Standardization in technology-based markets

Abstract The complexity of modern technology, especially its system character, has led to an increase in the number and variety of standards that affect a single industry or market. Standards affect the R&D, production, and market penetration stages of economic activity and therefore have a significant collective effect on innovation, productivity, and market structure. Standards are classified into product-element and nonproduct categories because the two types arise from different technologies and require different formulation and implementation strategies. Because standards are a form of technical infrastructure, they have considerable public good content. Research policy must therefore include standardization in analyses of technology-based growth issues.