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Competing through cooperation: Standard setting in wireless telecommunications

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  • Leiponen, Aija

Abstract

This study examines cooperative standard-setting in wireless telecommunications. Focusing on the competition among firms to influence formal standardization, the roles of standard-setting committees, private alliances, and technical consortia are highlighted. The empirical context is Third Generation Partnership Project (3GPP), an international standards development organization. Panel data analyses suggest that participation in external technical consortia significantly enhance firms contributions to the development of new specifications in 3GPP committees. Then, once a firm has become a central player in technical committees, it can further influence the standard-setting outcome through change requests to ongoing specifications. External alliances with fellow 3GPP members may also improve change request success. These results suggest that if firms in network technological industries want to influence the evolution of their industry, they should identify both formal standard-setting committees and external cooperative arrangements in which they can discuss, negotiate, and align positions on technical features with their peers. For policymakers, these results suggest that it is important to ensure that technical consortia remain open for all industry actors and that membership fees do not become prohibitive to small and resource-constraint players.

Suggested Citation

  • Leiponen, Aija, 2006. "Competing through cooperation: Standard setting in wireless telecommunications," Discussion Papers 1056, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1056
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    Cited by:

    1. Seppälä, Timo & Kenney, Martin, 2012. "Competitive Dynamics, IP Litigation and Acquisitions - The Struggle for Positional Advantage in the Emerging Mobile Internet," Discussion Papers 1288, The Research Institute of the Finnish Economy.
    2. Timothy Simcoe, 2013. "Governing the Anticommons: Institutional Design for Standard-Setting Organizations," NBER Chapters, in: Innovation Policy and the Economy, Volume 14, pages 99-128, National Bureau of Economic Research, Inc.
    3. Kim, Dongwook & Kim, Sungbum, 2022. "How do standards committees affect the success of a standard? Comparative analysis of RCS and VoLTE and proposed hybrid standards development model of open and bandwagon approaches," Telecommunications Policy, Elsevier, vol. 46(8).

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    More about this item

    Keywords

    Standard setting; technology strategy; inter-firm networks;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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