[RESEARCH] Benchmarking National Semiconductor Strategies: Advancing Innovation Systems and Policy Learning for Global Competitiveness
Paul Hong, University of Toledo, USA · David Hwang, Shippensburg University of Pennsylvania, USA · Young Soo Park, Midwest University, USA · Fernando C. M. Ferreira, University of Southern Indiana, US
Benchmarking: An International Journal · 2025 · Research Article
Benchmarking National Semiconductor Strategies: Advancing Innovation Systems and Policy Learning for Global Competitiveness
Paul Hong, University of Toledo, USA · David Hwang, Shippensburg University of Pennsylvania, USA · Young Soo Park, Midwest University, USA · Fernando C. M. Ferreira, University of Southern Indiana, USA · DOI 10.1108/BIJ-02-2025-0131
Purpose & Approach
This study benchmarks national semiconductor strategies through a theory-grounded lens, explaining how different policy mixes build — or fail to build — design, manufacturing, equipment, packaging, and talent capabilities across the United States, South Korea, Taiwan, China, and Japan.
National Innovation Systems (NIS) and Dynamic Capabilities (DC) theory are integrated into a comparative rubric, applied via triangulated documentary evidence and secondary indicators, generating five testable propositions on governance, collaboration, and capability trajectories.
“Countries follow distinct capability pathways shaped by governance choices — state–industry coordination, mission programs, and talent pipelines — and bottlenecks in tools, advanced packaging, and workforce.”
Five Propositions
P1 · Investment → Manufacturing — Government & R&D investment enhances high-tech output & manufacturing innovation.
P2 · Investment → Industry Capability — Funding improves industrial output & innovation performance.
P3 · Manufacturing → Industry — High-tech output drives semiconductor industrial & innovation capability.
P4 · Manufacturing → Advantage — Advanced output & tech innovation bolster national competitiveness.
P5 · Industry → Advantage — Industrial output & innovation drive national economic & innovation leadership.
NIS × DC · Unified Framework — Policy choices → capability formation → ecosystem competitiveness → national performance.
Benchmarking Framework: National Semiconductor Ecosystem Drivers & Capabilities
Semiconductor Government Investments — Grants · Subsidies · Tax Incentives · State-backed Finance. Semiconductor R&D Investments — Public & Private R&D · Patent Activity · Innovation Funding. P1 · P2 →
National Manufacturing Capabilities — High-Tech Output · Functioning Fabs · Yield Rates. Manufacturing Tech Innovation — Supply Chain Resilience · Diversification · Disruption Response. P3 · P4 →
Semiconductor Industry Capabilities — Industrial Output · Market Share · Capital in Fabs. Semiconductor Innovation Performance — R&D Spend · Process Nodes · IP Generation. P5 →
National Competitive Advantage — Economic Competitiveness · Global Value Chain Position. National Innovation Performance — R&D/GDP · Patents · High-Tech Exports.
Global Production Volume Share & R&D Investment (USD Bn, 2024)
Taiwan 50% · $13B · S. Korea 19% · $15B · USA 12% · $20B · Japan 9% · $8B · China 9% · $25B
Source: SIA (2024), Tom’s Hardware (2024), World Population Review (2024)
$527B — Global semiconductor sales in 2023, following an 8.2% contraction from the 2022 record — underscoring industry cyclicality and the need for resilient policy.
0.89 — R² correlation between semiconductor patent filings and R&D investment share of GDP in China (2000–2022), linking sustained investment to innovation performance.
60%+ — TSMC’s global foundry market share secured through sustained 3 nm and 5 nm process investment, illustrating how firm strategy operationalizes national policy.
$52.7B — U.S. CHIPS and Science Act allocation to reshore advanced manufacturing — complemented by parallel initiatives in EU (€43B), South Korea ($450B by 2030), and Japan.
Hong, P., Hwang, D., Park, Y.S. & Ferreira, F.C.M. (2025). Benchmarking national semiconductor strategies: advancing innovation systems and policy learning for global competitiveness. Benchmarking: An International Journal. DOI: 10.1108/BIJ-02-2025-0131
Benchmarking · Semiconductor Sovereignty · National Innovation Systems · Dynamic Capabilities · R&D Policy · Geopolitics
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