How does the EU regulatory environment affects innovation and the uptake of emerging technologies, particularly in the areas outlined on the Strategic Technologies in Europe Platform (STEP) Platform such as deep and digital technologies, biotechnologies and clean technologies? How can regulatory experimentation spaces such as regulatory sandboxes, testbeds and living labs be used to help European innovators to develop and scaleup new emerging technologies?
These questions were the main objective of 4FRONT’s most recent study on Innovative Practices in Legislation around Emerging Technologies, that was developed together with EFIS Centre and Visionary Analytics for the European Innovation Council and SMEs Executive Agency (EISMEA).
The study found that emerging technologies face significant regulatory challenges in the EU, particularly for SMEs and startups. Legal uncertainty in underregulated areas further deters investment, while fragmented regulatory environments across Member States hinders scalability. Regulatory experimentation spaces—like sandboxes, testbeds, and living labs—offer promising tools to address these challenges. These environments allow innovators to test technologies, refine regulations, and gather critical insights. However, their potential remains underutilized due to low awareness and inconsistent application across the EU.
To foster innovation, the study recommends to adopt anticipatory regulation approaches, proactively addressing future needs and engaging stakeholders to ensure that regulations evolve with technology. Expanding cross-border experimentation spaces and integrating them into broader policy frameworks—such as innovation funding and public procurement—can create clear pathways from testing to market deployment. Depending on the need of the innovators, different types of regulatory experimentation spaces can be used to support European innovators in developing, testing and scaling up their emerging technologies. Regulatory experimentation spaces should always include elements of regulatory learning, to continue to improve and adapt regulations to the new needs and challenges of emerging technologies.
By aligning regulation with innovation, the EU can empower emerging technologies to thrive while ensuring safety and societal benefits.
Read the full report here
