The Impact of Regulation on Innovation

This paper presents two examples that indicate the breadth of the impact of regulation on innovation. That some of the impacts in those examples were not intended by the regulators is taken as evidence that a better understanding of the impact of regulation is needed. The examples can be understood within theoretical frameworks that place innovation at the centre of social and economic activity within an integrated system. It is argued that understanding that system is essential to the better appreciation of the innovation process and relevant policy.