Patents that match your standards: firm-level evidence on competition and innovation

Bergeaud, Antonin, Schmidt, Juliane and Zago, Riccardo (2022) Patents that match your standards: firm-level evidence on competition and innovation. CEP Discussion Papers (1881). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

When a technology becomes the new standard, the firms that are leaders in producing this technology have a competitive advantage. Matching the semantic content of patents to standards and exploiting the exogenous timing of standardization, we show that firms closer to the new technological frontier increase their market share and sales. In addition, if they operate in a very competitive market, these firms also increase their R&D expenses and investment. Yet, these effects are temporary since standardization creates a common technological basis for everyone, which allows followers to catch up and the economy to grow.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2022 The Authors
Divisions:	LSE Centre for Economic Performance
Subjects:	T Technology > T Technology (General) T Technology > T Technology (General) > T201 Patents. Trademarks H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
JEL classification:	L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality; Standardization and Compatibility O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	26 Jan 2023 15:18
Last Modified:	15 Sep 2023 23:59
URI:	http://eprints.lse.ac.uk/id/eprint/118031

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