The impact of regulation on innovation
It is widely feared that private sector innovation is constrained by 'red tape'. Philippe Aghion and colleagues test that view on data from France, where firms of more than 50 employees face far heavier regulatory obligations. The results suggest that regulations do hamper innovation - but the negative effects are only for incremental innovations, not radical innovations.
15 June 2021 Paper Number CEPCP607
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This CentrePiece article is published under the centre's Growth programme.