Economic evaluation model for international standardization of technology

This paper proposes an economic evaluation model for international standardization to support the decision-making process of technology development and standardization. We make use of a cost of ownership (COO) model for analyzing both expected-benefit and cost-of-technology development and standardization. Then, we apply the proposed model to a case of radio frequency identification (RFID) technology by establishing four potential scenarios. From the scenario analysis, the expected profit of the international standardization is evaluated for each scenario. We also perform sensitivity analysis to consider the effect of various parameter settings. This paper is expected to lead companies in the choice of the best strategy of technology development and standardization that would bring maximum profit.