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Health IT and Patient Safety Building Safer Systems for Better Care (2012) / Chapter Skim
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Appendix D: Abstract of "The Impact of Regulation on Innovation in the United States: A Cross-Industry Literature Review"
Pages 189-192

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
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From page 189...
... Market innovation typically benefits producers, consumers, and society at large, although there are cases where it may only benefit producers at the expense of social welfare. Social innovation refers to product and process innovations that create social benefits, such as cleaner air, which firms cannot directly capture through market sales.
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From page 190...
... , regulation or the possibility of regulation can induce two types of uncertainty -- policy and compliance uncertainty. Policy uncertainty occurs when a firm anticipates the enactment of a regulation at some time in the future and may cause firms to divert resources in preparation for future compliance.
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From page 191...
... • Regulation that does not require innovation for compliance will generally stifle innovation, although it may spur circumventive innovation if the firm or industry can find a path to escape the regulatory constraints. • Regulation that does require compliance innovation has an unclear impact on innovation.
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Key Terms

  • market innovation
  • social innovation
  • policy uncertainty
  • future regulation
  • cause firms

  • social welfare
  • compliance uncertainty
  • innovation occurs
  • ing regulation
  • anticipated stringency

  • directly capture
  • typically benefits
  • replaces existing
  • radical compliance
  • increases risk

  • social regulation
  • initial development
  • incremental innovation
  • regulation requires
  • successful application

  • diverted depends
  • existing products
  • regulation increases
  • increased available
  • uncertainty caused

  • cleaner air
  • market sales
  • relatively minor
  • benefit producers
  • ing products


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