Product self-regulation: A paradox of technology policy

Product self-regulation (industrywide technical product standardization) remains a much-maligned concept given its potential for anticompetitive or exclusionary activity. This article explains what exclusionary activity denotes, how it comes about, and its link to private sector concerns. Private sector concerns center around the perception that standardization is associated with a decrease in product differentiation. The framework used in this paper takes an integrated view of the process and the product of standardization and suggests that industrywide standards play an important coordinating role in the commercialization of technology. It is further argued that industry standards do not appreciably alter a firm’s intraindustry competitive standing (unless the standardization process is grossly misused) and may improve its ability to anticipate interindustry and international threats.