PANEL 2A Standards and Quality Certification: Technology Upgrading & Trading Tools

PANEL 2A

Standards and Quality Certification: Technology Upgrading & Trading

Tools

The National Standards and Quality System

Jean-Louis Racine

The World Bank

Cambridge, England

April 19, 2007

Knowledge Economy Forum VITechnology Acquisition and Knowledge Networks

Outline

• An Introduction to Standards

• The Standards Development Process

• The Conformity Assessment System

• Standards and International Integration

An Introduction to Standards


Types of Technical Standards: by Function

Information and reference standards

Variety-reducing

standards

Compatibility and interface

standards

Minimum quality and safety standards

M10 x 1.5-6g-S


Types of Technical Standards: by Author

National standards (e.g. BS)

Regional standards (e.g. EN)

International standards (e.g. ISO)

Sponsored standards

(e.g. Adobe ‘pdf’ file format)

Formal standards: standards bodies Market standards: industry

Unsponsored standards

(e.g. computer keyboard

layout)


Types of Technical Standards: by Enforceability

Mandatory (e.g. technical regulations, EU Old Approach Directives)

Voluntary (e.g. ISO14001)

Global supply chains (e.g. ISO/TS 16949 for

auto parts manufacturers)


Benefits of standards

• Diffuse technology• Allow for specialization and economies of scale• Facilitate trade (especially shared standards)• Diffuse market information• Diffuse information on safety, health and

environmental regulations• Reduce transaction and search costs• Allow to harness network externalities• Increase competition by promoting interchangeability

The Standards Development Process


National standards body/ies Technical committees

-Votes on standards-Approves standards-Publishes standards

Public (consumers, industry, government, non-profits)

Coordinates standards program

Develops technical content

Comments on drafts

• At the national level:

Propose new standards

Submits drafts for public review


• At the international and regional level:– International standards organizations:

• ISO, IEC, ITU

– Regional standards organizations:

• CEN, CENELEC for EU/EFTA

• EuroAsian Interstate Council for CIS

The Conformity Assessment Framework


• Conformity Assessment– Certification, testing, inspection and

calibration

– Often conducted by an independent third-party

– Typically involves a number of competing private certification bodies or laboratories

0

100

200

300

400

500

600

700

800

900

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

tho

us

an

ds

of

ce

rtif

ica

tes


Worldwide total of ISO 9000 certificates (ISO 9001 after 2004)

Source: ISO (2006)


• Accreditation– Formal recognition that conformity assessment bodies are

competent to carry out specific tasks

– Accreditation is done against a specific standard

– Typically sought on a voluntary basis

National accreditation body

Certification bodies, inspection bodies, calibration laboratories, testing laboratories

accreditation

Firms and other organizations

conformity assessment


• Metrology– A National Metrology Institute

• Establishes the national measurement system

• Develops and diffuses measurement standards for basic units

Measuring length with an interferometer at the UK National Physical Laboratory

Source: UK NPL website


National and international consumers, public health and safety, natural environment

Retailers, traders, students

Manufacturers, repairers, installers, researchers, universities

• The diffusion of measurement units, precision and accuracy in the economy

National metrology institute

Calibration laboratories

Standards and International Integration

Standards and International Integration

National metrology institute

National standards body

National accreditation body

• Testing labs• Calibration labs• Inspection bodies• Certification bodies

Firms

National consumers & the general public

Exports compliant with regional and global standards

Quality, compatibility, safety, health

Regional and international standards & mutual recognition agreements

Conformity assessment

Accreditation

Standards

Calibrations

Standards

KNOWLEDGE ECONOMY FORUM VI Technology Acquisition and Knowledge Networks Cambridge, England. April 17-19, 2007

Panel 2A April 19, 2007Standards and Quality Certification: Technology Upgrading & Trading Tools

Standards, Markets, and Regulation: The Two Faces of Standards in the

Knowledge Economy

Paul TempleDepartment of Economics

University of Surrey

The Two Faces of Standards

• Standards and regulation: close relationship betweenStandards and regulation

• Standards as a source of ‘codified’ information abouttechnology. Today the standards catalogue of the British Standards Institution contains around 30,000documents describing technology – test methods, reference materials etc. Many documents underpin Markets by facilitating communication between firms

The Economics of Standards:A Brief Review

• 1980s growing interest in the role of standards in processes by which technology is adopted by user population. This was fuelled by awareness of critical role of standards in ICT

• Subsequent work on the microeconomic functions of individual standards common in literature (case studies/economic models)

• Some work has also focused on the broader ‘macro’ economicoutcomes, i.e. in the development of markets and the ‘diffusion’of technology

first econometric analysis on the implications of the activity of Standards bodies for broader ‘macro’ economic outcomes conducted by Swann et al (1996). This work emphasised the impact of standards ‘catalogues’ for trade.

