1. ICSR 1 The Economics of Standards Revisited School of Business Australia Defence Force Academy University of New South Wales May 24, 2005 Ken Krechmer, Fellow 2005 International Center for Standards Research University of Colorado at Boulder e-mail: krechmer@csrstds.com papers: http://www.csrstds.com/klist.htmlkrechmer@csrstds.com

2. ICSR 2 Thesis: Standards link invention to economic progress The fruit of invention is technology Technology engenders rigorous communications Rigorous communications requires standards Where standards exist an economic exchange may occur

3. ICSR 3 Taxonomy of Technical Standards Hunter Information Systems GathererAgrarianIndustrialSequentialAdaptive Innovation Drawing Trade Mechanized Electronic Internet and routes transport(telephony) carving TechnologyLanguageMeasuring Powered Linear Adaptive and machines processes Processes navigation(mail) (computers) Technical-SymbolsMeasurementSimilarityCompatibility Adaptability standards ValueTradingPropertyInvention SystemConcept CreationOwnershipOwnership OwnershipOwnership (patents)(Utilities Co.)(brands, trademark) Historic Era

4. ICSR 4 Standards Development and Market Model

5. ICSR 5 Insights Offered by Taxonomy of Standards Adaptability standards support new value systems Government intervention may lessen in higher standards successions Privatization of patented sequential systems may cause unintended economic transfers Need to minimize patents in compatibility standards Need to avoid patents in adaptability standards

6. ICSR 6 SIIT 2005 The 4th International Conference on Standardization and Innovation in Information Technology 21 - 23 September 2005 Hosted by the International Telecommunication Union (ITU-T) Geneva, Switzerland http://www.siit2005.org