Breaking Through the Paradoxes of Regulation
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Innovate & Transform

Breaking Through the Paradoxes of Regulation

11 July 2024 / Report

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The Conference Board Chief Technology & Innovation Council in Europe ask an anxious question: what can we, executives, do about regulation? CEOs raise the alarm that, for the foreseeable future, complex and incoherent regulation will have a detrimental impact on Europe’s global competitiveness. And CEOs highlight that improving and simplifying the EU’s regulatory environment would be the single most effective policy lever to restore Europe’s competitiveness.

Trusted Insights for What’s Ahead™ 

  • Regulatory pressure, particularly in Europe, has dramatically increased in recent years. Innovators are finding it hard to navigate the challenging—sometimes confusing and contradictory—new landscape, which is holding back new value generation, and putting, according to multiple business leaders, the future competitiveness of Europe at risk. 

The Conference Board Chief Technology & Innovation Council in Europe ask an anxious question: what can we, executives, do about regulation? CEOs raise the alarm that, for the foreseeable future, complex and incoherent regulation will have a detrimental impact on Europe’s global competitiveness. And CEOs highlight that improving and simplifying the EU’s regulatory environment would be the single most effective policy lever to restore Europe’s competitiveness.

Trusted Insights for What’s Ahead™ 

  • Regulatory pressure, particularly in Europe, has dramatically increased in recent years. Innovators are finding it hard to navigate the challenging—sometimes confusing and contradictory—new landscape, which is holding back new value generation, and putting, according to multiple business leaders, the future competitiveness of Europe at risk. 
  • These regulatory contradictions or conflicting trends can evolve into paradoxes—contradictions that persist over time and must be proactively dealt with by business and innovation leaders as strategic dilemmas. This action often requires overcoming tensions, emotions, and discouragement while looking for “better ways” and abandoning a “us vs. them” attitude.
  • There are three approaches to deal with the strategic dilemmas that paradoxes introduce: 1) “Going all-in”, which involves resolving issues through conviction, muscle, and energy; 2) “Trade-off” explores what compromise might placate regulators and still allow for innovation; or 3) “Going Beyond”, entailing a rethinking of strategy where the regulation(s) become irrelevant. 
  • It’s time for business and innovation leaders to proactively engage in a new dialogue with authorities to rebuil

Authors

Vincent Giolito

Vincent Giolito Vincent Giolito

Professor of Strategy and Organization
emlyon business school

Read Bio

John Metselaar

John Metselaar John Metselaar

Council Director, Asia and Europe Innovation Leade…
The Conference Board

Read Bio

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