• national standards promoted ‘non-price’ competitivenessof exports over and above the impact on productivity

• also – contrary to common opinion - promoted imports

• but what about productivity?

Macro studies of standards

Contributors to Output Growth in the UK(1948-2002)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

output capital employment technologicalchange

unobservablefactors

standards

% p

a

Standards contributed to about 13% of the UK’s long run productivity growth in the post-war period 1948-2002

Based on earlier German research, a study for the DTI in London suggested that....

Standards and Regulations:The ‘new EU approach’

• Since 1985 ‘national’ standards have increasinglybeen replaced by harmonised European standards

• ‘new approach’ directives allow products to be testedfor conformity against a harmonised standard developedby the European standardization bodies – CEN/CENELEC/ETSI – which are then marketed throughmember bodies – AFNOR, BSI, DIN etc.

• European standards focus on product specifications

• Efficiency aspect: firms minimize costs to achieve conformity

The Internationalisation/Harmonisation of European Standards Catalogues

The Growth of the Standards Catalogue in Four Economies (1990-2003)

05000

100001500020000250003000035000

1990

2003

The Composition of the BSI Catalogue(1986-2003)

0

5000

10000

15000

20000

25000

30000

no

of

do

cu

mn

ets

Total EU

CEN

CENELEC

ETSI

TOTAL

The EU ‘Harmonisation’ of the standardsCatalogue of the BSI

Standards and Markets

• the use of standards is not uniform across economies

• manufacturing and in particular the engineering sectorsof economies are particularly intensive in the use of standards

• many standards assist market entry by providing the Infrastructure through which product characteristics can bemeasured - test methods, reference materials etc.

• Many standards ‘link’ different sectors of the economyparticularly in respect of capital investment

Mechanical Engineering

4919

Electricaland

Instrument Engineering5940

Metal Products

MetalManufacture

Chemicals

Food, Drink,Tobacco

TransportEquipment

2419

Textiles

Paper Printing

OtherManufacture

<5050-99

Standards in UK Manufacturing

100-250250+

Standards as a source of knowledge:Research using the Community Innovation Survey (CIS)

• The CIS has proved to be an important tool for the analysisof both technological innovation (new to world) and the diffusion of innovation (new to firm)

• The survey can be used to assess the role of standards in providing accessible ‘codified’ information about technologyand providing both information and constraining innovation

• Research by Peter Swann using CIS3 established a positivecorrelation between the information content of standards andtheir potential role in constraining innovation

ENTERPRISE

CIS4: importance of information sources for innovation in UK

Internal

Suppliers

Clients

64%

68%

69%

competitorscompetitorsconsultants

Technicalstandards

Professionalassociations

55%53%

scientific journals

conferences

government research

universities

% rating each source at least of some importance (low//medium/high)

51%

26%

26%

25%

62%40%

Standards and Innovation Outcomes

Relative Probabilities: for the range of innovation outcomes covered in CIS3, for those enterprises that cite standards as being relevant are 2-3 times a likely to rank an outcome as ‘high’

0 0.5 1 1.5 2 2.5 3 3.5

product range

new markets/market share

quality

f lexibility

capacity

unit costs

environment/health and safety

met regulatory requirements

value added

SME

ALL

Relative probabilities computed as:Pr (Innovation outcome = high | standards regarded as relevant)Pr (Innovation outcome = high | standards regarded as of no relevance)

Some conclusions:The paradox of standards

• Research suggests standards promote trade and competition

• Standards associated with regulation/bureaucracy/red-tape

• Standards an important and low cost source of codified information on an international basis and hence not an immediate source of competitive advantage for firms.

