Strategic joint ventures with developing country in battles for technical standards

As technical standards become important in the network industry based on hi gh technologies, advanced countries are actively seeking coalition for comp atibility with developing countries, to win in the competition for technica l standards. However, developing countries, in comparison with advanced cou ntries, have a little interest in the international compatibility and a slo w demand growth Of network products. This paper examines what conditions ar e needed, under this constraint, to attract developing countries' early sup port for technical standards, and to design a sequential joint venture whic h is more Pareto-efficient than independent technology development. (C) 199 9 Elsevier Science B.V.