Key ACI study shows regulation is anti-innovation

March 4, 2010

Kudos to Larry Darby of the American Consumer Institute for his outstanding new study on the destructive effect of regulation on innovation. Please read it if you are at all interested in innovation.

The study debunks the views of some that government, regulation and regulators are somehow a font of innovation.

After reviewing the relevant literature and evidence on the subject, Dr. Darby concluded that:

  • innovation is naturally flourishing without government involvement or micromanagement;
  • burdening broadband providers with new common carrier burdens would severely discourage innovation; and
  • limiting innovation in one part of the ecosystem would ultimately diminish innovation in the entire Internet ecosystem.

At core, the new notion floated by some that more FCC regulation would encourage innovation is nonsensical and unsupported by any literature or evidence.

The big takeaway here is that new “Mother may I” regulations, which effectively require some market participants to get FCC approval for their innovations, in order to protect or advantage others’ innovations, is not innovation policy. It is old-fashioned industrial policy where government picks market winners and losers. This is a policy approach long proven to grossly underperform market-based policies.

 

 

Advertisements

One Response to “Key ACI study shows regulation is anti-innovation”

  1. i might not have thought this had been excellent a number of years in the past but its amusing precisely how years alters the manner of how you experience contrasting creative concepts, thanks for the post it really is pleasing to browse something sensible now and then in lieu of the popular garbage mascarading as a blog on the internet, i’m off to enjoy a couple of hands of facebook poker, regards

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: