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decreased interoperability in some ways, because ease of use, access to content, and diversity,
credit card fees pushed CurrentC to adopt its less- among other things. This section highlights some Chapter 4
interoperable approach to payment processing. 17 of the key ways that higher levels of interop can
be beneficial.
The mobile payments example also highlights
how interop is not a binary concept. There are
degrees and types of interop, which fall along a 4.3.1 Innovation
multidimensional spectrum (explored in more
detail in Section 4.5 of this chapter). Although all Perhaps the strongest example of how interop
of the mobile payment systems involve various can foster innovation is the Internet itself. It
levels of interop, some take a more unilateral possesses the ultimate interoperable design,
approach, while others rely upon collaboration. allowing the convergence of multiple, previously
Because Google does not build smart phone non-interoperable networks and systems. It is
hardware, it relies on cooperation from partners on this open, interoperable infrastructure that
in order to deploy Google Wallet on compatible the Internet of Things is being built. Every IoT
handsets. By contrast, because Apple controls its device -- from a jet engine “requesting” service
device ecosystem, it can deploy Apple Pay with less to a thermostat checking the weather -- relies on
reliance on others. the fact that the protocols that enable devices to
connect across the network are agnostic to the
The same interoperability diversity can be data transmitted using those protocols. In other
observed in regulatory approaches. As part of words, high degrees of interoperability enable
its Cloud Computing Strategy, for example, the and foster innovation over the Internet, including
U.S. Government variously and simultaneously deploying networked devices.
mandates interop standards, influences interop
through procurement strategies, and helps Companies with a strong interest in the IoT are
support the development of multi-stakeholder currently hoping to replicate the success of the
processes to develop additional standards and Internet by spurring innovation at the IoT layer,
approaches. which itself runs on top of the Internet. For
example, one consortium of tech companies has
The benefits and costs of interoperability are most created Thread, an open protocol to help connect
apparent when technologies mesh seamlessly. low-power devices. Another consortium of tech
Consumers consistently prefer systems that work companies is creating a protocol to enable faster
together without asking them to work, making and easier device discovery and interconnection.
18
their lives simpler in the process. The data layer, Outside of the commercial context, ITU also has
a close cousin of the technology layer, turns out been a leader in advancing standardization in the
to be just as important as the technological layer. IoT space. In all cases, the hope is that building
19
It is critical for data to be interoperable across protocols to enable interconnection will support
systems; it must be readable and understandable. increased innovation on top of an IoT platform.
Without interoperability at the technological and
data layers, interoperability at the higher layers in In addition to economic innovation, interop also
the model—the human and institutional layers—is enables science and research. The European
often impossible. But the challenge of getting Commission recently released a report outlining
the basics of interoperability right, even at the the need for a “Digital Single Market” in the
fundamental technology and data layers, can be European Union and announcing 16 initiatives
deceptively hard. designed to spur its creation. In that report, the
20
Commission noted that a lack of interoperability
in the “European data ecosystem” was hampering
4.3 Benefits of higher levels of interop innovation, because “neither the scientific
community nor industry can systematically access
Interoperability is not an end in itself. Instead, and re-use the research data that is generated by
optimizing interop has societal value as a means public budgets, despite strong demand.” 21
to other ends. Innovation is one policy goal that
often benefits from increased interop, but it can It is worth remembering that although innovation
also have a positive impact on consumer choice, is generally positive, it can include risks. Just as

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