Determinants of Essential Intellectual Property Rights for Wireless Communications Standards: Manufacturing firms vs. non-manufacturing patentees

Obtaining essential intellectual property rights (IPRs) is important for innovation competition in the network industry, where technical standardization plays a critical role in development. In this study, we empirically investigate the determinants of essential IPRs for wireless communications standards by using the patent database. More specifically, we use the technological capabilities of both the firm and the patent inventor to explain the probability of its selection as an essential IPR. In addition, we compare manufacturing firms' and non-manufacturing patentees' (NMPs) technology strategies for essential IPRs. Our results indicate that manufacturing firms accumulate their technological capability in specific technology fields, whereas NMPs cover broader technology fields to keep their dominant position in the standardization process. The RIETI Discussion Papers Series aims at widely disseminating research results in the form of professional papers, thereby stimulating lively discussion. The views expressed in the papers are solely those of the author(s), and do not represent those of the Research Institute of Economy, Trade and Industry.