Technical standards as critical intangible capital for Finnish companies in an era of strategic competition (StandardEdge)

Technical standards as critical intangible capital for Finnish companies in an era of strategic competition (StandardEdge)

 

Research project is funded by Business Finland.

1.9.2023 – 31.8.2025

Total funding 499.928 euros

Standard Edge project website: https://standard-edge.com/

 

Abstract

Technical standards are a critical driver for innovation, economic growth and productivity in the knowledge-based economy. They have emerged as a key battleground in the strategic competition between major powers (USA, China, EU). Yet the Finnish business sector has invested relatively few resources into systematically mapping and developing standard-related intellectual property (IP) compared, e.g., to German enterprises. Standard-related IP is highly valuable intangible capital yet plays a far too limited role in Finland’s national innovation policy instruments. This may lead to a gradual decline of Finnish companies’ competitiveness in new/emerging economic areas, such as the Internet of Things (IoT) and artificial intelligence (AI). The novelty of this research project is two-fold. Firstly, we will pilot a Finnish Standardization Panel in close cooperation with German standardization experts. Secondly, we engage business leaders and policymakers in the IoT and AI fields to interactively anticipate and mold their futures through innovative use of the backcasting approach, derived from futures research. We comprehensively map and analyze current regulation of technical standards and IP, evaluating their key roles for Finnish enterprises, and address market risks related to diverging market conditions. We also recommend concrete ways to improve Finnish enterprises’ strategic advantages from standardization and access to standards. The project is based on close interdisciplinary collaboration between economists, industrial innovation researchers, legal scholars, political scientists and futures researchers, and strong national and international networks.

Aims of the project

Standards are a critical driver for innovation, economic growth and productivity in the knowledge-based economy. The complex interplay of technological development, standardization and major power competition create a changing terrain in which companies must navigate. Internet of Things (IoT), artificial intelligence (AI) and other new general-purpose technologies will fundamentally transform economic structures and sources of economic growth. They place standards at the center of the data economy and make access to patented standards critical for new types of firms in technology and data sectors. Standards enable global scaling and boost investments in intellectual capital but also reinforce technological dependencies and power.

Despite their importance, Finnish enterprises have invested relatively few resources into systematically mapping and developing standard-related IP. This project aims to bring (European) standardization and IP to the forefront of the Finnish innovation policy debate. We will actively contribute to related policy and regulatory debates and, by doing so, affect the emerging regulatory and policy landscape in the interest of Finnish companies and national economy. More precisely, the aim of this research project is to identify the pros and cons of EU legislation under preparation (especially the 27 April 2023 published Commission Proposal for SEP Regulation) from the perspective of Finnish companies and map, analyze and identify risks and problems in the current regulation of technical standards and IP, evaluate the role of standards, standard essential patents, IP and standards management practices and other related IP issues for Finnish enterprises, and actively anticipate other future developments. Our main research questions are:

1. How have EU and global law on IP/standards developed, especially in the IoT and AI fields? How will they develop in the future? What are the underlying drivers and tensions?
2. How do Finnish companies in these fields utilize technical standards and related IP?
3. How to improve Finland’s and Finnish firms’ standards/IP strategies, management practices and policies, and ensure that the evolving regulatory landscape serves their interest?

The Principal Investigator (PI) of the consortium project is
Director of IPR University Center, Prof. Tuomas Mylly
(puh. 040 820 5125, mylly@iprinfo.com).

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Standard Edge project website: https://standard-edge.com/