Accession Number : ADA111657

Title :   Regulatory Effects on R/D are Better Assessed as Part of the Innovation Process.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC PROGRAM ANALYSIS DIV

Report Date : 11 FEB 1982

Pagination or Media Count : 52

Abstract : Slow productivity growth has prompted concern that Federal regulations may be adversely affecting research and development (R/D) -- one part of the innovation process. GAO reviewed numerous studies of effects of Federal environmental, safety, and health regulations on R/D and innovation. These studies indicate that investment in innovation activities depends on the expected profits the innovation will produce. Anything that tends to lengthen the time before benefits can be realized, limit those benefits, or increase the cost of investment, tends to reduce the rate of return to innovation, and therefore can reduce the amount of R/D performed. Regulation can do all of these things. Whether the costs and benefits of regulation are positive to society depends on the value placed on the Federal policy goals that regulations attempt to achieve as against the goals implicit in a relatively free market. (Author)

Descriptors :   *Legislation, *Research management, *Industries, Regulations, Industrial research, Investments, Costs, Industrial production, Marketing, Standards, Environmental protection, Public safety, Public health, Policies, Pharmacies, Inventions

Subject Categories : Economics and Cost Analysis
      Government and Political Science

Distribution Statement : APPROVED FOR PUBLIC RELEASE