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Regulation as the Mother of Innovation: The Case of SO 2 Control *
Author(s) -
TAYLOR MARGARET R.,
RUBIN EDWARD S.,
HOUNSHELL DAVID A.
Publication year - 2005
Publication title -
law and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.534
H-Index - 45
eISSN - 1467-9930
pISSN - 0265-8240
DOI - 10.1111/j.1467-9930.2005.00203.x
Subject(s) - anticipation (artificial intelligence) , government regulation , control (management) , environmental regulation , government (linguistics) , work (physics) , public policy , industrial organization , business , public economics , economics , political science , engineering , management , economic growth , computer science , mechanical engineering , linguistics , philosophy , artificial intelligence , law , china
This paper explores the relationship between government actions and innovation in an environmental control technology—sulfur dioxide (SO 2 ) 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.