Regulation threatens innovation from "summary" of The Future of Ideas by Lawrence Lessig
The argument that regulation threatens innovation is a common refrain in debates over technology policy. The fear is that the heavy hand of government will stifle the creativity and experimentation that are the lifeblood of the digital age. This concern is not without merit. History is replete with examples of well-intentioned regulations that had the unintended consequence of impeding innovation. Consider, for instance, the case of the telephone. In the early days of the telephone industry, regulators imposed strict controls on the operation of telephone networks. These rules were designed to ensure universal access and prevent anti-competitive behavior. However, they also had the effect of stifling competition and discouraging investment in new technologies. It was only when these regulations were relaxed in the 1980s that the industry experienced a period of rapid innovation and growth. The lesson from the telephone example is clear: regulation can have a chilling effect on innovation. When ...
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