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Innovating standards through informal consortia: The case of wireless telecommunications

Author

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  • Henry Delcamp

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Aija Leiponen

    (Imperial College London, Cornell University [New York])

Abstract

We empirically examine the effects of industry consortia on the coordination of innovation strategies of the members. Our analyses utilize membership data from 32 consortia in wireless telecommunication technology subfields from 2000 to 2005 and prior art citations in standard-essential patents. We find that connections among firms in informal and technically-oriented consortia significantly increase the likelihood that firms cite each other's patents in subsequent patents essential for the UMTS wireless telecommunication standard. Inventions that are likely to become part of the UMTS system tend to build on inventions by firm peers who were members of the same consortia, controlling for patent or firm fixed effects, technology class, and other characteristics. Consortia may enhance productivity of invention and increase the incentives to invest in R&D by internalizing potential externalities. They may also enhance efficiency of standardization by facilitating the interaction of committee and market processes. Consortia thus structure and constrain the process of innovating standardized technologies. This is problematic if consortia are not truly accessible for all the relevant parties. Policymakers thus need to balance these effects. For managers, the results show that participation in a variety of technical consortia enables influencing peers' innovation strategies related to compatibility standards.

Suggested Citation

  • Henry Delcamp & Aija Leiponen, 2014. "Innovating standards through informal consortia: The case of wireless telecommunications," Post-Print hal-01111055, HAL.
  • Handle: RePEc:hal:journl:hal-01111055
    DOI: 10.1016/j.ijindorg.2013.07.004
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    Cited by:

    1. Deng, Xin & Li, Qian Cher & Mateut, Simona, 2022. "Participation in setting technology standards and the implied cost of equity," Research Policy, Elsevier, vol. 51(5).
    2. Christoph March & Ina Schieferdecker, 2021. "Technological Sovereignty as Ability, Not Autarky," CESifo Working Paper Series 9139, CESifo.
    3. Munirul Nabin & Pasquale Sgro & Surjasama Lahiri, 2023. "The role of standard‐setting organizations in deciding product quality and process innovation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(4), pages 767-786, December.
    4. Blind, Knut & Krieger, Bastian & Pellens, Maikel, 2022. "The interplay between product innovation, publishing, patenting and developing standards," Research Policy, Elsevier, vol. 51(7).
    5. Saeed Khanagha & Shahzad (Shaz) Ansari & Sotirios Paroutis & Luciano Oviedo, 2022. "Mutualism and the dynamics of new platform creation: A study of Cisco and fog computing," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 476-506, March.
    6. Susan K. Cohen & Sean T. Hsu & Kristina B. Dahlin, 2016. "With Whom Do Technology Sponsors Partner During Technology Battles? Social Networking Strategies for Unproven (and Proven) Technologies," Organization Science, INFORMS, vol. 27(4), pages 846-872, August.
    7. Hong Jiang & Sipeng Gao & Yang Song & Kuang Sheng & Gehan A. J. Amaratunga, 2019. "An Empirical Study on the Impact of Collaborative R&D Networks on Enterprise Innovation Performance Based on the Mediating Effect of Technology Standard Setting," Sustainability, MDPI, vol. 11(24), pages 1-20, December.
    8. Annika Lorenz & Michael Raven & Knut Blind, 2019. "The role of standardization at the interface of product and process development in biotechnology," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1097-1133, August.
    9. Kang, Byeongwoo & Bekkers, Rudi, 2015. "Just-in-time patents and the development of standards," Research Policy, Elsevier, vol. 44(10), pages 1948-1961.
    10. Baron, Justus, 2020. "Counting standard contributions to measure the value of patent portfolios - A tale of apples and oranges," Telecommunications Policy, Elsevier, vol. 44(3).
    11. Raven, Michael & Blind, Knut, 2017. "The characteristics and impacts of scientific publications in biotechnology research referenced in standards," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 167-179.
    12. Wiegmann, Paul Moritz & Eggers, Felix & de Vries, Henk J. & Blind, Knut, 2022. "Competing Standard-Setting Organizations: A Choice Experiment," Research Policy, Elsevier, vol. 51(2).
    13. Wu, Yuhao & de Vries, Henk J., 2022. "Effects of participation in standardization on firm performance from a network perspective: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    14. Wiegmann, Paul Moritz & de Vries, Henk J. & Blind, Knut, 2017. "Multi-mode standardisation: A critical review and a research agenda," Research Policy, Elsevier, vol. 46(8), pages 1370-1386.
    15. Justus Baron & Daniel F. Spulber, 2018. "Technology Standards and Standard Setting Organizations: Introduction to the Searle Center Database," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 462-503, September.
    16. Justus Baron & Cher Li & Shukhrat Nasirov, 2019. "Why do R&D-intensive firms participate in standards organizations? The role of patents and product-market position," Discussion Papers 2019-16, University of Nottingham, GEP.
    17. Gaétan de Rassenfosse & Emilio Raiteri & Rudi Bekkers, 2023. "Discrimination in the Patent System: Evidence from Standard-Essential Patents," Journal of Law and Economics, University of Chicago Press, vol. 66(4), pages 739-763.
    18. Blind, Knut & Mangelsdorf, Axel, 2016. "Motives to standardize: Empirical evidence from Germany," Technovation, Elsevier, vol. 48, pages 13-24.
    19. Justus Baron & Kirti Gupta, 2018. "Unpacking 3GPP standards," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 433-461, September.
    20. Justus Baron & Jorge Contreras & Martin Husovec & Pierre Larouche, 2019. "Making the Rules: The Governance of Standard Development Organizations and their Policies on Intellectual Property Rights," JRC Research Reports JRC115004, Joint Research Centre.
    21. Blind, Knut & Müller, Jo-Ann, 2019. "The role of standards in the policy debate on the EU-US trade agreement," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 21-38.
    22. Baron, Justus & Kanevskaia, Olia, 2023. "Wearing multiple hats—The role of working group chairs’ affiliation in standards development," Research Policy, Elsevier, vol. 52(9).
    23. Teubner, Lisa K. & Henkel, Joachim & Bekkers, Rudi, 2021. "Industry consortia in mobile telecommunications standards setting: Purpose, organization and diversity," Telecommunications Policy, Elsevier, vol. 45(3).
    24. Kim, Dong-hyu, 2022. "Effects of catch-up and incumbent firms’ SEP strategic manoeuvres," Research Policy, Elsevier, vol. 51(5).

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