Strategies for Technology Innovation through International Standards in SMEs

Jae-Young Kim(김재영),Jae-Woong Choi(최재웅),Byoung-Ho Jun(전병호) 중앙대학교 한국전자무역연구소 2016 전자무역연구 Vol.14 No.4

연구목적: 본 연구의 목적은 국내외 중소기업이 국제표준에 참여한 사례를 통해 중소기업의 기술혁신 활용전략에 대해 논의하고자 하는 것이다. 국제표준에 직접 참여한 국내외 중소기업의 사례분석을 통해 국제표준 활용이 글로벌 시장에서의 경쟁력을 높일 수 있는 효과적인 방안임을 확인하였다. 네트워크를 활용한 전략적 제휴의 활용과 정보의 획득 등 국제표준을 통한 기술혁신 활용전략의 효과를 분석하였다. 논문구성/논리: 본 연구는 전체 다섯 장으로 구성되어 있다. 첫 번째 장에서는 본 연구의 배경과 목적을 설명하며, 두 번째 장에서는 국제표준 및 글로벌 강소기업들의 특성에 대한 기존 연구를 살펴보았다. 세 번째 장에서는 국내외 국제표준 획득 사례 분석을, 네 번째 장에서는 국제표준이 중소기업에 미치는 성과를 분석하고, 마지막 장에서는 본 연구의 결론 및 국제표준을 활용한 중소기업의 기술혁신 전략에 대한 정책적시사점을 제시하였다. 결과: 본 연구에서 기존 연구에서 제시된 중소기업에 있어서 상당한 수준의 시간과 노력이 투입될 수밖에 없는 국제표준화에 대한 관심이 성과를 창출할 수 있으며, 규모가 작은 중소기업이라 할지라도, 역량을 갖춘 전문가가 있다면 기업 간 경쟁이 치열한산업 분야의 표준화에서도 핵심적인 역할을 담당해 충분히 기술력과 외교력을 발휘할수 있다는 점을 보여준다. 독창성/가치: 기술혁신전략에 대한 기존 연구는 중소기업의 경영 양상에 대한 분석에 집중되어 글로벌 경영 환경에서 국제표준의 활용의 장점을 간과하였다. 하지만, 국제표준 및 국제인증 시스템을 활용하여 제품의 질적 수준 및 고객들의 신뢰성을 향상시키고 글로벌 파트너십을 형성하는데 주요 요인으로 인식할 수 있음을 사례분석을 통해 밝혔다. Purpose: This study aims to discuss the activation strategies for technology innovation in SMEs through a case study on international standards. This case study indicates that utilizing international standards in SMEs can enhance global market competitiveness. The activation strategies for technology innovation in SMEs include strategic alliances and information acquisition by participating in a standards network. Composition/Logic: This paper is composed of five chapters. The first chapter explains the study’s background and purpose. The second chapter analyzes prior studies of international standards and the characteristics of small, global, and hidden champions. The third chapter investigates internal and external cases regarding the utilization of international standards in SMEs. The fourth chapter examines international standards’ effects on SMEs. Finally, the fifth chapter suggests the policy implications for technology innovation strategies through international standards. Findings: This study’s results demonstrate that SMEs can obtain various benefits from using international standards. Well-competed experts especially play significant roles in globalized competitive standardization. Although SMEs have several drawbacks compared to larger companies, they can achieve competitive advantage through effective international standardization. Originality/Value: Previous studies of technology innovation strategies have focused on SMEs’ general management aspects and neglected international standards’ use in the global business environment. However, this study has originality and value in that it indicates that using international standards can provide SMEs with several benefits, such as improving product quality, enhancing customer reliability, and developing global partnerships.

