Explanatory factors for participation in formal standardization processes: Empirical evidence at firm level

In contrast to the long tradition of empirical research into the innovation activities and R&D collaboration of companies, the issue of standardization has been analysed mostly in theoretical approaches. This paper presents an empirical analysis of the participation of German companies in formal standards development organisations. It becomes clear that company size has a significant positive effect on the probability of a participation in standardization. We focus further on two aspects, on R&D as input and export intensity as performance indicator, in order to explain the likelihood to join formal standardization processes. Both the R&D intensity and the export activities exhibit an inverse U relationship. Obviously, even participating in standardisation processess requires a certain absorptive capacity, but R&D and export intensive companies expect more disadvantages, like unintended knowledge spill-overs, from joining formal standardisation processes and, therefore, stay away. In addition, export activities increase the likelihood to join formal standardisation processes up to a certain level, although companies with very high export shares except less benefit from joining formal standardisation processes. Finally, some policy conclusions are dirived.