The impact of standard-setting knowledge networks on firm innovation

This paper investigates mechanisms behind firm-level innovation that is fostered by participation in technical standard-setting. Motivated by the distinct nature of knowledge exchange in the standardization context, we relate knowledge networks formed by standard co-authorship with firms’ patent output. Results from panel regression show that the extent and content of knowledge exchange and the attainment of brokerage positions are significant determinants. Our findings imply that firms can increase their innovation output by becoming brokers between disconnected standardization sub-networks, and by interacting with technologically distant partners. Considering knowledge integration costs, we find that both effects are inverted U-shaped. These results offer valuable insights for both managers and researchers by illuminating the distinctive knowledge exchange mechanisms in standardization and guiding strategic participation.