Abstract: This chapter examines alternative theories of the technical compatibility standard-setting process as a means of coordinating component and sub-system suppliers in complex product systems industries, particularly those involving software, integrated circuits, and telecommunications. These industries are chosen to illustrate the different influences of the nature and pace of technological change on the choice of institution, and the governance process involved in standard-setting. The focus of existing theories of standards governance on relative institutional efficiency is contrasted with a theory, in which the nature and pace of technical advance have a fundamental influence on institutional design and process.

Keywords: technical standard, coordination of innovation, complex products, technological change, information technology, telecommunications,