REGULATORY REFORM AND INNOVATION

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REGULATORY REFORM AND INNOVATION

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Resumen: Regulation directly affects the innovative process, while innovation and technical change have significant impacts on regulation. To be successful, regulatory reform efforts must take into account the linkages belween regulation and innovation. A three-fold typology of regulation is used here for illustrative purposes. Economic regulation is intended to improve lhe efficiency of markets in delivering goods and services - which influences the innovative process. Social regulation protects the environment and the safety and health of society al large its design can encourage or discourage innovation. Administrative regulation governs the practical functioning of the public and private sectors -setting some basic conditions for technological advance. Regulatory reform is directed to making sure that these regulations are fully responsive to changes in the economic, social and technical conditions surrounding them. Many reforms are stimulated by technology developments which have changed the underlying cost and competitive structure in industries ranging from telecommunications to banking to biotechnology. Al the same time, regulatory reform is a powerful stimulus lo further innovation. Competition-enhancing reforms in both the manufacturing and service sectors have been essential to the development and diffusion of new technologies, such as the Internet, automatic teller machines and aptical scanners in supermarkets. The redesign of approaches to environmental, safety and health regulation has increased the flexibility of finns in developing innovative solutions to social problems with an emphasis on prevention rather than mere control. The streamlining of administrative regulations has reduced the cumulative burdeo on business, freeing up resources for research and technology development. But as these reforms have unleashed a new round of technical change, unforeseen side-effects and different technology impacts have emerged to again underline the need for regulatory revisions.
Palabras claves: REFORM - INNOVATION - OECD
Tipo de Recurso: Documento - Documento
Idioma: Ingles

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