Strategic joint ventures with developing country in battles for technical standards

As technical standards become important in the network industry based on high technologies, advanced countries are actively seeking coalition for compatibility with developing countries, to win in the competition for technical standards. However, developing countries, in comparison with advanced countries, have a little interest in the international compatibility and a slow demand growth Of network products. This paper examines what conditions are needed, under this constraint, to attract developing countries' early support for technical standards, and to design a sequential joint venture which is more Pareto-efficient than independent technology development. (C) 1999 Elsevier Science B.V.