Institutions as facilities for change?

Abstract

Abstract Political regulation has traditionally been regarded as antagonistic to innovation, whereas the removal of regulations has been perceived as a precondition for innovations. This paper proposes an alternative position and claim that regulations can have various connections with the innovation process. Regulations can obviously restrict innovations, but they can also facilitate such processes. Systematic empirical research on the relation between political-administrative regulation and innovation has been moderate, and the debate has been highly anecdotal. This article presents an empirical study on how political-administrative regulation within the pelagic fisheries sector in Norway affects innovation. The study confirms that regulations had varied influences on the innovation process, and documents that actor's appraisals of regulations were affected by whether a given regulation is beneficial for the firms and their competitive position or not. Finally, the paper corroborate that the implementation of regulations can promote innovation in firms by providing them with deeper insights into their production processes and to encourage a more intense focus on development and improvement. Implementation of regulations also implies learning, which can increase the firms’ abilities to innovate as well as their insight into the necessity of such practices. The analysis is based on survey data from processors and vessels in the pelagic sector.