4FRONT assessed the current state and good practices of innovation-friendly regulation

Rapid technological development and the need to find solutions to societal challenges call for new regulatory approaches. Regulation has become an increasingly important tool for innovation policy, and various innovation-friendly regulatory practices have been introduced in different countries in recent years. Despite some advancements, the innovation friendly regulation is still a novel subject, not widely practiced and the practical mechanisms and instruments are not well understood.

”Innovation-friendly regulation: Current state and good practices”, a report published in Finnish as part of Government’s Analysis, Assessment and Research Activities in May 2020 presents a framework for innovation-friendly regulation and describes the current state of innovation-friendly regulation in Finland. In addition to general overview, the topic has been broached through three sectoral examples: platform economy, circular economy and utilization of health data. Related good practices for innovation-friendly regulation have been identified based on Finnish and international case examples.

The report recommends a more precise definition of the general principles for innovation-friendly regulation, the strengthening of inter-ministerial co-operation towards a whole-of-government approach, the specification of guidelines for the evaluation of legislative proposals, and the development of dialogue between public authorities and enterprises. In addition, the report calls for the strengthening of the role of regulation as an instrument of innovation policy, a bolder use of innovation-friendly legislative solutions (e.g. experiments), greater identification and anticipation of regulatory needs, and more effective use of advisory and enforcement practices.

The project was conducted by 4FRONT, MDI, Technopolis Group, KPMG, as well as Tuomas Takalo and Otto Toivanen as individual experts.

Executive Summary summarising the main conclusions and recommendations of the report: Innovation-friendly regulation: Current state and good practices