Technological Blockades and Indigenous Innovation in the Semiconductor Industry

DOI: https://doi.org/10.62517/jel.202614413

Author(s)

Nan Zhang

Affiliation(s)

School of Business, Ningbo Tech University, Ningbo, China * Corresponding Author.

Abstract

This paper systematically reviews the relationship between technological blockades and indigenous innovation in the semiconductor industry. Through comprehensive analysis of six core studies published between 2024 and 2026, this work constructs a knowledge map of current research on export controls, global value chain restructuring, and innovation incentives. The selected literature spans multiple theoretical perspectives including offensive realism, regulatory empire theory, global value chain theory, and game-theoretic models. This work identifies three dominant themes: (1) weaponization of semiconductor supply chains as geopolitical instruments, (2) GVC bifurcation under geopolitical tensions, and (3) innovation incentives under technology blockades. Key findings indicate that technological blockades have heterogeneous effects on indigenous innovation, contingent on firm capabilities, policy support, and market conditions. This work identifies critical research gaps including lack of firm-level empirical evidence, limited understanding of medium-to-long-term effects, and insufficient attention to talent mobility mechanisms. A future research agenda is proposed emphasizing mixed-methods designs, longitudinal studies, and cross-country comparative analysis. This paper contributes by providing the first systematic synthesis of technology blockade research in semiconductors and offering actionable directions for scholars and policymakers.

Keywords

Semiconductor Industry; Technological Blockade; Indigenous Innovation; Export Controls; Global Value Chains

References

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