The influence of regulations on innovation: A quantitative assessment for OECD countries
AbstractRegulatory 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 InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 41 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/respol
Regulation; Innovation; Endogenous approach; Solow relation; Schumpeter relation; OECD countries;
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