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Diffusion vs. Knowledge Protection When Participating in ICT Standardization
Abstract
Innovative companies need to make decisions related to protection and sharing of their new knowledge. This chapter explores knowledge patterns during formal ICT standardization and/or in standards consortia. While previous studies focused on the role of intellectual property rights in standardization decisions, this investigation considers standards and patents as sources of information for innovation. Results show that when patents are important, firms are more likely to be engaged in consortia but not in formal standardization. Size moderates this relationship. Smaller firms are more motivated by the quest for knowledge during standardization while larger firms are more sensitive to the importance of patents. The authors conclude that small firms might participate in ICT standardization in order to anticipate development of the standard, rather than place a patent in the standards.
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