The overall impact of economic, social and institutional regulation on innovation: an update

The regulatory framework has been acknowledged as being increasingly important in promoting innovation. Initially, the objective was to reduce the regulatory burden for innovators. However, with the publication of the Porter Hypothesis, the incentive function of regulations has been pointed out to be relevant for regulation, particularly in environmental regulation. This chapter provides an update of Blind (2016) on the current empirical insights into the impact of more than ten areas of regulation. Under economic regulation, competition, mergers and acquisitions, market entry, price, and, eventually, the regulation of network sectors are addressed. Among social regulations, the protection of the environment, workers' health and safety, and product and consumer safety are covered. Finally, liability law, labor market and financial market regulation, and intellectual property rights are considered institutional regulations. Complementary to regulation, a separate section addresses the role of standards for innovation. The chapter ends with a summary and an outlook toward future research.