The Economics of Standards Revisited

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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_at_csrstds.compapers
http//www.csrstds.com/klist.html
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ThesisStandards link invention to economic
progress
The fruit of invention is technology Technolog
y engenders rigorous communications Rigorous
communications requires standards Where
standards exist an economic exchange may occur
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Taxonomy of Technical Standards
Historic Era
Hunter Information Systems Gatherer Agrari
an 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 S
imilarity Compatibility Adaptability standards
Value Trading Property Invention
System Concept Creation Ownership Ownership
Ownership Ownership (patents) (Utilities
Co.) (brands, trademark)
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Standards Development and Market Model
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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
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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