Download This PaperHow to Regulate Disruptive Innovation - From Facts to Data
Jurimetrics, Volume 57, Issue No. 2, 2017 Forthcoming
U of St. Thomas (Minnesota) Legal Studies Research Paper No. 16-13
43 Pages Posted: 12 Jul 2016 Last revised: 17 Sep 2016
Date Written: July 11, 2016
Abstract
Disruptive innovation creates increasing regulatory challenges. The reason for this is simple: Regulation is usually reactive, responding to facts. However, we currently live in a world of data, not facts. Regulation must therefore be proactive and dynamically responsive to data and trends. This paper discusses the following questions: (1) Why should regulators be proactive?, (2) When should regulators respond?, (3) What should regulators respond to? and (4) How should regulators respond? Using a dataset comprising over 77,000 venture capital deals with over 35,000 companies in the United States from 2005 to 2015, the paper shows how investment data can provide important feedback on innovation trends and associated risks for regulators, optimize the timing of regulation, and support anticipatory rulemaking.
Keywords: Disruptive Innovation, Venture Capital, Venture Investments, Dynamic Regulation, Feedback Effects, Optimized Information for Regulation, Anticipatory Regulation, Big Data
JEL Classification: K20, K23, K32, L43, L5, O31, O32
Suggested Citation: Suggested Citation
Wulf A. Kaal (Contact Author)
University of St. Thomas - School of Law (Minnesota) ( email )
MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States
Erik P.M. Vermeulen
Tilburg University - Department of Business Law ( email )
European Corporate Governance Institute (ECGI) ( email )
c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium