Continuity and Change in International Standardization

Standards reflect preferences and values of a given society which may – and usually do – diverge, thereby inflating compliance costs for companies. If developed internationally, then substantial gains can be made through the diminution of such costs and by addressing network externalities, interoperability issues and information asymmetries. Thus, and quite inevitably, the main locus of standardisation is to be found outside national borders. With the emergence of global supply chains, the importance of international standards increases, suggesting that compatibility standards of high quality can yield substantial network effects that can make such standards self-enforcing. However, the reduction of compliance costs may be only a long-term effect, as, in the short run, the effect of international standards may vary in that compliance costs will rise for some firms, as the new standard used may be more sophisticated. At the same time, an international standard, the theory suggests, would bring about a diminution of consumer costs, as information becomes more readily available and prices more readily comparable.For a long time, the voluntary character of international standards kept international standard-setting outside the radar of public attention. However, standard-setting has grown in prominence, affecting everyday life and many times bypassing State regulation. The State, on the other side, adopts a hands-off approach due to its lack of technical expertise. This short note serves as an introduction to an edited volume on international standards, identifying the linkages between standardization, on one side, and trade, development and innovation