Study on the costs and benefits of innovation-sensitive legislation

The study on the costs and benefits of innovation-sensitive legislation aims on the one hand to analyse the use of the Tool #21 (on Research and Innovation) of the Better Regulation Toolbox, and on the other hand to provide a step-wise operational guidance on assessing innovation impacts. With this aim, the analysis goes beyond the analysis of impacts of regulation on innovation to highlight links between innovation and the broader context in which it occurs. Ultimately, this aims to provide a systematic approach for those engaged in planning and implementing impact assessments, to raise awareness and provide examples of how innovation impacts can be factored in impact assessments of legislation. The guide is based on empirical analysis of existing impact assessments mainly at the EU-level. More than 30 impact assessments were screened and 15 analysed in greater detail including the Commission’s published impact assessments, support studies, and the Regulatory Scrutiny Board’s opinions. Four dedicated case studies and interviews served for further insights. Among the findings is that innovation is treated implicitly in most impact assessments. Very often, innovation impacts are included under economic impacts and in this area, the corresponding benefits are calculated in terms of economic growth, the effect on jobs or the decrease of environmental pressures. Supported by the case studies, quantifying the impacts of/on innovation is challenging – partly due to the unpredictable nature of innovation, but also due to practical issues such as limited availability of data and confidentiality issues. Yet, EU as well as national policymakers could benefit from sharing examples more widely.