Publication

This paper develops a conceptual framework to study how industrial standards are created and used in Asian countries that seek to catch up with the productivity and income levels of the US, the EU and Japan. It uses a stylized model of latecomer standardization tasks, capabilities and strategies to demonstrate that the costs of developing and implementing effective standards can be substantial. The author also examines the critical role that patents play in standardization and argues that 'strategic patenting' to generate rents from set industry standards can stifle latecomer economic development. Some policy recommendations conclude the paper.