• However standards may be associated with human capital formation at the level of the firm

• Relationship with innovation complex but innovators rate standards as an innovation source more highly than non-innovators

Quality and Standards Matter:Implementing Effective Quality Systems to Support Trade and Competitiveness Initiatives

José-Luis Guasch

World Bank

and

University of California, San Diego

Quality and its effects: On exports , FDI performance Long term growth and productivity

Quality: long term growth

Quality and Standards as entry points to innovation

Quality and standards as instruments for mainstreaming of SMEs into supply chains

Government role: policies and programs to support quality and standards use and adoption

IMPACT

Figure 5: Contribution to output growth in the UK (1948-2002)

Source: BSI 2005

Table 4: Partial productivity elasticities by country

Source: DTI 2005

All four countries

United Kingdom Germany France Italy

Patent stock 0.105 0.047 0.094 0.072 0.059Standards 0.079 0.052 0.027 0.147 0.017

Average Productivity Gains due to Adoption of Quality Standards

4.5%

1%

12%

0

5

10

15

Central America East Asia China

Source: Escribano and Guasch (2005a and b). Note: Central America sample included Nicaragua, Honduras, Guatemala

and El Salvador

East Asia sample included Philippines, Indonesia, Malaysia and Thailand

Source: The ISO Survey.

Numbers on top indicate ISO 9000 Certifications

CHILE

Export Linear Probability Coefficients with Respect to IC Variables

0.03

0.15

-0.23

0.06

0.13

0.06 0.07 0.060.09 0.1000.12

0.24

0.031-0.001

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

1.1 2.1 3.1 4.1 4.2 4.3 5.1 5.2 5.3 5.4 5.5 6.1 6.2 6.3

Infrsts.Finance and Corporate

Governance

Red Tape, Corr.

& Crime

Q uality, Innovation and Labor Skills O ther Control Variables

1.1 Productivity.2.1 E-mail.3.1 Illegal payments for protection .4.1 Trade Association.4.2 Derivatives.4.3 External auditory.

5.1 Quality certification.5.2 R + D.5.3 New technology purchased.5.4 Internal training.5.5 Experience of the manager.6.1 Incorporated company.6.2 Age.6.3 Rent buildings.

Productivity

CHILE

Foreign Direct Investment Linear Probability Coefficients with Respect to IC Variables

0.03

-0.07

0.05

0.15

0.070.06 0.05

0.18

0.09 0.09

0.002

-0.1

-0.05

0

0.05

0.1

0.15

0.2

1.1 2.1 3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4 5.1

Infrastructures Finance and Corporate Governance Quality, Innovation and Labor Skills Other Control Variables

1.1 Productivity.2.1 Days to clear customs for imports.3.1 Trade Association.3.2 Credit.3.3 Derivatives.3.4 External auditory.

4.1 Quality certification.4.2 R + D new product.4.3 Internal training.4.4 University staff.5.1 Rent buildings.

Productivity

Figure 6

Employment Elasticities and Semielasticities With Respect to IC Variables

-0.09-0.27

-0.08

0.13

-0.30

-0.77

-0.28

0.01 0.010.12 0.18

0.040.24

0.070.24

0.14 0.13

-1.89

-1.00

-0.0030.180 0.31

-2.5

-2

-1.5

-1

-0.5

0

0.5

1.1 2.1 3.1 3.2 4.1 4.2 4.3 4.4 5.1 5.2 6.1 6.2 6.3 6.4 6.5 6.6 7.1 7.2 7.3 7.4 7.5 7.6

Infrstrc. Finance and Corp. Gov.

Red Tape, Corruption and Crime

Q uality, Innovation and Labor Skills

O ther Control Variables

1.1 Productivity.2.1 Real wage per employee.3.1 Power outages.3.2 Internet page.4.1 Security.4.2 Number of inspections.4.3 Cost of entry.4.4 Absenteeism.5.1 Trade association.5.2 External auditory.

6.1 Quality certification.6.2 New product.6.3 Internal training.6.4 External training.6.5 University staff.6.6 Experience of the manager.7.1 Incorporated company.7.2 Age.7.3 Exporter.7.4 Trade union.7.5 Small.7.6 Medium.

Elasticities are indicated by blue bars, semielasticities by yellow bars.

Prdvty. Real Wage

Benefits due to internal factors include:

Lower costs and shorter cycle time due to more effective use of resources. Higher quality processes, leading to fewer costly inspections, warranty costs and reworking. Greater customer focus, resulting in flexible and fast responses to market opportunities. Greater management involvement in improving quality performance and control over employee performance. Better working conditions and motivation for employees.

