Regulatory uncertainty is what actually holds back innovation
Regulatory uncertainty is what actually holds back innovation
https://www.brookings.edu/articles/regulatory-uncertainty-is-what-actually-holds-back-innovation/
Publish Date: 2026-04-20 16:42:00
Source Domain: www.brookings.edu
- President Trump signed an executive order to limit AI regulation, establishing a task force to challenge state AI laws and threatening to restrict funding from a broadband program.
- Critics argue that regulation hampers innovation, citing GDPR impacts and comparisons between Europe and the US, though evidence is mixed.
- Regulatory uncertainty poses a greater threat to innovation than the regulation itself, discouraging investment and innovation, especially for smaller firms.
- The relationship between regulation and innovation is context-dependent, with regulation potentially both hindrances and facilitators of innovation.
- To foster innovation, policymakers should reduce regulatory uncertainty through stable laws, enforcement clarity, and pilot programs while providing assistance to smaller firms.
