Semiconductor technology flow through formal transfer mechanisms

An attempt was made to identify how much semiconductor technology flows internationally through formal technology transfer mechanisms, which mechanisms are used, and in which direction the technology moves. The formal mechanisms investigated for transferring technology include: interfirm licensing, cross licensing and second source agreements, firm mergers and acquisitions, and direct investment in firm-owned foreign facilities. It is concluded that, in general, large American companies have allowed their technology advantage to be diffused both to smaller US competitors and to foreign competitors, primarily those in Japan, Europe, and Korea