How does Regulatory Uncertainty Shape the Innovation Process? Evidence from the Case of Nanomedicine

This study investigates the effect of regulatory uncertainty on the translation of scientific discovery on emerging research topics to technical applications in science-driven industry. Our empirical analysis using the case of the US Federal Drug and Food Administration’s release of the report on the regulatory approach to nanomedicine in 2007 shows that; (1) the regulatory uncertainty decelerated the translation of nanomedicine research to technical applications, (2) this effect was particular for the nanomedicine research on emerging topics in the field. Our further analysis suggested that the effect of the regulatory uncertainty originated from the suppressed business activities in the field where the regulatory uncertainty presents. Contributions to the literature on the relationship between governmental regulation and innovation and the implication for science policymakers are discussed.

https://doi.org/10.5465/AMBPP.2022.62

Author(s): Seokbeom Kwon, Jan Youtie, Alan Porter, Nils Newman
Organization(s): Sungkyunkwan University, Georgia Institute of Technology, Search Technology
Source: Academy of Management Proceedings Volume 2022 [Best Papers], [Journal of Technology Transfer (submitted)]
Year: 2022

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