How do standards encourage innovation and growth?
Businesses looking to commercialize emerging technologies are part of a developing business ‘ecosystem’, and the stronger they can exploit the networks within the ecosystem, the faster the market for their products will grow.
The development of standards can help an emerging technology ecosystem rally round the issues to promote successful commercialization of new products. This is why standards can make such a difference to the success of innovative businesses: they create a common framework for innovation and establish the ‘rules of the game’. Standards set the framework by defining common vocabularies, establishing the essential characteristics of a product or service, and by identifying the best practice within the ecosystems that will ensure successful outcomes.
Once these rules are in place, the pace of innovation will be accelerated and success will be much more likely.
The difference a ‘set of rules’ makes
- You’re less likely to duplicate what’s already been produced, allowing you to concentrate on the activities within your business and product that really add value.
- Your product or service will more easily be integrated with the rest of the ecosystem.
- Investors have more confidence that the innovation will be successful.
New standards are being developed all the time as new sectors, markets and business models emerge, and the sooner these standards are in place, the faster and more efficiently growth occurs.