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Joining Standards Organizations: the role of R&D expenditures, patents, and the product-market position

Baron, Justus; Li, Cher; Nasirov, Shukhrat

Authors

Justus Baron

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Dr CHER LI CHER.LI@NOTTINGHAM.AC.UK
Associate Professor in Industrial Economics

Shukhrat Nasirov



Abstract

This paper studies collaborative innovation in the context of developing open technology standards coordinated by standards organizations. Using longitudinal data from the world's largest R&D investors 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 the number of standard-compliant end product models.

Publication Date 2018-11
APA6 Citation Baron, J., Li, C., & Nasirov, S. (2018). Joining Standards Organizations: the role of R&D expenditures, patents, and the product-market position
Keywords standards organizations; technology standards; intellectual property; R&D expenditures; patents; trademarks
Publisher URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3287475