This second issue of the Standards Networks newsletter summarises the current status of the six Standards Networks within the Europe INNOVA initiative and highlights new progress done in their projects. At the occasion of the second annual partnering event of the Europe INNOVA Initiative, taking place in Milan from 14 to 16 October 2007, the Standards Networks has organised a parallel session on how standardisation can stimulate lead markets, suggesting that the notion of lead markets is closely related to innovation.

Standards undoubtedly play a substantial role in the emergence of new products and technologies and in the development of new businesses. In a global economic environment, large markets encourage a more rapid dissemination of new services and organisational models leading to a wider use of efficient standards. There are examples of innovative technologies that were initially developed on a local level and which eventually became large and global industrial applications. Whether and to what extent standards lead to such changes and which elements can support such successful commercial developments differs from one case to another.

These issues have been debated by the Standards Networks at the Europe INNOVA Annual Partnering Event in the session "Stimulating Lead Markets through Standardisation". The session started with a presentation of an illustrative case study by Mr. Peter Hauge Madsen, DNV Wind Energy, Det Norske Veritas, Denmark. In his intervention, Mr. Peter Hauge Madsen highlighted the interaction between standards and the development of the wind energy technology and industry, from the initial initiatives by entrepreneurs to a mature and viable technology and industry, dominated by Europe. Standards in combination with certification initiated by authorities but adopted by the market have proven an efficient means for knowledge sharing, quality assurance, performance documentation and risk management, and has thus promoted rather than hampered innovation.

The session discussed whether and how this experience can be adapted and transferred to other European innovative markets and technologies.

Programme and information: http://standards.eu-innova.org
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Innovative thinking seems to be the today’s most addressed answer to the challenges of the future. The OECD Forum 2007 focused on innovation, growth and equity, and in the June 2007 issue of the ’ISO Focus’ magazine, the Secretary General of the OECD Mr Angel Gurría gave an interview on these topics, including some reflections on the role of standardisation.

According to the OECD, the main challenge is to gain the maximum benefits from globalisation while at the same time ensuring that they are fairly shared by all parties. Innovation has driven much of the rise in living standards since the industrial revolution, but the impact of innovation is reinforced by globalisation and increased competition. Access to new ideas and technologies is at the root of this new innovation process. At the same time, innovation is also important for addressing global challenges such as climate change and sustainable development.

But when do standards enter the picture and how do they fit in?

According to Mr Angel Gurría, we have to realise that standards can present both positive and detrimental effects on competition and on international trade.

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IFC stands for "Industry Foundation Classes" and is an open standard used by software developers in their CAD (Computer-Aided Drafting) programmes for engineering and architecture companies. The Research report recently published by STAND-INN," IFC Development process-Quick Guide" explains the use and benefits of IFC.
STAND-INN, one of six "network" projects on standards within the larger Europe INNOVA initiative, aims to bring about improvement in business process and sustainability in construction, with an emphasis on Building Information Models (BIMs) and IFC Standard.

The IFC standard was developed by the IAI (International Alliance for Interoperability) to handle 3D file data. Major CAD vendors helped to develop the standard and the tools to support it. The IAI is a division of the ISO (International Standards Organization), the body that controls the IGES and STEP data standards. The IFC (Industry Foundation Classes) standard is being used in leading construction projects in Europe and beyond. IFC is used as a basis for the Building Information Modelling (BIM), a 3D model of the building project and a rich source of information shared by all the project participants.

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In product data technology, one challenge is to encourage the use of standards among industry in order to improve environmentally friendly design. Construction has a large carbon footprint. In Europe, 40% of all material and energy consumption is down to the construction industry and 40% of emissions are caused by construction. The industry itself is inefficient and wasteful in the way that it operates: almost a third of transactions do not add value to the process. The tool to trim off that waste is already there: it is the Building Information Model (BIM), commonly based on the IFC standard, whereby all participants share project information.

