Experimental governance
and
regulatory approaches
Lorenzo Allio
Senior Policy Analyst
European Risk Forum
1
OECD Global Conference on Governance Innovation
Towards Agile Regulatory Frameworks in the Fourth Industrial Revolution
Paris, 13-14 January 2020
Initial considerations
• 4th Industrial Revolution: convergence of numerous innovations
• A dazzling effect? Radical and incremental innovation
– Fragrance industry
– Single-serve coffee capsules
• Are the traditional regulatory tools / approaches no longer fit for
purpose?
• How normal can “experimental” be?
– Flexibility, adaptability, responsiveness
– Predictability? Data intensity? Industry’s regulatory maturity? IP
protection? Regulator’s enforcement capacity?
2
Traditional “agile” approaches:
― forgotten / neglected?
For instance, two old friends of the regulatory policy toolkit
• Self-regulation
– Alcohol industry
– Video-on-Demand industry
• Soft law
– Autonomous vehicles
– Veterinary medicine / crop protection / biocides / …
3
Normalising experimentalism
― “1+2” levels for future-proofed decision-making
4
UPSTREAM
Societal goals, foresight, research policy
THROUGHOUT
Policy elaboration and legislative design
Regulatory process
DOWNSTREAM
Regulatory implementation
• THROUGHOUT
Policy elaboration and legislative design
Regulatory process
• DOWNSTREAM
Regulatory implementation
Normalising experimentalism
― “1+2” levels for future-proofed decision-making
5
- technology neutral
- outcome-based
- risk-based
- coherent
• e.g. Chemicals management
& Low Carbon Economy
- risk-risk / risk-benefit
analyses
- dynamic impacts
- R&I investment impacts
• Capitalised development costs,
Defensive R&D, Stigmatisation
- (science) quality standards
- due process standards
- rule of law
• RIA, consultation, oversight,
redress
www.riskforum.eu
6
Concluding considerations
7
• Successfully tackling the innovation–regulation interface requires
– managing complex and pro-active decision-making: what is proportionate?
– establishing and nurturing trust between industry, NGOs (consumers,
patients), experts, regulators: how high must the bar be?
– agreeing on a shared societal acceptance of taking risk, and the
(re-)allocation of the benefits thereof: who sets the level?
• What can experimental governance deliver in these three respects?
• What policy fields are particularly (not) prone to experimental
approaches?
• Experimentalism helps foster agility and responsiveness, but can it
become the norm / the benchmark to gauge good regulatory practice?
• Regulatory policy to truly make the default regulatory framework into
one of the enabling conditions for innovation.
8
THANK YOU !
Happy to discuss
lorenzo.allio@riskforum.eu

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Lorenzo Allio, Session 3

  • 1. Experimental governance and regulatory approaches Lorenzo Allio Senior Policy Analyst European Risk Forum 1 OECD Global Conference on Governance Innovation Towards Agile Regulatory Frameworks in the Fourth Industrial Revolution Paris, 13-14 January 2020
  • 2. Initial considerations • 4th Industrial Revolution: convergence of numerous innovations • A dazzling effect? Radical and incremental innovation – Fragrance industry – Single-serve coffee capsules • Are the traditional regulatory tools / approaches no longer fit for purpose? • How normal can “experimental” be? – Flexibility, adaptability, responsiveness – Predictability? Data intensity? Industry’s regulatory maturity? IP protection? Regulator’s enforcement capacity? 2
  • 3. Traditional “agile” approaches: ― forgotten / neglected? For instance, two old friends of the regulatory policy toolkit • Self-regulation – Alcohol industry – Video-on-Demand industry • Soft law – Autonomous vehicles – Veterinary medicine / crop protection / biocides / … 3
  • 4. Normalising experimentalism ― “1+2” levels for future-proofed decision-making 4 UPSTREAM Societal goals, foresight, research policy THROUGHOUT Policy elaboration and legislative design Regulatory process DOWNSTREAM Regulatory implementation
  • 5. • THROUGHOUT Policy elaboration and legislative design Regulatory process • DOWNSTREAM Regulatory implementation Normalising experimentalism ― “1+2” levels for future-proofed decision-making 5 - technology neutral - outcome-based - risk-based - coherent • e.g. Chemicals management & Low Carbon Economy - risk-risk / risk-benefit analyses - dynamic impacts - R&I investment impacts • Capitalised development costs, Defensive R&D, Stigmatisation - (science) quality standards - due process standards - rule of law • RIA, consultation, oversight, redress
  • 7. Concluding considerations 7 • Successfully tackling the innovation–regulation interface requires – managing complex and pro-active decision-making: what is proportionate? – establishing and nurturing trust between industry, NGOs (consumers, patients), experts, regulators: how high must the bar be? – agreeing on a shared societal acceptance of taking risk, and the (re-)allocation of the benefits thereof: who sets the level? • What can experimental governance deliver in these three respects? • What policy fields are particularly (not) prone to experimental approaches? • Experimentalism helps foster agility and responsiveness, but can it become the norm / the benchmark to gauge good regulatory practice? • Regulatory policy to truly make the default regulatory framework into one of the enabling conditions for innovation.
  • 8. 8 THANK YOU ! Happy to discuss lorenzo.allio@riskforum.eu