Title page
Contents
Abstract 3
Acknowledgements 3
Executive summary 5
Introduction 6
1. Regulatory experimentation: Definitions and main forms 9
Characterising regulatory experimentation 9
Main forms of RE and their use 10
The legal basis for RE 18
2. The case for considering regulatory experimentation 23
RE can contribute to more agile, adaptive, and innovation-friendly regulation 23
RE can help address the "knowledge problem" in decision making 25
RE is no "silver bullet" and it involves trade-offs 26
3. Enabling factors for effective RE 32
A shift in regulatory culture is needed 32
Effective RE requires a clear legal anchoring, and enabling administrative and scientific ecosystem 33
Careful planning, robust oversight and coordination hold the key to effective implementation of RE 33
Engaging proactively with stakeholders regarding the design, implementation and evaluation of RE is crucial for effectiveness and appropriate risk management 36
RE outcomes should be used to inform policy making to the extent possible 37
4. Conclusions 38
References 39
Notes 43
Table 1.1. Main components of experimentation clauses (Model experimentation clause, Germany's Federal Ministry for Economic Affairs and Energy) 21
Table 2.1. Pros and cons of potential alternatives to regulatory experiments (CRI) 30
Boxes
Box 1. Conclusions from the Regulatory experimentation roundtable organised during the 26th meeting of the OECD Regulatory Policy Committee (April 2022) 7
Box 1.1. Regulatory experimentation by ERSE 11
Box 1.2. UK Civil Aviation Authority's Innovation Hub and Innovation Sandbox 16
Box 1.3. Selected categories of regulatory experiments 18
Box 1.4. Legal basis for regulatory sandboxes: selected examples from energy, health, mobility and financial services 19
Box 2.1. Examples of RE's contribution to improving and modernising regulatory frameworks in fintech 24
Box 2.2. Break-even analysis of potential regulatory experiments 29
Box 3.1. Safeguard mechanisms for regulatory sandboxes 35