The influence of regulations on innovation: A quantitative assessment for OECD countries
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.Download Info
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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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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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- 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.
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