Abstract |
The object of this report was to develop a model describing the innovation process in the chemical industry. The model developed provides a means of measuring and analyzing the impacts on innovation of various regulations. Of particular interest is the Toxic Substance Control Act (TSCA), which many critics argue has had a detrimental impact on innovation in the Chemical industry. First, a model of the innovation process is developed. This model contains three equations, which are also estimated using available data. The model works well explaining a great deal about the innovation process. Second, an attempt was made to analyze the impacts of TSCA. The data needed to complete a complete analysis of TSCA. |