How does knowledge flow? Interfirm patterns in the semiconductor industry

A study investigated the flow of information among firms in a knowledge-intensive sector. Data used for this research were provided by a sample of 134 employees in semiconductor and semiconductor equipment companies, 96 of which were employed by US firms and 27 by Japanese firms. Findings revealed that both public and private mechanisms are employed for interfirm knowledge sharing despite a highly competitive environment. Nevertheless, public mechanisms are favored in Japanese companies while private channels are preferred in the US. Most of the mechanisms were found to impose limited controls on the use of the shared knowledge. The advantages of sharing were found to be the improvement of strategic plans, inclusion in professional networks and coordination of industry standards.