We should recognize the broad range of society’s interests and continue to seek balance by striving for regulation that serves well-defined purposes with minimal burden. Other institutional features Other institutional features are also important to the climate for innovation. For instance, entrepreneurship is fostered by access of small firms to capital markets.
A lack of breadth and depth of financial institutions and markets can inhibit the financing of innovative projects by small firms. Again, the United States appears to have an advantage in this regard relative to Europe and Japan.