The impact of managing economics regulation on institution innovation: an imperial study on education institutions

Abstract

This study is conducted to determine the impact of managing economics regulation on institution innovation: an imperial study on education institutions. Regulatory framework conditions have been identified as important factors influencing the innovation activities of companies, industries, and whole economies. However, in the growing body of empirical-based literature, the impacts of regulation have been assessed as rather ambivalent for innovation in general, often depending on the different types of innovation. Different types of regulations generate various impacts on innovation, and even a single specific regulation can influence innovation in various ways, differentiating between innovation input, research and development, and output—incremental or radical innovations—often depending on how it is implemented. Regulation, innovation, and competitiveness in global markets have been discussed for several decades. Recently, policymakers have started to extend their focus towards the regulatory framework as a possible instrument for innovation policy, especially because many countries have little leeway to increase public spending in R&D and other innovation-related activities after the global financial crises. Despite the variety of regulations and their numerous impacts on innovation, only recently has some progress been made to understand the effect of regulation on the ability of companies to innovate. Meanwhile, some comprehensive studies have been conducted in addition to the great amount of anecdotal evidence. Some in-depth analyses provide insights that allow a further differentiation reflecting the heterogeneous impacts of different types of innovation. Nevertheless, in total, these studies still provide no clear picture of whether the negative impacts of regulation outweigh the positive effects.