Frontier-technology markets are too narrow — here’s how to widen them

By breaking down large contracts into smaller, standardized units

Governments must keep procurement processes open to avoid technological lock-in, economists Luisa Corrado and Paul Kattuman argue in a Nature commentary published on 24 August 2026. They warn that narrow markets for emerging technologies risk creating dependency on limited suppliers, undermining innovation and long-term competitiveness. The authors call for proactive policy measures to broaden access and encourage diverse participation in frontier-tech development. Current procurement practices often favor established players, concentrating contracts among a few large firms and excluding smaller innovators. This trend is particularly evident in sectors like quantum computing, advanced AI, and next-generation materials, where high entry costs and complex standards create barriers. Corrado and Kattuman note that without intervention, governments may become locked into suboptimal technologies due to path dependency and limited alternatives. How open procurement can stimulate competition The economists recommend that governments adopt transparent, modular procurement frameworks that allow multiple vendors to compete on interoperable components.

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By breaking down large contracts into smaller, standardized units, agencies can enable startups and academic spin-offs to participate. They cite pilot programs in the European Union that used challenge-based procurement to attract novel solutions in satellite communications and bio-sensing. What role should standards play in widening access? Corrado and Kattuman stress that interoperability standards must be developed collaboratively and kept non-proprietary to prevent vendor lock-in. They argue that governments should fund pre-competitive research to create open benchmarks, ensuring that new entrants can meet technical requirements without relying on closed ecosystems. Such an approach, they say, has worked in early internet development and could be replicated in AI safety testing and green hydrogen production. Frequently Asked Questions What is technological lock-in and why is it dangerous?

Technological lock-in occurs when a government or organization becomes dependent on a single technology or supplier, making it costly or impossible to switch to better alternatives later. This can stifle innovation, increase long-term costs, and reduce resilience in critical infrastructure. How can small firms compete in frontier-technology markets? By designing procurement processes that split large projects into smaller, standardized contracts, governments can lower entry barriers and allow specialized startups to bid on specific components. Transparent evaluation criteria and access to testbeds also help level the playing field. Why are interoperability standards essential for market openness? Standards ensure that different technologies can work together, preventing any one vendor from dominating through proprietary systems. Open, collaboratively developed standards allow new entrants to compete fairly and give governments flexibility to upgrade or replace systems over time.