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Explaining and predicting the impact of regulation on innovation: towards a dynamic model

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  • Carlos Montalvo

Abstract

Although much work has been done on the regulation and governance of innovation, it provides few formal analytical tools to enable us to learn about the dynamics of the regulatory system in terms of the interaction between regulators and firms. If governance occurs in a context of mutual interdependence and power asymmetries, governments inevitably find themselves with little independence to design and effectively conduct and enforce governance schemes. This paper aims to fill some of the gaps in the public policy literature by proposing a model to generate and validate behavioural indicators for governance of innovation and policy analysis. The model proposed helps to explore the conditions under which the firm would be more likely to innovate. In addition, it enables us to identify the preconditions determining the willingness and ability of regulators to design and enforce schemes that influence the innovative behaviour of the firm.

Suggested Citation

  • Carlos Montalvo, 2007. "Explaining and predicting the impact of regulation on innovation: towards a dynamic model," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 5-31.
    • Handle: RePEc:ids:ijpubp:v:2:y:2007:i:1/2:p:5-31
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    Cited by:

    1. Montalvo, Carlos & Moghayer, Saeed, 2011. "State of an innovation system: theoretical and empirical advance towards an innovation efficiency index," MPRA Paper 38002, University Library of Munich, Germany.
    2. Schlindwein, L.F. & Montalvo, C., 2023. "Energy citizenship: Accounting for the heterogeneity of human behaviours within energy transition," Energy Policy, Elsevier, vol. 180(C).

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