정치경제학적 관점에서 본 ICT 분야의 R&D 지출과 국제표준 제안의 상관관계 연구

김형아 ( Hyoungah Kim ),박수빈 ( Subeen Park ) 중앙대학교 국가정책연구소 2019 국가정책연구 Vol.33 No.4

본 연구의 목적은 우리나라 표준 및 표준화 정책의 변화를 정치경제학적 관점에서 살펴봐야 함을 설파하고, 정치경제학적 관점에서 정부 ICT 정책의 기조에 따라 이 분야의 R&D 지출과 국제표준 제안 수의 상관관계가 어떻게 변했는지 실증적으로 살펴보는 것이다. 연구결과 지난 16년 동안 ICT 분야는 우리나라 경제의 성장동력으로 인식되어 정부의 지속적인 지원을 받은 것으로 나타났다. 그에 따라, 이 분야의 국가표준 규모와 국제표준 제안 수가 꾸준하게 상승했다. 실증분석을 위해 교차상관함수(cross-correlation function)를 사용하여 두 시계열 변수(R&D지출과 국제표준 제안 수)를 분석한 결과, 두 변수는 양(+)의 관계가 있는 것으로 나타났다(lag=0과 1). 그러나 정부가 표준관리방식을 시장주의 방식으로 바꾼 후에는 국제표준 제안 수가 감소하거나 완만하게 증가하는 추세를 보였다. 이 결과는 표준정책이 기술의 발전, 국가의 지원, 시장의 완숙이라는 세 요소의 접합점에서 성공을 이룬다고 가정했을 때, 국제표준 수를 늘리기 위해서는, 정부의 시기적절한 지원이 필요하다는 의미를 제공한다. 왜냐하면, 기술의 발전과 시장의 완숙은 자연적으로 발생하는 흐름(stream)이므로 정부의 인위적인 개입의 여지가 적기 때문이다. The goal of this study is to explore the chronological change of Korean standardization and standards policies within a political economy framework by analyzing the cross-correlation between R&D (Research and Development) expenditures and the number of international standards, suggested to IEC (International Electrotechnical Commission) in ICT (Information and Communications Technology). During the last 16 years, South Korea has financially and systemically supported the ICT industry for economic growth so as to become a market leader in the high-tech industry in the world. To explore whether the government investments would increase the number of international standards suggested to IEC as an alternative to take a market leader position, we used a cross-correlation function. The results of the analysis show that there is a positive association between R&D investments and the number of international standards to IEC at the time lag 1 and 0 from 2003 to 2017. Meanwhile, the size of R&D investments has gradually increased in the study period, but the increase of international standards suggested to IEC became moderated when the government started to privatize standardization processes. This finding indicates that the government intervention and supports could play an important role to increase the number of international standards upon the assumption that three key factors; technical development, mature market, and government supports need to come together in order for a country to have more international standards. It is because that the technical development and mature market are the streams governments could not get directly involved due to international law and free trade agreements.

5G 시대의 사실표준화기구와 TBT협정과의 관계 - 3GPP와 TBT협정 제2.4조 해석을 중심으로

곽동철 (사)한국국제경제법학회 2019 국제경제법연구 Vol.17 No.1

In the wake of the era of the 5th generation of mobile telecommunications, it is standards and government’s relevant policies that make businesses most worrisome in the information communications technology (ICT) sector. In the ICT sector, governments as well as firms are competing fiercely to occupy global standards. This competition has often brought about trade conflicts. In pursuant to the TBT Agreement, where relevant international standards exist or their completion is imminent, WTO Members shall use them as a basis for their technical regulations. However, the TBT Agreement does not stipulate either the definition of international standards or international standard-setting organizations. In particular, more questionable becomes the legal characteristics of de facto standard-setting organizations, as major standardization activities in the ICT sector are mostly carried out by them. In light of this, this article analyzes the legal characteristics of a de facto standard-setting organization, which plays a pivotal role in standardization activities in the ICT sector, by applying WTO jurisprudence on the interpretation of the TBT Agreement. The main focus is on 3GPP, a representative de facto standard-setting organization in the ICT sector. The analysis on the legal characteristics of 3GPP is of importance under the WTO regime, now that an international standard is valid only when it is approved by an international standard-setting organization. The result of the study shows that 3GPP may fulfill all the requirements, including substantive as well as formality requirements, presented by WTO jurisprudence. Since 3GPP is likely to be deemed as an international standardization organization in the ICT sector by the WTO Dispute Settlement Body, WTO Members should base their domestic regulations upon the international standards set up by 3GPP. Otherwise, they may run afoul of Article 2.4 of TBT Agreement. Korean firms and government must actively participate in the standardization process within 3GPP to lead 5G international standards. In so doing, Korea can avoid potential ICT-related trade conflicts in advance. 제5세대 이동통신(5G) 시대를 앞두고 있는 지금 정보통신기술(ICT) 분야에서 가장 우려되는 무역장벽은 표준과 관련된 각국의 정책이다. ICT 분야의 표준화를 둘러싼 경쟁은 기업 차원뿐만 아니라 정부정책 차원에서도 치열하게 벌어지고 때론 통상분쟁으로 이어지기도 한다. WTO 회원국은 TBT협정에 따라 관련 국제표준이 이미 존재하거나 완성이 임박한 경우 이에 기초하여 기술규정을 마련해야 한다. 그러나 TBT협정에는 국제표준과 국제표준을 제정하는 국제표준화기구의 정의가 제시되어 있지 않다. 더욱이 ICT 분야의 핵심 표준화활동은 공식적인 표준화기구가 아닌 사실표준화기구에 의해 이루어지고 있어 이들의 법적 성격에 대한 논란이 지속되고 있다. 이에 본 논문에서는 TBT협정 해석에 관한 WTO 분쟁해결기구의 법리를 적용하여 ICT 분야 표준화활동과정에서 중추적인 역할을 하는 사실표준화기구의 법적 성격을 분석하였다. 특히 5G 분야의 대표적인 사실표준화기구인 3GPP를 주요 분석대상으로 선정하였다. 3GPP의 법적 성격에 대한 분석은 WTO 체제 하에서 중요한 의미를 갖는다. WTO 법리에 따르면 표준을 제정하는 실체의 성격에 의해 국제표준이 결정되기 때문이다. 분석 결과, 3GPP는 WTO 법리가 요구하는 형식적 요건과 투명성, 개방성, 공정성 및 총의, 효율성 및 관련성, 일관성, 개발 차원 등의 실질적 요건을 모두 충족시키는 것으로 나타났다. 3GPP는 WTO 분쟁해결기구에 의해 ICT 분야의 국제표준화기구로 인정받을 가능성이 크므로 WTO 회원국은 3GPP에서 승인한 표준에 기반하여 국내 이동통신산업을 규율하는 기술규정 등을 제정해야 한다. 그렇지 않은 기술규정이나 표준화조치 등은 무역제한적인 조치로 인정되어 TBT협정 제2.4조 위반으로 판정받을 위험이 높다. 우리 기업과 정부는 3GPP의 표준제정과정에 적극 참여하여 5G 국제표준을 선도하는 한편 혹시 모를 ICT 분야의 통상분쟁을 미연에 방지해야 한다.

