Congress should direct federal agencies to review regulatory processes and procedures and pursue reforms to improve the clarity, speed and agility of regulation. Reforms should ensure that regulations are risk based and facilitate the commercialization of innovative technologies. The review should solicit robust input from industry and research universities.
The United States needs to create a regulatory environment that encourages and enables innovation, rather than one that threatens U.S. competitiveness with an inflexible and outdated approach.
To maintain its role as the top global destination for innovation, the United States must modernize regulatory systems for the innovation age and harmonize approaches to data privacy and security.
Outdated regulations and inflexible standards threaten American competitiveness in a rapidly changing landscape. By 2020 there could be 50 billion internet-connected devices, but U.S. companies face serious regulatory barriers to innovative activity.
Regulations Can’t Keep Up With Technology
In 2012, rule-making requiring notice and comment periods took an average of 18 months. That’s the same amount of time Moore’s law states that it takes to double the number of transistors that can fit on a computer chip.
U.S. Falling Behind Other Developed Nations
America has dropped to 17th in regulatory quality in the Global Innovation Index.
Inconsistent Regulations Lead to Complexity and Confusion
Each state has its own security breach notification legislation, resulting in sometimes incompatible provisions.
Undertake a thorough review process of the regulatory system.
Consider the impact of new and existing regulations on innovation.
Prioritize risk-based, light-touch approaches to regulation wherever possible.
Avoid conflicting regulations (e.g., establish a national privacy law).
Create test-beds and regulatory sandboxes.
Grow technical capacity at regulatory agencies.
Promote innovation in government.
- America’s Top CEOs Speak on Keeping America a Global Leader in Innovation
- Leadership in Innovation
- Policy Perspectives: Smart Regulation
- Policy Perspectives: Tax and Fiscal Policy
- Policy Perspectives: Technology
- Business Roundtable CEO Innovation Summit: Ambitious Innovation to Sustain U.S. Leadership
- Business Roundtable CEO Innovation Summit: Consumer Privacy in a Digital World