Regulatory barriers to international scientific innovation: approving new biotechnology in North America

• Published in: Canadian foreign policy journal Vol. 23; no. 2; pp. 134 - 145
• Main Authors: Smyth, Stuart J., Kerr, William A., Gray, Richard S.
• Format: Journal Article
• Language: English
• Published: Routledge 04.05.2017; Taylor & Francis Ltd
• Subjects: agricultural biotechnology; biosafety; Biotechnology; Constraints; Foreign policy; Free trade; Harmonization; Investments; NAFTA; North American Free Trade Agreement; Regulation; scientific-based innovation; Trade agreements
• ISSN: 1192-6422; 2157-0817
• DOI: 10.1080/11926422.2016.1190771

The regulation of science often differs among countries and leads to a divergence that can create barriers to research, knowledge transfer and product trade. Many types of scientific research are mobile activities that be done in a number of countries for a comparable cost. With technology development firms facing comparable development costs regardless of location, it is well understood that location decisions are driven by the time and monetary costs of compliance with regulatory systems. In this article we show the compatibility of a country's regulatory system with foreign regulatory systems can also impact the viability of research investment. We argue there may be considerable economic gain from bilateral, and eventually multinational, agreements to adopt a harmonized or shared regulatory process. This is particularly germane for the United States and Canada which are already in a free trade agreement.