Open Innovation Over the Regional and National Boundaries in the Semiconductor Industry: The Effects of Digital Transformation and Decoupling of the Global Value Chain

Decoupling of the global value chains in the semiconductor industry under digital transformation has not been adequately investigated, although it is a popular topic with the emerging technological rivalry globally. This study empirically examines the following research question to contribute to the limited research. How do firms' collaborations across regional and national boundaries moderate the effects of open innovation on performance in the semiconductor industry after digital transformation under the decoupling of the global value chain? This study analyses patents which had been registered at the United States Patent and Trademark Office (USPTO) and the Korean Intellectual Property Office (KIPO) in the semiconductor industry during 2004 and 2020 at the representative terms of before and after digital transformation. Findings are as follows: First, digital transformation motivates semiconductor enterprises' collaboration effects over regional and national boundaries. Second, the decoupling of the semiconductor industry in the global value chain negatively moderates the effects of open innovation on firms' performance across regional and national boundaries. Therefore, by reconstructing the global value chain of the semiconductor industry, the negative moderating effects of the semiconductor industry's decoupling could be diminished. In addition, by constructing a national semiconductor cluster in South Korea, the benefits of digital transformation in the semiconductor industry could be increased.