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Technology Policy and Complex Strategic Technology Policy and Complex Strategic Alliance Networks in the Global Semiconductor Industry: An Analysis of the Effects of Policy Implementation on Cooperative R&D Contract Networks, Industry Recovery, and Firm Performance DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Travis Aaron Whetsell, M.P.A. Graduate Program in Public Policy and Management The Ohio State University 2017 Dissertation Committee: Caroline S. Wagner, Advisor Michael J. Leiblein Trevor L. Brown Anand Desai Copyrighted by Travis Aaron Whetsell 2017 Abstract This research analyzes the impact of U.S. Federal technology policy on the emergence of a complex network of strategic alliances in the semiconductor industry during a critical period in its evolution. During the mid-1980s the U.S. region of the global semiconductor industry was on the verge of collapse. A tectonic shift in the technological landscape occurred favoring the robust networked organizational form found in the Japanese keiretsu, and by 1985 Japan had taken the largest share of the global market. In the United States, industry leaders and policymakers moved to support and protect the U.S. manufacturing and supply infrastructure, crafting an organizationally innovative technology policy, called Sematech, which was implemented in 1987. Sematech was a public-private industry consortium that included fourteen U.S. firms, featuring sponsorship and protection by the U.S. Department of Defense (DOD) and the Defense Advanced Research Projects Agency (DARPA). Sematech is widely regarded as a critical element in the recovery of the U.S. region of the semiconductor industry. However, very few studies exist that demonstrate empirically how policy implementation achieved policy outcomes. This dissertation presents new evidence and analysis revealing a global network of research and development (R&D) based strategic alliances residing between policy and outcomes. The primary argument of this dissertation is that the emergent R&D contract network in the semiconductor industry represents a critical but overlooked element in the ii causal logic of policy implementation, which represents an intermediate causal mechanism residing between technology policy formulation and implementation, on one hand, and industry recovery and firm performance outcomes, on the other. The central propositions of this research are, first, that technology policy, via Sematech, facilitated the emergence of a complex self-organizing strategic alliance network and enhanced the network centrality and autonomy of member firms. Second, enhancements in industry network structure and firm network position contributed to the recovery of the U.S. region of the industry and firm performance outcomes. To investigate these propositions, this dissertation uses multiple longitudinal data sets covering 1986 to 2001, including strategic profile reports from the market research firm ICE/IC Insights, world semiconductor trade statistics from the Semiconductor Industry Association (SIA), and other statistics from SIA. The methods of analysis include social network analysis, correlation and analysis of variance, fixed-effects and mixed-effects regression, and structural equation modeling. The results of the analysis provide support for the research propositions, suggesting that Sematech catalyzed the emergence of the network, enhanced its structural cohesion, and enhanced the centrality and autonomy of member firms. The results further suggest that networks are a critical element mediating between policy implementation and policy outcomes. Finally, this research supports the broader conclusion that governments can achieve objectives through inter-organizational innovations aimed at public-private cooperation and the development and administration of robust policy networks. iii Acknowledgments Completing a dissertation unfolds over several years like a great vessel traversing an unknown ocean. Along with it goes an untold story with many people unrecognized or unappreciated along the way. I would like to acknowledge my appreciation for these individuals now. Caroline Wagner believed in the vision, importance, and contribution of this dissertation, providing both insight and moral support while this ship traversed tempestuous waters. Michael Leiblein mapped out critical insights into the world of strategy and provided data that filled this vessel’s sails with wind. Trevor Brown and Anand Desai agreed to board this ship despite turbulent seas during a mighty storm that threatened to overtake the entire effort. Meng Lee provided critical assistance with the proper calibration of statistical tools. Scott Spencer aided with navigation of international data. The dissertation benefited from many conversations on the nature of complexity with Sidharth Mohan. Pat Shields and Jos Raadschelders provided moral support through the entire adventure. Stephanie Moulton provided encouragement that the journey would go far enough to constitute a worthy contribution. Finally, Jessica Mora provided support through the entire adventure. The ship might have been lost in the hurricane or run aground the rocky shore without her unwavering dedication to the cause. iv Vita 2001................................................................Diploma, Mayde Creek High School 2006................................................................B.A. Political Science, Texas State University 2011................................................................M.P.A., Texas State University Publications Wagner, C.S. Whetsell, T.A. & Leydesdorff, L. (2017). Growth of international collaboration in science: revisiting six specialties. Scientometrics, 110(3), 1633- 1652. Shields, P.M. & Whetsell, T.A. (2016). “Public administration methodology: A pragmatic perspective.” in Foundations of Public Administration, eds. Raadschelders, J., Stillman, R., Melvin & Leigh, Publishers. Wagner, C.S., Horlings, E., Whetsell, T.A., Mattsson P., & Nordqvist, K. (2015) Do Nobel Laureates create prize-winning networks? An analysis of collaborative research in physiology or medicine. PloS One, 10(7), e0134164 v Whetsell, T.A. & Shields, P.M. (2015). The Dynamics of positivism in the study of public administration: A brief intellectual history and reappraisal. Administration & Society, 47(4), 416-446. Shields, P.M. & Whetsell, T.A. (2014). “Doing practical research and publishing in military studies” in Handbook of Research Methods in Military Studies, ed. Soeters, Shields, & Rietjens, London: Routledge Taylor & Francis Group. Whetsell, T.A. (2013). Theory-pluralism in public administration: Epistemology, legitimacy, and method. American Review of Public Administration, 44(2), 602- 618. Shields, P.M. Whetsell, T.A., & Hanks, E. (2013) “Pragmatism in public administration: Looking Back, looking Forward” in American Pragmatism and Organization Studies: Researching Management and Practice, ed. Rumens and Kelemen, London, UK: Gower Press. Shields, P.M. & Whetsell, T.A. (2013). “Punctuation, continuity, and historicity: Traversing the in-between” a comment on “Why making a decision involves more than decision-making: Past, present, and future in human action” author Bertram C. Bruce in Comparative Decision-Making Analysis, ed. Zentall and Crowley, Oxford, UK: Oxford University Press. Whetsell, T.A. & Shields, P.A. (2011). Reconciling the varieties of pragmatism in public administration. Administration & Society, 43(4), 474-483. vi Fields of Study Major Field: Public Policy and Management vii Table of Contents Abstract ................................................................................................................................ ii Acknowledgments............................................................................................................... iv Vita.......................................................................................................................................v Fields of Study ................................................................................................................... vii Table of Contents .............................................................................................................. viii List of Tables .................................................................................................................... xiv List of Figures ................................................................................................................... xvi Chapter 1: Introduction ....................................................................................................... 1 Chapter 2: A Brief History of Science & Technology Policy in the United States .......... 17 2.1 - Introduction............................................................................................................... 17 2.2 - The World War Era to the Late 1970s...................................................................... 20 2.2.a - The War Effort and the Post-War Consensus .................................................... 20 2.2.b - The Transistor Effect, the Semiconductor, and National Security .................... 23 2.2.c - The Emerging Commercial Market for Semiconductors................................... 29 2.3 - The 1980s, the Rise of Japan, & Strategic Alliances................................................ 31 2.3.a - The Rise of Japan..............................................................................................
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