국제표준을 통한 중소기업의 기술혁신 활용전략

김재영,최재웅,전병호 중앙대학교 한국전자무역연구소 2016 전자무역연구 Vol.14 No.4

Purpose: This study aims to discuss the activation strategies for technology innovation in SMEs through a case study on international standards. This case study indicates that utilizing international standards in SMEs can enhance global market competitiveness. The activation strategies for technology innovation in SMEs include strategic alliances and information acquisition by participating in a standards network. Composition/Logic: This paper is composed of five chapters. The first chapter explains the study’s background and purpose. The second chapter analyzes prior studies of international standards and the characteristics of small, global, and hidden champions. The third chapter investigates internal and external cases regarding the utilization of international standards in SMEs. The fourth chapter examines international standards’ effects on SMEs. Finally, the fifth chapter suggests the policy implications for technology innovation strategies through international standards. Findings: This study’s results demonstrate that SMEs can obtain various benefits from using international standards. Well-competed experts especially play significant roles in globalized competitive standardization. Although SMEs have several drawbacks compared to larger companies, they can achieve competitive advantage through effective international standardization. Originality/Value: Previous studies of technology innovation strategies have focused on SMEs’ general management aspects and neglected international standards’ use in the global business environment. However, this study has originality and value in that it indicates that using international standards can provide SMEs with several benefits, such as improving product quality, enhancing customer reliability, and developing global partnerships.