Benefits due to external factors include:

Greater consumer confidence that products will meet their requirements or regulations, leading to an increase in customer base. Greater consumer satisfaction, leading to repeat purchases.Better image of the organization.

ISO 9000 standards can bring benefits due to both internal and external factors to the organization (but they are costly).

Table 10: Summary of studies evaluating the effect of certification on firm performance

Notes: 0 = no effect, + = slight positive effect, ++ significant positive effect

Author Model Performance measureEffect of

certification

Rao (1997) Cross-sectional, mainly large manufacturing firms, US, India, China & Mexico

Quality management practices & output quality

+

Casadesus (2002)

Cross-sectional, Spain

Quality management practices

++

Sharma (2005) Time-series, 6 years, Singapore

Operating efficiency & financial performance: +

++

Terziovski (1997)

Cross-sectional, manufacturing firms, Australia and New Zealand

Organizational performance & output quality

0

Quazi (2002) Cross-sectional, mainly SMEs Singapore

Quality management practices & output quality

0

Terlaak (2005) Time-series, 11 years, manufacturing firms, United States

Operational and quality improvements

0

Production volumes ++

Chow-Chua (2002)

Times-series, 10 years, large firms, Singapore

Overall financial performance ++

BrazilAverage Coefficients (% Changes in TFP corresponding to a Unit Increase in

the Explanatory Variable, ceteris paribus) for Selected Variables, by Groups of TFP Models and Firm’s Size (con’t)

Dependent Variable and Sample Output Value-Added

Topic** Relevant Explanatory Variables All Large Small All Large Small 4 % staff using computers 0.4 0.1 0.4 0.9 0.5 1.0

4

New technology acquired with help from consultants (vs. simple purchase of new machinery, etc.) 11.7 -8.7 19.6 21.8 38.2

4

New technology acquired by hiring key personnel (vs. simple purchase of new machinery, etc.) 1.4 23.6

4 Quality certification (vs. no certification) 8.0 2.2 11.6 9.2 17.4

4 Agreed a new joint venture with a foreign partner (vs. not) 1.6 2.5 15.3 17.5

4 Obtained a new licensing agreement (vs. not) 8.8 13.2 9.6

IC Economic Performance: Explanatory IC variable Productivity Employment Export FDI

Quality certification + +Introduction of new product +New technology purchased + +Licensed technology +Education of the manager + + +Skilled workers +Unskilled workers -Part time workers -Internal training + +External training +University staff - +Incorporated company + + +Public company +Exporter + +Ownership + +Informal competition - - -Small firm -Medium firm -Young firm -

Dependent variable

Other Control Variables

Quality, Innovation, Labor and Skills

Entry Point to Innovation and to Supply and Value Chains

+ Innova

tion

The Innovation Cycle for SME’s

Lab Tests Training Legislative Surveillance

Quality Product & Systems Certification

Technological Audits Prototyping

Business Intelligence

Product Development

R&D

From a Survey of LAC Firms Firms that secured quality certification were

10 times more likely to innovate/tech adoption than those firms that did not, within five years of event

Firms which products complied with standards domestic or international were 5 times more likely to innovate than those that not within five years of event

Quality and standards as instruments for mainstreaming of SMEs into supply chains

Firms that secured quality certification were 8 (12) times more likely to become suppliers of major firms (exporters) those firms that did not, within five years of event

Firms which products complied with standards domestic or international were 3 (5) times more likely to become suppliers of major firms (exporters) than those that not within five years of event

Market (de facto) standards are the result of industry self-regulation.

Market standards can be unsponsored if they do not involve any proprietary rights or identifiable author and are accessible to all market participants.

Sponsored market standards involve the proprietary rights to a set of technical specifications, where a specific design wins a position of market dominance.

A growing number of market standards have been established through industry consortia.

Formal (de jure) standards involve an explicit coordination and negotiation process prior to commitment to a particular standard.

Voluntary standards can be developed by interested groups through voluntary standards development organizations (SDOs).

Mandatory standards or technical regulations are elaborated by governmental authorities and their application is compulsory.

