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The influence of regulations on innovation: A quantitative assessment for OECD countries

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  • Blind, Knut
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    Abstract

    Regulatory framework conditions have been identified as important factors influencing the innovation activities of companies, industries and whole economies. However, in the empirical literature, the impacts of regulation have been assessed as rather ambivalent for innovation. Different types of regulations generate various impacts and even a single type of regulation can influence innovation in various ways depending on how the regulation is implemented. The endogenous growth approach developed by Carlin and Soskice (2006) and empirically applied by Crafts (2006), which determines endogenously the rate of technological progress and therefore innovation, allows a conceptual analysis of the influence of different types of regulation on innovation. In general, the negative effect of compliance costs should be compared with the more dynamic effect of regulations generating additional incentives for innovative activities. Based on this approach, we derive hypotheses on the impact of different specific regulations on innovation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 41 (2012)
    Issue (Month): 2 ()
    Pages: 391-400

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    Handle: RePEc:eee:respol:v:41:y:2012:i:2:p:391-400

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Regulation; Innovation; Endogenous approach; Solow relation; Schumpeter relation; OECD countries;

    References

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    Cited by:
    1. F. Stam & Neil Thompson & Andrea Herrmann & Marko Hekkert, 2012. "The Environmental Regulation Paradox for Clean Tech Ventures," Scales Research Reports H201217, EIM Business and Policy Research.
    2. Leoš Vítek, 2012. "Regulatory Impact Assessment in the Czech Republic," European Financial and Accounting Journal, University of Economics, Prague, vol. 2012(3).
    3. Kinnear, Susan & Ogden, Ian, 2014. "Planning the innovation agenda for sustainable development in resource regions: A central Queensland case study," Resources Policy, Elsevier, vol. 39(C), pages 42-53.
    4. Paraskevopoulou, Evita, 2012. "Non-technological regulatory effects: Implications for innovation and innovation policy," Research Policy, Elsevier, vol. 41(6), pages 1058-1071.

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