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Regulation as the Mother of Innovation: The Case of SO2 Control
Margaret R. Taylor University of California, Berkeley - The Richard & Rhoda Goldman School of Public Policy Edward L. Rubin Vanderbilt University - School of Law David A. Hounshell Carnegie Mellon University - Department of History Law & Policy, Vol. 27, No. 2, pp. 348-378, April 2005 Abstract: This paper explores the relationship between government actions and innovation in an environmental control technology - sulfur dioxide (SO2) control technologies for power plants - through the use of complementary research methods. Its findings include the importance of regulation and the anticipation of regulation in stimulating invention; the greater role of regulation, as opposed to public R&D expenditures, in inducing invention; the importance of regulatory stringency in determining technical pathways and stimulating collaboration; and the importance of regulatory-driven technological diffusion in contributing to operating experience and post-adoption innovation in cost and performance. A number of policy implications are drawn from this work. Accepted Paper Series Date posted: March 21, 2005 ; Last revised: May 06, 2005Suggested CitationContact Information
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