Types of Coordination Mechanisms:

Government Role Policy setting Designing the National Quality System Regulatory oversight Setting mandatory standards and enforcing compliance Institutions Providing services Coordinating function Providing information and business intelligence on standards and

quality requirements in external markets (and domestic) Seeking agreements (acreditation, recognition, reciprocity etc) with

other countries (trade partners) Financing programs to assist (some) firms and providing incentives

Government Role:On financing and subsidies and on service provision Justified on account of market failures

Public good nature of information: diffusion Lumpiness, scale effects of investments, geography:

laboratories, accreditation, certification Coordination failures Externalities Imperfect capital markets

Fiduciary responsabilities: compulsive testing Rate of discount-Accelerating outcomes and impact Demostration effects

The avoidance of unnecessary obstacles to trade Harmonization Non-discrimination Equivalence Mutual recognition

Transparency

INSURING COMPLIANCE WITH OVERSIGHT GLOBAL ORGANIZATIONS:The World Trade Organization (WTO) Technical Barriers to Trade (TBT) Agreement forbids the use of standards, conformity assessment procedures and technical regulations as non-tariff trade barriers. The TBT Agreement is an integral part of the WTO Agreement, which now counts 148 countries. The principles of the TBT Agreement include the following:

Table 16: Activities of Standardization bodies

* only legal metrology

Mandatory standards

Accreditation

National metrology

Calibration / testing

Certification Training

Argentina no no no no yes yes

Brazil no no no no yes yes

Chile yes yes yes no no yes

Colombia no no no yes yes yes

Ecuador yes no yes yes yes yes

Mexico/DGN yes no no no no no

Mexico/others no no no yes yes yes

Peru some* yes yes yes no no

Korea no yes yes yes yes no

Spain no no no yes yes yes

UK no no no no yes yes

Table 10: cont. Summary of studies evaluating the effect of certification on firm performance

Notes: 0 = no effect, + = slight positive effect, ++ significant positive effect

Escribano and Guasch (2005a&b)

2 years, nine developing countries

Productivity and Exports ++

Heras (2002) Time-series, 5 years, Spain

Financial performance 0 (but performance of certified firms is already superior pre-certification)

Wayhan (2002) Time series, 10 years, manufacturing firms, United States

Financial performance + (effect dissipates over time)

Lima (2000) Time-series, 7 years, Brazil

Financial performance +

Jones (1997) Cross-sectional, Australia

Organizational performance & output quality

Internally-motivated firms: ++Others: +

Brown (1998) Cross-sectional, Australia

Organizational performance Internally-motivated firms: ++Others: 0

Singels (2001) Cross-sectional, Netherlands

Organizational performance Internally-motivated firms: ++Others: 0

Table 12: Total ISO 9000 implementation and certification costs

Country year Firm size Average total implementation costs (US$)

Average implementation time (months)

Total costs as

% of turnover

Registration costs as % of

total implementatio

n costs

US + Canada a

1999 small & medium

72,502 - - -

large-medium 106,890 - - -

US + Canada b

1996 small & medium

71,000 14 1.2 16

Medium 102,000 15 0.5 15

US c 1994 Medium 250,000 - - -

Australia d 1995 Small 55,000 7-12 - -

Medium 83,000 10-16 - -

Large 144,000 13-18 - -

Argentina e

1995 Small 80,000-100,000 24 - -

Medium - 21.3 - -

Large 20,000-40,000 18.3 - -

Table 12: cont. Total ISO 9000 implementation and certification costs

Note: firm sizes are defined as follows - a. small & medium= less than US$ 25m annual sales, medium-large = US$ 25m to 200m annual sales; b. small & medium = less than US$ 11m annual sales, medium = US$ 11m to 25 m annual sales; c. medium = US$ 25m annual sales; d. small = less than 50 employees, medium = 50-350 employees, large = less than 350 employees; e. no definition; f. small = 20-99 employees in industry and 10-49 employees in commerce, medium = 100-499 employees in industry and 50-249 employees in commerce, large = 500 or more employees in industry and 250 employees or more in commerce; h. small = less than US$ 18m turnover, medium = US$18m to 117m turnover, large = more than US$ 117m turnover.

Source: a. Plexus Corporation 1999 in Wilson 2002; b. Irwin Publishing 1996 in Schuurman 1997; c. Zuckerman 1994 in Stevenson 2001; d. ISO 1995 in Schuurman 1997; e. Ramos 1995; f. QSP 1999 in Santos 2002; g. Magd 2003; h. Turner 2000.

