12% of UK firms, engaging in some form of innovation activity, consider UK regulations a barrier to innovation

Department for Business, Energy & Industrial Strategy, Innovation Report (2019)

The 2016-2018 UK Innovation Survey reports that 12% of UK firms, engaging in some form of innovation activity, consider UK regulations a barrier to innovation. Yet regulation can stimulate new ideas, provide certainty to reduce investment risk, create consumer confidence, steer the development of new products, and enable the rapid but safe adoption of new technologies. 32% of innovative businesses reported that the meeting of regulatory requirements was of ‘high’ importance to their decision to innovate. In other words, regulations can actually be a powerful driver of innovation.

So why do some businesses view regulations as a barrier? It could be because they don’t understand how regulations can actually help to stimulate new ideas and encourage innovation. Or it could be because they’re encountering obstacles in the regulatory process itself. Whatever the reason, it’s important to remember that regulations can be a powerful force for good when it comes to innovation.