The Causal Effect of Essential Patents on the Further Technical Progress and the Adoption of Technology Standards

Justus Baron, “The Causal Effect of Essential Patents on the Further Technical Progress and the Adoption of Technology Standards”

This paper analyzes the causal effect of the inclusion of patented technology into technology standards on follow-up innovation involving the standard. In particular, I distinguish between subsequent technological progress in the standard including the patented technology, and the development of new applications implementing the standard including the patented invention. I compare standards subject to declared essential patent applications which eventually result in granted patents with standards subject to declared patent applications which are eventually abandoned or rejected at the USPTO, and use the grant rate by examiner to instrument for the grant decision. I find a negative effect of the grant of the pending standard-essential patent application on measures of both new implementations of the standard including the essential patents, and further technical progress in the standard including the patented technology.