Stimulating vs. Stifling: Standardization’s Role in Innovation

Sherrie Bolin, President & CEO The Bolin Group

8/22/2008
(Original Publish Date: 3/22/2007)

Economists and policy efforts often cite innovation as a key to economic growth. With the rising competition in global trade and online commerce, many countries have made spurring innovation a priority. But are these countries strangling innovation without knowing it? Significant investments are made in education and research. Tax benefits and intellectual property incentives are given to companies. Yet, the mechanism that most effectively enables innovation is often completely ignored by policy makers—standardization. Many governments are inclined to leave this powerful mechanism completely to the mercy of market forces, crossing their fingers that the best standardization systems will emerge. In doing so, are they creating an economic disadvantage for their nations’ industries and companies?  *Link to article no longer available online.