Regulation and policy can really help spark new technology. They can change how things work in important ways, like how much people want new products and how many companies compete to make them. Here are some examples of how this happens:
Creating Demand: Rules and regulations can boost the need for new technology. For example, when car companies had to follow stricter rules about pollution, sales for electric vehicles (EVs) jumped by 40% from 2018 to 2020. By 2021, more than 6.6 million electric cars were sold around the globe, thanks in part to helpful government policies.
Rewards for Research: Governments often provide money or tax breaks to encourage companies to do research and development (R&D). In the U.S., a law passed in 2017 allowed businesses to take tax deductions for their R&D costs right away. This could lead to companies increasing their spending on innovation by about 20%, according to a science board.
Standards and Safety: Regulations can create fair play, making it easier for businesses to compete. For instance, the rules set by the Federal Aviation Administration (FAA) for commercial drones opened up a big market worth 62 billion by 2025!
Going Green: Policies that focus on being environmentally friendly, like the European Union’s Green Deal, push companies to come up with new ideas. In 2020, the renewable energy industry pulled in $495 billion in investments, thanks to shifts in government policy that promoted clean energy.
In conclusion, good regulations and policies help not just to promote but also direct new technological advancements in different industries.
Regulation and policy can really help spark new technology. They can change how things work in important ways, like how much people want new products and how many companies compete to make them. Here are some examples of how this happens:
Creating Demand: Rules and regulations can boost the need for new technology. For example, when car companies had to follow stricter rules about pollution, sales for electric vehicles (EVs) jumped by 40% from 2018 to 2020. By 2021, more than 6.6 million electric cars were sold around the globe, thanks in part to helpful government policies.
Rewards for Research: Governments often provide money or tax breaks to encourage companies to do research and development (R&D). In the U.S., a law passed in 2017 allowed businesses to take tax deductions for their R&D costs right away. This could lead to companies increasing their spending on innovation by about 20%, according to a science board.
Standards and Safety: Regulations can create fair play, making it easier for businesses to compete. For instance, the rules set by the Federal Aviation Administration (FAA) for commercial drones opened up a big market worth 62 billion by 2025!
Going Green: Policies that focus on being environmentally friendly, like the European Union’s Green Deal, push companies to come up with new ideas. In 2020, the renewable energy industry pulled in $495 billion in investments, thanks to shifts in government policy that promoted clean energy.
In conclusion, good regulations and policies help not just to promote but also direct new technological advancements in different industries.