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New research on collaborative standardisation and disruptive innovation
13 September 2016
The summary paper below was recently developed by Haris Tsilikas (Max Planck Institute) for 4iP Council.
Abstract: Collaborative standardisation, an efficient and inclusive form of organised innovation under the auspices of standard setting organisations (SSOs), has demonstrated significant technological achievements in the field of wireless telecommunications. At the core of collaborative standardization is a working balance of interests and incentives of all stakeholders involved, i.e. contributors of technology and users of standards, epitomised by licensing on FRAND terms. Standardisation contributes to significant gains in consumer welfare, in the form of lower prices, more innovation and more consumer choice and convenience. At the same time standardisation fosters competitive markets, upstream and downstream. However, its character as a process of disruptive innovation is widely disregarded; its contribution to the process of creative destruction and its spill-overs to remote sectors of the economy are ignored. Competition policy and enforcement could play a meaningful and beneficial role only insofar as it is firmly based on a realistic view of standardisation, its economic significance and its impact to innovation and growth.
The summary is drawn from a longer paper with reference “Haris Tsilikas, Collaborative Standardization and Disruptive Innovation: The Case of Wireless Telecommunication Standards, Max Planck Institute for Innovation and Competition Research Paper No. 16-06, 17 May 2016, available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id.... Haris Tsilikas is Junior Research Associate at Max Planck Institute for Innovation and Competition.