Brazil f 1999 Small 77,323

15

- -

Medium 166,737 - -

Large 526,034 - -

Saudi Arabia g

2003 All 84,104 - - 12

South Africa h

1998 Small 13,321 - 0.3 12

medium 31,937 - 0.05 17

Large 72,795 - 0.05 13

Table 14: Typical ISO 9000 registration costs in Latin America (2005)

Source: interviews with certification bodies operating in Argentina, Ecuador, Mexico and Peru.

Country Firm size Cost ($US)

Argentina Up to 10 employees 1,500 + travel expenses

11-100 employees 2,500 + travel expenses

More than 100 employees 4,000-5,000 + travel expenses

Ecuador All firms 400-1,000 including 2 follow-ups

Mexico 26-45 employees 3,900 + 1,700 per follow-up

66-85 employees 5,700 + 2,300 per follow-up

172-275 employees 8,000 + 3,100 per follow-up

Peru Up to 10 employees 1,400 including 2 follow-ups

86-110 employees 4,400 including 2 follow-ups

European Commission

EUROPEAN STANDARDISATION IN SUPPORT OF

EUROPEAN POLICIES AND LEGISLATION

Norbert ANSELMANN

([email protected])

Head of Unit I3 “Standardisation”

Enterprise and Industry Directorate GeneralEuropean Commission

CONTENT

* Political context

* Enhance and broaden the use of European standardisation in European policies and legislation :

= support of Better Regulation Policy= support of industrial and enterprise policy

* European standardisation and the challenge of globalisation

European CommissionDirectorate General Enterprises and Industry

POLITICAL CONTEXT

* Communication from the European Commission on the role of European standardisation in the frameworkof European policies and legislation (COM(2004) 674 final)

* Endorsement through conclusions from the Councilof Ministers relating to European standardisationof 21 December 2004


POLITICAL CONTEXT

* Action plan for European standardisation www.ec.europa.eu/enterprise/standards_policy/index_en.htm

The regularly updated action plan reflects in operational termsthe implementation of the EU’s standardisation policy

European CommissionDirectorate General Enteprises and Industry

ADVANTAGES OF STANDARDISATION

•Following a DTI study (2005), 13% of UK post-war productivity growth can be attributed to standards-based dissemination of technology, management practice and other knowledge, as part of the innovation system.



•A DIN study (2000) revealed that the added value generated by standardisation is at least as important as the added value generated by patents.


CONTRIBUTION OF EUROPEAN STANDARDISATION TO THE IMPLEMENTATION OF EU POLICIES

• As identified in the Lisbon agenda, standardisation is an important tool for:

better regulation;

strengthening the competitiveness of European industry and contributing to the development of industrial projects.



• Vice-President Verheugen said “I expect standardisation to continue to be a strength. Standardisation is contributing to the reduction of barriers to trade and to increased competitiveness. European standards makers are a major contributor to better regulation with standards being produced in support of co- and self-regulation”.



Where standardisation has been identified as an essential tool of an effective and forward-looking business strategy, the implementation of such strategy can be the source of business success.


SUPPORT OF BETTER REGULATION POLICY

It is the role of the independent European standards bodies CEN, CENELEC and ETSI to adopt voluntary standards which provide for more detailed solutions giving technical expression to the legal requirements.


The role of the EU legislator consists of legislatingon the mandatory protection requirements to ensure public interests.


* The New Approach methodology hasbeen applied since 1985 to more than 20 regulated sectors, including machinery,

gas appliances, toys, electrical equipment, medical devices, pressure equipment, telecommunications equipment, measuring instruments and construction products.


ESSENTIAL REQUIREMENTS

* Products placed on the European market must comply with the‘essential requirements’ which address ina generic way the aspects of protection ofhealth and safety of patients, users andthird persons.


HARMONISED STANDARDS

Harmonised European standards adopted bythe European standards bodies CEN, CENELEC and ETSI give technical expressionto the essential requirements.


Harmonised standards remain voluntary. However, it is easier for the manufacturer to establish compliance with the Directives byusing standards.


* More than 4000 voluntary European standardshave been adopted in support of this legislation.

* The EU is committed to make even broader use of this regulatory concept in areas suchas environment protection, transport, and the useof energy.