STAND-INN has analysed the benefits of using an IFC-based BIM. A BIM is a repository for digital, 3D information generated by the design process and simulations: it’s the design, fabrication information, assembly instructions and project management logistics in one database.

"The BIM will exist for the life of a building and can be used to manage the client’s asset. The benefits include reduced risks, improved productivity, and streamlined production, maintenance of design intent and facilitation of quality control " Commented Mr Christopher Groome, IAI Int. (UK), STAND-INN project member.

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Public procurement can stimulate the market towards innovation with a number of tools and methods. On the other hand, an innovative market will produce better and more competitive products, and more effective services at lower prices for public organisations. This equation is central to the STEPPIN project.

The STEPPIN project has a more horizontal, interdisciplinary approach to standards than other Europe INNOVA Standards projects.

STEPPIN - STandards in European Public Procurement lead to INnovation is exploring how referencing open standards in European public procurement processes can foster innovative business solutions amongst bidding companies.
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CEN celebrates the spirit of innovation in the Annual Report 2006

"Every aspect of daily life has been altered by an idea. But big ideas alone cannot make a big impact. For an innovation to be introduced into our lives it must be developed and this is where standardisation has a role to play". This is where the newly released CEN Annual Report 2006 takes off. The report aims at giving an overview of CEN’s contribution to innovation, including the innovation of the standardisation process itself.

The report provides examples of inventions turned into innovative products and marketable commodities partly due to standards such as compact discs, bar codes, credit cards and disposable napkins.

The CEN Annual Report 2006 – "Celebrating the Spirit of Innovation" - can be obtained in paper version or downloaded here.

Technical innovations need standards to prosper

Thinking of almost any sector in one’s daily life, let it be working with a laptop, travelling or using healthcare services, it is apparent that without product and process development and innovations our lives would look a lot different and probably also be more difficult.

Nowadays seemingly almost inseparable parts of our lives, technical innovations like RFID, Internet or MP3 cannot grow without a supportive environment. The more the modern business life is fast-paced and turbulent, the more there is also a need in companies to plan ahead further to the future and strive to build some long-term competitive advantages. This is naturally beneficial for the company, but can be also considered as a plus for private people as customers and decision makers as they can direct their investments into products and projects that provide the right infrastructure in the long term. According to Hesser et al., (2006)[1], without suitable standardisation the technologies and methods concerned do not develop their potential to the full.

For instance, take the case of mobile phones, which is a popular example of a standardisation success story in Europe. In contrary to the European situation, the USA market seems to lack one, unified standard and is instead divided into the use of cdma and gsm networks. This has created a challenging situation for the European manufacturers as they have sometimes needed to re-think their product development decisions in order to adapt and successfully compete in the American market.

Developing and using two or multiple technologies at the same time naturally creates healthy competition, but may also hinder the positive effects and economical efficiency usually gained when concentrating resources in one direction and proceeding in its technical learning curve. Standards are often the background factor providing continuity for the technological development of compatible products even though their individual life-spans may be shortening.

[1] Hesser, Feilzer, de Vries et al. (2006): Standardisation in Companies and Markets
Helmut-Schmidt-University Hambourg cycling.

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On the 14-16 October 2007, the Chamber of Commerce of Milan will host the 2nd Europe INNOVA Annual Partnering Event. The event will link the activities and results of Europe INNOVA to major trends in society where innovation can play a role.

A parallel session will be organised by the Standards Networks on 15 October from 14h30 to 17h15 on the theme “Stimulating Lead Markets through Standardisation”.
It will be related to the impact of Standards in the innovation process and how public policies can foster innovation-friendly environments that support the development of lead markets.

The Keynote speaker will be Mr Peter Hauge Madsen, Head of Project Certification at DNV Wind Energy (Denmark). This presentation and discussion will be followed by a Peer review of the BIOHEALTH and STAND-INN projects.

The parallel session will end by a Round table discussion

The full programme of the Europe INNOVA 2nd Annual Partnering Event is available here

Should you want to learn about the Standards networks activities within Europe INNOVA, please go on http://standards.eu-innova.org.
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