결사의 자유에 관한 국제노동기구(ILO) 기본협약 비준과 노동법의 쟁점

김동현 ( Kim Donghyeon ),이혜영 ( Lee Hyeyoung ) 사법정책연구원 2022 연구보고서 Vol.2022 No.8

On 20 April 2021, Korea deposited its instrument of ratification for the fundamental Conventions of the International Labour Organization (ILO) on freedom of association (No. 87 and No. 98), which will enter into force on 20 April 2022. Since the ratified Conventions are directly incorporated into domestic law under Korea’s Constitution, this ratification is expected to bring about a major change in the field of collective labour law in Korea. A particularly important change is that domestic judges are now required to have a deep understanding of how to interpret Korea’s collective labour laws in a way that is compatible with international obligations under the ILO Conventions on freedom of association. Domestic judges must accept that international labour standards are now a part of Korean labour laws that are directly applied in daily trials or, more precisely, must recognize that Korean labour laws are a part of a larger international labour law system. This research is, thus, intended to provide readers with an important reference for guiding how the ILO fundamental Conventions on freedom of association should be interpreted and applied, considering their relationship with collective labour law in Korea. With this purpose in mind, this research seeks to provide an overview of the ILO and its labour standards that are backed by its supervisory system comprised of independent legal experts and tripartite bodies. In particular, this research provides an article-by-article annotation of the ILO No. 87 and No. 98 Conventions. In order to enhance readers’ understanding of each provision of these Conventions, this research introduces examples of foreign courts’ judgments that directly applied provisions of these Conventions, and also briefly identifies Korea's collective labour-related legal systems and practices that may be problematic in implementing obligations under each provision of the Conventions. This research then examines legal consequences of ratifying the ILO Conventions. One of the most important consequences to follow in the ILO system is that Korea, as a ratifying state, becomes subject to the strengthened ILO’s supervisory system/mechanism that is designed to help ensure that state parties implement the conventions they ratify. In particular, Korea’ periodic reports on the measure it has taken to implement the provisions of the ratified Conventions will be comprehensively and regularly reviewed by the Committee of Experts on the Application of Conventions and Recommendations. Furthermore, the ILO’s special supervisory procedures that are based on the submission of representation (ILO Constitution, art. 24) or complaint (ILO Constitution, art. 26) become applicable. Among these, it is particularly significant that a question as to whether Korea’s law and practice in matters concerning freedom of association are in line with the ILO standards could be referred to the Commission of Inquiry, the ILO’s highest-level investigative procedure. The Commission of Inquiry’s recommendations are legally binding upon states, and the states subject to the complaint could challenge the recommendations before the International Court of Justice. Moreover, as more Korea’s Free Trade Agreements (FTAs) include provisions to comply with the ILO standards on freedom of association, it is more likely that Korea may become involved in trade disputes if its law and practice are not in line with ILO standards. In addition, this research examines the relationship between the ILO Conventions and national legislation, and reviews ways for domestic judges to resolve inevitable clashes between them. In this regard, this research emphasizes that interpretations of the ILO supervisory bodies on the ILO Conventions are authoritative. This research then reviews ways to resolve conflicts between interpretations of the ILO supervisory bodies on the Conventions and interpretations of domestic courts on the relevant national legislation. In a situation where courts could interpret national legislation in a way that is in line with legal obligations under the Conventions, courts are required to do so to prevent the Korean government from violating international obligations. If there is, however, an evident incompatibility between the Conventions and domestic legislation that cannot be reconciled by means of interpretation, courts might want to consider resolving the conflicts by applying the principle of lex posterior or lex specialis. In such a situation, however, judges are required to keep in mind that preferential application of domestic laws that are inconsistent with the Conventions would be con trary to the Constitutional principle of respect for international law. Alternatively, courts could consider either setting aside the application of domestic laws that are less favourable to workers by opting to apply the Conventions directly, or requesting adjudication by the Constitutional Court as to the constitutionality of the legislation as a violation of a ratified treaty may be an important indicator of the unconstitutionality of the legislation. Lastly, even in a case in which courts decide to apply domestic law that is inconsistent with international obligations by setting aside an application of the Conventions for whatever reason, it cannot be overemphasized that courts will always have the chance in their judgments to draw legislators’ attention to the need to bring domestic legislation in line with international obligations under the Conventions. Based on the above understanding, this research finally reviews long-discussed issues of collective labour laws regarding which interpretive challenges may arise following the ratification of the ILO fundamental Conventions on freedom of association. The issues that are expected to change their interpretations in a direction consistent with international obligations are as follows: the scope of “workers” as subjects of the right to organize under the Trade Union and Labour Relations Adjustment Act, public officials’ right to organize, subcontracted workers’ right to collective bargaining, the prohibition of industrial action by public officials and teachers, laws concerning essential public-business, purposes and types of industrial action, emergency arbitration and compulsory arbitration, charging peaceful strikers with obstruction of business, and the prohibition of political activities by public officials’ unions and teachers’ unions. Certain labour rights, such as freedom of association, are not merely rights in labour contracts, but are recognized as fundamental human rights. This research hopes that the ratification of the ILO fundamental conventions will not only bring Korea’s law and practice in line with international standards, but also serve as a chance for Korea to develop into a country that leads international labour standards.

