So when an innovative industry becomes too fast‐paced and complex for government regulation, is self‐regulation the answer? Self‐regulation driven by market forces is a good solution — but self‐regulation made‐to‐order to satisfy government demands is not.
Regulatory Obstacles to Innovation: Is Self‐Regulation The Answer?
Self‐regulation might be styled a “Third Way” for regulating the high‐tech sector from the Internet to genetics. Under “Third Way” reforms, regulatory goals (education standards, for example) would be set at the federal levels, with responsibility for deciding how goals are to be reached falls on local government or even the private sector.
