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Innovation, Diffusion through Technology Standards and the Value of the Firm

Author

Listed:
  • Bergeaud, Antonin
  • Schmidt, Julia
  • Zago, Riccardo

Abstract

Technology standards are defined by national and international organizations to select and diffuse the best technologies and practices. This study combines a measure of patent novelty with a new measure of semantic proximity between patents and standards to disentangle the respective contribution of innovation and diffusion to the value of the firm. The grant of an innovative patent can increase a firm’s market value by up to 6% over a ten-year period. If a subsequent standard incorporates technological features related to that patent, the market value increases by an additional 3%; otherwise, it declines. The increase in value attributable to innovation and diffusion reflects respectively productivity gains and rent extraction via higher markups.

Suggested Citation

  • Bergeaud, Antonin & Schmidt, Julia & Zago, Riccardo, 2026. "Innovation, Diffusion through Technology Standards and the Value of the Firm," CEPR Discussion Papers 21910, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21910
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    File URL: https://cepr.org/publications/DP21910
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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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