Diffusion of Innovations: Patenting or Standardization

Abstract

In this paper, the authors proposed provisions under which the standards are more preferable than patents. They are defined in duopoly model of Standard - Patent. The article shows that the observed criterion (criteria) of efficiency standards in comparison with patents is a small scatter of royalties specific to the assessment of the cost of the license. Based on this criterion, sectors of the economy in which the standard can be more effective than patent for user were identified.

Keywords

• Patent
• Diffusion of Innovation
• Duopoly Model
• Standard
• Royalty.