The Impact Of Regulation On Innovation

Innovation underpins competitiveness, is crucial to addressing societal challenges, and its support has become a major public policy goal. But what really works in innovation policy, and why? This Handbook, compiled by leading experts in the field, is the first comprehensive guide to understanding the logic and effects of innovation polices. The Handbook develops a conceptualisation and typology of innovation policies, presents meta-evaluations for 16 key innovation policy instruments and analyses evidence on policy-mix. For each policy instrument, underlying rationales and examples are presented, along with a critical analysis of the available impact evidence. Providing access to primary sources of impact analysis, the book offers an insightful assessment of innovation policy practice and its evaluation.

This book contends that various forms of regulation have costs as well as benefits and it examines the impact of government regulation on the innovativeness of ’monopolies’ - in this book meaning firms with the power to affect market price. The government regulation analyzed in this case is limited to rate-of-return regulation. Using theoretical models such as the Averch-Johnson model and a two-stage Nash equilibrium model, this volume examines whether regulated monopolies engage in more or less technological innovation than unregulated monopolies. Furthermore, if the unregulated (or less regulated) monopolies do engage in more research and development than regulated ones, it questions whether social welfare would be greater with the former. Using a case study of ten privately-owned electric utilities in the State of Texas, USA, it then tests out the general propositions brought forward by the theoretical modelling and finally makes its conclusions taking into consideration both theoretical and empirical findings.

This comprehensive Handbook presents thoughtful analysis on how regulations can impact innovation within a number of fields and markets, and provides a greater understanding of regulatory complexity and the challenging task it presents for future research. The Handbook of Innovation and Regulation embraces some of the key policy areas such as the regulation of markets, critical sectors, and global and regional aspects, focussing particularly on those regulations which target innovation. Reviewing these often interconnected policy areas in terms of both macroeconomic and microeconomic issues, this Handbook expertly studies how regulations in differing fields can affect innovative activities. By placing innovation centre stage, the contributors emphasise the direct and indirect effects of imposed regulations. Further, they illustrate the critically important overall impact of innovation to make firms competitive, promote economic growth and increase societal welfare. Addressing research and policy challenges, this Handbook would be an excellent resource for academics in regulatory economics, innovation and entrepreneurship, international trade, regional economics as well as environment and digitisation and policymakers in both national and international organisations.

Americans praise medical technology for saving lives and improving health. Yet, new technology is often cited as a key factor in skyrocketing medical costs. This volume, second in the Medical Innovation at the Crossroads series, examines how economic incentives for innovation are changing and what that means for the future of health care. Up-to-date with a wide variety of examples and case studies, this book explores how payment, patent, and regulatory policiesâ€"as well as the involvement of numerous government agenciesâ€"affect the introduction and use of new pharmaceuticals, medical devices, and surgical procedures. The volume also includes detailed comparisons of policies and patterns of technological innovation in Western Europe and Japan. This fact-filled and practical book will be of interest to economists, policymakers, health administrators, health care practitioners, and the concerned public.

Innovation-oriented environmental regulation is extremely attractive for policy planners and decision makers, since it is expected that innovations can cut costs of environmental measures and overcome existing trade-offs between economic and ecological goals. The central question is, however, how such a regulatory regime of environmental policy approaches should look like. This book provides an excellent overview of the state of research by presenting and discussing theoretical approaches towards a framework of environmental regulation and innovation, international case studies as well as econometric and modelling studies from Europe and the USA.

Openness and competition sparked major advances in Chinese industry. Recent policy reversals emphasizing indigenous innovation seem likely to disappoint.

This book aims to disentangle the complex relationship between innovation and its potential determinants, paying special attention to the roles of governance and regulatory frameworks, and the ways in which the latter interact with other drivers of innovation such as competition and the innovators closeness to the technology frontier. The contributors provide theoretically grounded and empirically-rich findings indicating that governance and regulation affect innovation directly and indirectly through interaction with other drivers of innovation. The direct effects are positive in the case of governance quality and prescriptive regulations that set standards for compliance. However, the direct effects of corporate governance are not uniform and depend on the corporate governance dimension under investigation. The authors demonstrate that the direct effects are only part of the story. Both governance and regulatory standards interact with the level of competition and the distance to the technology frontier that may have complementary or offsetting effects. Overall, the findings in the book indicate that the relationship between innovation and its potential determinants is more complex and hence calls for more nuanced policy design compared to what is assumed in policy statements by national and international policy actors. This thought-provoking book will provide a stimulating read for a wide-ranging audience, including scholars and researchers in the fields of economics, industrial organization, public policy and innovation studies.

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1979-06 edition. Excerpt: ...also pointed out that the direct regulatory control procedures used by the EPA in water (and air) pollution do not provide strong positive incentives for firms to develop pollution-reducing technological advances. Rather, the current laws tend instead to channel the firm's efforts toward those approaches that have been sanctioned by regulatory authorities and that will avoid trouble in gaining their approval. Charles Schultze of the CEA has pointed out that laws that mandate regulatory authorities to impose the "best available technology" operate as a strong deterrent to experimentation with new techniques and technologies. He asks in this regard, "will firms in polluting industries sponsor research or undertake experimentation to develop a new means of reducing pollution still further if its very availability will generate new and more stringent regulations?" (Schultze, 1977, p. 53). The point, of course, is not that environmental legislation has not created a substantial demand for new pollution-control technologies. There is no question that this legislation has accelerated the development of numerous new technologies for pollution control. There are even instances in which innovation in pollution-control equipment has had positive spillover effects on firm efficiency and profitability as well as yielding broader social gains. But there is also ample evidence from which we conclude that the centralized mode of direct regulatory controls used in this country is not the best approach for encouraging such pollution-reducing technologies. The experiences in regulating air pollution from auto emissions (discussed below) provides a particularly good case illustration of this point. In place of the present centralized bureaucratic system...