Abstract
In the United States and around the world, awareness of the effects of regulation on innovation and entrepreneurship is increasing. The regulatory environment determines “a certain coding for action, a coding that signals whether various acts are permitted (even required) or prohibited, whether they will be viewed positively, negatively or neutrally, whether they are incentivized or disincentivized, whether they are likely to be praised or criticized, whether they are possible or impossible” (Brownsword & Goodwin, 2012, p. 27). The particular characteristics of such regulatory context can hinder or contribute to the creation and early stage growth of new businesses as well as to the innovation process within a market. Considering this, a deeper understanding of these dynamics is key to improve the role regulation plays in the innovation and entrepreneurial ecosystems.
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