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Regulation, Innovation and Productivity

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  • FRANCISCO MARCOS

    (Instituto de Empresa)

  • Juan Santaló

    (Instituto de Empresa)

Abstract

This paper estimates the average effect of regulatory intensity and administrative redtape on productivity and innovation. For this purpose we exploit the exogenous variation of the decentralization process that has taken place in Spain during the last three decades. Using objective proxies for legislative and regulatory activity such as the number of pages and number of new norms published in the regional legislative reporters we find a strong negative impact of regulatory intensity on regional innovation and productivity.

Suggested Citation

  • FRANCISCO MARCOS & Juan Santaló, 2010. "Regulation, Innovation and Productivity," Working Papers Economia wp10-04, Instituto de Empresa, Area of Economic Environment.
    • Handle: RePEc:emp:wpaper:wp10-04
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