Technological Catching-Up of Korea and Taiwan In the Global Semiconductor Industry: A Study of Modes of Technology Sourcing

Does the mobility of engineers facilitate international knowledge spillovers and help newly industrializing countries catch up with developed countries? This study attempts to answer this question by tracing knowledge flows through the international mobility of semiconductor engineers. The paper uses patent data to track the mobility paths of engineers to examine whether knowledge flows were greater than expected. The study finds that engineers who moved from the US to Korea or Taiwan built subsequent innovations based upon the knowledge of their previous firms in the US. Case studies based on field interviews suggest further that these mobile engineers have played significant roles in the technological catch-up of Korea and Taiwan. Based on findings from statistical analysis and case studies, this paper makes policy recommendations for developing countries such as China and India for catching-up in high-tech industries.