As the importance of innovation has gradually increased with the passage of the times, many discussions have been made on regulation.
This is because regulation is known to affect innovation by engaging in the actions of companies or individuals that are the subject of innovation as the government's policy tool for maintaining social order. While regulation is often described as an obstacle to innovation, there are also arguments and evidence that regulation can play a role in driving innovation. So how do the domestic manufacturing and service industries recognize regulations and how do regulations affect innovation activities? To answer the question, this study attempted to analyze the relationship between regulatory recognition and innovation activities. To analyze it in detail, regulations were categorized and the relevance was examined only for product innovation activities. According to the recognition distribution by type of regulation, companies tended to respond that they had hampered innovation by non-technology type social regulations and that they had promoted innovation by technology type social regulations.
Also, as a result of analyzing the recognition of each type of regulation and the actual product innovation activities, discrepancies were identified in the monopoly regulation, price regulation, entry regulation, and environmental regulation. On the other hand, consumer safety regulation, intellectual property rights protection, and labor regulation significantly influenced product innovation activities, as perceived by each regulation.
These results mean that the recognition and practical impact of innovation varies depending on the type of regulation. Also, in this study, the effect of regulation on innovation was approached by whether the companies choose or give up innovation as a way to respond to regulation, and these results provide implications for both regulatory and innovation policies.