디지털 혁신을 위한 표준화: ISO/IEC의 SMART 표준 개념 분석

권대현,김동헌,주승현,신용태 표준인증안전학회 2023 표준인증안전학회지 Vol.13 No.4

디지털 전환 시대에 필수적인 디지털 표준화는 기술 발전과 사회적 요구에 발맞추어 빠르게 발전하고 있다. 본 논문은 SMART 표준과 온라인 표준 개발(OSD)이 디지털 표준화 분야에 미치는 영향을 포괄적으로 분석한다. IEC와 ISO의 공동 프로그램인 SMART 표준은 기계와 인간 모두가 상호 작용할 수 있는 표준을 개발함으로써, 디지털 기술의 통합과 활용을 촉진하고 있다. SMART 표준의 구조적 접근 방식은 기계 가독성부터 자체 실행 및 최적화에 이르는 다양한 단계를 포함하고, OSD는 민첩한 표준 개발과 기술 변화에 빠르게 대응하기 위한 지원을 제공한다. 본 연구는 국가기술표준원, IEC, CEN/CENELEC 등 주요 기관들의 디지털 표준화 진행 현황을 검토하고, SMART 표준의 다양한 유틸리티 모델을 분석하여 디지털 표준의 효과성과 접근성을 향상시키기 위한 필수 요소를 조사한다. 이러한 표준화 프로세스가 어떻게 시민, 사회, 경제의 요구를 충족시킬 수 있는지, 향후 디지털 표준화가 나아갈 방향에 대한 통찰을 제공한다. 연구 결과는 디지털 표준화의 미래가 기술 발전뿐만 아니라, 모든 이해관계자가 협력하는 표준 개발의 중요성을 강조하며, 디지털 표준이 광범위하게 적용되고 효율적으로 활용될 수 있는 정보를 제공하는 데 중점을 둔다. Digital transformation is rapidly evolving digital standardization, driven by technological advancements and societal needs. SMART standards, developed using a structured approach encompassing machine readability, self-execution, and optimization, help machines and humans interact, accelerating the integration and utilization of digital technologies. Online Standard Development (OSD) provides agile support for standard development, enabling swift adaptation to technological changes. This study examines the current status of digital standardization by major organizations, such as KATS, IEC, and CEN/CENELEC, and investigates essential elements to improve the effectiveness and accessibility of digital standards. The findings emphasize the importance of collaborative standard development involving all stakeholders, alongside technological advancements, to create an environment where digital standards can be widely applied and efficiently utilized.

차세대자동차 국제표준화 동향 및 대응 전략

윤종구(Jongku Yoon),이경희(Kyunghee Lee) 한국자동차공학회 2008 한국자동차공학회 춘 추계 학술대회 논문집 Vol.- No.-

Since the assession of the World Trade Organization in 1995 and conclusion of TBT agreement, countries have faced greater pressure to accept and conform to international standards. This paper describes the trend and strategy of International Standardization for next generation automobiles with global market share. It describes standardization in the field of electrical and electronic equipment system, ergonomics, Intelligent Transport Systems(ITS) and electrically propelled road vehicles as the core areas of vehicle. Korea urgently needs to step up efforts to have its technologies in conformity of international standards in order to facilitate international trades, to enhance competitiveness and transparency in the initial stage of standardization. It is expected to contribute towards improving global market share of Korean automobile industry by means of standardization as one of growth-engines.

국가 재난관리체계와 표준화의 필요성

류지협(Ji Hyeob Ryu),김우혁(Woo Hyeok Kim),황의진(Eui Jin Hwang) 한국방재안전학회 2008 한국방재안전학회 논문집 Vol.1 No.1

This study analyzes the present state of disaster management system in Korea and the international standardization trend of disaster management systems in advanced nations. ISO has developed international disaster management standards in ISO/TC 223 Societal Security Technical Committee, and the advanced nations such as U.S.A., U.K. and Japan are in competition with each others to reflect their national disaster management standards in international standardization. Each disaster management organization in Korea separately carries on the disaster management standardization and activities because national standards for the disaster management is not established yet. The national standardization efforts for disaster management system have to be executed in Korea to raise efficiency in disaster management activities and to cope with the international standardization of disaster management. 본 연구는 우리나라의 재난관리체계를 고찰하고 국제 재난관리표준화 동향, 선진국의 재난관리표준화 활동 및 국내 재난관리표준화의 현황을 분석하였다. 국제표준화기구(ISO)는 ISO/TC 223 Societal Security을 통하여 국제 재난관리규격을 개발하고 있으며, 미국, 영국 및 일본과 같은 선진국들은 자국의 재난관리표준을 국제 표준화 하기위해 경쟁하고 있다. 우리나라는 국가 재난관리표준이 제정되지 않아 재난관리 책임 기관별로 별도의 표준화를 추진하고 이에 따른 재난관리 활동을 수행하고 있다. 재난관리의 효율성을 높이고 국제적인 재난관리표준화에 적극 대응하기 위해서 우리나라에서도 국가재난관리표준의 제정과 재난관리시스템의 표준화가 구축되어야 한다.

