1. The Impact of Regulation on Innovation
- Author:
- Philippe Aghion, Antonin Bergeaud, and John Van Reenen
- Publication Date:
- 04-2023
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- There is considerable research on the economic impacts of regulations but relatively few studies about their impact on technological innovation. Moreover, most analyses focus on the costs and benefits of regulation at a point in time, rather than on its effects over time. Yet potential effects on economic growth are likely to be much more pronounced in the long run. Many scholars have been concerned that slower growth in countries with heavy labor regulations could be due to firms’ reluctance to innovate given the burden of red tape. For example, the slower growth of Southern European countries and parts of Latin America have often been blamed on onerous labor laws.
- Topic:
- Labor Issues, Regulation, Economic Growth, and Innovation
- Political Geography:
- Global Focus