RIPPLE EFFECT OF INNOVATIONS

I am sharing my thoughts about two insightful books I recently read. The first one was "Naked Economics, Undressing the Dismal Science" by the American author Charles Wheelan, in which he explains briefly the basic concept of economics. The author concludes his book by stating that the future economy of a region or country will be dictated by its capacity to innovate. Technological innovation is possible if there is quality education, adequate law & order, competent governance, a strong presence of the private sector, a robust democratic state, and responsible fiscal and monetary policies. All these factors are the underlying principles for creating a flourishing economy.

The conclusion of the previous book was a perfect segway to the second book, "How Innovation Works and Why it Flourishes in Freedom," by British journalist Matt Ridley. In this book, the chapters lucidly present significant innovations from the invention concept to its commercialization, like the printing press, air travel, vaccines, electricity, AC/DC motor, genetically modified plants, computers, the internet, eBay, Uber, and many more. There are some interesting? recurrent themes throughout the book, which the author elaborates on with vivid examples, such as:

• Every technology is a combination of other existing technologies?
• Innovation has mutual interdependence of different technologies
• Every commercialized innovation induces innovations through a ripple effect
• There is rarely a sole innovator
• Some innovations are claimed by several innovators, leading to lengthy litigation
• Basic science research needs government support
• Technological innovation springs mainly from the private sector
• Innovation does not create unemployment.
• Instead, it creates new types of jobs
• Innovation sprouts best in free societies
• Rigid Laws often stifle innovations

The above bullet points can be well applied to semiconductors, one of the largest innovative industries. This industry implements new innovations in every technology node, but the majority of the process flow, IPs, and designs remain identical to the previous technology node; only a tiny fraction of the process design kit is new. Such incremental change is a reflection of gradual innovations in the semiconductor industry. These innovations occur thanks to the collaborative efforts made by several industry players in this field.

Of all the above bullet points, the book focuses on the "ripple effect," . The author states that a successful innovation induces more products and new applications. He provides multiple examples. The most well-known of them is the Apollo Lunar Mission. Some of the by-products of this lofty project are diapers, wireless headsets, scratch-resistant lenses, cordless tools, flame-resistant clothing, and many more.?

The author did not provide examples from the semiconductor industry, however the ripple effect is also prevalent in the semiconductor industry. Let us take the example of ChatGPT. Following its tremendous success, research in the field of artificial intelligence (AI)? was energized, which spurred an interest in graphic-processing-unit (GPU) and high-band-width-memory (HBM), which in turn made Chip-on-Wafer-on Substrate (CoWoS) interposer technology more relevant. These technologies existed previously, but now, due to a ripple effect induced by AI, they have delivered multiple versions and are improving constantly. There are other corollary effects, too, which are less evident, like the CXL technology that enhances the bandwidth of the HBM.

Similarly, I looked into another success story, the? 5G wireless communication technology. This area has seen rapid progress in telecommunications, but has its ripple effect impacted semiconductor hardware technology too??I delved into the technical literature and patents to check if there was a ripple effect here. Besides the antenna being built closer to the transceiver for better signal quality, many new concepts have also sprung up. Some are well known, like Antenna-in-package (AIP), where an antenna is integrated into the package substrate, or Antenna-on-package (AoP), where various antennas are placed on top of the package containing the RF components. New concepts like pre-made antenna stacks similar to pre-made redistribution layers in semiconductor fan-out packaging are being suggested today. Also, some patents discuss the possibility of antennas in the chip and having the chip packaged with other chips. New ideas like ribbon bonding to replace conventional wire bonding to improve current carrying and thermal properties are also proposed. Massive progress in beam-forming chips has led to the development of expertise in growing GaN on silicon substrates, and many other innovations are being developed in this bustling and dynamic field.?

I could illustrate other main bullet points like the "ripple effect"?in semiconductor technology. However, I would rather dwell on the last bullet point that surprised me: "Governmental laws stifle innovations," in that section of the book, Matt Ridley viciously attacks intellectual property laws. He states that most innovators spent considerable time filing, claiming, and defending their innovations in court, which is mostly true. He believes that patents are a hindrance to innovations. But then he contradicts himself by suggesting that innovators and inventors rarely get due credit for their work or are often short-changed. So, how do we give more credit to inventors? First, we have to create a procedure to acknowledge an innovation for inventors to be duly credited. Luckily, some methods and laws exist today, such as copyrights, trademarks, and patents to recognize unique contributions to the world. If future economies are to be based on innovations, then such laws must exist and evolve with time. Even if we welcome open innovation where everyone shares their technology freely, monitoring and identifying the innovations, following their commercialization, and acknowledging their contributors requires well-established Intellectual property laws and procedures.

As we aspire for economic success, it's crucial to invest in infrastructure that fosters innovation and creativity. Successful innovation, when commercialized, sets off a chain reaction of newer inventions, thanks to the ripple effect. Human creativity, the driving force behind innovation, will always find ways to flourish, solve problems, and enhance our lives. Therefore, it's imperative that we develop effective ways to recognize and measure these creative outputs, and to value and appreciate the contributions of everyone involved in the innovation process.