A Cross-National Comparative Analysis of Innovation Policy in the Integrated Circuit Industry

Abstract

Innovation policy; National innovation system; Industrial innovation; Integrated circuit industry

This research discusses innovation policies in the integrated circuit industries of the Republic of Korea, Taiwan, the United States, and the People`s Republic of China. Using Rothwell and Zegveld`s model of industrial innovation policy as a starting point, this research compares innovation policy across the four nations, specifically focusing on three topics: (1) national preferences for innovation policy; (2) the influence of innovation policy on industry innovation requirements; and (3) the competitive advantages realized as a result of industrial innovation requirements in the four countries. Our research indicates the policy tools used by each country, followed by results that indicate the effectiveness of industry innovation policies on requirements for industry innovation.This work generates several suggestions for Taiwan`s integrated circuit industry: the Taiwan government should emphasize specific policies to provide a better research and development environment; it should build a complete information system that encourages knowledge diffusion and accumulation; and it should adopt Procurement as a policy to extend domestic market demand.