Effects of Regulation on Innovation in the Information and Communications Sector
27 Pages Posted: 30 Mar 2012 Last revised: 19 Jul 2017
Date Written: August 12, 2012
This paper examines the effects of sector regulation on innovation in telecommunications and related information industries. Building on innovation research, a typology of innovation processes in ICT industries is developed. The economic and policy conditions conducive to different types of innovation are analyzed to draw inferences on the effects of regulation on innovation. Sector regulatory measures affect innovation in positive and negative ways, leaving the overall effect somewhat ambiguous. Selected conjectures were tested empirically using data for 32 countries for the years 1997-2010. More stringent regulation was associated with a negative effect on some innovation measures but not on others.
Keywords: Innovation, regulation, broadband, ICT services, OECD, TPRC
JEL Classification: L51, L86, L96
Suggested Citation: Suggested Citation