Intervention Versus Inter-Platform Competition: Strategic Industrial Policy and Standardisation

Abstract

Many innovation and industrial policy documents assign significant growth potential to "smart standardisation". The aim of this contribution is to discuss the complexity of standardisation as a policy instrument beyond the catchphrase. We derive implications on policies from the underlying industrial dynamics that are involved with the emergence of standards. Policy makers are required to weigh up the social costs of standard wars against the risk of making a suboptimal technological choice. It seems that industrial requirements create standards automatically, that standardisation authorities are often re-confirming market trends, and that the role for proactive policies is rather limited.

Keywords: standards, innovation policy, technology

JEL Classification: D04, O30, O38,