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Standard essential patents and global ICT value chains with a focus on the catching-up of China

: Laer, Maximilian von; Blind, Knut; Ramel, Florian

Volltext urn:nbn:de:0011-n-6307013 (2.0 MByte PDF)
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Erstellt am: 6.3.2021

Telecommunications Policy (2021), Online First, Art. 102110, 16 S.
ISSN: 0308-5961
Zeitschriftenaufsatz, Elektronische Publikation
Fraunhofer ISI ()
standard essential patents; trade in value added; Global value chains; emerging markets; Information and communication technology (ICT)

Patents, standards and their combination, standard-essential patents (SEPs), are important in the information and communication technology (ICT) sector, in particular in mobile communication. We argue that SEPs are relevant in macroeconomic development and estimate the effect of a country’s SEP portfolio on its value-added trade in global ICT value chains (GVC). We find that SEPs retain a higher share of value-adding domestically and that absorptive capacity is needed to join GVCs. China entered the SEP market late and is catching up rapidly. The trade effect of SEPs on China is different from that on matured economies because of the initially low value of its SEPs.