Towards an Innovation Principle Endorsed by Better Regulation

Contents

1. Innovation Defined
2. Innovation as a Political and Legal Principle
3. Keeping a Fair Balance Between Innovation and Regulation
+ Regulation as a Barrier to Innovation
+ Regulation as a Driver of Innovation
4. Making the Innovation Principle Work
+ A Life-Cycle Approach to Innovation
5. Exploring a Full Range of Instruments and Tools
+ Process-Related Innovation Principle: Better Regulation Agenda
+ Content-Related Innovation Principle: Synergy Between Tools
ConclusionInnovation is an essential element of the internal market. Defined by the objective of a 'highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment' (Article 3 (3) TEU), innovation is a precondition of 'sustainable and job-creating growth'. It leads to higher productivity and competitiveness while yielding social and environmental benefits.

By definition, innovation cannot be preordained. It takes place in response to diverse incentives.

The policymaker’s task is not to pick winners but to ensure that the entire economy becomes more conducive to innovative outcomes. Regulation matters at all stages of the innovation cycle, from research and development, to diffusion, commercialisation, uptake, and beyond. A toolbox of innovation-enabling legislation is key to unleash the innovative potential of society, companies and individuals.