1.1.4 What do standards result in?

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Incompability
 















Benefits of standards are not often quantified

It is not easy to quantify the benefits of using geostandards. Not much international research has been done. Known research includes:



DTI economics paper no. 12, The Empirical Economics of Standards, June 2005

In 2005, research into the economic benefits of the use of standards was completed in Great Britain. The benefits were measured according to the number of standards listed in the catalogue of standards of Great Britain’s normalisation institution. It has become clear that based on the research, listing just 1% more standards in the standards catalogue, leads to a 0.05% increase in productivity. From 1948 – 2002, the use of standards contributed to 13% of the economic growth of Great Britain. The results of this research can be found in DTI economics paper no. 12, The Empirical Economics of Standards, June 2005.Here follows part of the article.


The dissemination of technological and other forms of knowledge is well understood to be essential for competitiveness. The results of research and knowledge creation find their maximum economic value when they spread through the economy. Standards as a source of codified knowledge are an important vehicle for this dissemination process, but the contribution to the macro-economy of the take-up of knowledge via standards has been relatively under-researched. The paper 'DTI ECONOMICS PAPER NO. 12, The Empirical Economics of Standards, June 2005' reports the results of significant original research on the impact of standards, on growth, productivity and innovation.


In this paper an answer is given on the next three topics:

  1. Benchmark estimates of the impact of public standards upon Technological Change using UK data
  2. Standards and the International Transmission of Technology
  3. Do Standards Enable or Constrain Innovation?


For example topic 1 estimates suggest that the elasticity of labour productivity with respect to the number of standards is about 0.05. In other words, a 1% increase in the standards catalogue is associated with a 0.05% increase in labour productivity. Because of the very high rate of growth of the catalogue, the estimates imply that the role of standards is a big one, with standards contributing to about 13% of the growth in labour productivity in the UK over the period 1948 - 2002.

Extended Impact Assessment of INSPIRE, March 2004

The INSPIRE-document Extended Impact Assessment of INSPIRE offers a good insight into the benefits of geo-information infrastructure based on standards. This impact analysis has a broader scope than the report above. Here are a number of core figures, taken from the impact analysis:

“’Costs’”:

‘“Blocks of INSPIRE policy measures’” '’'EU-level'’' ’National Organisations’ ’Regional/local’
Harmonisation 0.6 1.2 0.5
Metadata 0.2 1.9 - 2.2 33
Data Policy Framework 0.4
Coordination and implementation including outreach 1.1 9.6 44 - 88
’Total investment per annum over 10 years (?m) (rounded)’ ’1.9’ ’13’ ’77-122’

The costs can be rounded up to €93 - 138 mln yearly for all the EU member states for a period of 10 years after the implementation began; the required costs for each EU member State amounts to between €3.6 – 5.4 mln per year.

’Benefits:’

’Type of benefit’ ’Quantitative estimates’
More efficient EIA?s and SEA?s 60-121
More efficient environmental monitoring and assessment 64
More cost-effective expenditure on environmental protection 192
More cost-effective implementation of the environmental acquis 32
More effective implementation of EC projects 3-8
Reduced duplication of spatial data collection 25 - 160
Improved delivery of risk prevention policies 77 - 256
Improved delivery of health and environment policies 224
’Total (in m? per annum)’ ’680 - 1060’

The benefits can be rounded up to €680 - 1.060 mln per annum for all the EU member states for a period of 10 years after the implementation began. The benefits are expected to amount to between €27 - 42 mln per annum for each EU member state.
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