Posts Tagged ‘ Government ’

Innovation and Legislation: The Changing Relationship – Evidence from 1984 to 2015

disruptive-supply-chain-technology-sm

Wulf A. Kaal

University of St. Thomas, Minnesota – School of Law

Nick Farris

University of St. Thomas – School of Law (Minnesota)

Date Written: November 29, 2017

Abstract

We examine the relationship between innovation as measured by annual utility patents granted and two datasets for legislation: (1) the U.S. Code and (2) the Code of Federal Regulations from 1984 to 2015. We show that the historical relationship between innovation and legislation has changed, especially for computer and communication patents. The evidence suggests that the existing regulatory infrastructure has a diminishing capacity to react to innovation. The evolving empirical relationship between innovation and legislation has implications for the legal system and rulemaking processes in the existing regulatory framework.

Keywords: Innovation, Measures of Innovation, Legislation, Measures of Legislation, CFR, U.S. Code, Patents, Data, Matching

JEL Classification: K20, K23, K32, L43, L5, O31, O32

Kaal , Wulf A. and Farris, Nick, Innovation and Legislation: The Changing Relationship – Evidence from 1984 to 2015 (November 29, 2017). Available at SSRN: https://ssrn.com/abstract=
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Dynamic Regulation of the Financial Services Industry

Governance adjustments via stable rules in reaction to financial crises are inevitably followed by relaxation, revision, and retraction. The economic conditions and the corresponding requirements for optimal and stable rules are constantly evolving, suggesting that a different set of rules could be optimal. Despite the risk of future crises, anticipation of future developments and preemption of possible future crises do not play a significant role in the regulatory framework and academic literature. Dynamic elements in financial regulation as a supplemental optimization process for rulemaking could help facilitate rulemaking when it is most needed – ex-ante before crises – to curtail the effects of crises and suboptimal regulatory outcomes – ex-post after crises. By including dynamic elements, the regulatory sine curve of financial regulation could be optimized in relation to the phase-shifted first derivative (cosine curve) that describes common elements of financial crises. Dynamic regulation could help dampen the degree of volatility of both the cosine curve and the regulatory sine curve by creating an anticipatory regulatory response to financial crises.

Full article available on SSRN at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2273857

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