Regulatory reform and innovations

Virtually all regulations which affect output, profitability and technological constraints also have implications for innovative activities. On the other hand, the results of innovative activities have implications for regulatory policy. The purpose of the study is to analyse whether certain fields of Finnish legislation – competition law and environmental law – are efficient from the dynamic point of view. Put it in another way, it is to assess the options for mitigating any negative regulatory impacts, or promoting positive regulatory effects, on innovation. Against this background, proposals for future legislation are, if necessary, made for amending regulations. In addition, the study does not only concentrate on details of legislation but the aim is to seek generalisations concerning principles which have to be taken into account when studying the need for amendments and redesign of regulations. The report is part of Sitra’s Research Programme on the Finnish Innovation System.