Localized technological change and the evolution of standards as economic institutions

https://doi.org/10.1016/0167-6245(94)90002-7Get rights and content

Abstract

The emergence of standards is analysed as part of a more general process of institutional and technological change where the behaviour of firms is influenced by market structure, but it is not limited to price-output adjustments. It embraces a much wider scope of action which consists of technological innovations, organizational changes and the elaboration of new institutions. The outcome of the standardization process is strongly influenced by the specific set of productive and technological characteristics both on supply and demand sides. The long-term effects of standards on transaction costs, specialization, division of labour and rates of introduction and diffusion of technological innovations, are such that the character of the standardization processes appears to be one of the distinctive features of national systems of innovation.

References (49)

  • P.A. David

    New standards for the economics of standardization

  • P.A. David

    Why are institutions the “carriers of history”? Notes on path-dependence and the evolution of conventions organizations and institutions

    Paper prepared for presentation in the Stanford Institute for Theoretical Economics Summer Program on “Irreversibilities”

    (1992)
  • P.A. David

    Path-dependence and predictability in dynamic systems with local network externalities: a paradigm for historical events

  • P.A. David et al.

    The economics of compatibility standards: an introduction to recent research

    Economics of Innovation and New Technology

    (1990)
  • P.A. David et al.

    Economics of compatibility standards and competition in telecommunication networks

    Information Economics and Policy

    (1994)
  • H. Demsetz

    The theory of the firm revisited

  • J. Farrell et al.

    Competition compatibility and standards: the economics of horses penguins and lemmings

  • W.J. Fellner

    Competition among the few

    (1949)
  • D. Foray

    Users, standards and the economics of coalitions and committees

    Information Economics and Policy

    (1994)
  • S. Greenstein

    Creating economic advantage by setting compatibility standards: can “physical tie-ins” extend monopoly power?

    Economics of Innovation and New Technology

    (1990)
  • R.W. Hawkins

    Changing expectations: voluntary standards and the regulation of European telecommunications

    Communications and Strategies

    (1993)
  • C.P. Kindleberger

    Standards as public collective and private goods

    Kyklos

    (1983)
  • (1971)
  • (1986)
  • Cited by (77)

    • The state of the art of testing standards for integrated robotic systems

      2020, Robotics and Computer-Integrated Manufacturing
      Citation Excerpt :

      A technology standard itself can also be viewed as a type of technologies. The relations of standards and development of technologies have been discussed by many researchers [2,17]. Since the first industrial robot was developed and used in manufacturing site in 1960s, some significant progresses have been made in developing and applying robots.

    • Exploring the mechanism of technology standardization and innovation using the solidification theory of binary eutectic alloy

      2018, Technological Forecasting and Social Change
      Citation Excerpt :

      Researchers also pointed out that most of the standard formation is originated from technology innovation. Antonelli (1994) studied the evolution of standards as an economic system and a variety of roles and effects of technology standard. He argued that technology standardization issues in traditional industries are not complicated.

    • The dynamics and determinants of de jure standards: Evidence from the electronic and electrical engineering industries

      2018, Computer Standards and Interfaces
      Citation Excerpt :

      Of a few studies that do exist, they use bibliographic data from JTC13 [8] and PERINORM4 [9] to facilitate their analyses. Standardization is a natural result of the diffusion, selection, and adoption of technological changes [10]. Given that standardization is not a static process, the effect of a standard on product innovation is dynamic and differs at each stage of a product's life cycle.

    • Resistance and power in a security certification scheme: The case of c:cure

      2016, Decision Support Systems
      Citation Excerpt :

      This research investigates an early attempt by industry stakeholders to implement a certification scheme, known as c:cure, for the information security management standard BS7799 in the UK. In discussing the importance and dynamics of standards and certification schemes, prior studies of certification predominantly using economics as research theory range from market penetration strategy [6,9,69], the economics of user involvement [19,28] and its relationship with institutional and technological change [2,74]. Overall, the economic perspective assumes that the motivation for standardization arises from the economic and strategic incentives in market penetration and diffusion [27]: organizations make rational choices when choosing to obtain certification, weighing up the balance of cost and benefit.

    View all citing articles on Scopus

    The comments of Almarin Phillips, Eric Brousseau, Stan Metcalfe, Godefroy Dang N'Guyen and Don Lamberton to previous versions of this paper as well as the financial support of local and national funds of Ministero dell'Università e della Ricerca Scientifica e Tecnologica are acknowledged.

    View full text