Strategy and Circumstance: the Response of American Firms to Japanese Competition in Semiconductors, 1980-1995

The transistor was an American invention, and American firms led the world in semiconductor production and innovation for the first three decades of that industry's existence. In the 1980s, however, Japanese producers began to challenge American dominance. Shrill cries arose from the literature of public policy, warning that the American semiconductor industry would soon share the fate of the lamented American consumer electronics business. Few dissented from the implications: the only hope for salvation would be to adopt Japanese-style public policies and imitate the kinds of capabilities Japanese firms possessed. But the predicted extinction never occurred. Instead, American firms surged back during the 1990s, and it now seems the Japanese who are embattled. This striking American turnaround has gone largely unremarked upon in the public policy literature. And even scholarship in strategic management, which thrives on stories of success instead of stories of failure, has been comparatively silent. Drawing on a more thorough economic history of the worldwide semiconductor industry (Langlois and Steinmueller 1999), this essay attempts to collect some of the lessons for strategy research of the American resurgence. We argue that, although some of the American response did consist in changing or augmenting capabilities, most of the renewed American success is in fact the result not of imitating superior Japanese capabilities but rather of taking good advantage of a set of capabilities developed in the heyday of American dominance. Serendipity played at least as important a role as did strategy.

Osteoblast Response to Commercially Available Ti-6Al-4V and Novel Porous Tantalum. In Vitro Biocompatibility Studies

The response of human osteoblasts to materials is crucial for evaluating biocompatibility of an implant material for bone defects. Previous work in our lab demonstrated that the response of human osteoblasts to orthopaedic and dental materials in vitro varies depending on the sex and age of the patient [1]. Osteoblasts from female patients older than 60 years old, adhered less and produced less matrix proteins and calcification than osteoblasts from younger female patients and all ages of male patients. Recently developed, porous tantalum demonstrates improved biomechanical properties for bone and good biocompatibility in in vivo human studies, however there are few, if any, in vitro biocompatibility studies on this material. In this project, we aimed to compare the phenotypic expression of human osteoblasts from young and old female patients to commercially available Ti-6Al-4V and porous tantalum in a well-developed in vitro system. 1. Zhang H, Lewis CG, Aronow MS, Gronowicz G. The effect of patient age on human osteoblasts’ response to Ti-6Al-4V implants in vitro. J. Orthop. Res. 2004;22(1):30-8.

Monetary Policy, Exchange Rate Overshooting, and Endogenous Physical Capital

We develop an open economy macroeconomic model with real capital accumulation and microeconomic foundations. We show that expansionary monetary policy causes exchange rate overshooting, not once, but potentially twice; the secondary repercussion comes through the reaction of firms to changed asset prices and the firms' decisions to invest in real capital. The model sheds further light on the volatility of real and nominal exchange rates, and it suggests that changes in corporate sector profitability may affect exchange rates through international portfolio diversification in corporate securities.