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2 SIST and the Role
of Standards in a Competitive
Economy

Standardization is the process of designing and implementing standards
to guide the creation of a good or service. The concept of standard can
be defined as a consensual way of doing things.

It may include producing goods, managing procedures, delivering services
or supplying materials. Standards may include numerous activities performed
by organizations and used by their customers. Standards are designed by
consensus between all stakeholders in industry, allowing goods and services
to reach certain quality and compatibility between buyers and suppliers. At the
same time, standards enable protection of human health and the environment.
A standard is therefore a document that guides the creation of goods and
services and is approved by a recognized body (Featherson, Ho,
Brevignon-Dodin, O’Sullivan, 2016).

2.1 The purpose and classification of standards

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The underlying purpose of developing and using standards is to extend
knowledge.
In contrast to intellectual property or product/service patenting, standards make
knowledge accessible to a larger number of stakeholders. That is why standards
encourage economic growth and standardization has evidently positive effects on
the complete economy (Blind, Jungmittag, Mangelsdorf, 2011).

Standards can be classified in several ways. The basic distinction between
individual standards lies in their status of official recognition. De facto standards
are those which have in fact not been approved by a relevant authority, but which
have been established “organically”, spontaneously, through use. Typically, de

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