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The Economics of Standards Revisited

This paper examines the relationship between standards and economic progress, highlighting the importance of standards in enabling technology and rigorous communications. It explores the taxonomy of technical standards and discusses the role of standards in supporting new value systems. The paper also addresses the impact of government intervention and privatization on standards successions and economic transfers. Additionally, it emphasizes the need to minimize patents in compatibility and adaptability standards.

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The Economics of Standards Revisited

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  1. The Economics of Standards Revisited School of Business Australia Defence Force Academy University of New South Wales May 24, 2005 Ken Krechmer, Fellow 2005International Center for Standards ResearchUniversity of Colorado at Bouldere-mail: krechmer@csrstds.compapers: http://www.csrstds.com/klist.html

  2. Thesis:Standards link invention to economic progress • The fruit of invention is technology • Technology engenders rigorous communications • Rigorous communications requires standards • Where standards exist an economic exchange may occur

  3. Taxonomy of Technical Standards Historic Era Hunter Information Systems Gatherer Agrarian Industrial Sequential Adaptive Innovation Drawing Trade Mechanized Electronic Internet and routes transport (telephony) carving Technology Language Measuring Powered Linear Adaptive and machines processes Processes navigation (mail) (computers)Technical- Symbols Measurement Similarity Compatibility Adaptability standards Value Trading Property Invention System Concept Creation Ownership Ownership Ownership Ownership (patents) (Utilities Co.) (brands, trademark)

  4. Standards Development and Market Model

  5. Insights Offered by Taxonomy of Standards • Adaptability standards support new value systems • Government intervention may lessen in higher standards successions • Privatization of patented sequential systems may cause unintended economic transfers • Need to minimize patents in compatibility standards • Need to avoid patents in adaptability standards

  6. SIIT 2005 The 4th International Conference onStandardization and Innovation in Information Technology 21 - 23 September 2005 Hosted by the International Telecommunication Union (ITU-T) Geneva, Switzerland http://www.siit2005.org

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