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  • The Role of Technology Standards in Product Innovation: Theory and Evidence from UK Manufacturing Firms Research Policy

    Rights statement: This is the author’s version of a work that was accepted for publication in Research Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research Policy, 50, 2, 2020 DOI: 10.1016/j.respol.2020.104157

    Accepted author manuscript, 258 KB, PDF document

    Embargo ends: 19/05/22

    Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

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The Role of Technology Standards in Product Innovation: Theory and Evidence from UK Manufacturing Firms Research Policy

Research output: Contribution to journalJournal articlepeer-review

Published
Article number104157
<mark>Journal publication date</mark>1/03/2021
<mark>Journal</mark>Research Policy
Issue number2
Volume50
Number of pages14
Publication StatusPublished
Early online date19/11/20
<mark>Original language</mark>English

Abstract

This paper studies the role of technology standards in firms’ product innovation in terms of both incremental innovation (within a technology life cycle) and radical innovation (beyond the present technology cycle). We first develop a theoretical model which predicts that technology standards can be used by firms as an “insurance” hedging against the risky process of developing new products. This insurance mechanism fosters incremental innovation and product growth especially for those further away from the technological frontier. Using data from a weighted panel of UK manufacturing firms over seven years, we find that the use of technology standards over past years significantly enables a firm’s incremental innovation while also reducing its incentive to deliver radical innovation. Additionally, we show that this relationship is contingent on a firm’s R&D intensity in line with predictions of our theoretical model.

Bibliographic note

This is the author’s version of a work that was accepted for publication in Research Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research Policy, 50, 2, 2020 DOI: 10.1016/j.respol.2020.104157