Steering the Community Regulatory System: the Challenges Ahead

This article reviews the process of regulatory reform in the European Union (EU). The main argument is that EU initiatives have been cast in a rather narrow conceptual framework, limited to issues such as simplification and better law-making. Although important, these issues are only a component of the wider task of governing regulation. Therefore I introduce and discuss three proposals for re-casting the debate on EU regulation. First, the focus should be shifted from 'better law-making' to 'better regulatory policy-making'. Second, regulatory management, rather than simplification, should represent the strategic objective of EU institutions. Third, regulatory reform should be accompanied by administrative reform. Consequently, the relative impenetrability of the Commission to administrative reform represents a serious obstacle to regulatory reform.     

Firm heterogeneity,absorptive capacity and technical linkages with external parties in Italy

While it is widely acknowledged that internal R&D is a fundamental source of the ability to absorb, select and use external knowledge, severe data limitations prevent from capturing differences across firms in this respect. Using a novel dataset supplied by the Italian Bureau of Statistics, we highlight that, when controlling for internal R&D efforts, not all firms are equally prone to gain access to external technology, and to the knowledge provided by universities in particular. We find that firms which do not only perform R&D activities but also belong to a group exhibit a higher propensity to access external knowledge by either contracting out R&D or cooperating with external parties, as compared to independent firms that are not organized into groups. This premium persists when controlling for different measures of internal R&D efforts. Furthermore, the differential in the propensity to access external knowledge is particularly high in the case of R&D performers belonging to foreign groups, i.e. Italian affiliates of foreign owned companies; and it is even higher in the case of the few Italian firms that have R&D activities abroad. The relative dis-advantage of independent firms, which represent the bulk of the Italian industry and include most small and medium sized enterprises, appears to be less of an obstacle in the case of linkages with universities, especially when R&D contracting out is considered.