Сhanging Regulatory Approaches in The Global Economy: From Traditional to Innovative Paradigms
DOI:
https://doi.org/10.26437/ajar.v11i1.863Keywords:
Economic regulation. globalisation. innovation. management. technologyAbstract
Purpose: This paper examines key aspects of innovative regulatory paradigms and their impact on global economic development.
Design/Methodology/Approach: This research methodology is grounded in a comprehensive analytical framework incorporating system analysis, structural-functional approaches, and synthesis and decomposition methods. The synthesis method consolidates insights from diverse data sources, crafting a cohesive understanding of how innovative regulatory paradigms shape economic and technological progress.
Research Limitation: The study is geographically confined to analysing regulatory paradigms in economies with significant global influence, such as Germany, while examples from emerging economies serve as complementary illustrations.
Findings: This research reveals that innovative regulatory paradigms significantly enhance adaptability and foster innovation within the global economy. The study identifies a noticeable shift in adopting regulatory sandboxes from developed to emerging economies, highlighting their role in driving technological advancement and economic competitiveness. Furthermore, it was established that integrating flexible regulatory frameworks fosters innovation and ensures economic stability.
Social Implication: By fostering green innovations and enabling digital transformation, these paradigms address pressing global challenges such as climate change, resource efficiency, and equitable access to technological advancements.
Practical Implication: This research provides industries with actionable insights into the advantages of adopting innovative regulatory paradigms, such as regulatory sandboxes, to foster technological advancements and improve competitiveness.
Originality/Value: This study introduces a novel perspective on the global shift from traditional regulatory frameworks to innovative paradigms, specifically emphasising regulatory sandboxes. policies.
References
Aghion, P., Bergeaud, A., & Van Reenen, J. (2023). The impact of regulation on innovation. American Economic Review, 113(11), 2894–2936. https://doi.org/10.1257/aer.20210107
Al-Qudah, A. A., Al-Okaily, M., & Alqudah, H. (2022). The relationship between social entrepreneurship and sustainable development from economic growth perspective: 15 ‘RCEP’countries. Journal of Sustainable Finance & Investment, 12(1), 44–61. https://doi.org/10.1080/20430795.2021.1880219
Bauer, J. M., & Bohlin, E. (2022). Regulation and innovation in 5G markets. Telecommunications Policy, 46(4), 102260. https://doi.org/10.1016/j.telpol.2021.102260
Behera, P., & Sethi, N. (2022). Nexus between environment regulation, FDI, and green technology innovation in OECD countries. Environmental Science and Pollution Research, 29(35), 52940–52953. https://doi.org/10.1007/s11356-022-19458-7
Botelho, D. F., Dias, B. H., de Oliveira, L. W., Soares, T. A., Rezende, I., & Sousa, T. (2021). Innovative business models as drivers for prosumers integration-Enablers and barriers. Renewable and Sustainable Energy Reviews, 144, 111057. https://doi.org/10.1016/j.rser.2021.111057
Cao, S., Nie, L., Sun, H., Sun, W., & Taghizadeh-Hesary, F. (2021). Digital finance, green technological innovation and energy-environmental performance: Evidence from China's regional economies. Journal of Cleaner Production, 327, 129458. https://doi.org/10.1016/j.jclepro.2021.129458
Clean Energy Wire. (2024). Energiewende in Germany. https://www.cleanenergywire.org/factsheets/germanys-energy-consumption-and-power-mix-charts
Deutsche Bundesbank. (2024). Financial Stability. (pp. 15–20). https://www.bundesbank.de/en/tasks/financial-stability/financial-stability-766812
Federal Ministry of Education and Research (BMBF). (2024). Germany’s High-Tech Strategy. https://www.bmbf.de/en/high-tech-strategy-2025-456.html
Fu, T., & Jian, Z. (2021). Corruption pays off: How environmental regulations promote corporate innovation in a developing country. Ecological Economics, 183, 106969. https://doi.org/10.1016/j.ecolecon.2021.106969
German Accelerator. (2024). https://www.germanaccelerator.com/
Hao, X., Li, Y., Ren, S., Wu, H., & Hao, Y. (2023). The role of digitalisation on green economic growth: Does industrial structure optimisation and green innovation matter? Journal of environmental management, 325, 116504. https://doi.org/10.1016/j.jenvman.2022.116504
Hsu, C. C., Quang-Thanh, N., Chien, F., Li, L., & Mohsin, M. (2021). Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation. Environmental Science and Pollution Research, 28(40), 57386–57397. https://doi.org/10.1007/s11356-021-14499-w
Jiang, Z., Wang, Z., & Lan, X. (2021). How environmental regulations affect corporate innovation? The coupling mechanism of mandatory rules and voluntary management. Technology in Society, 65, 101575. https://doi.org/10.1016/j.techsoc.2021.101575
Lee, C. C., Li, X., Yu, C. H., & Zhao, J. (2021). Does fintech innovation improve bank efficiency? Evidence from China’s banking industry. International Review of Economics & Finance, 74, 468–483. https://doi.org/10.1016/j.iref.2021.03.009
Lian, G., Xu, A., & Zhu, Y. (2022). Substantive green innovation or symbolic green innovation? The impact of ER on enterprise green innovation based on the dual moderating effects. Journal of Innovation & Knowledge, 7(3), 100203. https://doi.org/10.1016/j.jik.2022.100203
