The Role of Standardization from Historical Perspective

1. The Role of Standardization from Historical Perspective Wang Ping ICES Meeting 2011-06-28 Hang Zhou

2. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

3. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

4. Why History • An important part in its knowledge system • Historical Study can dig out The reasons of the emergence of standardization, including Economic reasons Social reasons Technological reasons • Find out the role the standardization plays in industry

5. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

6. Company standardization and the Industrial Revolution • Emergence of in-company standardization • In the mid of 18 Century, the emergence of companies allowed the Industry Revolution to boom, • Modern standardization directly related to companies from the beginning. • Mass production boosted labor division and produced streamlining in a company. • Need for capacity expansion, higher profit and quality and innovation provided companies the impetus to standardization. • In-company standardization serves as the purpose of R&D and marketing strategy.

7. Company standardization and the Industrial Revolution • In-company standardization • began with uniform dimension and interchangeability of parts and • afterward continued with essential forms of standardization such as unification, simplification and modularization in product design, processes and manufacturing. • Since the advent of the IT society, interoperability, a new form of standardization, has been proposed in ICT field. • Historically technical innovation and standardization were interweaved together • Military and national defense needs gave an impetus to the defense industry and industrial standardization

8. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

9. Earlier activities in associations • Problems during the 2nd half of the nineteenth century • the second Industrial Revolution accelerated the industrialization • Products were so sophisticated that a single company could not complete all designing and manufacturing efforts, which inevitably resulted in specialization and production division among companies. • Technical problems appeared among companies, in industrial chain.

10. Earlier activities in associations • Early standardization across companies, e.g.: • ICE in 1818 • IMechE in 1847 • ASME in 1881 • AIEE, the former IEEE, in 1883; and • VDE in 1893 • The story of Harry J. Skelton (1867~1934) • The proposal was not made by an engineer but a merchant, which means that there was a strong driven force by trade relations among the companies

11. Earlier activities in associations • Market competition • could contribute to disorder in technical terms, which inevitably causes both economic and social underperformance. They can not be solved only by the companies through free market competitions under the invisible hand. • Standardization in market economy • contribute to an orderly market and the efficient resource allocations, became the basis for both the technological and industrial innovations. • Standardization can be explained as real part of ecnomic invisible hand.

12. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

13. National & International activities • The emergence of the national and international standardization • Around the end of the nineteenth century, international trade expanded at the development of transportation • raw materials and spare parts varied from country to country • Some disputes, due to incompatibility among products in international trade, obviously brought up the needs of national and international standardizations, • ISO(1946), IEC(1906) & ITU(1865) • The establishments of ISO/IEC/ITU mostly were simultaneous with national ones which made it difficult to draw a clear time boundary between them.

14. Organizations Founded year Country

15. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

16. Regional activities • Regional activities • Second half of the twentieth century, CEN founded in 1961, CENELEC in 1973 and ETSI in 1988. • Other organizations such as PASC, ACCSQ of ASEAN were also founded • The standardization system formed • In the twentieth century was comprised of the private, national, regional and international standardizations. • It reflected both the competition and cooperation among countries and regions in the context of economic globalization.

17. Organizations Founded year Region

18. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

19. WTO/TBT and the Economic Globalization • An important milestone • Founded in 1994, the WTO’s aim is to promote the international trade • The descriptions of technical regulations, technical standards and conformance assessment, general rules and good practices for standardization were all refined in the TBT agreement. • Technical regulations and standards became important rules for international trade. • This strengthened the positions of the ISO/IEC/ITU both for standards development and for their roles in international affairs

20. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

21. Binding relationship between the standards and technologies in ICT field • New characteristic of ICT standards • Since the advent of the 21st century, some ICT standards have become totally different from the traditional ones. • the interoperability standard signified greatly to the industry in term of a strategy. • standards in the ICT field have a special nature which is closely related to the technical innovation and the relevant patents. • I name it as the binding relationship between standards and innovative technologies. • The externalization of network and positive feedback justified by network economics enable the ICT standards to greatly influence the industry. • These standards can be therefore called strategic standards.

22. Network externality and positive feedback New characteristic of ICT standards Enterprises Competition Innovation Binding relations Interoperability Protocols Technology 4 Core elements Standards Patent Strategic Position Market, consumer

23. Standardization History Project of CNIS • Four parts • Ancient, from Qin Dynasty to Qing Dynasty • Late Qing Dynasty to P.R. China established • P.R. China established to present • Brief history in western world. • Timelines • Institutions and activities • Institutional system construction • Key standards, literatures • Associations • International cooperation and exchanges • Ancient events • Western activities

24. Standardization History Project of CNIS Before the perdition of Qing Dynasty P.R. China Late Qing Dynasty to P.R. China establishment Specific culture of Emperor and feudality Affected by IR from western world, Planning economy, affected by Soviet Russia • The standardization pattern in China, • Historical track in China Long history of manual industry Market economy, entered into WTO, affected by globalization Early science and technology development • China’s standardization system is similar to eastern countries and third world

25. Content Why History Company standardization & the Industry Revolution Earlier activities in associations National & International activities Regional activities WTO/TBT ICT industry Conclusions

26. Conclusions • Demands for less skilled labors and labor division by the companies stimulated standardization in the early Industrial Revolution during the second half of the eighteenth century • private standardization organizations emerged due to the industrial development, specialization and product division among companies as well as disputes arose from technically incompatible products in international trade • As an invisible infrastructure for the industrial economy, standards serve as a coordinator for technical issues across the industrial chain. • In the late nineteenth century and the early twentieth century, both national and international standardization organizations emerged due to the industrial and trade expansions across the countries.

27. Conclusions • The binding relationship between ICT standards and technical innovation, along with the network externalization and positive feedback in ICT field, enables the ICT technical standards to have a great effect on the industry. • The WTO/TBT agreement has enhanced the position of international standards; governments have paid more attentions to standards than before. • The standardization pattern in China characterizes similarity to eastern countries and third world.

28. Tel FYI Fax Cell phone Email • Wang Ping • Deputy Chief Engineer, Senior Researcher, • Deputy Executive Governor of Science and Technology Committee, • China National Institute of Standardization(CNIS) • +86-10-5881 1446 • +86-10-5881 1456 • 1370 122 2041 • wangp@cnis.gov.cn

29. Thank You ! Wang Ping ICES Meeting 2011-06-28, Hang Zhou No.4 Zhichun Road, Haidian District, Beijing