Standards’ dynamics through an innovation lens: Next generation ethernet networks

The inherent need for stable standards is difficult to reconcile with the ITU aim to develop state-of-the-art standards, and combine standardization with innovation. Standards´ change is then inevitable; the consequence is that it increases transaction costs and calls prior interoperability into question. In this paper we analyze the problem of standards change as a feature of innovation. We want to understand the role that standards´ dynamics plays in processes associated with committee when the specifications and technologies co-evolve. To perform this study, we consider disruptions in the technology and/or the value chain simultaneously to classify innovations into four types. By identifying the type of innovation at hand, the innovation-specific issues of standards change that are likely to occur can be singled out. Tools can be devised to assist the various stakeholders in making their decisions. We illustrate this with the case of standards for the next generation Ethernet networks.