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Abstract:

CentrePiece article
The impact of regulation on innovation
Philippe Aghion
June 2021
Paper No' CEPCP607:
Full Paper (pdf)

CentrePiece 26 (2) Summer 2021


Tags: innovation; policy; france; regulation; growth

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.

This article summarises ‘The impact of regulation on innovation' by Philippe Aghion, Antonin Bergeaud and John Van Reenen, CEP Discussion Paper No. 1744.