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R & D coordination in standard setting organizations: The role of consortia

Abstract : We analyze R&D competition and cooperation between firms involved in the development of a technology standard. Our model captures two types of incentives these firms are subject to: free-riding due to the public good nature of the standard and patent races in order to derive royalties from essential patents. As a consequence, R&D may be excessive or insufficient as compared to the collective optimum. Our goal is to test if consortia can address any type of inefficiency, by either reducing or increasing collective R&D investment. We address this question empirically on a large dataset of ICT standards, by assessing the effect of consortia on the number of standard-related patents filed by companies. After sorting standards entailing over or underinvestment, our results confirm that in the first case consortia have a chilling effect on patent filings, while it has an inflating effect in the second case.
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Submitted on : Thursday, January 12, 2012 - 9:34:57 AM
Last modification on : Monday, December 28, 2020 - 10:22:04 AM

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Justus Baron, Yann Ménière, Tim Pohlmann. R & D coordination in standard setting organizations: The role of consortia. 2011 7th International Conference on Standardization and Innovation in Information Technology, SIIT 2011, Sep 2011, Berlin, Germany. pp.Article number 6083599, ⟨10.1109/SIIT.2011.6083599⟩. ⟨hal-00659066⟩

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