductor industry from the analytical perspective of knowledge. I also attempt to present a theoretical basis for the differences in knowledge transfer modes between the Japanese and U.S. semiconductor industry. This paper uses the case study method, and concludes that “information stickiness” hypothesis explains the differences in innovation-related knowledge transfer between Japan and the U.S. Based on the “information stickiness” hypothesis, I expect that the transfer mode varies depending on the size (i.e., large firms or ventures) of information senders and receivers. The results of the study can be summarized as follows: The U.S. semiconductor industry uses the lowest stickiness (cost) mode which fits each transfer pattern. Also, the U.S. venture businesses have higher mobility in human resources than Japanese counterparts. This might be one of the factors which facilitated the knowledge transfer in the U.S. semiconductor industry.