Liu, Y., Wang, A., & Wu, Y. (2021). Environmental regulation and green innovation: Evidence from China’s new environmental protection law. Journal of Cleaner Production, 297, 126698. https://doi.org/10.1016/j.jclepro.2021.126698
National Geographic. (2023). Germany’s Solar Power Revolution. https://www.nationalgeographic.com/environment/article/solar-power-revolution-germany-clean-energy-shift
Nemlioglu, I., & Mallick, S. (2021). Effective innovation via better management of firms: The role of leverage in times of crisis. Research Policy, 50(7), 104259. https://doi.org/10.1016/j.respol.2021.104259
Pan, W., Xie, T., Wang, Z., & Ma, L. (2022). Digital economy: An innovation driver for total factor productivity. Journal of Business Research, 139, 303–311. https://doi.org/10.1016/j.jbusres.2021.09.061
Peng, X. Y., Zou, X. Y., Zhao, X. X., & Chang, C. P. (2023). How does economic policy uncertainty affect green innovation? Technological and Economic Development of Economy, 29(1), 114–140. https://doi.org/10.3846/tede.2022.17760
Popelo, O., Dubyna, M., & Kholiavko, N. (2021). World experience in the introduction of modern innovation and information technologies in the functioning of financial institutions. Baltic Journal of Economic Studies, 7(2), 188–199. https://doi.org/10.30525/2256-0742/2021-7-2-188-199
PwC. (2021). Industry 4.0: Building the digital enterprise. (pp. 70–75). https://www.pwc.de/de/de/industrie-40/digital-enterprise.html
Ren, W., & Ji, J. (2021). How do environmental regulation and technological innovation affect the sustainable development of marine economy: New evidence from China’s coastal provinces and cities. Marine Policy, 128, 104468. https://doi.org/10.1016/j.marpol.2021.104468
Shang, L., Tan, D., Feng, S., & Zhou, W. (2022). Environmental regulation, import trade, and green technology innovation. Environmental Science and Pollution Research, 29(9), 12864–12874. https://doi.org/10.1007/s11356-021-13490-9
Shen, F., Liu, B., Luo, F., Wu, C., Chen, H., & Wei, W. (2021). The effect of economic growth target constraints on green technology innovation. Journal of environmental management, 292, 112765. https://doi.org/10.1016/j.jenvman.2021.112765
Statista. (2021). Germany: Number of Startups. (pp. 45–50). https://www.statista.com/statistics/756117/number-of-start-ups-germany/
Suchek, N., Fernandes, C. I., Kraus, S., Filser, M., & Sjögrén, H. (2021). Innovation and the circular economy: A systematic literature review. Business Strategy and the Environment, 30(8), 3686–3702. https://doi.org/10.1002/bse.2834
Tews, K., & Braun, T. (2021). Energy Transition in Germany: A Case Study on the Socio-Economic Dimension. Energies, 13(5), 1125, 30–35.
The World Bank (2020). Key Data from Regulatory Sandboxes across the Globe. https://www.worldbank.org/en/topic/fintech/brief/key-data-from-regulatory-sandboxes-across-the-globe
Tödtling, F., & Trippl, M. (2021). Regional innovation policies for new path development–beyond neo-liberal and traditional systemic views. In Dislocation: Awkward Spatial Transitions. (pp. 79–95). Routledge. https://doi.org/10.4324/9781003133551-6
Wang, M., Li, Y., Cheng, Z., Zhong, C., & Ma, W. (2021a). Evolution and equilibrium of a green technological innovation system: Simulation of a tripartite game model. Journal of Cleaner Production, 278, 123944. https://doi.org/10.1016/j.jclepro.2020.123944
Wang, P., Dong, C., Chen, N., Qi, M., Yang, S., Nnenna, A. B., & Li, W. (2021b). Environmental regulation, government subsidies, and green technology innovation—a provincial panel data analysis from China. International Journal of Environmental Research and Public Health, 18(22), 11991. https://doi.org/10.3390/ijerph182211991
Wen, J., Deng, P., Zhang, Q., & Chang, C. P. (2021). Is higher government efficiency bringing about higher innovation? Technological and economic development of economy, 27(3), 626–655. https://doi.org/10.3846/tede.2021.14269
Zarrouk, H., El Ghak, T., & Bakhouche, A. (2021). Exploring economic and technological determinants of FinTech startups’ success and growth in the United Arab Emirates. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 50. https://doi.org/10.3390/joitmc7010050
Zhao, L., Zhang, L., Sun, J., & He, P. (2022a). Can public participation constraints promote green technological innovation of Chinese enterprises? The moderating role of government environmental regulatory enforcement. Technological Forecasting and Social Change, 174, 121198. https://doi.org/10.1016/j.techfore.2021.121198
Zhao, X., Nakonieczny, J., Jabeen, F., Shahzad, U., & Jia, W. (2022b). Does green innovation induce green total factor productivity? Novel findings from Chinese city level data. Technological Forecasting and Social Change, 185, 122021. https://doi.org/10.1016/j.techfore.2022.122021
Zhong, Z., & Peng, B. (2022). Can environmental regulation promote green innovation in heavily polluting enterprises? Empirical evidence from a quasi-natural experiment in China. Sustainable Production and Consumption, 30, 815–828. https://doi.org/10.1016/j.spc.2022.01.017
Zhu, X., Zuo, X., & Li, H. (2021). The dual effects of heterogeneous environmental regulation on the technological innovation of Chinese steel enterprises—Based on a high-dimensional fixed effects model. Ecological Economics, 188, 107113. https://doi.org/10.1016/j.ecolecon.2021.107113
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2025 AFRICAN JOURNAL OF APPLIED RESEARCH
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
By submitting and publishing your articles in the African Journal of Applied Research, you agree to transfer the copyright of the Article from the authors to the Journal ( African Journal of Applied Research).