CONTRIBUTION OF EUROPEAN STANDARDISATIONTO THE IMPLEMENTATION OF EU POLICIES

BETTER REGULATION POLICY

* Extension towards other areas of EU legislation such as := air traffic management= interoperability of rail systems= eco-design of energy using products (EuP Directive)= energy performance of buildings

* Application of the concept of general reference to voluntary standards in existing EU legislation



STRENGTHENING OF COMPETITIVENESS

European standardisation can contribute to enhance competitiveness of European industry, to facilitate the innovation of products and processes and to take benefit from the access to the European Internal Market.



• Areas where standardisation can support the introduction of new technologies and processes:

= hydrogen technologies,= space, GALILEO,= environmental technologies (eg. Eco-design), rationale

use of energy, sustainable construction= nano-technologies



* Support of public procurement :

= European Defence Handbook= eAccessibility



* ICT standardisation work programme := eHealth= e-Learning, e-Business, e-Government, e-

Invoicing



* Standardisation in the service sector :

= customer call centres,= facility management= film archiving



* Normally the initiative for the development of voluntary European standards belongs to

the stakeholders themselves (industry, users, consumers, NGOs, …)



* In the context of needs to support European policies, the European Commission invites European standards bodies – through « mandates » - to set up and implement comprehensive standardisation programmes.


* « Mandates » are endorsed by the Member States through the 98/34 Committee

EUROPEAN STANDARDISATION ANDTHE CHALLENGE OF GLOBALISATION

* EU is committed to the development and use of international standards from ISO, IEC, ITU

* Level of transposition of international standards := 80% of CENELEC standards= 40 % of CEN standards


EUROPEAN STANDARDISATION ANDTHE CHALLENGE OF GLOBALISATION

* In the interest of market access and facilitation oftrade, we invite our trade partners to make use of international and European standards whereverpossible


We welcome the further implementation of the international regulatory model adopted by UN/ECE which promotes the use of voluntary standards

EUROPEAN STANDARDISATION AND THE CHALLENGE OF GLOBALISATION

WWW.UNECE.ORG/TRADE/TIPS/STDPOL


EUROPEAN STANDARDISATION AND THE CHALLENGE OF GLOBALISATION

The European Commission contributes to the promotion of the visibility of European standardisation :

= appointment of a standardisation expert at the EU delegation in China

= standardisation is part of EU neighbourhood policy and of cooperation activities with third countries


CONCLUSIONS

* European Internal Market legislation making use of voluntary standards has provided for about 15 years a successful framework for the free circulation of goods and a high level of protection of health and safety.


CONCLUSIONS

* It has contributed to regulatory convergence and harmonisation of standards at global level.


CONCLUSIONS

* The use of voluntary standards in support of this legislation has proven to be a

successful tool. Thanks to the availability of European and international standards, both manufacturers and regulators could rely on the most adequate technical solutions taking account of the state of the art and the pace of technogical evolution.


CONCLUSIONS

* The voluntary nature of harmonisedstandards provides for flexible solutions which allow predictibility and legal security whilst

supporting technological progress andinnovation.

* These advantages refer to manufacturers, conformity assessment bodies and public authorities.


IMPORTANT INTERNET SITES TO IMPORTANT INTERNET SITES TO REMEMBERREMEMBER

www.cenelec.org

www.cenorm.be

www.etsi.org

DG Enterprise …..http://ec.europa.eu/comm/enterprise/regulation/index.htm

Harmonised standards

http://ec.europa.eu/comm/enterprise/newapproach/standardization/harmstds/index.html

New Approach ......... http://www.newapproach.org


Standards and Quality Certification:Human Capital

Knowledge Economy ForumCambridge17-19 April 2007

Chris Humphries CBEDirector General, City & Guilds

The vocational education system

Define

Regulator

Validate Accredit

National Occupational Standards

‘Own’

Authorisefunding Funder

£’s

Providers

Learners

Courses

Employers Jobs

QualSpecsAwarding Body

Define/feedback

Skills standards boards

English

Sector SkillsDevelopment

Agency

license

Qualifications &Curriculum

Authority

Learning &Skills Council

Sector Skills Councils

Awarding Body Provider

£’s

Syllabus

Assessment(Materials)Support

Certification

QA

(Standards)

Quality assurance elements

Providers

Learners

Learning

QualSpecs

Funding AgencyPlanning

& control

Inspection

Teaching quality

EmployersJobs

Learning quality

Documents

PANEL 2A Standards and Quality Certification: Technology Upgrading & Trading Tools