ICT Standardization and use of ICT standards: a firm level analysis

Standards perform some fundamental economic functions and their relevance for ICT is acknowledged by firms, researchers and policy-makers. This paper investigates the driving forces of formal ICT standards setting (i.e. standardization). Previous quantitative studies have neglected that ICT standards use and engagement in ICT standardization are related activities. Leveraging upon a unique module of the ICT usage survey 2013 for Luxembourg, the analysis explicitly takes into account the use of formal ICT standards on a large representative sample of firm. While previous analyses find that larger firms are more likely to participate in standardization, the results of the analysis suggest that size has a complex pattern. Small firms for whom ICT standards are particularly relevant could overcome the barriers that prevent other firms to benefit from standardization. Additionally, the paper investigates the relationship between the professional use of social network and ICT standards and standardization. The use of social networks is positively correlated with the adoption of ICT standards but not with the participation.