Experimental Regulation for Social Innovations

Marlie Janssens

N-EXTLAW Working Paper Series, no. 1 (2/2022)

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Abstract: The current economic model is damaging the social and environmental resources it relies on. This extractive model is structured by a legal system which overly focuses on economic growth instead of social and sustainable purposes. Where a legal system is based on competition and controlling organizations driven by short-term profits, organizations which tend to pursue positive contributions in the long-term experience obstructions. This paper takes social innovations as a starting point and explores how unnecessary regulatory burdens can be removed for this type of social innovation through experimental regulation.

Currently, various experimental regulations already exist in Dutch law, but often with the purpose of stimulating technological innovation. In this paper, the focus lies on developing legal experiments that stimulate social innovation. As such, existing experimental regulations that support technological innovation are taken as a starting point, with the aim of broadening their scope to include social innovation. First, in section 2, two types of regulatory experiments and their functions will be discussed. This section will demonstrate the idea of experimental regulation for fostering technological innovation and provide a brief overview of the advantages and disadvantages of experimental regulation. In this context, it is relevant to take a closer look at the methodology of experimental legal regimes. Section 3 then argues to broaden experimental regulation to social innovations and shows how this relates to existing experimental regulation, with its advantages and disadvantages. The section also consists of other suggestions for stimulating social innovations.