Joining Standards Organizations: The Role of R&D Expenditures, Patents, and Product-Market Position

38 Pages Posted:

Date Written: November 19, 2018

Abstract

This paper studies collaborative innovation in the context of the development of open technology standards coordinated by standards organizations. Using consolidated longitudinal data from the world's largest R&D performing firms matched with membership information from 180 standards organizations, we analyze the firm-level determinants of the extent of participation in standards development. We identify a highly robust positive effect of a firm's R&D expenditure on its involvement in standards organizations, and find this impact being further bolstered by the firm's patenting intensity and/or product-market position. Exploiting exogenous variations induced by preferential tax treatment, we find a causal positive effect of patenting intensity on the participation of R&D-intensive firms in standards organizations. This effect is, however, only significant for membership in organizations developing standards potentially subject to Standard-Essential Patents. Our findings also underscore the significant role of the firm's product-market position in incentivizing engagement in standards development, as exemplified by trademarking intensity, brand value or number of standard-compliant end product models. Managerial and policy implications are discussed.

Keywords: standards organizations, technology standards, intellectual property, R&D expenditures, patents, trademarks

JEL Classification: L24,O34

Suggested Citation

Baron, Justus and Li, Qian Cher and Nasirov, Shukhrat, Joining Standards Organizations: The Role of R&D Expenditures, Patents, and Product-Market Position (November 19, 2018). Available at SSRN: https://ssrn.com/abstract=

Justus Baron (Contact Author)

Northwestern University - Searle Center for Law, Regulation and Economic Growth ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States

HOME PAGE: http://justusbaron.org/

Qian Cher Li

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Shukhrat Nasirov

De Montfort University - Centre for Enterprise and Innovation ( email )

The Gateway
Leicester, LE1 9BH
United Kingdom

HOME PAGE: http://www.nasirov.weebly.com

Register to save articles to
your library

Register

Paper statistics

Downloads
6
Abstract Views
52
PlumX Metrics