This project looks at the relationship between changes in the regulatory framework and product innovation.
The study aims to uncover how regulatory reforms impact firms’ incentives to introduce new products and how product innovation influences market dynamics, including firm entry, exit, and survival. By examining the evolution of regulations at the US Federal Communication Commission (FCC) regarding testing and appropriability for lower-powered equipment using unlicensed spectrum, the research sheds light on a crucial yet underexplored area.
Through three distinct Research Activity Lines (RALs), the team plans to provide empirical evidence on firms’ responses to changes in the testing and appropriability regime. The project’s impact is expected to manifest through academic publications in esteemed journals and a workshop in Pavia to disseminate and discuss the research findings with experts in the field.
By using a rich dataset comprising information on product certifications, company profiles, and market segments, the research employs advanced data cleaning and analysis techniques to identify the effects of regulatory reforms on product innovation.
Econometric methods such as fixed effects regressions and difference-in-difference frameworks are utilized to quantify the impact of regulatory changes on firms’ innovation strategies and market behavior. Additionally, the study explores the implications of regulatory reforms on firm survival and exit patterns.
All in all, this project offers a comprehensive exploration of the intricate interplay between regulatory changes and product innovation. By investigating how firms respond to regulatory reforms and how innovation influences market dynamics, the study aims to contribute valuable insights to the fields of industrial organization, innovation economics, and market regulation.