Regulatory Sandboxes and Innovation-friendly Regulation : Between Collaboration and Capture

Sofia Ranchordas & Valeria Vinci, Regulatory Sandboxes and Innovation-friendly Regulation: Between Collaboration and Capture, Italian Journal of Public Law, Vol. 1/2024, Forthcoming

30 Pages Posted: 13 Feb 2024

See all articles by Sofia Ranchordas

Sofia Ranchordas

Tilburg University; Libera Universita Internazionale degli Studi Sociali

Valeria Vinci

LUISS Guido Carli University

Date Written: January 16, 2024

Abstract

Regulatory sandboxes, controlled regulatory environments for the testing of novel products or processes, have garnered an increasing amount of attention over the last decade. More recently, regulatory sandboxes have been presented as innovation-friendly instruments. This article contends that fostering responsible innovation through regulatory sandboxes presents significant challenges. First, there is no consensus on what the advancement of innovation entails, how to achieve it, and what the role of regulations and regulatory sandboxes should be in it. Second, there is a lack of clarity regarding the definition and functioning of regulatory sandboxes. Third, there is a risk of regulatory capture due to the close collaboration between regulators and regulatees.

Drawing on Italy’s initial experiences with general and sector-specific regulatory sandboxes and existing scholarship on experimental regulatory instruments, this article contributes to the ongoing debate on regulation and innovation by critically examining the interplay between regulatory sandboxes and the promotion of responsible innovation. Furthermore, it explores the impact of regulatory sandboxes on the evolving collaborative dimensions of public law and provides policymakers and regulators with actionable insights for navigating this innovative regulatory tool.

Keywords: regulatory sandboxes; innovation; responsible innovation; experimental regulation; regulatory collaboration; regulatory capture; flexible regulation; AI Act; technological change

JEL Classification: K1

Suggested Citation

Ranchordas, Sofia and Vinci, Valeria, Regulatory Sandboxes and Innovation-friendly Regulation : Between Collaboration and Capture (January 16, 2024). Sofia Ranchordas & Valeria Vinci, Regulatory Sandboxes and Innovation-friendly Regulation: Between Collaboration and Capture, Italian Journal of Public Law, Vol. 1/2024, Forthcoming , Available at SSRN: https://ssrn.com/abstract=4696442 or http://dx.doi.org/10.2139/ssrn.4696442

Sofia Ranchordas (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Libera Universita Internazionale degli Studi Sociali ( email )

Rome
Italy

Valeria Vinci

LUISS Guido Carli University ( email )

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