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Joint innovation in ICT standards: How consortia drive the volume of patent filings

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  • Justus Baron

    ()
    (CERNA - Centre d'économie industrielle - Mines ParisTech)

  • Yann Ménière

    ()
    (CERNA - Centre d'économie industrielle - Mines ParisTech)

  • Tim Pohlmann

    (BERLIN INSTITUTE OF TECHNOLOGY - Berlin Institute of Technology)

Abstract

The development of formal ICT standards is a loose form of collaborative innovation: firms first develop rival technologies, some of which are then eventually selected in the standard. Against this background, firms often use informal consortia to define a clearer technology roadmap ahead of the formal standard setting process. The paper aims to assess how such consortia influence the volume of patents filed around standards, and whether this is efficient. We show that their effect actually depends on the strength of firms' incentives to develop the standard. Consortium membership triggers a higher number of patent files when insufficient rewards for essential patents induce underinvestment in the standard. This effect is necessarily pro-efficient. In situations where excessive rewards induce patent races, consortium membership only moderately increases or even reduces their volume of patents. At least in the latter case, the effect of consortia membership is also pro-efficient.

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Paper provided by HAL in its series Working Papers with number hal-00707291.

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Date of creation: 11 Jun 2012
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Handle: RePEc:hal:wpaper:hal-00707291

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  1. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2005. "Identifying Technology Spillovers and Product Market Rivalry," CEP Discussion Papers dp0675, Centre for Economic Performance, LSE.
  2. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
  3. Bernhard Ganglmair & Emanuele Tarantino, 2011. "Patent Disclosure in Standard Setting," Working Papers 11-15, NET Institute.
  4. Hawkins, Richard, 1999. "The rise of consortia in the information and communication technology industries: emerging implications for policy," Telecommunications Policy, Elsevier, vol. 23(2), pages 159-173, March.
  5. Josh Lerner & Jean Tirole, 2006. "A Model of Forum Shopping," American Economic Review, American Economic Association, vol. 96(4), pages 1091-1113, September.
  6. Henry R. Delcamp & Aija Leiponen, 2012. "Innovating Standards Through Informal Consortia: The Case of Wireless Telecommunications," NBER Working Papers 18179, National Bureau of Economic Research, Inc.
  7. Lee G. Branstetter & Mariko Sakakibara, 2002. "When Do Research Consortia Work Well and Why? Evidence from Japanese Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 143-159, March.
  8. Chiao, Benjamin & Lerner, Josh & Tirole, Jean, 2006. "The Rules of Standard Setting Organizations: an Empirical Analysis," IDEI Working Papers 388, Institut d'Économie Industrielle (IDEI), Toulouse.
  9. Rysman, Marc & Simcoe, Tim, 2009. "Patents and the Performance of Voluntary Standard Setting Organizations," PIE/CIS Discussion Paper 418, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  10. Pohlmann, Tim, 2010. "Attributes and Dynamic Development Phases of Informal ICT Consortia," MPRA Paper 27341, University Library of Munich, Germany, revised 01 Jun 2010.
  11. Timothy Simcoe, 2012. "Standard Setting Committees: Consensus Governance for Shared Technology Platforms," American Economic Review, American Economic Association, vol. 102(1), pages 305-36, February.
  12. Grid Thoma & Salvatore Torrisi & Alfonso Gambardella & Dominique Guellec & Bronwyn H. Hall & Dietmar Harhoff, 2010. "Harmonizing and Combining Large Datasets – An Application to Firm-Level Patent and Accounting Data," NBER Working Papers 15851, National Bureau of Economic Research, Inc.
  13. Aija Elina Leiponen, 2008. "Competing Through Cooperation: The Organization of Standard Setting in Wireless Telecommunications," Management Science, INFORMS, vol. 54(11), pages 1904-1919, November.
  14. Layne-Farrar, Anne & Lerner, Josh, 2011. "To join or not to join: Examining patent pool participation and rent sharing rules," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 294-303, March.
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