Does regulation stop innovation?

Regulation is often blamed for inhibiting innovation. In this interview for Vox, John Van Reenen argues that the basis for this claim is weak. A study of firm-level innovation in France, where various labour regulations kick in once a firm reaches 50 employees, reveals that while innovation does fall among firms just below this threshold, the innovations that are discouraged tend be relatively low-value innovations that have little impact on economic growth.

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Topics:  Productivity and Innovation

Professor of Applied Economics, MIT

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CEPR Policy Research