Mechanical Properties of the Oriented Strand Board (OSB) Distributed in the Korean Market

강은창,이민,이상민,박세휘 한국목재공학회 2023 목재공학 Vol.51 No.4

Oriented strand board (OSB) distributed in Korea was collected, and its mechanical properties were investigated according to the International Organization for Standardization (ISO), Japanese Industrial Standards, and Korean Design Standard. Ten types of OSBs were collected, including six types for walls and others for floors. The thickness swelling, moisture content, and density of each product satisfied the ISO standards. All products showed lower formaldehyde emission values than those of the SE0 grade. The internal bonding strengths of all products, except products B, H, and I, met the ISO standards. However, products A, B, C, F, and H did not satisfy the thickness swelling standard of the load-bearing OSB for use in dry conditions. Products D and G showed heavy duty load-bearing OSB for use in humid conditions in terms of internal bonding and bending strength after boiling. In the nail head pull-through force and lateral nail resistance tests, all products met the standards. In terms of the structural bending performance (four points), the six types of OSBs for walls satisfied the standard for bending strength and modulus of elasticity. All the products for flooring met the standard for bending strength but, except for product G, the products did not meet the standard for modulus of elasticity. Although the results of this study cannot represent the performance of all imported OSBs, considering the above results, the water resistance performance of seven types of OSB products did not meet the standard, and 10 types of products did not match the labeling grades.

국제통상을 통한 노동기준 제고

임석준(Suk-Jun Lim) 고려대학교 일민국제관계연구원 2013 국제관계연구 Vol.18 No.1

무역협정을 통해 노동기준을 제고하려는 다양한 노력이 있었지만, 개발도상국의 반발, 인권보다는 정치적 목적이 앞선다는 거부감, 그리고 집행의 어려움 등으로 번번이 실패하거나 만족할 만한 성과를 얻지 못했다. 무역과 노동기준의 연계가 어려운 경향에도 불구하고, 미국-캄보디아 무역협정은 무역과 쿼터 인센티브를 연계함으로써 캄보디아의 노동기준을 끌어 올리는 데 매우 성공적이었다는 평가를 받고 있다. 미국-캄보디아 무역협정의 성공은 어떻게 설명할 수 있는가? 본 연구는 캄보디아 의류산업의 노동기준을 제고하기 위해 ILO가 주도적 역할을 하여 구축한 ‘캄보디아의 더 좋은 공장(BFC)’의 형성과 작동을 설명한다. 연구자는 노동기준과 쿼터 인센티브를 연계한 미국-캄보디아 무역협정의 긍정적 역할을 어느 정도 인정하지만, 시장-중심적 유인책은 건전한 거버넌스를 통해 제도화될 경우에만 지속가능하다고 주장한다. 과거 열악한 노동환경으로 악명이 높았던 캄보디아의 노동기준이 제고될 수 있었던 결정적 요인은 국가, 노동조합, 민간영역, 국제기구가 이룩한 복합네트워크 거버넌스에 기인했음을 밝힌다. There have been long-standing efforts for trading partners to incorporate provisions supporting labor standards into trade agreements. However, weaving labor standards into trade agreements does not mean that they will be observed. The provisions tend to be more aspirational than enforceable. The U.S.-Cambodia Trade Agreement on Textile and Apparel, which linked annual increases in market access to improvements in labor standards, was an exception as it led to improvements in the labor rights of Cambodian workers. What explains the success of this trade agreement? This paper investigates the creation and operation of a labor standards regime in Cambodia’s apparel industry. The Better Factories Cambodia (BFC) was an experimental program where an intranational organization, the ILO, became directly involved in monitoring the labor standards of a sovereign state. While this paper acknowledges the positive role played by the incentive system that was tied into the bilateral trade agreement, it further argues that incentive-induced good behavior is sustainable only when institutionalized through good governance. The success of the labor standards-incorporating trade regime, it is argued, is attributable to the unique ensemble of state, trade union, private sector and international institutions, which together formed a complex network governance to uphold labor standards in a country previously notorious for labor abuses.