Innovation Insights: Why Technology Standards Matter

Innovation Insights: Why Technology Standards Matter

By Shelly Kramer - December 1, 2022

The News: Innovation Insights is a video series exploring critical issues facing the United States in the realm of technology and innovation. In the video “Why Technology Standards Matter,” Innovation Insights explains the importance of setting technology standards and explores the critical challenges faced by the US who has been a long-time global leader in the technology standards domain. View the Innovation Insights video.

Innovation Insights: Why Technology Standards Matter

Analyst Take: Every piece of technology that we use relies on technology standards — whether we’re aware of it or not. For example, consider the act of plugging in a Universal Serial Bus (USB) drive from one laptop to another of a completely different brand and model to transfer or download files — technology standards make that possible. Beyond the individual, technology standards also are key factors in economic markets and national research and development (R&D) efforts.

Technology Standards: What They Are and How They’re Developed

Technology standards are the common language used by just about everyone in the product design process — ranging from the engineers designing products to the companies manufacturing the products, as well as the entities distributing the products into the marketplace.

Technology standards are developed collaboratively by experts from industry, academia, governments, and other types of organizations. Technology standards provide recommendations, best practices, and other guidance on the use of existing and emerging technologies. The objective of technology standards is to maximize compatibility, interoperability, safety, repeatability, and quality. Without technology standards, users and producers would need to find expensive ways to adapt to different technological norms across sectors, countries, and markets, thereby reducing the effectiveness, efficiency, and profitability of global products and services. For many critical technologies, there are even international technology standards with governing bodies, such as the International Organization for Standardization, to ensure interoperability, common quality, and to remove technical barriers to development and widespread use.

China and its Interest in Tech Standards

The United States has long been a technology standards leader because of its ongoing investments in research and development, but this role is at risk with the rise of new technology hubs around the world, and more countries seeking a seat in today’s Standard Development Organizations (SDO).

One such competitor is China which wants to take leadership or control of the process that sets global standards for emerging technologies like 5G, the Internet of Things (IoT), and AI. In 2020, China released its fifteen-year plan to increase the country’s engagement in technology standards setting. The plan, called China Standards 2035, reflects the Chinese government’s long-running view that technology standards are key to influencing technological markets and focuses on upcoming technologies and topics including artificial intelligence (AI) and digital privacy.

Many U.S. policymakers view this as an effort to dominate international standards and work against the United States and its allies. Such an effort could harm the integrity of the standards-setting process, resulting in less accessible or even less functional standards, and threaten the United States’ position as a global technology leader.

Technology Standards Drive Innovation

Wrapping up, technology standards play a key role in driving innovation, providing shared platforms for industry participants to work together to bring new technological solutions to the marketplace. Establishing accurate and workable standards for technology adoption and interoperability accelerates innovation and promotes fair global competition. I believe it’s essential that the U.S. develops a plan to maintain its competitive and national security advantages as the world leader on technology standards and innovation: it’s truly the future of U.S. national security and economic prosperity.

Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.