Innovation, Diffusion through Technology Standards and the Value of the Firm

Antonin Bergeaud, Julia Schmidt and Riccardo Zago

No 21910, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Technology standards are defined by national and international organizations to select and diffuse the best technologies and practices. This study combines a measure of patent novelty with a new measure of semantic proximity between patents and standards to disentangle the respective contribution of innovation and diffusion to the value of the firm. The grant of an innovative patent can increase a firm’s market value by up to 6% over a ten-year period. If a subsequent standard incorporates technological features related to that patent, the market value increases by an additional 3%; otherwise, it declines. The increase in value attributable to innovation and diffusion reflects respectively productivity gains and rent extraction via higher markups.

Keywords: Innovation; Diffusion; Standardization; Patents; Firm value (search for similar items in EconPapers)
JEL-codes: G14 G32 L15 O31 O33 (search for similar items in EconPapers)
Date: 2026-09
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