Edited by Anastassios Gentzoglanis and Anders Henten
Chapter 13: Interdependent Innovation in Telecommunications: Risk, Standardization and Regulation
1 Bruno Basalisco, Andy Reid and Paul Richards 13.1 INTRODUCTION This chapter is concerned with developments within and between three distinct strands of the telecoms industry, namely those of standardization, the development of technology policies and the regulation of telecom operators who are attributed some level of market power and subject to sectoral regulatory rules. It is taken as a self-evident fact that increasingly in the information and communication technology (ICT) sector, the commercialization of innovatory technologies which is the underlying aim of all parties to harness the benefits of technical progress, requires the coordination of activities across many parties and even different sectors. This chapter explores the issues arising for what might be described as good regulatory practice given the context of developments in standardization bodies and technology policies. Regulation and innovation are not easy bedfellows. In fact, technological or business change adds much complexity to the dialogue between the state and the market which is the essence of regulation. The latter can have an indirect effect on firms’ incentives to innovate via its impact on the level of competition in an industry.2 Moreover, regulatory policy can directly affect the path of technological development – and be shaped by it.3 Because of the converging nature of technological change in the ICT industries, the interplay of regulation and innovation trespasses the boundaries of industries subject to regulatory oversight. Regulators, especially those showing an interest in more efficient forms of regulation (also known as re-regulation), are increasingly aware of models of innovation...
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